Commercial networks collect licence fee windfall
The Federal Government is set to slash commercial television networks' licence fees by half over the next two years, in a decision justified on the basis of ensuring continued investment in Australian content.
Announcing the decision yesterday, the communications minister Stephen Conroy indicated that networks would be paid licence fee rebates of 33 per cent in 2010 and 50 per cent in 2011. Licence fees amounted to $286.8 million in the last financial year, meaning that the deal will be worth as much as $250 million for the networks over the years of the rebate.
In a statement, Conroy argued that the move was necessary to ensure that the commercial networks would continue to be able to invest in and screen local content, given the difficult economic circumstances.
"Broadcasters have a unique role in preserving our national culture and the commercial television sector invests hundreds of millions of dollars each year in the production of local content.
"However, they are faced with a converging media environment and switch to digital television, as well as the impact on revenue created by a decline in advertising spend as a result of the Global Financial Crisis."
According to The Australian, the rebate deal is part of a wider set of negotiations relating to the switchover to digital television in 2013.
Media Spy discussion: The television licence fee rebate
