It's rare to see Australian media companies unified on anything. But on Wednesday they put aside their competitive squabbles and threw their collective weight behind the Coalition's push for industry reform in an effort to save it from financial oblivion.
They funnelled into Canberra waving their reform flags, but none were particularly optimistic about the outcome. It was only because the Coalition leaned on them to show support for the media ownership changes that they agreed to spend a day in the chilly capital.
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Media reform in limbo
Communications minister Mitch Fifield wants the media reform bill to pass as is, including abolishing the reach rule, but will have trouble getting it through the Senate. Courtesy ABC RN.
But even with this muscle power the reform of media – which has been bubbling around for years – remains doomed. Even with the Senate horse-trading that's gone on over the past couple of weeks, the Coalition still doesn't have the numbers, thanks in large part to its inability to get Pauline Hanson over the line.
But the larger issue and the reason reform is frozen is the Labor party, which won't budge on any scheme it thinks risks increasing the voice, reach or influence of Rupert Murdoch's empire.
The Greens are happy to stick with Labor – firstly because it will harm its prospects for the same reason.
There have been times when Murdoch's media vehicles have supported Labor – but there are plenty more when they have not.
The government's proposed wide-ranging changes have the potential to alter the media ownership landscape, as it will open the door to a media company owning television, print and radio assets in the same geographic market. Labor is correct in believing this would be detrimental to its chances of being elected.
However, the objection to reforming media is being packaged by Labor as saving industry diversity.
![Pauline Hanson is the kingmaker in influencing the fate of the Australian media industry.](http://web.archive.org./web/20170602043327im_/https://www.fairfaxstatic.com.au/content/dam/images/g/w/g/8/b/m/image.related.articleLeadwide.620x349.gwh66i.png/1496226117012.jpg)
Of course, diversity is a good thing. But these media groups are singing from the same song sheet only because their future depends on finding a way to improve their business models in the face of revenues being decimated by US digital giants Google, Facebook and Snapchat.
It would be too optimistic to say that mergers of television companies with newspaper groups will save them. It will just give them more time to fight.
![The Labor party won't budge on any scheme it thinks risks increasing the voice of Rupert Murdoch's empire.](http://web.archive.org./web/20170602043327im_/https://www.fairfaxstatic.com.au/content/dam/images/g/u/6/d/0/v/image.related.articleLeadwide.620x349.gwh66i.png/1496208707550.jpg)
They are funding the creation of Australian news content while others are reaping the revenue.
They want to share these news-gathering costs across numerous media platforms, which will involve mergers or takeovers that can be facilitated by the removal of the two-out-of-three rule.
![Media united: Nine CEO Hugh Marks, Ten CEO Paul Anderson, ThinkTV CEO Kim Portrate, Foxtel CEO Peter Tonagh and Seven ...](http://web.archive.org./web/20170602043327im_/https://www.fairfaxstatic.com.au/content/dam/images/g/t/0/m/m/i/image.related.articleLeadwide.620x349.gwh66i.png/1496208707550.jpg)
If, by some amazing twist of fate, the reform was passed, the potential outcomes include big city networks taking a look at buying their regional TV affiliates, or a merger between Fairfax and Nine. This is far from certain given Fairfax is being courted by two private equity takeover bids; indeed the failure to get any traction on changes to media laws increases the chance that Fairfax will end up in the hands of an offshore private equity group.
Another possibility is that Murdoch buys Ten Network. But given he has de facto control over it already through his 50 per cent stake in Foxtel, there may be little point.
And any such moves would need to get the seal of approval from the competition regulator.
Essentially the biggest providers of house-generated news content, Murdoch's News Corp, Fairfax and the ABC, would probably remain so if media laws were reformed.
The television executives are primarily behind the reform package because it includes the abolition of their licence fees.
The regionals are on board with changes because they include allowing a television network to reach more than 75 per cent of the country – in other words it would allow for the country TV stations to be bought out by the city networks – potentially helping these country cousins to survive.
But all this has apparently not swayed Hanson who, sources say, is obsessed with the notion that Murdoch will hoover up assets across Australia. Her previous concerns about Google and Facebook appear to have given way to her more personal (or self-interested) view that the Murdoch press is unkind to her.
Where Nick Xenophon sits remains unclear. But in a sense this is academic because even with his support the reform agenda is short on numbers. Derryn Hinch is onside but Jacqui Lambie is against.
Hanson is the kingmaker in influencing the fate of the Australian media industry – at least until the next election.
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