Diversity of local news may be at risk if a rightwing startup, ADH TV, is given the green light to purchase Southern Cross Austereo’s regional television network, an expert has warned.
Southern Cross Austereo (SCA) has confirmed it has received an offer from the fringe streaming news channel to buy its 93 regional free-to-air TV stations. The digital broadcaster, which is chaired by the former ABC chair Maurice Newman, was launched in December 2021 with the former 2GB broadcaster Alan Jones at the helm.
“SCA continues to actively progress with the sale of its regional television assets and is in active negotiations with several parties with an interest in acquiring those assets,” an SCA spokesperson told Guardian Australia.
Jones has been off air since the Sydney Morning Herald reported in December that he was the subject of allegations of indecent assault, which he has denied.
The Australian Digital Holdings co-founder Jack Bulfin confirmed “a robust and compelling offer” had been made, but said he had yet to receive a response.
“Revenue is still strong for free-to-air regional television, despite the pressures of the times, and with improved cost-controls and investment in key markets, the group sees a good future for the licences and improved TV services for the regions,” Bulfin said.
SCA claims to reach 2.7 million people a week, including viewers in regional Queensland, southern New South Wales, regional Victoria, Broken Hill and Spencer Gulf in South Australia.
SCA’s contract with Sky News Regional means conservative views are already available on free-to-air in 17 of the regional markets across Victoria, southern NSW and Queensland. Sky News Regional claims to reach an average of 1.1 million viewers monthly.
Matthew Ricketson, a professor of communication at Deakin University, said independent local journalism must be free of political and commercial interests.
“We already know that the provision of locally gathered and reported news and current affairs in regional and rural Australia is stretched almost to breaking point,” Ricketson said.
“If what gets added in there now is slanted heavily to one side of politics or another, does that serve rural and regional audiences in being provided with good quality public interest journalism?”
Any new owner would have to abide by broadcasting regulation which governs free-to-air television licences. It requires factual material in TV news and current affairs programming to be accurate; and for news to be distinguished from commentary, analysis or opinion.
The chief executive officer of the Public Interest Journalism Initiative (PIJI), Anna Draffin, also said there was an urgent need generally to ensure that regional communities have access to meaningful, locally focused public interest journalism instead of generic, one-size-fits-all news.
“Australia’s news market is facing a critical downturn, especially in regional areas,” Draffin said. “Over the past five years, there have been around 600 market changes, with 180 news outlets closing – nearly double the closure rate of the previous decade.
“PIJI data shows that around 60% of these changes have taken place in regional and remote Australia, a disproportionately high figure given their smaller populations compared to metropolitan areas.
“Of Australia’s local government areas with at least one news producer, more than a quarter have fewer outlets now than at the beginning of 2019, the data shows. This paints a troubling picture.”
The president of the Journalism Education and Research Association of Australia, Alexandra Wake, said regional and rural areas need a diversity of news.
“Any further cutbacks to regional news services will be absolutely devastating,” she said. “The ABC can’t do it all. We need diversity of views.”
The Australian Financial Review reported the offer was expected to be about $15m.
The Southern Cross Media Group, which also owns the Triple M and Hit radio network brands, including 99 stations across FM, AM and DAB+ digital radio, will hold its annual general meeting on 25 November.
Jones and Newman were approached for comment.
