Peter Coleman: New report to look at other countries' news business models

Jun 22, 2020 at 02:44 am by Staff


What now, if post-COVID advertising revenue doesn't climb back up the cliff off which it's fallen, and Australia fails to force Google and Facebook to chip in what publishers believe is their share of their costs?

A new, government-supported model could be needed to supplement the private and philanthropic funds increasingly directed to supporting diversity in journalism.

A start may the appointment of a consultant to gather information for an independent report on the media industry, the third in less than a year.

A new tender from the infrastructure, transport, regional development and communications departments with up to $220,000 earmarked for such a report, closed today. It will be broken into two parts - an assessment of "existing, emerging and novel business models" for producing and distributing news and media content, and an evaluation of "regulatory and non-regulatory measures employed - or being considered - in comparable jurisdictions".

So far this year, the government has already spent $99,700 with KordaMentha for analysis on the regional broadcasting sector, and $11,200 for Megan Brownlow's recommendations, which included further relaxation of ownership restrictions to allow for consolidation of the regional broadcasting industry.

So much for regional broadcasting; but what about news publishing, regional and otherwise?

The report will look for information and advice on successful new media business models in overseas markets, and ideas to support a media transition "to a more sustainable footing". In theory, that might look a bit like what News Corp is doing, leading regional readers - by the nose, so to speak - to digital.

The reality is that some print would be valued in the mix, and the new Reuters Institute 2020 Digital News Report's comments on subscriber-based publishing hints at reasons why that may not work, especially given Australia's regional infrastructure.

There's been some pretty piecemeal financial support for publishers, independent, regional, small and otherwise, and impacted by a definition of those terms. Among this, a $60.4 million parcel of cash which helped gain the Senate support of South Australian Nick Xenothon for media law reform is still trickling out after three years looking at training and "innovation"... while, Xenothon, meanwhile has left the Senate.

There's also been some fairly arbitrary recent support of regional newspapers through government advertising (again definitions seem to get in the way).

Ironically, the funds emanating from the likes of Google and Facebook ever since they discovered - starting in Europe - that relatively-modest amounts of money - although still substantial by industry terms - could be useful in keeping governments off their backs.

The new tender appears to be more forward-thinking: hopefully an assessment of what post-COVID publishing will look like, what it could look like, and how the government might encourage support without exercising political influence.

Which could be a substantial improvement on the present structure, dominated as it is by large and often overseas-controlled media companies which nonetheless have the power to tell the Australian government what to do.

• Peter Coleman is managing editor of GXpress and a former magazine and regional newspaper publisher. Contact him at mpcmedia@ozemail.com.au

Sections: Columns & opinion

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