Media reforms lift Ten

2018 COMMONWEALTH GAMES HOST CITY caster. Its shares rallied 4.5¢ yesterday – a 20.5 per cent spike that boosted its market value by $17 million.

Nine Entertainment shares jumped 5.3 per cent to $1.38, while shares in Channel Seven parent Seven West Media climbed 3.4 per cent to 76.5¢.

It came after broadcast bosses welcomed the Government’s announcement on Saturday that $130 million in broadcast licence fees would be abolished in the Budget today. The fees will be replaced with a $40 million charge for spectrum.

Broader reforms include a ban on gambling ads immediately before, during and after live sports broadcasts.

The Government is also repealing the 75 per cent audience reach rule and the “two out of three” rule that prevents ownership of TV, newsprint and radio in any one market.

Ten chief Paul Anderson said the fee cut delivered “immediate financial relief” for the network, which is seeking support from its major investors for a new $250 million debt facility it needs to keep trading.

Mr Anderson said existing ownership rules were “stifling growth and costing jobs” and called on the Senate to pass the media package.

Nine chief Hugh Marks said the reform package would encourage innovation and investment in local content.

“The move from licence fees to a spectrum use-based fee addresses the onerous and prohibitive charges we have been facing, at a time when our business is competing with global giants who have no such restrictions in our market,” Mr Marks said.

Seven West chief Tim Worner said removing licence fees “will allow us to invest in more and better local content and to transform our businesses for the future”.

But media industry analyst Steve Allen, of Fusion Strategy, questioned how much extra the changes will leave for new investment in local content.

Expected ad revenue losses during live sport from the gambling ad ban would come close to the $90 million net benefit the industry will get from the licence fee cut, Mr Allen said.

“We don’t think there’s going to be any joy for the production sector in Australia,” he said.