From: rich@pencil.cs.missouri.edu (Rich Winkel)
Subject: Australia: Stranglehold on Print Media
Followup-To: alt.activism.d
Originator: rich@pencil.cs.missouri.edu
Organization: PACH
Date: Thu, 9 Apr 1992 22:48:14 GMT

/** media.issues: 198.0 **/
** Topic: Oz: Stranglehold on Print Media **
** Written 11:35 am  Apr  7, 1992 by newsdesk in cdp:media.issues **
From: News Desk <newsdesk>
Subject: Oz: Stranglehold on Print Media

/* Written  6:56 pm  Apr  7, 1992 by peg:greenleft in cdp:greenleft.news */
/* ---------- "Issue 51. April 8, 1992" ---------- */
Stranglehold on the print media

By Peter Boyle

Now that the Adelaide News has folded, every capital city in 
Australia except Sydney and Melbourne has only one local daily 
newspaper.

In Brisbane, Adelaide, Hobart and Darwin, the only daily paper is 
owned by Rupert Murdoch's News Ltd, which also owns the only 
national daily, the Australian, and daily ``24-hour'' newspapers 
in Sydney and Melbourne.

The News closed shortly after the release of the report of the 
House of Representatives Select Committee on the Print Media. 
This concluded that any further concentration in the ownership of 
metropolitan daily newspapers was ``unlikely to be in the public 
interest''.

The committee found that the print media were highly monopolised 
by News Ltd, Kerry Packer's Australian Consolidated Press and 
Conrad Black's newly acquired Fairfax group.

The big three had divided up control of the industry, with each 
dominating a distinct section. Even in the two cities where there 
is still more than one local daily, Fairfax and News have divided 
readers into two distinct markets: Fairfax's Sydney Morning 
Herald and Age go for the smaller serious newspaper readership 
and Murdoch's Daily Telegraph Mirror and Herald-Sun go for ``mass 
appeal''.

News Ltd also publishes 72 out of 130 suburban newspapers. 
Altogether it controls 62.8% of all newspaper circulation. 
Black's Fairfax controls 20.4%.

Professor Peter Swan, a consultant for News Ltd, told the inquiry 
that ``the market'' was dictating that there be only one daily 
newspaper in most cities. He pointed to the United States, where 
the number of cities with more than one newspaper now is ``nearly 
zero''.

Packer dominates the magazine market with outright ownership of 
13 of the 30 top-selling magazines and a half share in TV Week. 
This gives him control of 52.3% of magazine circulation of the 
top 30. His main competitor in this sector is News Ltd, which 
controls 37.7% of circulation with six fully owned magazines and 
two under joint ownership. Packer also owns Channel Nine and 
eight radio stations.

`Vertical integration'

The media monopolies have also sought to own and control the 
industries that are the source of their main inputs. This is 
called ``vertical integration''.

Newsprint accounts for 20-40% of the cost of producing a 
newspaper. Australia's only newsprint manufacturer, Australian 
Newsprint Mills Ltd (ANM), is half owned by News Ltd. The other 
half is owned by Fletcher Challenge, the second largest newsprint 
producer in the world. Fletcher Challenge also owns New Zealand's 
Tasman Pulp and Paper Company, ANM's main ``competitor''.

ANM supplies two-thirds of newsprint used by newspapers in 
Australia. Any newspaper not buying from them has to import at 
higher cost. The print media inquiry concluded that it was 
unlikely that another newsprint manufacturer would enter the 
Australian industry because of high capital outlay required to 
set up (at least $500 million) and the fact that ANM has tied up 
most major newspaper publishers in long-term contracts.

Australia's main news source, Australian Associated Press, is 
owned by News Ltd (43.4%), Fairfax (43.4%), WAN (8%) and a couple 
of smaller publishing groups.

Three companies dominate the distribution of magazines to 
supermarkets, department stores and newsagents - Gordon and Gotch 
(owned by a NZ company which is half owned by News Ltd), Network 
Distribution Company (a subsidiary of Packer's ACP) and 
Newsagents Direct Distribution (owned by Eastern Suburbs 
Newspapers, which owns Federal Publishing Company).

In its submission to the inquiry, the Australian Journalists 
Association said that this high degree of vertical integration 
meant that ``any new player would be reduced to colonial status, 
forced to duplicate an entire structure, or exist as a de facto 
subsidiary at News group's pleasure''.

While the print media inquiry had to acknowledge the monopolised 
state of the industry, a majority of the parliamentary committee 
thought that there was insufficient evidence to conclude that 
this has resulted in biased reporting, news suppression or lack 
of diversity.

However, one committee member, left Labor MP John Langmore, 
disagreed. He said that there was no doubt that the high 
concentration of ownership in the print media had led to a 
reduction in the diversity of views.

Entrenching Murdoch

The recommendations of the committee contain no means of 
preventing even greater monopolisation, let alone reducing it. 
The committee recommended:

* compulsory 10-day pre-notification of print mergers involving 
metropolitan, national or regional daily newspapers with 
circulations of more than 30,000;

* amendments to the Trade Practices Act requiring approval for 
further mergers which might impact on free expression of opinion 
or fair and accurate presentation of news;

* that foreign ownership of up to 20% in print media be allowed, 
with a requirement that the government publish reasons for any 
approval or rejection of specific proposals for foreign 
investment.

The committee refused to endorse calls for compulsory charters of 
editorial independence to be signed by newspaper owners. It also 
rejected calls (from the Communications Law Centre, Centre for 
Independent Journalism) for support for smaller independent 
publishers or new entrants and calls for the big media monopolies 
to be divested of their control of some publications.

The few restrictions recommended serve at best to placate public 
concern (aroused when it looked like Kerry Packer would take over 
the Fairfax group last year) and at worst to entrench Murdoch as 
the dominant player in print media. If the Trade Practices Act is 
amended as the committee majority desires, these restrictions 
would apply chiefly to any serious challenger to Murdoch's 
dominance.
** End of text from cdp:media.issues **