Executives head to Canberra for inquiry
Successful passage of the reforms concerning mergers and media diversity are expected to trigger a wave of corporate activity among the television broadcasters, with Nine Entertainment already in talks with Southern Cross Media.
The Senate committee inquiry into the media reform bills - which is looking into the less contentious elements of the reforms - meets from midday on Monday.
Executives from the ABC, SBS, Fairfax Media - publisher of the Herald - Nine Entertainment, Seven West Media, Ten and Southern Cross are listed to attend the inquiry, which will run for two days.
Little information is known about the other committee, the joint select committee on broadcasting legislation, that will look into the reforms facing widespread opposition - including abolition of the 75 per cent reach rule on broadcasters. This committee is listed to hold a four-hour inquiry in the morning but no further information is available.
The reach rule, preventing commercial television operators from broadcasting to more than 75 per cent of the Australian population, is considered an anachronism in the digital age.
But Ten, Seven West and WIN are among those who changed camps and announced they are bitterly opposing it after Fairfax Media revealed the talks between Nine and Southern Cross.
Mr McLennan has accused Southern Cross of withholding information from investors about its merger talks with Nine and questioned whether it has met its continuous disclosure obligations.
A spokesman for the ASX said it had no concerns at this stage.
"The obligation to meet disclosure obligations sits with the company. The company has announced that it is aware of its obligations. ASX will continue to monitor developments as a matter of course," the spokesman said.
Frequently Asked Questions about this Article…
The government has put forward media reform bills dealing with mergers and media diversity. Senate and joint select committees are examining different parts of the package — the Senate panel is looking at the less contentious elements, while a separate joint committee will review the more controversial changes such as the proposed abolition of the 75 per cent reach rule.
Executives from major media groups are listed to attend the two‑day Senate inquiry, including the ABC, SBS, Fairfax Media (publisher of the Herald), Nine Entertainment, Seven West Media, Ten and Southern Cross. The Senate committee meets from midday and will hear testimony over two days.
The article says successful passage of the merger and diversity reforms is expected to trigger a wave of corporate activity among television broadcasters. One immediate example given is that Nine Entertainment is already in talks with Southern Cross Media, which signals potential mergers or asset deals that investors should monitor.
The 75 per cent reach rule prevents commercial television operators from broadcasting to more than 75 per cent of the Australian population. The rule is described in the article as an anachronism in the digital age, but abolishing it has provoked widespread opposition because of concerns about concentration of broadcast reach and market power.
According to the article, Ten, Seven West Media and WIN changed their position and announced they are bitterly opposing abolition of the reach rule. That shift followed Fairfax Media's revelation of talks between Nine Entertainment and Southern Cross, which appears to have prompted concerns about possible consolidation.
Hamish McLennan, newly in charge of Ten, accused Southern Cross Media of withholding information from investors regarding its merger talks with Nine Entertainment. He questioned whether Southern Cross had met its continuous disclosure obligations to the market.
An ASX spokesman told reporters the exchange had no concerns 'at this stage.' The spokesman noted that the obligation to meet continuous disclosure requirements sits with the company, and that ASX will continue to monitor developments as a matter of course.
Everyday investors should watch the committee hearings and any official outcomes of the media reform bills (especially rules on mergers and the 75% reach limit), announcements about merger talks such as those between Nine and Southern Cross, statements from affected broadcasters (Ten, Seven West, WIN, Fairfax), and any market disclosures monitored by the ASX. These developments could influence corporate activity and investor sentiment in the media sector.
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