Now that the dust has settled, after the funding cuts to the SBS and ABC, it is time to look at how the changes will impact businesses. From July 2015, the ABC and SBS are expecting to lose $245 million and $53.7 million in funding respectively, over the next five years. Government suppliers must therefore understand how the proposed funding cuts will affect their operations.
To tackle funding cuts and to remain profitable the ABC has announced 400 job cuts and changes to operations including content and programming. Of these job losses, 10% will be in management and administration, and commencing in mid 2015 the state and territory director structure will be dismantled. The proposed new Regional Division focusing on rural and regional content will bring together regional radio and news staff. Here at A-ZGovBIZ, we will ensure that our current records are updated to reflect these changes as they happen.
Likewise the replacement of the Innovation Division with the ABC Digital Network Division will assemble digital designers, UX, digital project managers and developers in line with ABC’s new emphasis on online and mobile expenditure. We predict that the establishment of new business units will generate potential business for suppliers focusing on office equipment and provision of services such as IT support.
Furthermore, savings from the axing of state-based local sports coverage, closures of the Adelaide television production studios, regional radio posts in Wagin, Morwell, Gladstone, Port Augusta, and Nowra and winding back of remaining production in the smaller states will hit small businesses the hardest. Such measures will result in loss of sponsors for local sports teams, as well as reduced advertising outlets for small businesses that rely on them to reach potential customers. Those involved in providing services or resources to these studios and radio posts will also likely be affected due to the termination of business arrangements due to the closures.
However upgrades to iview and the emphasis on shifting to mobile and online content present new opportunities. With the greater shift towards online streaming of radio and programming especially among younger audiences, this presents an opportunity to invest more in online based advertising campaigns and target new audiences.
Meanwhile at the SBS, while there have been cuts to staffing in Dateline, it is expected that there will be little to no change to the management structure. Majority of staff departing include freelancers who volunteered, staff whose contracts had expired or were not interested in renewing their contracts. Furthermore, plans for prospective shows featuring chefs Poh Ling Yeow and Silvia Colloca may open businesses avenues for food companies wanting their products used and promoted on cooking shows.
Furthermore, potential amendments to the SBS Act 1991, could see advertising during prime time increase from 5 minutes per hour to 10 minutes per hour. This would not affect its current quota of 120 minutes of advertising per day. Such changes could open avenues for the SBS raise more revenue and provide advertising opportunities for businesses to pursue.
Though unrelated to the funding cuts, from 27th January 2015 the broadcast operations and engineering teams of SBS ONE and SBS 2 will be outsourced to Deluxe Australia. The 58 employees from this division will be shifted into similar positions within Deluxe Australia over the next few weeks. All changes to staffing will be updated in our databases to ensure the most up to date and relevant information is provided to our clients. The shift to Deluxe Australia move will also position SBS as Australia’s first media company to progress to digital cloud-based playout of its channels which may introduce more business opportunities for IT and cloud-based industries.
To meet SBS broadcasting requirements, a new tailored facility is being built by Deluxe Australia at Lane Cove which will also serve as Deluxe’s regional Broadcast Hub. We expect that this will present further opportunities for office equipment and furniture suppliers as well as those involved in service provision, building and construction industries.
A-ZGovBIZ specialises in government agency lists so it's our business to monitor the ever-evolving public broadcasting sector. Stay tuned here at A-ZGovBIZ for future developments.
