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Convergence Review

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Convergence Review
NameConvergence Review
TypePolicy review
JurisdictionAustralia
Established2017
LeadAustralian Government
MinisterMalcolm Turnbull
OutcomeRegulatory reform proposals

Convergence Review The Convergence Review was an Australian government-commissioned policy review conducted to assess the regulatory framework for media, telecommunications, and broadcasting as digital technologies blurred lines between incumbents. It aimed to reconcile legacy frameworks governing Australian Broadcasting Corporation, Nine Network, Seven Network, Australian Communications and Media Authority, NBN Co and other major institutions with emerging platforms such as Facebook, Google (company), Netflix, Amazon (company), and YouTube. The review sought to balance interests represented by stakeholders including Free TV Australia, Commercial Radio Australia, Screen Producers Australia, Australian Publishers Association, Australian Competition and Consumer Commission, and various state and territory entities.

Background and Purpose

Launched amid debates following initiatives by Turnbull government, the Convergence Review responded to pressures seen in cases like disputes involving Nine Entertainment Co., Fairfax Media, and global entrants such as Twitter altering news distribution. It was shaped by antecedents including the Harper Review and the ongoing rollout of the National Broadband Network, while reflecting policy tensions evident in discussions about content regulation in the wake of events like the Panama Papers revelations and controversies surrounding platform moderation highlighted by incidents involving Cambridge Analytica. The Review was framed against regulatory precedents from jurisdictions influenced by reports such as the Ofcom consultations in the United Kingdom and the Federal Communications Commission's policy debates in the United States.

Scope and Methodology

The Review's scope encompassed broadcast television, subscription television, commercial and community radio, online streaming services, platform distribution, and advertising rules affecting operators such as Foxtel, Optus, Telstra, SBS, and independent producers linked to festivals like Sundance Film Festival. Methodologically, it combined public consultation rounds, submissions from entities including Screen Australia, Australian Writers' Guild, MEAA, and major corporations; comparative analysis of regulatory regimes in Canada, Germany, Japan, and New Zealand; and economic modelling referencing work by PricewaterhouseCoopers, Deloitte, and academic contributions from researchers at Australian National University and University of Melbourne. It employed stakeholder forums, written submissions, and commissioned research into advertising metrics used by News Corp Australia and online ad networks run by DoubleClick.

Key Findings and Recommendations

The Review concluded that legacy ownership rules and content quotas created distortions disadvantaging digital entrants while failing to ensure adequate local content investment by global platforms. It recommended reforms to local content obligations and spectrum allocation processes affecting bodies such as International Telecommunication Union signatories and to cross-media ownership settings that implicated companies like Fairfax Media and APN News & Media. Specific proposals included updating Australian content quotas to account for on-demand services, revising anti-siphoning lists that related to sports rights involving Cricket Australia and Australian Football League, and strengthening provisions addressing Australian content financing linked to entities such as Screen Finance. The Review urged greater coordination among regulators, proposing enhanced roles for Australian Communications and Media Authority and Australian Competition and Consumer Commission to address platform power concentrated in firms like Google (company) and Facebook.

Stakeholder Responses and Industry Impact

Responses varied: commercial broadcasters including Nine Network and Seven Network expressed guarded support for modernization of rules but warned of competitive risks, while digital platforms such as Netflix and Amazon (company) generally advocated for technology-neutral approaches. Industry groups like Free TV Australia and Commercial Radio Australia lobbied to preserve advertising and local production incentives; screen industry associations including Australian Writers' Guild and Screen Producers Australia pushed for enforceable local content funding. The proposal elicited parliamentary debate involving figures from Liberal Party of Australia, Australian Labor Party, and minor parties like The Nationals (Australia), with some state governments—most prominently New South Wales and Victoria—seeking clarifications on local content support. Commercial outcomes included renewed negotiations over carriage and distribution rights among Foxtel, Telstra, and streaming entrants, and reconsideration of investments by independent producers who had worked with festivals such as Melbourne International Film Festival.

Regulatory and Policy Implications

Policy implications touched on competition law and media pluralism, intersecting with enforcement powers of the Australian Competition and Consumer Commission and spectrum planning responsibilities tied to the Australian Communications and Media Authority. The Review influenced discussions about whether statutory instruments similar to those in Canada or mechanisms used by European Commission should be adopted to address platform gatekeepers. It prompted consideration of amendments to legislation governing broadcasting licences, anti-siphoning protections involving national sporting bodies like Cricket Australia, and incentives comparable to tax-offset schemes used by film industries in United Kingdom and Canada. Internationally, its findings resonated with regulators examining platform accountability in forums such as the Organisation for Economic Co-operation and Development.

Implementation and Follow-up Actions

Following release, the Australian Government considered staged implementation, commissioning further analysis and engaging with stakeholders including Screen Australia and peak industry bodies. Some recommendations prompted targeted rule changes administered by the Australian Communications and Media Authority, while others required primary legislation debated in the Parliament of Australia. Subsequent reviews and inquiries, including parliamentary committee examinations and consultations with bodies like Australian Film Commission-linked entities, tracked progress. Ongoing monitoring involved metrics on local content production, advertising flows, and platform market concentration, with comparative assessments against frameworks in jurisdictions such as United Kingdom and Germany to guide further policy refinements.

Category:Media policy in Australia