Calls for digital radio to be dumped at top of review's list of cost-cutting measures
A confidential review of the ABC and SBS, commissioned by Communications Minister Malcolm Turnbull in January, has suggested that dismantling the national broadcaster's digital radio service – including triple j's Unearthed station and the fledgling Double J – would be one of the most efficient ways for it to save money.
The recommendation forms part of the wider Lewis efficiency review, which has not yet been made public but also calls for the broadcasters to begin charging for content, selling assets, and outsourcing production.
According to The Guardian, the dissolution of ABC's digital radio is “high on the list” of potential revenue-raising measures, which also includes: a fee to use catch-up service iview, which it wants to merge with SBS' equivalent service; selling off ABC studios in each state, as well as SBS' Artarmon studio; increased advertising on SBS while also shutting down its Melbourne offices and moving its staff to ABC facilities, and lessening the networks' focus on internal production – a measure already somewhat in motion, as a grand majority of ABC's non-news-based programming is already created by third-party production houses.
Additionally, the report suggests that the national broadcaster could save $90 million by not going ahead with construction of planned new Melbourne studios for ABC, although construction on that facility has already commenced and stopping now would be costly.
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Dumping ABC's digital radio stations completely in favour of streaming services would be a potentially damaging, or at least risky, move – both financially and politically – for the government, especially given the medium's relative youth and the number of people who have invested in it through purchasing a digital radio over the past few years.
However, Fairfax reports that Finance Minister Mathias Cormann has downplayed the gravitas of the review's findings, which he described as a “report to government, not a report from the government”.
“This is not a policy of the government. This is not something that we've put out there,” he said.
Reiterating Cormann's point, ABC managing director Mark Scott said: “The Lewis review is not prescriptive and final decisions on how the ABC operates and spends its budget lies with the ABC board.”
In a statement released by lobby group ABC Friends, spokesperson Glenys Stradijot said that the review should be made public as soon as possible, and questioned the efficacy of its head investigator.
“Australians are entitled to know what is being considered for their national public broadcaster,” Stradijot said. “Full details of the cost-cutting review must immediately be made public.
“Minister Turnbull needs to explain why his appointee to head the review does not have a conflict of interest,” Stradijot continued. “Peter Lewis previously held senior positions with Seven West Media. After having been given access to confidential information about the internal operations of the ABC and developing recommendations for its future, he is soon to commence a position as chief financial officer for another major commercial competitor to the ABC.”