The Federal Government’s plans for the future of media ownership, unveiled yesterday at the National Press Club, would result in the contraction of media corporations by half. The Federal Minister for Communications, Senator Helen Coonan, announced that the government was considering radical changes to media ownership laws, allowing corporations to own a television station, two radio stations and a daily newspaper in the same area.

The only restriction would be that at least five commercial companies would be operating in each mainland capital city, and four in all other regions. Senator Coonan said:

“Mergers would be subject to there remaining a minimum number of commercial media groups in the relevant regional and metropolitan markets – four voices in regional markets and five in mainland state capitals.”

At present there are 12 media owners in Sydney and 13 in Melbourne. It is feared that setting a minimum well below current standards will tighten an already constricted media market.
 
“This attempts to create an illusion of diversity,” said the Federal Secretary of the Media, Entertainment & Arts Alliance, Christopher Warren.

“Once the government lifts the barriers to cross-media ownership, this will quickly reduce to the allowable minimum. This will mean fewer media companies and less diversity of news, views and opinions.”

Australia is already one of the most concentrated media landscapes in the world and with these changes could arguably become the most concentrated in any democratic country. The BBC describes the Australian media as “creatively, technologically and economically advanced”.

However the profile it adds: “[Australia] has a long history of public broadcasting, but privately-owned TV and radio enjoy the lion's share of listening and viewing. Ownership of both print and broadcast media is highly concentrated. For example, four major media groups own 80% of Australia's newspaper titles.”

Despite the reiterated sentiment that “the protection of diversity and the maintenance of local content are central issues” the Government seems to have ruled out ways diversity could be encouraged. For example, pay television will not be included in the ownership mix and the fourth free to air commercial licence seems to be once again on the backburner.

Before announcing the proposal Senator Coonan has had extensive consultation with already existing media players.

“The consultation process has assumed that only the existing players have an interest in the future of Australia’s media landscape. It contradicts the Minister’s claims that the changes aim to benefit a media landscape ‘populated with a range of new players, new platforms, new services and new possibilities’,” said Warren.

“In the speech, the Minister continues the furphy that new media automatically means greater diversity. In fact, all the dominant commercial on-line players are the same as the old media players.”

In her speech, Senator Coonan said that policies need to ensure diversity of ownership and services in the local media market.

“This package fails her own test,” Warren said.

Read Senator Coonan's speech here.