Australia has one of the most concentrated media markets in the developed world. Australia's newspapers, radio stations, and television broadcasting networks are owned and controlled by a small handful of rich and powerful people, like Rupert Murdoch. With a new piece of legislation rumored to be passed soon through Australia's Parliament, that handful of people could become even smaller.
Rupert Murdoch, founder of News Corporation and Chairman of 21st Century Fox and Fox News.
The basic premise of this new legislation would be to eliminate restrictions, such as "two out of three" and "reach rule". The two out of three rule stops companies from owning a newspaper, radio and television station in the same city. The reach rule was created to prevent a single television broadcaster from reaching more than 75% of the population of Australia. The current laws are thanks in large part to Paul Keating during his time as Prime Minister in the 1980's.
Big media companies in Australia, such News Corporation (Owned by Murdoch) and Fairfax Media, are for this legislation, claiming that these old laws do not reflect the digital age we now live in. Like other global media companies, classic Australian media must now contend and compete with the rise of the internet and giant companies, such Google and Facebook. They argue that easing up on ownership limitations will allow them greater ability to compete with these bigger, better-funded internet companies. Companies they claim are drawing away advertising dollars. Both News Corp. and Fairfax have reported over the last couple of years revenues have dropped in publication and they are being forced to cut newsroom jobs.
Examples of popular Newspapers in Australia.
However, some are asking what would happen if these Australian media companies gain too much power with this legislation. Experts say that this legislation would do little to help media companies compete with Google, only help large companies weed out smaller local competitors. Australian media would become controlled by monopolies. Nicholas Xenophon, a pro-legislation Australian Senator, secured an 'innovation' package for regional and smaller publishers, worth $60.4 million Australian dollars to be distributed over the next three years. However, "The package has been criticized by Labor (party) politicians as merely providing smaller outlets with equipment and doing nothing to sustain jobs".
Is this legislation helping to break down old limitations and expand Australia's media reach in the world? Or is this legislation taking the little business owner out of the fight and giving all the power to the big media companies?