Last week the Convergence Review Committee handed down its interim report. The Committee, chaired by Glen Boreham, former IBM Australia Managing Director, is tasked with reviewing the operation of media and communications regulation in Australia. The Committee has focused on encouraging innovation, removing unnecessary regulation and ensuring that regulation is technology neutral.

The Committee made a number of recommendations, the most significant of which are:

  • the introduction of the concept of Content Service Enterprises. The Committee recommended that such enterprises be required to support Australian content, either by committing a percentage of total program expenditure to Australian content or by contributing to a converged content production fund
  • a new communications regulator, independent of the government, with the ability to regulate and sanction industry members and deal with content related competition issues
  • the removal of content licences to enable free flowing communication in the converged environment
  • the introduction of a public interest test for significant media transactions. This would ensure a diversity of voices and apply to all Consent Service Enterprises, unless granted a specific exemption.

The Committee's recommendations herald a shift away from the traditional regulation of broadcasters, to a regulatory regime that encompasses all content providers.

The effectiveness of regulating activities often driven by overseas companies will be a significant challenge for any new regulator. There has been a mixed response from industry bodies. Both Telstra and the Australian Interactive Media Industry Association are concerned about the prospect of new regulation, and the potential for restricted growth in the industry. However, the Media, Entertainment and Arts Alliance, the Australian Writers' Guild and the Screen Producers Association of Australia have supported the interim report.

The Committee received more than 250 submissions for its interim report, and responses to the interim report close on 10 February 2012. The Committee will submit its final report to the Commonwealth Government in March 2012.

Click here to read the interim report.

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