Sydney, Australia – 12 December 2024 – In response to the proposed “News Bargaining Incentive” legislation announced by the Albanese government, Man of Many welcomes efforts to address inequities in Australia’s media sector but raises critical concerns about the potential implications for independent publishers. While the proposal offers an opportunity to improve funding structures and accountability, the legislation must ensure fair support for independent outlets and safeguard against unintended consequences such as exacerbating existing disparities.
Australia’s Media Landscape: An Industry Dominated by Few
Australia’s media sector is one of the most concentrated in the world, with a few key players dominating the industry. News Corp Australia, owned by Rupert Murdoch, controls about 60% of the daily newspaper circulation, while the top four companies generate over 70% of the industry revenue in newspaper publishing. Significant cross-ownership across newspapers, digital, radio, and television further reduces media diversity. A 2016 study ranked Australia as having the most concentrated newspaper industry out of 26 countries, far surpassing democracies like the UK, USA, and Canada regarding media ownership concentration.
Source: Annual Reporting. Note: News Corp is Quarterly Revenue.
The Case for Media Diversity
While the News Media Bargaining Code (NMBC) introduced in 2021 was intended to rebalance the media ecosystem, its implementation disproportionately benefited major conglomerates. Of the estimated $200 million in annual funding, a significant portion has flowed to large players such as News Corp, Nine, and Seven, leaving independent publishers—employing over 2,500 Australians across 180 titles—with minimal or no support. Collectively, these independent outlets generate just $250 million annually, a fraction of what larger companies receive.
Without inclusive reform, the dominance of large corporations will continue to limit the breadth of perspectives available to Australian audiences, undermining the principles of a free and independent press.
Concerns with the News Bargaining Incentive
Man of Many acknowledges the government’s intent to strengthen the NMBC through the proposed “News Bargaining Incentive,” which uses a levy-and-offset system to encourage fair negotiations between digital platforms and publishers. However, we urge policymakers to address the following concerns:
- Exclusion of Smaller Publishers: Platforms may prioritise deals with larger publishers to offset liabilities, potentially sidelining independent outlets.
- Opaque Distribution Mechanism: Smaller publishers could be disadvantaged in accessing redistributed funds without clear criteria for fund allocation.
- Risks of News Bans: As seen in Canada, platforms like Meta may opt to block news content entirely rather than comply, cutting off vital referral traffic for independent publishers already excluded from funding agreements.
- Sustainability Challenges: Funding must ensure long-term viability rather than short-term relief, which has led to redundancies even among major media companies.
Recommendations for Inclusive Reform
To ensure a sustainable and diverse media sector, Man of Many advocates for the following:
- Expand Funding Eligibility: Include all ACMA-registered news organisations, particularly independent and digital-first publishers, in funding allocations.
- Implement a Tech Tax Levy: Structure the levy to distribute funds equitably among publishers, accounting for contributions to public interest journalism and diversity.
- Transparency in Allocation: Establish clear criteria and safeguards to prevent disproportionate funding for larger players.
- Support Innovation: Encourage digital-first platforms to innovate and adapt to changing consumer behaviour, fostering resilience across the media ecosystem.
A Balanced Approach
Prime Minister Anthony Albanese’s government has stated that platforms benefiting financially from Australian audiences must contribute to quality journalism. While we support this sentiment, the government must ensure that the legislation addresses the needs of smaller, independent publishers. As Assistant Treasurer Stephen Jones noted, “Digital platforms receive huge financial benefits from Australia, and they have a social and economic responsibility to contribute to Australians’ access to quality journalism.” Man of Many echoes this view and calls for a collaborative and inclusive approach to the proposed framework.
Ends.
For additional information, please contact:
Scott Purcell – scott@manofmany.com – +61403496680
About Man of Many
Man of Many is Australia’s largest men’s lifestyle digital publication and a resource for the latest in products, culture and style. Mumbrella Publish Awards’ Brand of the Year and Consumer Publication of the Year for 2021 and a proudly independent online destination for the latest breaking news, features and insight from industry experts. Man of Many has a particular focus on men’s cultural, lifestyle and public interest matters, including men’s health and wellbeing, as well as investigating consumer trends, exploring local news and events and reporting on technology and consumer product news.
