Arts
of the
and
Department
the
by
1982 Communications
Act
Development,
Information
of
Regional
Freedom
the Transport,
under
Released Infrastructure,
FOI 25-168 - Document 1
s22(1)(a)(ii)
Arts
of the
and
Department
the
by
From: Gambling, Online <xxxxxx.xxxxxxxx@xxxxxxxxxxxxxx.xxx.xx>
Date: Friday, 15 December 2023 at 06:43
To: Rob Nicholls <xxx@xxxxxxxxxxx.xxx>
1982 Communications
Cc: Lopez, Margaret <s22(1)(a)(ii)
@communications.gov.au>, s22(1)(a)(ii)
<s22(1)(a)(ii)
@INFRASTRUCTURE.gov.au>, s22(1)(a)(ii)
<s22(1)(a)(ii)
Act
@infrastructure.gov.au>
Subject: Request for Quote ‐ Wagering Advertising Reforms [SEC=OFFICIAL]
OFFICIAL
Development,
Dear Dr Nicholls
Information
The Commonwealth, as represented by the Department of Infrastructure, Transport, Regional Development,
of
Communications and the Arts (the department), is seeking to procure your services to provide expert advice to the
Department on the financial impacts of proposed wagering advertising reforms on television and radio. These
reforms are in response to Recommendation 26 of the House of Representatives Gambling Inquiry that was released
Regional
in June 2023. Required work will include analysing the data received from broadcasters on the impacts of reforms
and mediating discussions if required.
Freedom
We expect this contract would require up to 10 days of work commencing from early January 2024 and concluding
30 June 2024.
the Transport,
If you are available, we request that you please provide a quote for your services to undertake this contract in the
form of your rate per day. Please provide your quote via return email by no later than
COB 19 December 2023.
under
Subject to our assessment of your quote, the Department will seek to engage you consistent with the
Commonwealth Contract Terms.
Please call me on s22(1)(a)(ii) if you wish to discuss. Please note that I will be away this Monday, so please call
Margaret Lopez (copied in) on s22(1)(a) if you need to discuss on Monday.
(ii)
Released Infrastructure,
Regards,
s22(1)(a)(ii)
FOI 25-168 - Page 2 of 41
Arts
of the
and
Department
the
by
1982 Communications
Act
Development,
Information
of
Regional
Freedom
the Transport,
under
Released Infrastructure,
FOI 25-168 - Document 2
From:
Rob Nicholls <xxx@xxxxxxxxxxx.xxx>
Sent:
Thursday, 1 February 2024 1:36 PM
To:
Gambling, Online
Cc:
Lopez, Margaret; s22(1)(a)(ii)
; s22(1)(a)(ii)
; s22(1)(a)(ii)
Subject:
Re: Seeking Advice - Wagering Advertising Impacts [SEC=OFFICIAL:Sensitive]
Arts
of
Dear s22(1)
the
Many thanks
(a)(ii)
for this material. I will observe strict confidentiality in respect of the documents.
I am comfortable with the timing and understand the questions asked. I would also welcome further questions.
I’ll let you know whether another meeting would be valuable after I have reviewed the attachment that you sent.
and
Kind regards
Rob
Department
Dr Rob Nicholls | Principal
nicholls.mmc Pty Limited
the
M: +61 4 1264 6477
by
E: xxx@xxxxxxxxxxx.xxx
From: Gambling, Online <xxxxxx.xxxxxxxx@xxxxxxxxxxxxxx.xxx.xx>
1982 Communications
Date: Thursday, 1 February 2024 at 12:50
To: Rob Nicholls <xxx@xxxxxxxxxxx.xxx>
Cc: Lopez, Margaret <s22(1)(a)(ii)
@communications.gov.au>, s22(1)(a)(ii)
Act
<s22(1)(a)(ii)
@INFRASTRUCTURE.gov.au>, s22(1)(a)(ii)
<s22(1)(a)(ii)
@infrastructure.gov.au>,
s22(1)(a)(ii) <s22(1)(a)(ii) @infrastructure.gov.au>
Subject: Seeking Advice ‐ Wagering Advertising Impacts [SEC=OFFICIAL:Sensitive]
OFFICIAL:Sensitive
Development,
Information
of
Hi Rob
Regional
Thank you for your time last week.
Please see
attached the information request which was sent to the broadcasting sector in December. I have also
Freedom
attached the responses received to date for your review (from FreeTV; Chs7 , 9 and 10; Foxtel; SBS; Commercial
Radio / SCA x 2). ). There are 2 outstanding responses from SEN and the Australian Narrowcast Radio Association.
the
s47C
Transport,
under
s47C
We are interested in seeking your views on the following:
Released Infrastructure,
Overall financial and volume impacts of a
full ban [as provided by stakeholders under
Current] and the
various partial ban options on TV and radio broadcasters;
Substitution impact ‐ s45, s47G(1)(a), s47G(1)(b)
. Is this reasonable that most cannot substitute any or all of revenue from other advertisers?
FOI 25-168 - Page 4 of 41
Arts
of the
and
Department
the
by
1982 Communications
Act
Development,
Information
of
Regional
Freedom
the Transport,
under
Released Infrastructure,
FOI 25-168 - Document 2
Any review, re‐transmission, disclosure, dissemination or other use of, or taking of any action in reliance upon, this
information by persons or entities other than the intended recipient is prohibited and may result in severe penalties.
If you have received this e‐mail in error, please notify the Department on +61 (2) 6274 7111 and delete all copies of
this transmission together with any attachments.
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Arts
of the
and
Department
the
by
1982 Communications
Act
Development,
Information
of
Regional
Freedom
the Transport,
under
Released Infrastructure,
FOI 25-168 - Page 6 of 41
link to page 8 link to page 9 link to page 9 link to page 10 link to page 11 link to page 11 link to page 13 link to page 15 link to page 15 link to page 16 link to page 16 link to page 16 link to page 16
FOI 25-168 - Document 3
COMMERCIAL IN CONFIDENCE
1
Introduction ......................................................................................................................... 2
2
EBITDA ................................................................................................................................. 3
3
Sources of broadcasting financial data ................................................................................. 3
Arts
of
Estimating Network 10’s revenue and EBITDA ................................................................................ 4
the
Estimating BVOD spilt .................................................................................................................... 5
and
Forward contracts .......................................................................................................................... 6
Accounting treatment .................................................................................................................... 7
Department
Employee costs .............................................................................................................................. 9
the
Substitution .................................................................................................................................. 10
by
The responses ............................................................................................................................... 10
Communications
4
Advice ................................................................................................................................. 11
1982
Overall financial and volume impacts of a full ban and the various partial ban options on TV and
Act
radio broadcasters ........................................................................................................................ 11
Substitution impact – are there substitutes for wagering advertisers? .......................................... 12
Any other observations from the data and any further questions we should ask to further
Development,
interrogate the data ...................................................................................................................... 12
Information
Which of the restrictions will have the biggest impact on stakeholders that should be considered if
of
a three-year staged ban approach was considered? What sequencing of restrictions would
minimise any required mitigation? ............................................................................................... 12
Regional
What are the standard industry contracts (duration and type) that exist between broadcasters and
each of sports rights holders and wagering advertisers that need to be considered (particularly
Freedom
standard purchase length of television commercials)? .................................................................. 12
Any other considerations around contracts/arrangements? .......................................................... 13
the Transport,
under
Released Infrastructure,
Prepared Rob Nicholls
Page 1 of 13
12 February 2024
FOI 25-168 - Page 7 of 41
FOI 25-168 - Document 3
COMMERCIAL IN CONFIDENCE
1
Introduction
1.1
The Department of Infrastructure, Transport, Regional Development and Communications and
the Arts (
Department) has asked me, Dr Rob Nicholls of nicholls.mmc Pty Limited to provide
advice on the impacts (volume and financial) of proposed wagering advertising restrictions on
television, radio, and related streaming services. The proposed restrictions are in response to
Arts
Recommendation 26 of the House of Representatives Inquiry into online gambling and its
of
impacts on those experiencing gambling harm, which was handed down in June 2023. In this
the
advice, when I refer to me, or I, I am referring to work conducted by Nicholls.
and
1.2
This advice note aims to provide advice on issues raised in an email to me from the
Department date 1 February 2024.
1.3
The issues were:
Department
(a)
Overall financial and volume impacts of a full ban and the various partial ban options on
the
TV and radio broadcasters;
by
(b)
Substitution impact – are there substitutes for wagering advertisers?
(c)
Any other observations from the data and any further questions we should ask to
further interrogate the data.
1982 Communications
(d)
Which of the restrictions will have the biggest impact on stakeholders that should be
considered if a three-year staged ban approach was considered? What sequencing of
Act
restrictions would minimise any required mitigation?
(e)
What are the standard industry contracts (duration and type) that exist between
broadcasters and each of sports rights holders and wagering advertisers that need to be
considered (particularly standard purchase length of television commercials)?
(f)
Any other considerations around contracts/arrangements?
Development,
Information
1.4
In December 2023, the Department issued an information request to major industry players
that would be affected by a change in wagering advertising. I have been provided with this
of
document and the responses received from:
Regional
(a)
Channel Seven;
(b)
Channel Nine;
(c)
Paramount Australia (Network Ten);
Freedom
(d)
SBS;
(e)
Free TV Australia;
the
(f)
Foxtel; and
Transport,
(g)
Commercial Radio Australia (two responses).
under
1.5
Each of Nine and Seven control commercial radio licences. SBS operates radio services, as well
as television.
1.6
In order to address the issues identified by the Department, this advice note starts by looking
at some of the business drivers in commercial and subscription broadcasting. These drivers
are then used to answer each of the issues that are raised.
Released Infrastructure,
Prepared Rob Nicholls
Page 2 of 13
12 February 2024
FOI 25-168 - Page 8 of 41
Arts
of the
and
Department
the
by
1982 Communications
Act
Development,
Information
of
Regional
Freedom
the Transport,
under
Released Infrastructure,
Arts
of the
and
Department
the
by
1982 Communications
Act
Development,
Information
of
Regional
Freedom
the Transport,
under
Released Infrastructure,
Arts
of the
and
Department
the
by
1982 Communications
Act
Development,
Information
of
Regional
Freedom
the Transport,
under
Released Infrastructure,
Arts
of the
and
Department
the
by
1982 Communications
Act
Development,
Information
of
Regional
Freedom
the Transport,
under
Released Infrastructure,
Arts
of the
and
Department
the
by
1982 Communications
Act
Development,
Information
of
Regional
Freedom
the Transport,
under
Released Infrastructure,
Arts
of the
and
Department
the
by
1982 Communications
Act
Development,
Information
of
Regional
Freedom
the Transport,
under
Released Infrastructure,
Arts
of the
and
Department
the
by
1982 Communications
Act
Development,
Information
of
Regional
Freedom
the Transport,
under
Released Infrastructure,
FOI 25-168 - Document 3
COMMERCIAL IN CONFIDENCE
The responses
s45, s47G(1)(a), s47G(1)(b)
Arts
of the
and
Department
the
by
1982 Communications
Act
Development,
Information
of
Regional
Freedom
the Transport,
under
Released Infrastructure,
Prepared Rob Nicholls
Page 10 of 13
12 February 2024
FOI 25-168 - Page 16 of 41
Pages 17-19 removed in their entirety as exempt under sections 45, 47G(1)(a) and 47G(1)(b) of the
FOI Act.
Arts
of the
and
Department
the
by
1982 Communications
Act
Development,
Information
of
Regional
Freedom
the Transport,
under
Released Infrastructure,
FOI 25-168 - Document 4
From:
Rob Nicholls <xxx@xxxxxxxxxxx.xxx>
Sent:
Monday, 22 April 2024 4:50 PM
To:
s22(1)(a)(ii)
; Gambling, Online
Cc:
Lopez, Margaret; s22(1)(a)(ii)
; s22(1)(a)(ii)
; s22(1)(a)(ii) ; Gambling, Online
Subject:
Re: Broadcasters discussions - Wagering Advertising Commercial in Confidence [SEC=OFFICIAL]
Arts
of
s22(1)
the
Now
(a)(ii)that I have the confirmation email from s47F
I should provide you with an update.
I will get a draft of my report on the two specific matters (substitution and timing) and the “regulatory event” to you
by close of business tomorrow.
and
Kind regards
Rob
Department
Dr Rob Nicholls | Principal
nicholls.mmc Pty Limited
the
M: +61 4 1264 6477
by
E: xxx@xxxxxxxxxxx.xxx
From: s22(1)(a)(ii)
<s22(1)(a)(ii)
@INFRASTRUCTURE.gov.au>
1982 Communications
Date: Friday, 19 April 2024 at 14:29
To: Rob Nicholls <xxx@xxxxxxxxxxx.xxx>, Gambling, Online <xxxxxx.xxxxxxxx@xxxxxxxxxxxxxx.xxx.xx>
Cc: Lopez, Margaret <s22(1)(a)(ii)
@communications.gov.au>, s22(1)(a)(ii)
Act
<s22(1)(a)(ii)
@INFRASTRUCTURE.gov.au>, s22(1)(a)(ii)
<s22(1)(a)(ii)
@infrastructure.gov.au>,
s22(1)(a)(ii) <s22(1)(a)(ii) @infrastructure.gov.au>, Gambling, Online <xxxxxx.xxxxxxxx@xxxxxxxxxxxxxx.xxx.xx>
Subject: RE: Broadcasters discussions ‐ Wagering Advertising Commercial in Confidence [SEC=OFFICIAL]
OFFICIAL
Development,
Information
Hi Rob
of
Good to know. Thank you.
Regional
I will pass onto the MO.
Regards
Freedom
s22(1)
(a)(ii)
the
OFFICIAL
Transport,
From: Rob Nicholls <xxx@xxxxxxxxxxx.xxx>
under
Sent: Friday, 19 April 2024 1:10 PM
To: s22(1)(a)(ii)
<s22(1)(a)(ii)
@INFRASTRUCTURE.gov.au>; Gambling, Online
<xxxxxx.xxxxxxxx@xxxxxxxxxxxxxx.xxx.xx>
Cc: Lopez, Margaret <s22(1)(a)(ii)
@communications.gov.au>; s22(1)(a)(ii)
<s22(1)(a)(ii)
@INFRASTRUCTURE.gov.au>; s22(1)(a)(ii)
<s22(1)(a)(ii)
@infrastructure.gov.au>;
s22(1)(a)(ii) <s22(1)(a)(ii) @infrastructure.gov.au>; Gambling, Online <xxxxxx.xxxxxxxx@xxxxxxxxxxxxxx.xxx.xx> Released
Infrastructure,
Subject: Re: Broadcasters discussions ‐ Wagering Advertising Commercial in Confidence [SEC=OFFICIAL]
s22(1)
(a)(ii)
FOI 25-168 - Page 20 of 41
Arts
of the
and
Department
the
by
1982 Communications
Act
Development,
Information
of
Regional
Freedom
the Transport,
under
Released Infrastructure,
Arts
of the
and
Department
the
by
1982 Communications
Act
Development,
Information
of
Regional
Freedom
the Transport,
under
Released Infrastructure,
FOI 25-168 - Document 4
I would like to acknowledge the traditional custodians of this land on which we meet, work and live. I recognise and respect their continuing connection to the land, waters and communities. I pay my respects to Elders past and present and to all Aboriginal and Torres Strait Islanders.
OFFICIAL
From: Rob Nicholls <xxx@xxxxxxxxxxx.xxx>
Sent: Tuesday, 16 April 2024 4:16 PM
Arts
To: Gambling, Online <xxxxxx.xxxxxxxx@xxxxxxxxxxxxxx.xxx.xx>
of
Cc: Lopez, Margaret <s22(1)(a)(ii)
@communications.gov.au>; s22(1)(a)(ii)
the
<s22(1)(a)(ii)
@INFRASTRUCTURE.gov.au>; s22(1)(a)(ii)
<s22(1)(a)(ii)
@infrastructure.gov.au>;
s22(1)(a)(ii) <s22(1)(a)(ii) @infrastructure.gov.au>; Gambling, Online <xxxxxx.xxxxxxxx@xxxxxxxxxxxxxx.xxx.xx>
and
Subject: Re: Broadcasters discussions ‐ Wagering Advertising [SEC=OFFICIAL] Commercial in Confidence
s22(1)
( )(ii)
s45, s47G(1)(a), s47G(1)(b)
Department
the
by
1982 Communications
Act
I’m currently writing up my findings. However, if a video conference for me to go through the key issues before a
Development,
written report would be valuable, we could schedule one for tomorrow at any time.
s45, s47G(1)(a), s47G(1)(b)
Information
of
Kind regards
Rob
Regional
Dr Rob Nicholls | Principal
nicholls.mmc Pty Limited
Freedom
M: +61 4 1264 6477
E: xxx@xxxxxxxxxxx.xxx
the
Transport,
From: Gambling, Online <xxxxxx.xxxxxxxx@xxxxxxxxxxxxxx.xxx.xx>
Date: Tuesday, 16 April 2024 at 15:58
To: Rob Nicholls <xxx@xxxxxxxxxxx.xxx>
under
Cc: Lopez, Margaret <s22(1)(a)(ii)
@communications.gov.au>, s22(1)(a)(ii)
<s22(1)(a)(ii)
@INFRASTRUCTURE.gov.au>, s22(1)(a)(ii)
<s22(1)(a)(ii)
@infrastructure.gov.au>,
s22(1)(a)(ii) <s22(1)(a)(ii) @infrastructure.gov.au>, Gambling, Online <xxxxxx.xxxxxxxx@xxxxxxxxxxxxxx.xxx.xx>
Subject: RE: Broadcasters discussions ‐ Wagering Advertising [SEC=OFFICIAL]
OFFICIAL
Released Infrastructure,
Hi Rob,
FOI 25-168 - Page 23 of 41
Arts
of the
and
Department
the
by
1982 Communications
Act
Development,
Information
of
Regional
Freedom
the Transport,
under
Released Infrastructure,
Arts
of the
and
Department
the
by
1982 Communications
Act
Development,
Information
of
Regional
Freedom
the Transport,
under
Released Infrastructure,
Arts
of the
and
Department
the
by
1982 Communications
Act
Development,
Information
of
Regional
Freedom
the Transport,
under
Released Infrastructure,
Arts
of the
and
Department
the
by
1982 Communications
Act
Development,
Information
of
Regional
Freedom
the Transport,
under
Released Infrastructure,
FOI 25-168 - Document 4
contain confidential and/or legally privileged material.
Any review, re‐transmission, disclosure, dissemination or other use of, or taking of any action in reliance upon, this
information by persons or entities other than the intended recipient is prohibited and may result in severe penalties.
If you have received this e‐mail in error, please notify the Department on +61 (2) 6274 7111 and delete all copies of
this transmission together with any attachments.
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Arts
Disclaimer
of
the
This message has been issued by the Department of Infrastructure, Transport, Regional Development,
Communications and the Arts. The information transmitted is for the use of the intended recipient only and may
contain confidential and/or legally privileged material.
and
Any review, re‐transmission, disclosure, dissemination or other use of, or taking of any action in reliance upon, this
information by persons or entities other than the intended recipient is prohibited and may result in severe penalties.
If you have received this e‐mail in error, please notify the Department on +61 (2) 6274 7111 and delete all copies of
Department
this transmission together with any attachments.
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
the
by
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Disclaimer
Communications
This message has been issued by the Department of Infrastructure, Transport, Regional Development,
1982
Communications and the Arts. The information transmitted is for the use of the intended recipient only and may
contain confidential and/or legally privileged material.
Act
Any review, re‐transmission, disclosure, dissemination or other use of, or taking of any action in reliance upon, this
information by persons or entities other than the intended recipient is prohibited and may result in severe penalties.
If you have received this e‐mail in error, please notify the Department on +61 (2) 6274 7111 and delete all copies of
this transmission together with any attachments.
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Development,
Information
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Disclaimer
of
This message has been issued by the Department of Infrastructure, Transport, Regional Development,
Regional
Communications and the Arts. The information transmitted is for the use of the intended recipient only and may
contain confidential and/or legally privileged material.
Any review, re‐transmission, disclosure, dissemination or other use of, or taking of any action in reliance upon, this
Freedom
information by persons or entities other than the intended recipient is prohibited and may result in severe penalties.
If you have received this e‐mail in error, please notify the Department on +61 (2) 6274 7111 and delete all copies of
this transmission together with any attachments.
the
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Transport,
under
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Disclaimer
This message has been issued by the Department of Infrastructure, Transport, Regional Development,
Communications and the Arts. The information transmitted is for the use of the intended recipient only and may
contain confidential and/or legally privileged material.
Released Infrastructure,
Any review, re‐transmission, disclosure, dissemination or other use of, or taking of any action in reliance upon, this
information by persons or entities other than the intended recipient is prohibited and may result in severe penalties.
If you have received this e‐mail in error, please notify the Department on +61 (2) 6274 7111 and delete all copies of
FOI 25-168 - Page 28 of 41
FOI 25-168 - Document 4
this transmission together with any attachments.
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Disclaimer
This message has been issued by the Department of Infrastructure, Transport, Regional Development,
Communications and the Arts. The information transmitted is for the use of the intended recipient only and may
Arts
contain confidential and/or legally privileged material.
of
Any review, re‐transmission, disclosure, dissemination or other use of, or taking of any action in reliance upon, this
the
information by persons or entities other than the intended recipient is prohibited and may result in severe penalties.
If you have received this e‐mail in error, please notify the Department on +61 (2) 6274 7111 and delete all copies of
this transmission together with any attachments.
and
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Department
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Disclaimer
the
This message has been issued by the Department of Infrastructure, Transport, Regional Development,
by
Communications and the Arts. The information transmitted is for the use of the intended recipient only and may
contain confidential and/or legally privileged material.
Any review, re‐transmission, disclosure, dissemination or other use of, or taking of any action in reliance upon, this
Communications
information by persons or entities other than the intended recipient is prohibited and may result in severe penalties. 1982
If you have received this e‐mail in error, please notify the Department on +61 (2) 6274 7111 and delete all copies of
this transmission together with any attachments.
Act
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Development,
Information
of
Regional
Freedom
the Transport,
under
Released Infrastructure,
FOI 25-168 - Page 29 of 41
link to page 29 link to page 30
FOI 25-168 - Document 5
Commercial in Confidence
1 INTRODUCTION
2
2 SUMMARY OF MESSAGES HEARD
3
3 REVIEW OF MESSAGES HEARD
3
Arts
s45, s47G(1)(a), s47G(1)(b)
of the
and
Department
the
by
1982 Communications
Act
Development,
Information
of
Regional
4 COSTS AND COST STRUCTURES
10
s45, s47G(1)(a), s47G(1)(b)
Freedom
the Transport,
under
Released Infrastructure,
FOI 25-168 - Page 30 of 41
Arts
of the
and
Department
the
by
1982 Communications
Act
Development,
Information
of
Regional
Freedom
the Transport,
under
Released Infrastructure,
FOI 25-168 - Document 5
Commercial in Confidence
My line of inquiry on substitution was to try to draw out the business effect of the position that
there is either no, or limited substitution for wagering advertising. That is, a focus less on the
loss of revenue, but effect at a profit line. The profit line to which I drew attention was Earnings
Before Interest, Depreciation, and Amortisation (EBITDA). The rationale for this is that EBITDA is
a good indication of “free cash” generated by a business. This is an important metric for
privately held businesses and businesses which are operated as strategic business units in an
Arts
entity with multiple lines of business. It is also an issue that I raised in my first report.
of the
This report begins by presenting a summary of the key messages that I heard from the
broadcasters in my discussions. My focus here is on common issues, rather than those specific
and
to each broadcaster. I then turn to a review of each of those key messages and draw out any
differences between broadcasters. Finally, I present some conclusions.
s45, s47G(1)(a), s47G(1)(b)
Department
the
by
1982 Communications
Act
Development,
Information
of
Regional
Freedom
the Transport,
under
Released Infrastructure,
FOI 25-168 - Page 32 of 41
FOI 25-168 - Document 5
Commercial in Confidence
s45, s47G(1)(a), s47G(1)(b)
Arts
of the
and
Department
the
by
1982 Communications
Act
Development,
Information
of
Regional
Freedom
the Transport,
under
Released Infrastructure,
FOI 25-168 - Page 33 of 41
FOI 25-168 - Document 5
Commercial in Confidence
s45, s47G(1)(a), s47G(1)(b)
Arts
of the
There is some support for this position from Standard Media Index Australia (SMI), which
and
publishes monthly advertising spend trends. In February, this showed a decline in television (-
12.9%) and radio (-5.9%) advertising.1
s45, s47G(1)(a), s47G(1)(b)
Department
the
by
1982 Communications
Act
Development,
Information
of
Regional
Freedom
the Transport,
under
Released Infrastructure,
1 https://www.adnews.com.au/news/smi-february-ad-spend-down-6
FOI 25-168 - Page 34 of 41
FOI 25-168 - Document 5
Commercial in Confidence
s45, s47G(1)(a), s47G(1)(b)
Arts
s45, s47G(1)(a), s47G(1)(b)
The relevant SMI
of
report indicates a fall of 50% in government advertising in early 2023.2 By the end of 2023, this
the
was confirmed as a drop of $100 million on a comparison of calendar year basis.3
and
The effect of the decline in government advertising is that government advertising is not a
replacement category.
s45, s47G(1)(a), s47G(1)(b)
Department
the
by
1982 Communications
Act
Development,
Although Disney+ does not currently carry advertising in Australia, “Disney+ Standard with Ads”
Information
is the advertising supported tier in Europe.4
of
s45, s47G(1)(a), s47G(1)(b)
Regional
Freedom
the Transport,
under
2 https://www.mediaweek.com.au/smi-february-2023-yoy-decline-due-to-govt-ad-spend-outdoor-
cinema-climb/
3 https://www.mi-3.com.au/06-02-2024/smi-ad-spend-trends-2023-december-back-91-100m-
government-spending-withers-2023-cy-27
4 https://press.disney.co.uk/news/disney+-to-launch-an-ad-supported-subscription-plan-on-november-
Released Infrastructure,
1-in-europe
FOI 25-168 - Page 35 of 41
FOI 25-168 - Document 5
Commercial in Confidence
s45, s47G(1)(a), s47G(1)(b)
Arts
of the
3.8 Sports rights contract obligations
and
s45, s47G(1)(a), s47G(1)(b)
SportsBet is the partner for each of
Department
the AFL and NRL and their associated sports rights. Bet365 is the “gold” partner for Cricket
the
Australia.5
by
s45, s47G(1)(a), s47G(1)(b)
1982 Communications
Act
Development,
Information
of
Regional
Freedom
the Transport,
under
5 https://www.cricket.com.au/our-partners/our-commercial-partners
6 https://www.cricket.com.au/news/3807634/amazon-prime-video-secures-icc-broadcast-rights-in-
australia-t20-odi-world-cup-world-test-championship-2024-27
Released Infrastructure,
7 https://frontofficesports.com/netflix-gets-its-live-sports-deal-with-wwes-flagship-show-raw/
FOI 25-168 - Page 36 of 41
FOI 25-168 - Document 5
Commercial in Confidence
s45, s47G(1)(a), s47G(1)(b)
Arts
of the
and
Department
the
by
1982 Communications
Act
Development,
Information
of
Regional
Freedom
the Transport,
under
Released Infrastructure,
FOI 25-168 - Page 37 of 41
FOI 25-168 - Document 5
Commercial in Confidence
s45, s47G(1)(a), s47G(1)(b)
Arts
of the
s45, s47G(1)(a), s47G(1)(b)
and
This problem with frequency capping has been
Department
identified by others as being problematic in Australia.8 s45, s47G(1)(a), s47G(1)(b)
the
by
s45, s47G(1)(a), s47G(1)(b)
1982 Communications
Act
Development,
Information
of
Regional
Freedom
the Transport,
under
8 https://www.mi-3.com.au/14-03-2024/pressure-coming-them-huge-market-cant-sustain-four-
Released Infrastructure,
networks-marketers-pull-few-punches
FOI 25-168 - Page 38 of 41
Pages 39-41 removed in their entirety as exempt under sections 45, 47G(1)(a) and 47G(1)(b) of the
FOI Act.
Arts
of the
and
Department
the
by
1982 Communications
Act
Development,
Information
of
Regional
Freedom
the Transport,
under
Released Infrastructure,