Australia Government Entitled To Intervene In Media Sector -Review

Australia's government is entitled to intervene in the country's media industry to prevent concentrated ownership and to enforce standards, according to recommendations from an official enquiry into the sector.

"A concentration of services in the hands of a small number of operators can hinder the free flow of news, commentary and debate in a democratic society," the 177 page report by the Convergence Review Committee said.

"Media ownership and control rules are vital to ensure that a diversity of news and commentary is maintained," it said.

The review recommends that a new statutory regulator be set up to oversee ownership rules with the power to block proposed transactions not deemed to be in the public interest. That regulator should also ensure local content quotas are met and an industry-led body should also be established to oversee journalism standards for news and commentary, it said.

"The communications regulator should also have flexible powers to make rules on content-related competition issues. Content has the potential to be the new competition bottleneck in the digital economy, and the new regulator must have the necessary powers to promote fair and effective competition in content markets," the report said.

A rapidly changing media environment and consolidation in the sector prompted the government to set up the Convergence Review in early 2011 to examine the operation of media and communications regulation. Its findings will now be considered by communications minister Stephen Conroy.

"I expect the recommendations will generate robust public debate," said Conroy.

Australia's media sector is dominated by a handful of large companies including Fairfax Media Ltd. (FXJ.AU), Ten Network Holdings Ltd. (TEN.AU) and Nine Entertainment Co. and News Corp.'s (NWS) Australia unit, News Ltd.

News Corp. owns Dow Jones & Co., publisher of this newswire and The Wall Street Journal. In Australia it owns The Daily Telegraph and The Australian newspapers among other publications and media properties.

The review also wants the government to adopt a market-based approach to pricing broadcast spectrum, similar to practises already in use for other radio communications spectrum.

Adopting measures to protect children from inappropriate content is also among the report's findings.

-By Enda Curran, Dow Jones Newswires; 61-2-8272-4687; [e-mail]