Australia in the Asian Century Issues Paper - About the ABC

Australian Broadcasting Corporation

submission to

Australia in the Asian Century Taskforce

Australia in the Asian Century Issues Paper

March 2012

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ABC submission on Australia in the Asian Century

March 2012

Introduction

The Issues Paper has unequivocally endorsed the notion that this coming century will be the Asian Century, with a rapid shift of economic and strategic weight to Asia. The ABC supports this proposition.

Australia’s national interest will be profoundly affected by the changing regional dynamics and there is a clear need for a national conversation about the opportunities and challenges which arise.

As identified in the Issues Paper, Australia must extend its engagement with Asia beyond mere geographical proximity. Australia requires a strategy for engagement which enhances mutual understanding and respect and which encourages an exchange of ideas. Establishing strong cultural and social links with Asian populations will, over time, facilitate stronger economic ties and more productive collaboration with the region.

The ABC is positioned to play a key role in this process. It has extensive broadcasting capabilities; a solid reputation as a trusted source of news and educational content, a supplier of quality programming and an active creative partner; and an innovative approach to the use and application of new technology.

The Issues Paper sets out some ‘national fundamentals’, the soundness of which will be important to Australia’s integration with Asia and accordingly, our national prosperity. The ABC submits that well-resourced, independent public broadcaster with a strong international broadcasting capability underpins the fundamentals listed in the introduction to the Issues Paper. The national broadcaster plays a vital role in ensuring the Australian voice is heard in the region—conveying to our neighbours through independent news coverage and a full array of content the nation’s diversity and social cohesion, its vibrant economy and the stability of its institutions and regulatory frameworks.

From its creation, the national broadcaster has also displayed an unrivalled commitment to covering the region, ensuring that Australian citizens are aware of the full complexities of the

ABC SUBMISSION ON AUSTRALIA IN THE ASIAN CENTURY

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Asian story. As Australia enmeshes further into Asia, this role will become even more important.

The media sector has been one of the most disrupted by the technological changes that have occurred over the past decade. This makes predicting the shape of the regional media market in 10 to 15 years a risky venture. However, the ABC has shown an ability to navigate through the uncertainty, to build its brand reputation and its business at a time when many commercial models are failing, and to exploit the opportunities of new technology.

This submission shows how the media landscape is changing and the ways in which the ABC, as a vital Australian institution, will feature in Asia’s remarkable transformation.

The Asian Century

Asia is home to 60% of the world’s population and 30% of the world’s land mass. It is home to China and India; the world’s two most populous nations and the two fastest growing economies in the world.

Asia will play an increasing role in the global economy. According to the World Bank, China may become the largest economy in the world sometime between 2020 and 2030.1 Some have predicted that Asia’s share of global GDP will reach 50% by 2050.2

Economic prosperity links in with other developments such as the rise of the middle class—Asia is predicted to add 2.5 billion people to the world’s middle classes in the next 20 years.

Despite the economic downturn in the US and Europe, Asia is expected to sustain robust growth in the coming years.

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The forecast for the Asian economy in the coming years balances these strong growth patterns with the need to address a range of potential constraints, such as openness to trade and competition, skills shortages, demographic changes, social cohesion and the stability of the political environment.

This is closely tied to the take-up of advanced communications technologies and the shift of rural populations to urban centres.

Australia is deeply enmeshed in the Asian market. To have an impact on the international stage, Australia will increasingly need to engage in the politics, economy and diplomacy of the Asian region.4

Increased affluence and global competition is also bringing Asia closer to Australia. For instance, it is now cheaper to fly to Hanoi or Hong Kong than it is to fly to remote parts of Australia. Asia is no longer an exotic travel destination and is within easy reach of Australian capital cities.

The resources boom and careful economic management have protected us from the worst of the global financial crisis and have deepened our trading ties with the large economies of China, India, Japan and South Korea.

1 World Bank China Office. ‘Research Working paper No. 9—China through 2020: A Macroeconomic Scenario.’ 2 http://beta.adb.org/sites/default/files/asia2050-executive-summary.pdf 3 http://www.eastasiaforum.org/2011/11/28/south-asia-and-asias-middle-class-future/ 4 http://www.asialink.unimelb.edu.au/__data/assets/pdf_file/0004/441562/Australia_Retreats_ From_Asia.pdf


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The networked economy and competition also mean that Australia is connected to Asia in business and domestic life. Technology is stripping away national borders and is making it far easier for the citizens of Asia to communicate with each other and with Australians.

As Asia’s economic importance grows, there will necessarily be a rebalancing of political and strategic relations in the region and globally.

As noted by the Taskforce, Australia’s prosperity is linked to its engagement with and integration into Asia. Our most important trading partners are no longer solely located in the developed world and our pattern of trade has shifted markedly. There is significant demand in Asia for our natural resources, together with strong demand in the education, tourism and agriculture sectors.

As a media organisation which seeks to serve and reflect its audiences, the ABC will be affected by the Asian Century most immediately in terms of the anticipated social, cultural and intellectual changes. This is true both for the ABC’s domestic and international audiences. Domestically, there will be a growing demand for information about and perspectives on Asia and the implications for Australia of the Asian Century. Internationally, the ABC’s services will need to adapt to the significant socio-economic and technological changes in the region, whilst still presenting a uniquely Australian voice and perspective. The profile of its audiences will change as technologies continue to evolve and as the rising middle class creates an ever-increasing demand for high-quality news, information and entertainment.

The Media and Communications Environment in the Asian Century

Converging Media Markets

The transformative changes the region is experiencing naturally extend into media and communications markets. The challenge for media organisations is to keep pace with fast-moving changes in technology and consumer behaviour and seize the opportunities which will arise.

Media markets across the globe are undergoing rapid change. Digital media platforms and devices—including the internet, mobile phones and tablet computers—give audiences access to more programs and services and greater scope for controlling and personalising their media consumption.

Increasingly, they seek to consume content at the time of their choosing and on the devices that best suit their lifestyles. As audiences make greater use of digital platforms, they tend to reduce their use of traditional television and radio broadcasts. Further, as converged platforms blur the line between media and communications, they give rise to entirely new phenomena, such as social media and user-generated content, which are forcing media organisations to engage more directly with audiences.

Media organisations are increasingly acknowledging that it is no longer sufficient to provide programs and services on a single platform. Instead, wherever possible, content should be made available on a range of platforms to maximise its appeal to different audiences segments.


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The most effective media organisations will increasingly be cross-platform operations that are able to efficiently reuse content across multiple platforms and effectively tailor content delivery to the most appropriate devices for their target audiences.

In the Asian and Pacific markets that are the target for Australia’s international media activities, the use of digital and mobile technologies has grown significantly in recent years. It is expected to continue to do so over the next decade, albeit at different rates across the region.

Broadcasting

Access to television continues to grow in all but the most developed economies of Asia. In 2011, 81% of homes in Asia had a television, of which 53% subscribed to a multichannel or pay-TV service.5

However, television markets throughout Asia and the Pacific are becoming increasingly competitive. For example, since the liberalisation of India’s economy in 1991, the number of television channels has grown from two in 1990, through 112 in 2000,

Multichannel television penetration is particularly high in developed markets such as South Korea (100% of television households), Taiwan (97%) and Hong Kong (86%), as well as in the rapidly-developing Indian market (87%).

6 to over 500 in June 2010.7

At the same time, in competitive pay-TV markets, where there are more channels than available channel slots, multichannel service operators are increasingly seeking ‘carriage fees’ to ensure placement of channels on their platforms.

The use of radio in Asia varies significantly from country to the country. In China, for example, fewer than 7% of adults use radio as a daily source of news; by comparison, in Indonesia it is used by 11% of adults and in Cambodia by 27.7%.8

Radio markets are expected to exhibit the same fragmentation of services and audiences as television markets.

Digital Platforms

Mobile phones are becoming one of the key means of accessing information in the Region. In late 2011, there were an estimated 2.9 billion mobile phone subscriptions—73.9 subscriptions per 100 inhabitants—in Asia and the Pacific.9

5 CASBAA. ‘Asia Pacific Multichannel TV 2012’, Report, p.4; while the report includes Australia and New Zealand, the small populations of those countries mean they are unlikely to distort the figures.

6 Federation of Indian Chambers of Commerce and Industry (FICCI) and PricewaterhouseCoopers. ‘The Indian Entertainment & Media Industry: Unraveling the Potential’, Report, 2006. 7 Telecom Regulatory Authority of India (TRAI). ‘Recommendations on Foreign Investment Limits for Broadcasting Sector’, Report, 30 June 2010. <http://www.trai.gov.in/WriteReadData/trai/upload/ Recommendations/120/ Reco_Jun30.pdf>. 8 InterMedia Survey Institute research. 9 International Telecommunications Union (ITU). ‘Key ICT indicators for developed and developing countries and the world (totals and penetration rates)’, Web Page, as at 16 November 2011. <http://www.itu.int/ITU-D/ict/statistics/at_glance/KeyTelecom.html>.


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A 2011 study of smartphone10 use in 30 mobile phone markets conducted by Google and Ipsos found that all 11 Asia-Pacific markets surveyed had higher overall mobile phone penetration than the US, and that four—Singapore (62%), Australia (37%), Hong Kong (35%) and urban China (35%)—exhibited higher smartphone penetration.11

In late 2011, China was estimated to have over 118 million smartphone users ,

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In Asia, mobile phones are increasingly being used to access the internet. In China, it is estimated that one-third of mobile phones are used for internet access.

it is expected to experience further rapid growth in coming years.

13 A July 2011 report by Nielsen found that that nearly half (48%) of regular internet users in Indonesia use a mobile phone to access the network, while more than a third did likewise in Thailand (36%) and Singapore (35%).14

Regional internet use has increased rapidly. At the end of 2011, it was estimated that Asia had some 932 million internet users.

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Over the last twelve months these figures have continued to grow dramatically. In China, for example, it was reported in January 2012 that there were more than half a billion Chinese on the internet, of whom almost 56 million (over 10%) used the Internet for the first time in 2011.

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There are clear trends towards greater use of online and mobile media among the aspirational and youth segments that comprise key target audiences for Australia’s international media services. In India, for example, 77% of internet users are under 35; of those, 38% are under 25. Similarly in Vietnam, 50% of internet users are below 27 years and over half (54%) are university-educated; more than half of Vietnamese internet users are from the upper and middle class.

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In Indonesia, the trend is even more pronounced, with 75% of internet users under 35 and 69% belonging to the middle class.

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10 Smartphones are mobile phones built on a computing platform that allows them to run application software (‘apps’) in addition to telephony services. While functionality differs between devices, it commonly includes text messaging, email, web browsing, still and video cameras, music and video playback and possibly video telephony.

11 Swati. ‘Asia-Pacific leads the World in Mobile Penetration’, Buzzom, 4 September 2011. <http://www.buzzom.com/2011/09/asia-pacific-leads-the-world-in-mobile-penetration/>. 12 mobiThinking. ‘Global mobile statistics 2012: all quality mobile marketing research, mobile Web stats, subscribers, ad revenue, usage, trends…’, Web Site, as at 15 February 2012. <http://mobithinking.com/ mobile-marketing-tools/latest-mobile-stats>. 13 Nielsen Mobile Insights: China, March 2010. 14 Nielsen (Indonesia). ‘Indonesia The Most Reliant On Mobile Internet Access Across Southeast Asia: Nielsen’, Media Release, 11 July 2011. <http://www.acnielsen.co.id/news/Release110711.shtml>. 15 http://www.internetworldstats.com/stats3.htm; includes 35 counties in Northeast Asia, Southeast Asia, South Asia and Central Asia. 16 http://www.abu.org.my/Latest_News-@-More_than_half_a_billion_Chinese_use_Internet.aspx 17 Cimigo. Vietnam NetCitizens Report. March 2010, pp.12–13. 18 Zenith Optimedia. Asia Pacific Market & MediaFact. 2010 Edition; Socio-Economic Strata (SES) used in these measurements range from A to E, where B and C are categorised as ‘middle class.’ In Indonesia, 20.4% of all internet users actually belong to SES A; however, this ‘upper class’ segment represents less


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The future for media organisations in the Asian Century

The experience of rapid technological change over the last decade strongly suggests that it impossible to predict with any accuracy what the widely differing media markets of Asia will look like in 2025. Much as the unforeseen rise of social media in the first decade of the twenty-first century forced media organisations and regulators alike to adjust their conception of the activities in which they were engaged, it is highly likely that the next dozen years will witness the arrival of further new and disruptive media forms.

Nonetheless, it is possible to extrapolate from current trends in order to identify the kinds of attributes that a successful regional media organisation is likely to need at the end of the first quarter of the century.

Looking forward to 2025

The first and most obvious trend will be towards media consumption across a broader range of devices. Traditional television and radio consumption is already being supplemented—and in some cases replaced—by networked computers, smartphones and tablets that provide audiences with greater control over their media consumption. While scheduled broadcasting is likely to remain a viable means of providing content to audiences, programs traditionally viewed through the television set will, for instance, be increasingly available on other screens and devices. Media organisations will thus find themselves needing to deliver their programs and services to fragmented audiences that expect to consume their output on a range of different devices.

Across Asia, there is a clear trend towards the use of mobile devices which provide users with the ability to communicate and access media services from any location where reception is available. As shown above, their use has exploded in recent years. In a number of developed markets, more than a third of the population already makes use of sophisticated smartphones and there is every reason to anticipate that they will be ubiquitous in many Asian nations by 2025.

A direct consequence of this will be that audiences will have become accustomed to personalising their media consumption. Many will expect to be able to shift programs to the device most convenient to them and to watch or listen at the time of their choosing. As on-demand access to shows becomes more common, the consumption of scheduled broadcasts will become a matter of choice for consumers; only coverage of live events, such as sporting matches, will require it.

In a number of Asian nations, audiences already have access to an overabundance of television channels delivered by congested and highly competitive markets. Networked media services will only exacerbate this trend, effectively providing consumers with access to a virtually unlimited choice of media services from around the globe.

Access to global networks will also provide greater access to large global content brands, providing an additional source of competition for media organisations competing for the

than 1% of the population. See Roy Morgan Research, ‘Redefining Indonesia’s Socio-Economic Strata’, December 2006. <http://www.roymorgan.com/documents/indArticles/the_jakarta_post_article_ 5.pdf>.


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attention of audiences. In a predominantly online world, the difference between domestic and international services is likely to become increasingly slippery, although the need to ensure local relevance may incline media organisations to continue to develop specific versions of their content specifically for national markets or regional blocs.

Finally, networked communications devices already allow an unprecedented level of public participation in the media. This ranges from voting and forum discussions, through interaction with content creators, to collaboration in content creation or full-scale amateur production. It includes active participation in conversations that are oblivious to geographical boundaries through social media platforms and the transformation of members of the public into newsgatherers who use smartphones and other devices to record and report events as they occur. By 2025, when smartphones and other mobile devices are expected to be ubiquitous in many Asian markets, participation in social media participation and creation of user-generated content are similarly likely to be an everyday feature of many media consumers’ lives.

Which media organisations will prosper?

Against this background, it seems likely that any media organisation that will be able to flourish in a crowded, fragmented global market will need to exhibit a number of traits.

First, it will need to create and deliver services across the range of major media platforms currently in use across the region (television, radio, online, mobile and social) and to adapt its programs and services to new platforms that become important to audiences. The ability to adapt will most likely require the service to develop an infrastructure that allows it to cost-effectively reuse audio, video and textual content across multiple platforms and to extend this capacity to new platforms as they become relevant.

Second, in an increasingly congested market, it will require a reputation and brand that allows it to stand out from the competition. In developing media markets, it should be known for providing credible and useful services that for which there are no domestic substitutes. In developed markets, where domestic services are likely to substantially provide for citizens’ information needs, it will instead need to see seen as offering distinctive services of relevance to critical audience segments, such as high-quality regional news and analysis or English-language learning and other educational content.

Third, an ability to understand audiences and their changing habits, desires and behaviours will be vital. To the extent that resources permit, it should offer tailored content for specific groups within its target audiences, including targeting by nation, age, language and socio-economic divisions. Given the pace of change, it will be critical to develop sophisticated data capture and meaningful feedback mechanisms which evolve in line with service and technology trends. But this capability will only be of real value if it is linked to an agile decision-making framework in which audience information can be smoothly integrated into programming and service decisions.

Fourth, to maximise the accessibility of its content for regional audiences, the service should to the greatest possible extent offer services that are available in local languages. While the sheer number of languages and dialects spoken across Asia will impose practical limits on this, it makes sense to ensure that major languages are covered. Similarly, while resources are


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likely to limit audiovisual production to English, such content should ideally be subtitled in major languages.

Lastly, the organisation will need to build and maintain relationships across the region, exploiting business partnerships and the range of specialist expertise throughout the region. The ability to partner with regional content developers and to find new distribution pathways will put the organisation in a position of strength in an increasingly competitive environment.

The ABC—uniquely equipped for the future

The ABC is one of the most durable and successful public broadcasters. From its modest beginnings in 1932, the Corporation now carries four national radio networks, 60 local radio services, 10 digital radio channels, an extensive online operation, three major international arms and a successful commercial business. Its enabling legislation, the Australian Broadcasting Corporation Act 1983, requires it to inform, educate and entertain Australian audiences by providing innovative, comprehensive, high-quality broadcasting services that reflect Australia’s diversity and contribute to a sense of national identity. Internationally, the ABC is required to encourage awareness of Australia and its attitudes to world affairs to other countries through international broadcasting services and provide information on Australian affairs and attitudes on world affairs to Australian citizens living or travelling abroad.

Importantly, the Corporation has a proven, strong record in the five areas listed in the previous chapter and is therefore uniquely positioned to flourish in the period ahead.

1. Innovation—The ABC is the most innovative media organisation in Australia and has been at the forefront of employing online and mobile technologies to engage with its audiences, including user-generated content and social media tools. This demonstrated experience equips it to develop and operate as a converged international media service.

2. Reputation—The ABC is one of the most recognised and trusted brands in Australia and the region. As Australia’s primary public broadcaster, with a Charter that requires editorial independence, the ABC’s core strengths are its enduring credibility and integrity.

3. Understanding audiences—the ABC places the consumer at the centre of everything it does and has rolled out a number of innovative audience feedback mechanisms across its services. It is constantly refining and reviewing its services to ensure they meet the needs of its audiences.

4. In-language services—the ABC, through its international services, has the content and infrastructure throughout the region to enable it to connect with a range of Asian audiences in their own language, presenting Australian perspectives and values.

5. Regional relationships—The ABC is pursuing the opportunities arising in the Asian Century, developing strong co-production partnerships in the region. For example, as described below, it is playing an instrumental role in the establishment of an Asian Animation Summit, intended to facilitate stronger co-production ties across Asia.


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Social, cultural and intellectual engagement with Asia—the ABC as a driving force

The ABC’s international services reach millions of people in Asia, delivering the voice of Australia to the region. The ABC’s services greatly enhance Asian audiences’ understanding of Australia and facilitate the exchange of ideas with regional partners.

ABC News has long based its correspondents in Asia, providing both Australian and international audiences with Australian perspectives on Asian countries that are of economic and strategic importance to the nation.

The ABC’s English Language Learning services enhance the language ties between Australia and Asia, and play an important part in strengthening cultural and economic relationships by further promoting English as the shared language for the region. Shared language will be vital in connecting productively with Asian countries on a number of fronts, including trading relationships, education services and other collaborations of the kind noted in the Asian Century Issues Paper.

There is also an identifiable need to improve Australians’ understanding of the Asian region and its culture, politics and societies. Knowledge will be key to Australia taking advantage of the opportunities created by the Asian Century. The ABC’s services are ideally placed to fulfil this need and to take the lead in explaining Asia to Australians, not only through news reporting, but also through a wide variety of information programming across the ABC’s multiple television and radio networks and via ABC Online. This is explored in more detail below.

An increased understanding of Asian cultures, economics and demographics will also assist Australians in embracing increased Asian immigration, aiding social cohesion and cultural understanding. Part of the policy challenge for Australia arising from the Asian Century will be to prepare for the social and cultural impacts of increasing Asian engagement and immigration.

A ‘national fundamental’—Australian international broadcasting in the Asian Century

International broadcasting and the presentation of Australian perspectives to Asian audiences are both critical parts of Australia’s engagement in the region. International broadcasting is a well-established form of public diplomacy and a strong, credible and innovative international broadcasting service will be vital for Australia in strengthening its position in the region.

Public diplomacy and international broadcasting

The last two decades have witnessed an increased international focus on the use of public diplomacy as a means by which countries can advance their national interests in a globalised, information-rich world.19

19 See, e.g., Australian Senate, Standing Committee on Foreign Affairs, Defence and Trade. ‘Australia’s


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In essence, public diplomacy is the set of means by which a nation can connect directly with foreign publics and institutions in order to encourage an understanding and appreciation of its policies, attitudes values and culture. Public diplomacy helps to positively develop a nation’s reputation within other countries, which turn helps facilitate the achievement of foreign policy and trade objectives, including attracting overseas investment, students and tourism.

The need for Australia to have effective and far-reaching public diplomacy programs has always been significant. Unlike most nations with a western political tradition, Australia’s geographic circumstances mean that the majority of the countries within its primary foreign policy and economic focus have cultural and political backgrounds different from its own. Hence its need for effective public diplomacy is arguably greater than for most other developed countries.

In recent decades the view has strengthened that a nation’s capacity to further its interests depends to an important degree on its capacity to influence not only other governments, but also foreign publics and institutions. Effective diplomacy not only involves the exercise of conventional power through economic and military means, but the ability to persuade other nations of its qualities as a country in a wide variety of respects.

This process is sometimes described as the exercise of ‘soft power,’ and the ABC is uniquely placed to further these objectives in the Asian century through its role as Australia’s international broadcaster. The ABC has the infrastructure, content and the initiative, together with a strong, trusted brand, to help lead the public face of Australia’s engagement with Asia.

The ABC’s role in Australia’s public diplomacy in Asia

Government-funded international broadcasting is a core public diplomacy tool. It sits alongside scholarships, exchange programs, aid projects and cultural and sporting events as an important means of influencing the peoples and institutions of other nations. The Lowy Institute has described international broadcasting as ‘one of the principal means of presenting a country’s perspective, views and values to foreign publics and their leaders.’20

Through its Radio Australia and Australia Network international broadcasting services, the ABC has a long history of taking a leadership role in Australia’s public diplomacy efforts in Asia. A detailed overview of Radio Australia and Australia Network is at Attachment A.

Its importance is reflected in the substantial funding that many governments allocate to international broadcasting.

The ABC has a strong record of performance as Australia’s international broadcaster, reaching millions of people in Asia on multiple platforms including television, radio, the internet, mobile devices and social media. It also engages its Asian audiences in English and Asian languages, projecting Australian interests, perspectives and ideas and providing Asian audiences with the means to understand Australia. The ABC’s reach and influence is

public diplomacy: building our image’, Report, August 2007, pp.15–25; Lowy Institute for International Policy. ‘Australia’s Diplomatic Deficit: Reinvesting in our instruments of international policy’, Blue Ribbon Panel Report, March 2009, p.31. 20 Lowy Institute ‘International broadcasting and its contribution to public diplomacy’.


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impressive when it is considered that other G20 countries apportion significantly greater resources to their international broadcasting services.21

However, the ABC’s strength in international broadcasting is not just in its extensive reach or existing infrastructure.

The Lowy Institute identified the following five elements of a successful international broadcasting service:

‘for international broadcasting to make an effective and lasting contribution to their country’s broader public diplomacy goals, five elements need to be present: credibility built on independence, financial security, legislative protection, strategic direction, and longevity.’22

Of the five elements, the Lowy Institute identified editorial independence as the ‘lynchpin’ of best-practice international broadcasting and the basis on which credibility, reputation and audience loyalty are built.

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As Australia’s primary public broadcaster, with a Charter that requires editorial independence and integrity, the ABC’s international services are able to provide a credible national perspective that is perceived as neither propaganda nor the product of a commercial agenda.

A converged international media service

As outlined above, changes in technology and consumer behaviour mean there is a clear and pressing need to innovate to maintain relevance in a fast-changing media environment. The ABC is seeking to respond positively to these changes and to realign its services to take advantage of the resulting opportunities for integration.

For governance and funding reasons, the Australia Network service has necessarily operated as a distinct business within the Corporation. This has limited its capacity to work freely with the rest of the ABC, including Radio Australia.

In addition to these operational constraints, Australia’s international broadcasting effort has been fragmented by engaging overseas audiences with two quite distinct brands—Australia Network and Radio Australia.

The Government has encouraged the ABC to ‘explore the opportunity’ to combine Australia Network and Radio Australia with new online services ‘to provide a multi-platform international media operation to embrace the converged media era.’24

21 Lowy Institute ‘International Broadcasting and its Contribution to Public Diplomacy’.

The Corporation is considering the breadth and nature of this task and is working closely with the Government to finalise the terms and conditions under which it will operate Australia Network on a perpetual basis.

22 Lowy Institute ‘International Broadcasting and its Contribution to Public Diplomacy’. 23 Lowy Institute ‘International Broadcasting and its Contribution to Public Diplomacy’. 24 Senator the Hon Stephen Conroy, Minister for Broadband, Communications and the Digital Economy. ‘Government decides future for Australia Network’, Media Release, 5 December 2011. <http://www.minister.dbcde.gov.au/media/media_releases/2011/297>.


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A ‘national fundamental’—explaining Asia to Australians

Asian ‘literacy’ and a well developed understanding of the diverse range of regional issues and perspectives will be critical to a successful engagement with Asia. Geographical proximity will not, of itself, facilitate closer economic and cultural ties.

The national discourse will increasingly involve issues arising from Asia’s century. The ABC, in reaching all Australians on all major delivery platforms, ensures all Australians can participate in the national conversation about Australia’s engagement with Asia. The unique role that the ABC’s trusted and respected services can play in building Asian literacy further supports the case that a strong, independent public broadcasting capability will be a ‘national fundamental’ in the Asian Century.

The ABC has been operating in and reporting from Asia for decades and has a depth of staff experience and understanding of regional affairs unrivalled by any Australian media organisation. The ABC already plays a significant role in explaining Asia to Australians on television, radio and on digital platforms. For instance, the ABC has provided quality coverage of key historical, economic and political developments noted in the Issues Paper.

Through digital technology, Australians can readily access Asian news from a plethora of news organisations anywhere in the world—from the BBC to CNN to Al Jazeera to the Bangkok Post. However, none of these overseas organisations have an ongoing interest in Australia’s relations with the region or those stories in Asia that have particular relevance to Australians. Unlike its international competitors, the ABC provides an Australian perspective on Asia and communicates it to Australian audiences in an Australian voice.

The work of the ABC’s correspondents on the ground in Asia is critical in this respect. The ABC makes a substantial investment in its overseas bureaux precisely because the correspondents are Australians and they know what stories are significant to Australia and they appreciate the level of detail and background needed by Australian audiences.

The prodigious output of the ABC’s correspondents feeds into a range news and information programs on ABC Television and ABC Radio, and features extensively on ABC News 24, ABC NewsRadio and ABC News Online.

Importantly, a range of ABC Television and ABC Radio programs, in addition to news and current affairs, regularly cover Asian affairs and Australia’s relations with the region on the ABC’s multiple domestic radio and television networks. This includes in-depth coverage of issues beyond the daily news agenda in programs such as Background Briefing on Radio National, Big Ideas on ABC 1 and ABC News 24 and Saturday Extra on Radio National (which is briefed to focus on the Asian region). Much of this material is also available on-demand via ABC Online.

The ABC’s international services also feed specialist regional content to the domestic networks. Several programs made by the Asia Pacific News Centre (refer to Attachment B) are available within Australia. In addition, Radio Australia co-broadcasts with ABC News Radio live every weekday evening, providing Australian audiences with access to news and information that emphasises Asia and the Pacific.

The ABC also has a project in development which is based around the theme of Australia’s place in Asia. The multi-platform, interactive, immersive media project will build on the ABC’s reputation for coverage of issues and developments in Asia. ‘Australia’s place in Asia’


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is one of the themes of the new national curriculum and the project could potentially be a part of the ABC’s NBN-focused education portal.25

The Issues Paper asks how important Asian cultural literacy is and what could be done to enhance it. The ABC submits that Asian literacy will position Australia strongly in a world of fluid regional dynamics, allowing Australians to take advantage of the cultural, business and social opportunities which will arise in the region. The ABC has the content and strategic vision to lead efforts to enhance Australia’s cultural, political and economic understanding of the region.

Regional partnerships, co-productions and development opportunities

The ABC’s existing and developing partnerships in Asia are reflective of the growing importance of the region socially, culturally and economically. This part of the submission provides an overview of the ABC’s business partnerships and collaborative work within the region.

Relations with regional broadcasters

The ABC has an ongoing engagement with key broadcasting organisations, such as the Asia-Pacific Broadcasting Union (ABU), the Asia-Pacific Institute for Broadcasting Development (AIBD), the Commonwealth Broadcasting Association, and the European Broadcasting Union. The ABC is also represented regularly at various key regional conferences, such as the Asia Media Summit (in Hanoi in 2011) and the Cable and Satellite Broadcasting Association of Asia convention held each year in Hong Kong.

The ABC also develops valuable relationships and exchanges ideas with broadcasters from around the world by hosting high level international delegations. The ABC has coordinated visits by broadcasters, journalists, ministers, communication officials and academics from a number of Asian countries including Vietnam, Taiwan, Indonesia, Korea, Thailand, Singapore, India and China.

The ABC organises training initiatives for journalists and public officials from a number of countries, mainly from the Asia-Pacific region. The ABC liaises with other organisations and educational institutions active in the region to facilitate these programs.

The ABC is also the host for this year’s Commonwealth Broadcasting Association’s conference in April, which will include representatives from the Commonwealth’s Asian members.

As a result of major changes in Asia’s media environment, interest from Asian broadcasters and regulators in the ABC’s role as a multi-platform, independent public broadcaster continues to increase. The ABC expects that demand for journalism and broadcasting training and assistance will grow significantly over the coming decade.

The ABC’s engagement with broadcasters in the region furthers Australia’s interests in strong governance and a robust, highly-skilled media industry in the region.

25 Senator the Hon Stephen Conroy. Media Release, 15 December 2011.


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International Development

The ABC has an ongoing program of international development, offering assistance in the form of strategic advice, training and mentoring, technical support and secondments. The core goals of these activities are to support communications for development in partner countries, and increase the demand for good governance. These goals align with the strategic direction of the Australian Agency for International Development (AusAID), the principal source of funding for the ABC’s international development activities.

The ABC currently supports the development of robust public (or national) media institutions in the Asia-Pacific region, including locally-engaged staff based in Cambodia, Papua New Guinea, Solomon Islands, Vanuatu and Australia. The ABC also undertakes work in the area of communications as a development tool in Cambodia, Laos, Burma and Vietnam (further detail below).

The ABC advocates the benefits of ‘Communication for Development’ (C4D) in delivering assistance to developing countries. This approach considers how individuals and organisations can, with better access to information and the opportunity to voice their opinions, influence the decisions that affect their lives.

The ABC has had an ongoing commitment to Cambodia for several years, including a project that introduced talk-back radio to the national station, Radio National Kampuchea. The ABC provides support to Cambodian provincial radio stations in Battambang, Siem Reap and Kampong Cham. In line with AusAID’s goals, the work plan incorporates a focus on gender, civics (governance) as well as the commune (municipal) and national elections which will be held across this year and into 2013.

The ABC is also active in Vietnam, where the ABC arranged for two senior ABC managers to deliver management training to Vietnam Television (VTV).

The ABC’s international development activities will only become more important in the Asian Century as the region grows in strategic and economic importance.

The Asian Animation Summit

The ABC has taken a lead role in the development and establishment of a regional forum intended to facilitate the financing of animation for children’s television.

The Asian Animation summit will be an annual event at which partially-financed animated series created within the region are presented to potential co-producers, broadcasters and distributors who are interested in partnering and investing in animated series prior to production.

Over recent decades, Australian producers have become adept at financing animated series production via the international market. These arrangements have mostly involved Canadian and European partners and the use of co-production treaties with those countries. However in recent years Australia’s co-production arrangements with France and the UK have fallen into disuse. As a result, Australia’s traditional animation co-production partners have become less accessible.

These developments have been matched by a notable transformation in the production of animation in Asia. Countries like Singapore, South Korea and Malaysia have created


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government agencies to assist their animation industries to focus on intellectual property (IP) creation.

Whilst Australia has a co-production treaty with Singapore and new treaties are currently being negotiated with South Korea and Malaysia, the Asian region currently lacks a mechanism to promote the co-production and co-financing process.

The Asian Animation Summit is based on the European Cartoon Forum model. The first Summit is planned to take place in Kuala Lumpur in early December 2012, and will bring together producers, funding agencies, broadcasters and distributors from our region to form co-production and co-financing arrangements.

The Summit will also strengthen ties between Australian and Asian producers, broadcasters and government agencies at a time when traditional financing and production partnerships in Europe and North America are diminishing.

The ABC’s partnership with China’s CCTV

Another example of regional collaboration is the strong co-production relationship that the Corporation developed with China’s CCTV.

This relationship was established in 1997 through the co-production of a pre-school series called The Magic Mountain. Following a visit to China in 2009 by then-Chairman Maurice Newman, the ABC explored further collaboration with CCTV’s Kids Channel, which led to the co-production in 2011 of a factual entertainment series for ABC3’s school-age audience called Quest Friends.

Following meetings in Beijing in February this year, the ABC has agreed to pursue the co-production of a more ambitious project with CCTV. Hoopla is a live action pre-school series proposed to shoot in Beijing, using Australian pre-production and post-production, with a half Chinese cast.

CCTV and ABC Television’s Catalyst program are in the process of planning a skills-exchange of science journalists.

Co-production partnerships with Singapore

A further example of the ABC’s production relationships in the region is the 13-part series Serangoon Road, set in 1960s Singapore. The series is in its final stages of financing and will be a co-production between Australia, Singapore and Canada.

The ABC has partnered with HBO Asia as well as the Media Development Authority (MDA) in Singapore. The series will mainly be shot in Singapore from June 2012, with some filming in Western Australia. There are both Singaporean and Australian writers on the series and the crew will be a combination of Australian, Singaporean and Canadian nationals. The presentation of a television drama series set in Asia reflects Australia’s geographical place in the world and will contribute to the audience’s Asian literacy.

Similarly, a major four-part natural history series commissioned by the ABC, Kakadu, will be in part funded by Singapore’s MDA and will use a Singaporean post-production house for finishing the program. The MDA is also involved in the ABC factual series Gallery of Everyday Things, which is being shot in Western Australian and post-produced in Singapore.


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Mentoring fellowship

Also of relevance is the ABC’s partnership with Singapore’s Media Development Authority to provide a mentoring opportunity for a Singaporean writer or development executive in the second half of 2012. The Media Development Authority will provide funding for a three-month internship with the ABC television drama team. The successful candidate will work in the ABC’s Sydney and Melbourne offices, assessing scripts and working on the development and production of new adult drama. This is a significant opportunity for cultural exchange the sharing of skills and information.

Conclusion

The ABC submits that its unique content, ideas and strategic focus can be leveraged for the benefit of all Australians as they navigate a complex period of transformative change in the region.

The ABC is well-placed to offer educative and child-friendly products to the wider Asian market and there are some exciting IP development processes underway. The ABC has knowledge and branding that can be exported to the region. For example, ABC News 24 has the potential to be a global brand and trusted source of information for the region. An internationally available iView service would offer rich archives and vibrant new content to a potential audience of billions of people.

The ABC is well-advanced in pursuing the benefits of the multi-platform approach to service delivery. Radio Australia has recently implemented new multi-lingual web sites, offering high quality news and current affairs radio programs and encouraging audience participation and collaboration in content creation.

In the domestic market, the ABC will explore the scope for new niche channels and services that enable Australians to be better briefed on the complex changes taking place in Asia. There is the potential to tap into new communications networks to deliver media-rich educational services to assist teachers and students wishing to learn more about Australia’s place in Asia.

Whilst the White Paper will necessarily encompass a broad range of economic, political, strategic and social issues, the ABC’s contributions in the region are acutely relevant to Australia’s interests. A strong, vibrant and trusted public and international broadcasting capability will be critical to Australia’s ability to engage economically, politically and culturally with the Asian Century. The link between this capability and Australia’s future prosperity warrants the recognition of public and international broadcasting as ‘national fundamentals’ in the upcoming White Paper.


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ATTACHMENT A

The ABC’s International Broadcasting Services

Australia Network

Australia Network is Australia’s international television and online service. Australia Network is available in an estimated 31.2 million homes in 46 countries across Asia, the Pacific and the Indian sub-continent.

While Australia Network has an Australian expatriate audience, the service also targets two specific demographic groups: ‘Internationalists’ and ‘aspirants’. ‘Internationalists’ are Asia Pacific citizens who are English-speaking, educated people with a global outlook who look for information beyond their local media. Internationalists are influential and might live abroad or have children studying overseas. ‘Aspirants’ are those keen to learn English and who connect globally through the internet.

Australia Network broadcasts several news bulletins a day tailored at peak viewing times for audiences in Asia and the Pacific, together with the regionally focused daily news analysis program Newsline and the daily Business Today program. In addition, Australia Network broadcasts some of the ABC’s top news programs including ABC News Breakfast, Four Corners and Australian Story.

In terms of general programming, Australia Network broadcasts a variety of Australian documentaries, drama and children’s programming from the ABC and other Australian networks and production houses. Subtitled programming is available in Vietnamese and Indonesian.

Australia Network also has its own production unit in Adelaide that creates programs specifically for overseas audiences. The Adelaide unit’s most successful offering has been English language learning (ELL) programming that has been immensely popular among audiences in Asia. Over the past decade, the ABC has developed an unrivalled in-house capacity in Australia Network and Radio Australia to produce ELL material across platforms.

In addition to its television service, Australia Network has made in-roads into the digital space. The service’s website26 includes access to programs and program information, tuning information and a program guide that is adjustable by time zone. In 2011 Australia Network’s website recorded 9.59 million page views from 1.45 million visitors, which represents an average of 26,269 page accesses a day or 799,000 per month. 27

Australia Network’s downloadable videos (vodcasts) have been very popular. The number of downloads of Australia Network’s vodcasts rose by 46%, from 3.31 million in 2010 to 4.83 million in 2011. The most sought after vodcasts are ELL programs, which also come with online quizzes and transcripts. Australia Network’s ELL programs have consistently taken two or three places in the ABC’s top ten vodcasts.

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26 www.australianetwork.com

27 ABC Audience Research WebTrends. 28 Website and vodcast data are from WebTrends.


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Australia Network’s online presence also includes an Australia Network YouTube channel and a Facebook and Twitter presence. Australia Network’s WatchNow provides audiences with a simpler way to access all Australia Network video content in one online location. To further enhance the WatchNow offering, a ‘live’ channel was created, featuring regular programming from Australia such as Q&A and National Press Club addresses and providing another way for international audiences to gain an Australian perspective on significant issues. The channel has also carried rolling coverage of major breaking stories from the region such as the Christchurch earthquake and Queensland’s Cyclone Yasi.

Australia Network has performed strongly as an international television service. An independent survey revealed that Australia Network reached about 1.2 million viewers per month, excluding India.29 Additional survey results indicate that, including India, the monthly viewing base of Australia Network exceeded 4.5 million.30

In 2010-11, Australia Network ranked 36 out of the 50 measured cable and satellite television channels in the nine markets. The competition included highly-resourced private organisations such as CNN, Discovery, HBO and ESPN, and major government-supported channels such as BBC World News and Singapore’s Channel NewsAsia. Significantly, Australia Network was the second most watched government-supported international channel, an improvement on 2009-10 when Australia Network was the third most-watched publicly funded television service.

After consultation with the Department of Foreign Affairs and Trade (DFAT), Australia Network has on occasion broadcast travel warnings and consular advice such as in the case of the 2005 Boxing Day tsunami, the 2011 Japanese tsunami and the Mumbai terrorist attacks of 2008.

Radio Australia

Radio Australia provides content to Asia in six languages: English, Chinese (Mandarin), Indonesian, Vietnamese, Cambodian (Khmer) and Burmese, as well as English, Pidgin (Tok Pisin) and French for the Pacific. The service does not include advertising and sponsorship.

The multilingual service is available in the Asia-Pacific region on a variety of platforms:

• Its own 24-hour FM transmitters in Cambodia and Laos (and also in East Timor and in most Pacific Island countries)

• Via rebroadcasts on 62 Asian radio stations • Shortwave transmitters from Shepparton in Victoria and Brandon in Queensland and a

number of off-shore sites, including Singapore and Taiwan. • On satellite across the region • Through its multi-lingual website including live and downloadable audio, text, video,

interactivity and social media in all languages, and • Increasingly with content tailored for portable digital devices including mobile phones

and tablets.

29 Synovate PAX Cable and Satellite Survey 2010–11. 30 TAM India.


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These platforms have significantly different impacts in various Asian markets. The services that Radio Australia delivers are not as sought after in highly-developed Asian markets as they are in others such as Cambodia and Vietnam. In Cambodia, for example, Radio Australia continues to have a significant impact. In 2010-11 Radio Australia’s Khmer service reached a steady 6% of listeners through rebroadcasts on partner stations, up from 2.5% in 2006. Radio Australia has the largest audience for English broadcasts of any international station in Cambodia and Radio Australia’s weekly audience in Cambodia now tops one million people.31

Similarly, shortwave is still relevant in Burma. Audience research in January 2011 indicated that 4% of adults were aware of the service, and that it was on par with long-established international competitors such as NHK Japan, All India Radio and China Radio International.

32

By contrast, Radio Australia has opted to deliver its Vietnamese output as a purely online service. Radio Australia’s Vietnamese website received 3.88 million page views in 2011, and there were 1.1 million podcasts downloaded of Radio Australia Vietnamese content.

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Radio Australia uses mixes of platforms, content genres and languages tailored to attract audiences in specific Asian countries. As with Australia Network, Radio Australia targets the ‘Internationalists’ and ‘Aspirants’. It also aims to reach the ‘Information Poor’—usually people in less developed countries or regions, often with limited means of accessing information, constrained future opportunities and limited education and literacy. Radio Australia’s language services have a particular role to play in this regard.

In addition, Radio Australia connects with Australian listeners, including expatriate Australians, Australians listening to Radio Australia content on ABC domestic rebroadcasts and Australian migrant communities who listen in Radio Australia’s Asian languages.

In May 2011, in those countries that had been recently surveyed, it was estimated that Radio Australia had a weekly reach of 1.54 million.34 During 2011, Radio Australia’s website received 9.95 million page views from 2.98 million visitors, and there were 3.9 million podcast downloads.35

Radio Australia’s English programming on-air and online includes: live information-based talk programs targeting Asia during peak listening times; hourly news bulletins covering Asia, Australia and the wider world; daily current affairs programs tailored for Asia including Connect Asia and Asia Pacific. Radio Australia also broadcasts the ABC’s flagship current affairs programs AM, The World Today and PM together with a selection relevant programs from ABC Radio’s networks, such as The Science Show, and The Health Report.

Radio Australia’s Asian language output also includes news and information presented in live radio programming as well as a sophisticated mix of online content in each language including text, live and downloadable audio, and a growing amount of video.

31 Green Goal and InterMedia research report October 2011. 32 ABC Audience Research, data from InterMedia Research for VOA/RFA. 33 ABC Audience Research WebTrends. 34 ABC Audience Research May 2011, including data from InterMedia Survey Institute, Tebbutt Research and Insight East Timor. 35 ABC Audience Research WebTrends.


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Audience feedback shows that Radio Australia’s English Language Learning (ELL) programs are of great value to Asian audiences. More recently, Radio Australia has worked with AMES (previously the Adult Multicultural Education Service) to produce three ELL series including English for Tourism, English for Business and English for Study in Australia. These programs have been broadcast and are available online as transcripts and downloadable audio podcasts that include English dialogues with explanations in Chinese, Indonesian, Vietnamese, Cambodian and Burmese. Radio Australia’s ELL podcasts have been consistently among the ABC’s most popular downloaded radio programs.

Radio Australia is today a multi-channel, multi-platform and multilingual service, with nine new audio channels for radio and online, broadcasting 24-hours a day.

Radio Australia’s website includes:

• News and information in all Radio Australia languages, with Australian perspectives • A variety of audio and video across all Radio Australia languages • Geo-targeted pages that allow audiences in each market to receive Radio Australia

online content in the language of their choice. • A media player that allows users to easily listen to the language stream of their choice • A range of tools to allow audiences to join the discussion • A new mobile website, and • Radio Australia content is available through a variety of social media applications

determined by the specific types of social media used in different countries.

As is the case worldwide, Asian audiences are faced with an ever increasing range of news and information sources. The strong, multi-lingual presence of Radio Australia ensures that Australian perspectives and Australian interests are being heard by Asian audiences at a critical time strategically.


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ATTACHMENT B

ABC News and the Asia Pacific News Centre

The ABC has 26 editorial staff in five Asian bureaux in the following locations:

1. Bangkok 2. Beijing 3. Jakarta 4. New Delhi 5. Tokyo

These offices have deep connections to their host countries. For example in China, the ABC has operated a Beijing bureau for 36 years.

In addition to covering the region’s major events and issues, the ABC’s correspondents have a particular focus on Australia’s relations with Asia, including diplomatic visits, defence ties, trade issues, cultural exchanges and people-to-people relationships. ABC News also provides extensive coverage of these stories for its Australian viewers through its Canberra bureau and its reporters around the country.

When important stories break in Asia, such as the recent Japanese tsunami and subsequent nuclear incident, the ABC has the capacity to mobilise its in-country bureaux and, if necessary, quickly reinforce its overseas offices with experienced senior journalists from Australia, many of whom have seen service as foreign correspondents.

For Asian audiences, news and analysis is provided to Australia Network and Radio Australia by the ABC’s Asia Pacific News Centre (APNC). Located in Melbourne, the APNC is a multi-platform operation that generates television, radio and digital content. The APNC’s content is made for the ABC’s Asia-Pacific audiences, ensuring alignment with the objectives of the international networks and reinforcing Australia’s place in the region.

The APNC has some 55 editorial staff, including many who can speak Asian languages. This is the largest concentration of Australian journalists focused on the Asia-Pacific region. The APNC works closely with Australia Network and Radio Australia to develop content relevant to Asian audiences. It also has strong relationships with relevant think tanks and institutions such as the Lowy Institute, ANU and Asialink.

The APNC also contributes a substantial volume of specialist coverage of Asia to the ABC’s domestic networks, thus contributing to Australia’s understanding of the region.

The APNC has developed a strong digital presence for its content on the internet, on mobile devices and on social media platforms such as Twitter, YouTube and Facebook. The APNC’s websites received 3.1 million page views in 2011,36 and the Australia Network News YouTube channel scored 393,841 views in its first full year of operation (2011).37

Key Asian digital markets include Japan, China, India, Malaysia, Vietnam, the Philippines and Singapore. The Australia Network News YouTube channel has demonstrated that there is a strong interest in content not available to audiences in state-controlled media markets such as Singapore and Malaysia.

36 ABC Audience Research WebTrends. 37 http://youtube.com/australianetworknews

Australia in the Asian Century Issues Paper - About the ABC

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