International Women's Day

Since the government announced it would freeze the ABC’s funding in the budget, opponents have focused on restoring that money to the public broadcaster. Labor says it will restore funding, and the Media, Entertainment and Arts Alliance has labelled the cuts “dangerous and irresponsible”, calling for future funding to be guaranteed.

When managing director Michelle Guthrie gave a speech last week defending the ABC, she cited a yet-to-be published Deloitte report that found the public broadcaster contributed $1 billion to the Australian economy. All the debate so far questions whether funding should go into the public broadcaster as it is.

But Canadian media analyst Ken Goldstein, who has watched a similar debate about the public broadcaster in Canada, says there could be other options that governments, including Australia’s, aren’t even considering.

Sure, media benefits the broader economy

“It should not be surprising that there is a benefit to the broader economy from the spending by the ABC,” Goldstein told Crikey. “There is also a benefit to the broader economy from the spending by the commercial radio and television services.”

Goldstein said that given the changing media landscape, there should be more research into whether public broadcasters, as they were set up and originally funded, are the best use of public money for the same goals.

“The three public broadcasters (ABC in Australia, BBC in the UK and CBC in Canada) were set up 80 to 90 years ago. They were set up for radio — no television, no cable, no satellite, no internet,” he said. “After 80 years, it might be a useful idea to test whether, a) public intervention is still required, and b) what is the best form that intervention should take.”

He said financial data from the Australian Communications and Media Authority from 2015-16 indicated that the value-added economic benefit from the commercial radio and television services was likely substantially greater than that of the ABC.

Same public funds, different result

But he said the “real issue” was whether public broadcasters were the best way to spend the public’s money on broadcasting. Studies by Deloitte in Canada and elsewhere about the value of public broadcasters presented a “counterfactual” case — where that money was taken out of broadcasting and/or the money was replaced by advertising.

“On that basis, it was then concluded that the current system was better than the alternative,” he said. “My criticism of that approach is that it measured alternatives to public funding per se, rather than alternative ways of spending the same level of public funds within the same field and in pursuit of the same goals — on, say, more ‘pump-priming‘ for under-represented categories of programming that could then be broadcast/distributed in many ways, instead of only being funneled through a facilities-based corporation.”

He said that in order for governments to know whether public broadcasting corporations were really fulfilling their original purposes, they needed to break down how their funding is spent (a little more opaque in Australia than at the CBC or BBC) across different platforms and content.

“One might still fund radio, or news programming across platforms, in the same way. But for expensive television entertainment programs, a greater emphasis on ‘pump-priming’ might be more efficient (eg Screen Australia), with the resulting programs broadcast or distributed in many ways through many outlets,” he said.

Goldstein has raised the issue in Canadian parliamentary inquiries — also noting that cries from public broadcasters for more money are not new. He quoted then-CBC chairman Arnold Davidson Dunton, in 1947, telling a parliamentary committee: “Unless further funds come in, it will be impossible to keep the present level of service; it will be impossible to produce as much broadcasting by Canadian artists as it is doing at present. And this is apart from the question of needed improvements.”

In the UK, regulator Ofcom proposed creating a “public service publisher” in 2004, which would produce, distribute and fund public service content for broadcasters which were saying they couldn’t afford to produce public service programming. It was abandoned, and Goldstein said nothing like it had been implemented in the UK or elsewhere due to: “Pushback from established public broadcasters, combined with the rapidly-changing technology and economics of the industry”.