Leslie Massey
Australia's media landscape is highly concentrated, with a few dominant players in the industry. The country's newspaper market is largely controlled by four major companies, and Google and Meta account for 70% of digital advertising. The Australian government has implemented policies to regulate the media, such as the News Media Bargaining Code, which aims to have large tech platforms pay local news publishers for the content they use. The government has also proposed a levy on digital advertising revenues to fund traditional media and address the issue of media concentration. Additionally, the Australian government has introduced a social media ban for children under 16, citing concerns about the negative impact of social media on young people's mental health. However, critics argue that this move could lead to digital ID requirements and compromise free speech.
| Characteristics | Values |
|---|---|
| Media Concentration Ranking | Second-highest in the world |
| Number of Companies Dominating the Newspaper Market | 4 |
| Percentage of Newspaper Market Controlled by the Above Companies | 84% |
| Largest Media Company in Australia | Nine Entertainment |
| Largest Media Company in the World | News Corp |
| Owner of News Corp | Rupert Murdoch |
| Ownership of Australian Media by News Corp | 78% in 2019 |
| Companies with High Ownership of Australian Media | Seven West Media, Australian Community Media |
| Companies with High Ownership of Internet Advertising | Google, Meta |
| Percentage of Digital Advertising by Google and Meta | 70% |
| Regulation of Media | Federal Government, Australian Communications & Media Authority (ACMA) |
| Social Media Ban for Children Under 16 | Introduced by the Australian Government |
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What You'll Learn
Foreign ownership laws
The Australian Communications and Media Authority (ACMA) plays a crucial role in this regard. Since 1 September 2018, any "foreign person" with a company interest of 2.5% or more in an Australian media company must notify the ACMA. This requirement is stipulated in the Broadcasting Legislation Amendment (Foreign Media Ownership, Community Radio, and Other Measures) Act 2018 (Registration Act). The definition of a "foreign person" is outlined in the Foreign Acquisitions and Takeovers Act 1975. The Registration Act amends the Broadcasting Services Act 1992 to enhance transparency around foreign investments in the media.
The introduction of the Registration Act was part of a broader media ownership reform package, which included concessions to abolish the "75 percent reach" and "2 out of 3" rules governing cross-media ownership. The ACMA is responsible for maintaining a publicly available register of foreign owners of media assets, providing insights into the levels and sources of foreign investment in Australian media companies.
It's worth noting that these notification requirements do not alter Australia's existing foreign investment laws. Under the Foreign Acquisitions and Takeovers Act, the acquisition of a 5% or more interest in an Australian media business by a foreign entity remains a notifiable acquisition. Additionally, the rules for determining a 2.5% interest differ from those applied under the foreign investment regime, allowing for specific investment structures that may not trigger immediate disclosure requirements.
The Australian government's approach to foreign ownership in the media aims to balance transparency and scrutiny while adapting to the evolving nature of the media industry and its ownership structures.
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Media ownership concentration
In 2021, it was reported that Australia's media monopoly posed a threat to democracy. This concentration of ownership has resulted in heavily opinionated content being published, fuelling partisan ideological divides in society. The report highlighted the influence of three corporations—News Corp, Nine Entertainment, and Seven Media Holdings—which together collected 80% of Australian free-to-air and subscription TV revenues, with News Corp accounting for almost half of that.
The problem of media ownership concentration is not unique to Australia, with similar patterns observed in the US and parts of Europe. However, Australia stands out as one of the most concentrated media markets globally. In 2024, a study found that Australia had the second-highest media concentration in the world, with four companies controlling 84% of the newspaper market. This increase in concentration is due to the rise of global tech giants like Google and Meta, which dominate internet advertising, and the deregulation of media markets.
The Australian government has played a role in this concentration. In 2017, the government repealed the 'two out of three' rule, which had previously prevented media corporations from owning media in all three markets: print, radio, and television. This change allowed for greater cross-media ownership, and it was reported in 2021 that News Corp and Nine Entertainment had benefited significantly from this rule change, achieving a level of cross-media dominance unprecedented in liberal democracies.
The Australian Communications and Media Authority (ACMA) is the regulator for radio and television broadcasting in Australia, handling consumer complaints about programs and certain types of internet content. However, the federal government also has the power to make laws governing telecommunications, and the Australian states and territories play a role in areas like defamation law.
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Regulation of media
The Australian federal government regulates the media through its power to make laws governing telecommunications. The Australian Communications and Media Authority (ACMA) is the regulator for radio and television broadcasting and the co-regulatory Online Content Scheme. Consumers can file complaints about programs on television and radio or certain types of online content with the ACMA. The ACMA has released the first report in its Media Diversity Measurement Framework project.
The Australian states and territories also play a role in regulating the media, particularly in the area of defamation law, although their laws cannot conflict with valid federal laws.
The Broadcasting Services Act 1992 sets limits on the control of commercial TV, radio, and newspapers. The Act includes statutory control and media diversity rules, which are monitored and enforced by the ACMA.
In 2006, the Howard Government loosened rules governing foreign ownership of Australian media, allowing for changes to cross-media and foreign ownership laws. These changes came into effect in 2007, relaxing restrictions against cross-media ownership and control by a single company.
In 2020, the Australian Government introduced the News Media Bargaining Code (NMBC), a law designed to make large technology platforms pay local news publishers for the news content linked or made available on their platforms. The law's definition of news is broad, including "content that reports, investigates or explains ... current issues or events of public significance for Australians at a local, regional or national level."
In 2024, Australia's media concentration was ranked as the second-worst in the world, with four companies controlling 84% of the newspaper market. Experts have called for a levy on tech firms to fund traditional public interest journalism. Google and Meta dominate internet advertising and are two of the largest communication and media enterprises operating in Australia. The increase in media concentration due to the rise of global tech companies and the deregulation of media markets poses a threat to local journalism.
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Social media bans
Australia has been described as having the second-worst media concentration in the world, with four companies controlling 84% of the newspaper market. The country's media landscape is dominated by News Corp, Nine Entertainment, Seven West Media, and Australian Community Media, which have increased their share of the market through mergers and acquisitions.
The Australian government has implemented a range of measures to regulate the media, including rules governing foreign ownership and cross-media ownership. The Australian Communications and Media Authority (ACMA) is the regulator for radio and television, and it also co-regulates the Online Content Scheme. The News Media Bargaining Code (NMBC) is another regulatory measure, designed to make large tech platforms pay local news publishers for the news content they link to or make available.
In November 2024, the Australian government passed a world-first law banning children under the age of 16 from using social media platforms. The law, which will take effect in late 2025, holds social media companies responsible for verifying children's ages and non-compliance could result in fines of up to $50 million. The ban has been justified as a way to protect young people from the potential harms of social media, and it has received support from a majority of Australian parents and caregivers. However, critics have questioned its workability and potential impact on privacy and social connection, and some have suggested that it could push children to less regulated corners of the internet.
The social media ban will not specify which platforms will be banned; these decisions will be made by Australia's communications minister, who will seek advice from the eSafety Commissioner, the internet regulator tasked with enforcing the rules. While gaming and messaging platforms are exempt, social media platforms like Snapchat, TikTok, Facebook, Instagram, and X are expected to be included. The government plans to rely on age-verification technology to implement the restrictions, but digital researchers have warned that there are no guarantees that this unspecified technology will be effective.
The social media ban for under-16s in Australia has sparked debates about the role of social media in young people's lives and the potential impact on their privacy and social connections. While the government aims to protect children from online harms, critics argue that a ban may not be the most effective solution and that educating parents and caregivers about managing children's social media use could be a better approach.
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Local content requirements
Australia's local content requirements are designed to boost the domestic screen industry by mandating that streaming services invest in Australian content. While the details are still being finalized, one proposal includes requiring subscription and advertising video-on-demand (SVOD) services to allocate a percentage of their revenue to Australian programming. This is known as an expenditure model. Another proposal is a revenue model, which would require 10% of Australian revenue to be invested in new local productions. The goal of these policies is to promote cultural significance, enhance Australia's global brand, and support the local economy.
These local content requirements are necessary because, despite Australia's strict rules on foreign ownership of media, the country's media landscape is highly concentrated. Australian researchers have reported that the newspaper market is dominated by four companies that control 84% of the market. The biggest media company is owned by Rupert Murdoch, who controls a significant share of newspapers and has stakes in streaming, online news, and pay-TV. However, News Corp is not locally owned. The high level of media concentration in Australia poses a major threat to local journalism, as it compromises the ability to regulate for accuracy in news, TV, and radio.
In 2020, the Australian government suspended local content quotas for Australian drama, children's, and documentary content on free-to-air and subscription television due to the COVID-19 pandemic. However, the requirement for 55% of overall content to be Australian remained. The government also provided a 12-month waiver of spectrum tax for commercial television and radio broadcasters and invested $50 million in regional journalism.
While Australia's local content requirements aim to support the domestic media industry, they have faced criticism and challenges. Some have argued that these requirements create market barriers that favor Australian content over US productions, potentially reducing the competitiveness of American platforms. Additionally, there are concerns that these requirements may conflict with the Australia-United States Free Trade Agreement (AUSFTA), which prohibits preferential treatment of digital products based on national origin. This could complicate operations for US companies in Australia and potentially benefit Chinese firms.
Despite these challenges, Australia's local content requirements are an important aspect of the country's media landscape, reflecting the government's efforts to balance the interests of domestic and foreign media organizations while promoting Australian content.
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Frequently asked questions
The Australian government does not directly control the media, but it does regulate it through laws governing telecommunications. The Australian Communications and Media Authority (ACMA) is the regulator for radio and television broadcasting in Australia. The government has also been known to implement laws that affect the media, such as the News Media Bargaining Code, which requires large tech platforms to pay local news publishers for the news content they make available.
The News Media Bargaining Code (NMBC) is a law that requires large technology platforms operating in Australia to pay local news publishers for the news content they make available or link to on their platforms. The law achieved broad support in the Australian Parliament but faced opposition from Facebook and Google.
The Australian government has shown interest in controlling social media, particularly regarding children's access. In 2024, the government introduced legislation for a social media ban for children under 16, which would require all Australians to undergo an age-verification process to access certain platforms. This move has been criticised by some as a potential infringement on free speech and privacy.
Australia's media is highly concentrated, with four major companies dominating the newspaper market and controlling 84% of the market share. The largest Australian media company is Nine Entertainment, with holdings in television, radio, and digital media. However, the biggest media company overall is Rupert Murdoch's News Corp, which controls a significant share of newspapers and has stakes in streaming, online news, and pay TV.
