The Aussie chiefs of Commercial TV have stated that they will not accept the proposed compromise. The compromise includes trading in a fee reduction on the license in return for tougher restrictions on the amount of wagering ads that will be allowed to air during the sports events. As a part of the government’s reform of cross media laws, many free to air broadcasters like Nine, Ten and Seven started to hit back at the expected suggestions. These suggestions include the restriction of access to the lucrative sports events. The rules that the government is proposing to cancel are the media regulations that are referred to as the 2 out of 3 rule and the 75 percent reach rule.
The 75 Percent Reach Rule and the 2 Out of 3 Rule
According to the reach rule, Ten Network, Seven West Media, and Nine Entertainment are not allowed to own their own regional affiliates. As for the other rule, the 2 out of 3 rule, it prevents cross-media ownerships. As it prevents any entity from having control over free to air station, radio stations or newspapers in the same market.
Nick Xenophon, the independent Aussie Senator has been reported to be pushing for a total ban on the wagering advertisements during sporting events. This is going to act as a chip for bargaining to negotiate with the government of Turnbull. On the other hand, the Aussie Senator did not give any confirmation regarding the usage of the license fee reduction as a chip, but the team of the senator has stated that they are more than worried about the effects that the gambling advertisements have on children.
Senator Nick Xenophon stated that at the moment, there is a loophole when it comes to the broadcasting legislation. The loophole is that no gambling ads can be aired during the G-rated TV shows, but there is an exception to that rule, which is sport broadcasts. He added that it is a real problem as parents stop him to tell him that their kids know about the odds of the different games.
The Fee Reduction Proposal
The proposal by the government is that the 100 million dollar loss is going to be offset as the government agrees to reduce the payments for the license fee of 120 million dollars will be reduced each year. On the other hand, the CEO of one of the biggest Aussie Commercial TV, Seven West Media’s, Tim Worner, stated that he has not accepted this trade. He stated that it is going to be quite disappointing to become the political football in the middle of a discussion regarding another debate, which are the rules of the media ownership. He added that currently, Australia already has the strongest set of rules regarding gambling ads. These are rules that are followed and not mere guidelines.