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The Forum > Article Comments > Is the ABC's business model sustainable? > Comments

Is the ABC's business model sustainable? : Comments

By Barry Spinks, published 15/4/2014

If the ABC's business model is as flawed as it appears, how will it withstand an efficiency dividend?

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Rhrosty said << I think Aunty is one of the few platforms for local talent and or production, and needs to be retained>>

I would agree with that if it were true.

The ABC talk much about local content yet don’t appear to offer much of a platform to the rest of the industry, as highlighted in the link provided.

The ABC does not have one single News and Current Affairs programs in the Top 20, these are all locally produced.

In general programming the best ratings are “New Tricks” (No 10), “Gruen Planet” (No 14), “Miss Fisher” (No 17) and “Australian Story” (No 19). So even here there is only 50% local content.
(Source; OzTam’s 5 city metro average)

Even ABC4Kids sources much of their content from Canada, China, USA, France, UK (BBC) and even Eastern Europe. This is why local production companies and talent are complaining that current and former ABC “fat cats” are getting the jobs at inflated rates.

Something is just not adding up with $1.2bn going “in” and only this result coming “out”?
Posted by spindoc, Tuesday, 15 April 2014 4:13:12 PM
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Sorry spinners, didn't you mean 75% local content?
Miss Fisher is produced in Australia. So that's 3 out of 4 highest rating shows on the ABC being locally produced. Not too bad.
Posted by Bugsy, Tuesday, 15 April 2014 4:21:26 PM
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It seems there is no limit to the gullibility of the populace in this country or the mendacity of those who run it.

The ALP government may have been fools but the ABBott Government is pursuing a scorched earth policy. No automotive industry, no penalty rates, pensions and benefits to no longer be indexed, unions further evsicerated, no ABC, increased taxes, reduced services.

Welcome to South America

I don't intend to argue with the many complicit zombie apologists.

I only ask, whether before deporting our Automotive industry the government considered the economics in totality. Does not the government currently collect a luxury tax on imported vehicles to the tune of over $0.5 billion. I don't imagine the government giving up that revenue.

Abbotts philosophy is to govern by clearing any obstacle to the existing economic rapists continuing on their merry way.

He believes perhaps this will all come good because that is the classical theory.

The. Classical theory however, applies to another century - it is simply irrelevant and inapplicable in a modern 21 st century global business world.

Keating'/ banana republic call may have been only a little premature.
Posted by YEBIGA, Wednesday, 16 April 2014 12:15:43 AM
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‘morning YEBIGA,

Thanks for your comments, unfortunately those comments are almost entirely OT. There is only one reference to the ABC and that is that the government has a “no ABC” policy. So I’ll respond to that.

There are many who support scrapping the ABC and are vocal about it, that’s called their opinion and they are perfectly entitled to express it without being called “gullible”. Nor do I believe for one minute that the government plans to scrap the ABC.

I personally believe there are some important and unique capabilities the ABC has, one that jumps to mind is nationwide radio to provide remote/regional coverage. Plus any other services the ABC could deliver that are not duplications or compete with commercial enterprises should also be considered.

The case being made is not about content, perceived bias, ratings or network reach. It questions whether or not the ABC’s current model could survive a modest 2.5% ED and possibly the Australia network, if not why not?

I made the case that the ABC’s business structure is totally dependent upon continued revenue growth because it has lost control of, or created a cost structure that is unsustainable. I have also evidenced that cronyism may well be one of the causes.

If the ABC cannot or will not change that model, it cannot survive. The fixed, variable and contingencies will collided somewhere in 2015/16 on current trend lines. This situation was not created by the government or anyone else for that matter, it was created by questionable ABC structure and governance.

If you are going to criticize anyone you should start with the ABC.
Posted by spindoc, Wednesday, 16 April 2014 8:28:26 AM
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Another article on OLO straight from the Liberal play book and complete spin.

So the ABC has a labour bill of 38% how does that compare to other media groups?

As for ratings, I can only guess that Barry is a big fan of reality telly and wants to see more.Perhaps if ABC had more shows like MKR barry would be happy.

In the end for those of the far right, Reality is left wing so it's no wonder they think the ABC is too.
Posted by Cobber the hound, Wednesday, 16 April 2014 9:00:39 AM
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