David Coleman (Banks, Liberal Party, Shadow Minister for Communications) Share this | Link to this | Hansard source

I'm pleased to speak on the Communications Legislation Amendment (Prominence and Anti-siphoning) Bill 2023. As the name suggests, the government's bill deals with two quite distinct issues: prominence and anti-siphoning. The issue of prominence formed a part of the work of the coalition government's Future of Broadcasting Working Group. The working group had established prominence as a priority area, so it was appropriate that the government continued work in this area and has brought forward its model for reform in this legislation. As outlined in the explanatory memorandum for the legislation, the bill would insert part 9E into the Broadcasting Services Act, and this part would be focused on introducing a prominence regime.

The term 'prominence' refers to the accessibility of free-to-air television content on smart TVs, sometimes called 'internet-connected TVs'. The bill creates a new category of regulated television devices that would be required to carry free-to-air content as part of the prominence regime. This means that regulated devices would have to include the apps of free-to-air broadcasters and what the legislation describes as their 'primary user interface'—which, in practice, means the home screen of those devices. The legislation does not require that the free-to-air apps are positioned first on the screen; rather, it requires that they appear somewhere on the screen. The explanatory memorandum notes that manufacturers of regulated devices could still pursue commercial deals related to the order of particular apps on their home screens. Last month the government released additional regulations which prescribe the prominence requirements at a greater level of detail.

To turn to the anti-siphoning section of the bill, the anti-siphoning system was introduced in 1992. Its objective is to ensure that major sporting events can be viewed by Australians on free-to-air TV. The policy has been supported by successive governments over an extended period and has played an important role in ensuring that Australians are able to watch key sporting events at no cost. Sports covered under the anti-siphoning system include: the Olympic Games, the Commonwealth Games, horseracing, AFL, NRL, Rugby Union, cricket, soccer, tennis, netball and several motor sports, including the Formula 1, cycling races and the Bathurst 1000.

Under the current scheme, subscription television broadcasting licensees are prevented from acquiring a right to televise an event specified on the anti-siphoning list until a free-to-air broadcaster has acquired a right to televise that event. If an event has not been acquired by a free-to-air broadcaster six months before it takes place, it comes off the list. Currently, the anti-siphoning rules apply to only subscription television licensees—and this term refers to entities that broadcast content that is regulated as a subscription television business. This is a relatively narrow category of content providers and does not include streaming services. The main change in the government's legislation is to extend the operation of the scheme to content providers other than subscription television licensees. This would mean that other entities, such as streaming content providers, would also be bound by the rules and could not acquire an event on the anti-siphoning list until a free-to-air broadcaster has acquired a right to that event. The government's rationale for this is that, in the absence of this change, content providers other than subscription television licensees could potentially subvert the intention of the scheme.

The bill also extends the six-month rule to 12 months. The argument for this is that rights to events are typically acquired more than 12 months in advance, meaning that if no free-to-air broadcaster buys the rights there is still time for another content provider to do so.

The coalition will not oppose this bill. I note the bill is still the subject of an inquiry by the Senate Environment and Communications Legislation Committee. We look forward to examining that report and will carefully review any recommendations that are proposed.

Anne Stanley (Werriwa, Australian Labor Party) Share this | Link to this | Hansard source

Nothing in life is more certain than change. This is especially the case in the area of technology and communications. Every day it seems there are new inventions and technologies changing the way we send and receive information, and at times it is extremely difficult and challenging both for consumers and regulatory bodies to keep up. These technological changes can also present particular challenges in a robust democracy.

From TV's first broadcast on 16 September 1956, free-to-air broadcasting has played a unique role in Australia. It supports an informed democracy, it keeps communities informed during natural disasters, it brings communities together with sports coverage and local information and it reflects our various perspectives, unique culture and other things. But the ability of free-to-air broadcasting to meet these objectives is being challenged. Over the past decade there has been a fundamental transition in the TV market in Australia. Free-to-air broadcasting services now exist as one of many content options on connected TV interfaces and are becoming increasingly difficult to find. This transition and shift in the TV market is game changing. Probably the only thing to match it was the decision by my predecessor Gough Whitlam to introduce colour TV into Australia in 1975.

Unfortunately, research has found that a significant proportion of the Australian population lacks the skills and knowledge to install and engage with these services on newer devices. I have to engage my sons to help me figure them out—although it is amazing what the world opens when you figure out all these different apps. The end result of this change is there is no longer a level playing field. While free-to-air services are subject to the bulk of the obligations to deliver important public policy outcomes, their new competitors are not. Ultimately, this has the potential to impact access by Australian citizens and consumers to the local content and services they can rely on.

Prior to the 2022 election, Labor made two key election commitments regarding free-to-air broadcasting in order to address these challenges. Firstly, Labor committed to a prominence regime to ensure local television services can be easily found on connected TV platforms. Secondly, Labor also committed to a review of the antisiphoning scheme so that the coverage of events of national importance and cultural significance, such as sport, remain free of charge and accessible to all the Australian public.

Firstly on the prominence reforms: the bill before us, the Communications Legislation Amendment (Prominence and Anti-siphoning) Bill 2023, will amend the Broadcasting Services Act 1992 and the Australian Communications and Media Authority Act 2005 to introduce a prominence framework for connected TV devices. The prominence framework will enable Australian consumers to access free-to-air television with minimal input, effort or capability on the part of the consumer. It will also have positive flow-on impacts for local broadcasting industries without imposing unintended or unreasonable burdens on the manufacturers of regulated television devices. Specifically, the prominence framework will firstly impose an obligation on the manufacturers of internet connected TV devices to ensure their devices comply with minimum prominence requirements to be set out in the regulations. These requirements will include, among other things, that the linear broadcast and broadcasting video-on-demand services of free-to-air broadcasters are available on the home screen of regulated devices. Secondly, the prominence framework will prohibit manufacturers from requiring that free-to-air broadcasters pay a fee, charge or any other consideration for or in connection with the device complying with the minimum prominence requirements. Thirdly, the framework will require that manufacturers take reasonable steps to ensure that audiovisual content provided by free-to-air broadcasters, including any advertising or sponsorship matter, is not altered with. Finally, the prominence framework will provide the Australia Media and Communications Authority, ACMA, with a range of powers to oversee and enforce the framework.

Now to the anti-siphoning component of the bill before us. Schedule 2 of the bill will amend the Broadcasting Services Act to modernise the anti-siphoning scheme, which has been in place for nearly 30 years. The scheme promotes free access to televised coverage of nationally important and culturally significant events. It currently does this by preventing subscription television broadcast licensees from acquiring a right to televise an event on the anti-siphoning list unless a free-to-air television broadcaster has a right.

A comprehensive review of the scheme has found that the objective of the scheme remains appropriate but that the scheme needs to be broadened to incorporate online services. Streaming services are not currently subject to the scheme, and there is no legal impediment to them acquiring the rights to iconic sporting events ahead of a local free-to-air broadcaster. As a result, there is a real risk that the sports will be siphoned exclusively behind online paywalls. Sadly, we've already seen this happen overseas. Such an outcome would be devastating for millions of Australians, who would simply be unable to pay for the coverage of sports that they have traditionally viewed for free—and should be able to view for free.

To be clear: Australians, regardless of age, where they live or how much they earn, should have the right to access free coverage of sporting events that they're interested in. These events create shared experiences, foster a sense of collective Australian identity and contribute to grassroots community based sports participation. The reforms to the anti-siphoning scheme expand the scheme to prevent media content services, including but not limited to streaming services, from acquiring the right to provide coverage of a listed event to Australian audiences until a free-to-air broadcaster has acquired a right to televise the event on a broadcasting service. This effectively extends the scope of the restriction on the acquisition of rights under the current scheme, which applies only to subscription television broadcasting licences. Further, the reforms extend the automatic delisting period under the scheme to 12 months, to better reflect the commercial reality of sports rights acquisition and finally provide a range of powers for ACMA to oversee and enforce the enhanced scheme.

The government commenced the modernisation of this scheme in 2023 by providing equivalent listings of the FIFA World Cup, the men's tournament, and the FIFA Women's World Cup. This listing will increase the likelihood of Australians being able to watch the Matildas for free in future World Cup tournaments, and the government will publish an exposure draft of the new list to assist the parliament's consideration of the anti-siphoning framework as a whole. This will retain the composition of the current list, but it will include a number of additional events, including the NRL Women's State of Origin series, the final series matches of the AFL and the NRL Women's Premiership, and all events that are held as part of the Summer Paralympic Games.

Australians love their sport, and these reforms will ensure that their favourite and most popular sports remain where they should be: free-to-air, available to all. I began my remarks today by noting the breakneck pace of change in the area of technology and communication. This is particularly the case in the area of TV devices and services. Australians have embraced these changes, consuming media content at times and with devices of their choosing. The bill that is before the parliament at the moment will, therefore, promote consumer and citizen access of choice and support a strong and sustainable media industry. I commend the minister on bringing this matter before us and I commend this bill to the House.

Debate adjourned.