The Government has today opened a short consultation process on the next phase of the News Media Bargaining Code, the News Bargaining Incentive, seeking responses from industry and stakeholders over the next two weeks. The Code, introduced in 2021 is world-leading legislation and, while it has yielded mixed results for industry to date, the intent to correct a power imbalance in the information ecosystem through requiring tech platforms to contribute to the news media industry they have disrupted is commendable.
LINA and CBAA supports these actions to hold tech platforms accountable to the communities they profit from and welcomes measures to increase the transparency of deals between platforms and industry. The News Bargaining Incentive is a new attempt to bring platforms to the table to negotiate with news publishers, with the government seeking to return funds to parts of the news media industry as compensation for a loss of advertising income caused by digital disruption.
The proposed News Bargaining Incentive, as currently drafted, does not address the underlying issues in the News Media Bargaining Code on which it is based. Commercially focused eligibility requirements create barriers to participation for small publishers and volunteer-based community media, further entrenching the status quo in a media landscape that is already one of the most concentrated in the world. Funding is needed not only to prop up existing publishers, but to regenerate a battered news industry and better serve Australian communities with relevant and reliable news services.
The Government’s News Media Assistance Policy Framework outlines the role of government policy intervention in news media and journalism as fundamental to democracy, civic society and community wellbeing – balancing the need for industry support with undue editorial influence. Government has a responsibility to enable informed communities, facilitate effective emergency response, community resilience, belonging and cohesion, civic engagement and day to day information that helps people navigate their lives.
While not an inherent feature of the legislation, the News Bargaining Incentive may generate revenue through levies on technology companies. These companies may be more inclined to absorb the higher costs in Australia rather than risk setting a precedent that could influence similar regulatory approaches in other countries. This presents an opportunity for government to resource its own societal objectives through the levy, and to change the news media landscape in the process. The State of Democracy in Australia report shows almost two-thirds of Australians support this idea.
Quotes attributable to LINA Executive Director Claire Stuchbery:
“LINA acknowledges the need to support journalists to do their work across Australia, especially after a decade marked by newsroom closures. But, we call on the government to allocate a percentage of funds raised through a levy to grant programs and other measures that enable growth in the news media industry, bringing new and diverse voices into the public dialogue and addressing news deserts. The news media industry has been through the fire and needs support to regroup and produce news that is helpful to communities. Further, government have a responsibility to the Australian public to support their access to verified information.
“The News Bargaining Incentive presents a rare chance for government to move the needle on media diversity and public interest journalism without dipping into its own pocket. Let’s hope they reflect long enough to do so.”
