Killing Narrowcasting: Is the ACMA unfairly swinging the axe?

Opinion by Brad Smart.

 

I’m starting to become more than a little concerned that ACMA has embarked on a campaign of selectively targeting, the way it’s dealing with the nation’s narrowcasters.

Now, I don’t have a dog in this fight, but the way I see it, the recent Regulatory approach towards low powered open narrowcasters (LPONs) appears to be becoming more and more sinister. Could it be that there’s one rule for the ‘friends of the family’ – the big industry players – and another if you’re just a small-time operator, lacking the resources to fight and out of favour with the bureaucrats.

It’s an open secret that LPONs have never been the flavour of the month with the Regulator. To be frank, I’m pretty sure they see LPONs as an administrative pain in the butt.

What concerns me most is the way ACMA appears to be dealing with different categories of narrowcast owners. To me, ACMA’s recent rulings are creating a perception of inequity, and potentially may be bordering on an abuse of bureaucratic power.

It’s long been rumoured within the industry that LPONs could be phased out as early as the mid-2030s.

So, in the mind of ACMA is narrowcasting already ‘a dead man walking’? If that’s the case it may explain why the Regulator appears to be coming down very hard on small independent LPON licence holders. If this licensing category is going to be put down, surely, out of decency, they could at least wait until the body is cold!

I recently read the ACMA finding on Magic 87.6 in Mudgee, a station that was playing a classic hits format from the sixties, seventies and the early eighties. In many ways, a typical narrowcast format.

In years gone by, music dating back over 40-years would have well and truly been considered a narrowcast format, especially in a market where the AM station was primarily talk and the FM station rocked along with current hits. Apparently, not in today’s ACMA, at least not for independent LPON licensees.

Based on the spread of Magic’s music format, from my experience in the industry, I’d say the LPON was clearly targeting a 65-plus audience, and we know that the Super Radio AM station, 2MG, which recently converted to FM, would have logically been targeting a 40+ market and tailoring its music accordingly. It would be highly unlikely that they’d focus their music on a senior’s market. Every professional programmer, who knows what they’re doing, is acutely aware that the senior’s cohort is simply not in the desirable high-spending retail demographic.

For ACMA to start an investigation, there’s usually a formal complaint. In most cases, that complaint would have come from a commercial broadcaster, but I don’t know if that’s what happened in Magic’s case. It could have come from anywhere.

All narrowcasters, including LPONs, are a thorn in the side of commercial broadcasters. I can say that from experience.

Community stations and narrowcasters generally don’t take a large slice of the market, but they do steal some listeners and some advertisers, which is annoying to commercial operators.

After the ACMA report on Magic 87.6 came out, I spoke to the LPON licensee, Andrew Andrews, who has a long history working in commercial broadcasting.

Andrews claims that the ACMA Compliance Officer, who assessed the complaint against his station, freely admitted that he has no experience at all in radio, programming or general broadcasting. He is apparently a career public servant, and I must say, the report reads like it.

I can only surmise that his conclusions were based on applying a bureaucratic assessment of the Act and a statistical analysis of the music format. That’s always a great approach when assessing a creative industry, like radio. The report seems to be a case of ‘if it didn’t fit in the box; it didn’t get ticked.’ Taking judgement and industry experience out of the equation invariably makes it easy for bureaucrats get the results they want.

Maybe I’m old fashioned, but I’ve always believed that regulations were supposed to be applied with common sense and compassion, not with strict rigidity, particularly where creative and value judgements are constantly at play.

When I spoke with the Magic licensee, who is now facing financial ruin, he was devastated. He and his wife are set to lose their livelihood, and potentially their home, and the senior citizens of Mudgee will lose a tiny station, that’s no threat to the commercial operator, but meets many local needs that aren’t catered for by other media.

After the ACMA findings were published, Andrews allegedly proposed several different format options, that would normally be considered narrowcast and compliant. This included a country music format that’s used by many other narrowcasters around the nation. He says that each of his proposals was immediately rebuffed by the ACMA Compliance Officer without any constructive discussion.

The Compliance Officer allegedly told him that narrowcasters can’t play any ‘recognised artists’ that may be played at any time on commercial stations.

Who are ‘recognised artists?’ ACMA can’t tell you, but apparently, ‘recognised artists’ are whoever its personnel determine them to be. Interestingly, ‘recognised artists’ are not defined in the Act.

Andrews and his wife were instructed to submit their proposed new format, along with a $15,100 assessment fee to see if their format would be deemed compliant. Apparently, this fee is not refundable, even if the Regulator fails to approve the format. When you’re talking to very small independent LPON operators, this is basically slamming the door in their face and telling them to get out of the industry. It’s not a good look.

Memo to the Chair of ACMA, Nerida O’Loughlin. C’mon Nerida, you’re dealing with tiny narrowcasters here, some of whom don’t even turn over $15k a quarter. Let’s get real!

Even Blind Freddy could see that this blatantly outrageous fee has been introduced to discourage very small operators from seeking formal format approval. If I were cynical, I might even say the Regulator would be hoping small operators would just try what they think is an acceptable narrowcast format, so they could regulate them right off the air.

Fortunately, I’m not cynical, but I do think an appropriately scaled assessment fee should be implemented, so it’s practical for small operators to gain clarity.

I now have to ask, who is ACMA protecting with its current heavy-handed approach, because it appears that the network-owned narrowcasters aren’t facing the same rigid scrutiny as the small independent operators. Perhaps it’s because independent operators can be easily knocked off air and ticked up as a quick ‘notch in ACMA’s bureaucratic gun belt.’

For a Regulator to be regarded as a fair and neutral umpire by the entire industry, it can’t ever appear to be playing favourites.

Many narrowcast services are owned by commercial broadcasters, but some, particularly the low-powered services are the broadcast ambitions of enthusiasts, some of whom have had long careers in commercial radio.

So, let’s take a look at how narrowcast licences are being used by the larger networks and I’m now asking why they’re apparently allowed to operate with impunity.

The Super Radio Network, for example, operates the commercial stations in Mudgee where the Magic dispute is centred.

However, they also own 8HA/ Sun FM in Alice Springs, where they have a high-powered open narrowcast station, Tourist Gold 98.7.

This station plays great music from the sixties until the recent past. I’d say it’s far better than the music mix on 8HA itself or at least it was when I heard it.

Hmmm, but hang on.

Isn’t Tourist Gold playing the type of music and ‘recognised artists’ that commercial stations could possibly play? Apparently, this rule about ‘recognised artists’ applies regardless of whether the licensee happens to also own one or more commercial stations in the same market.

According to the ACMA Compliance Officer, who found against Magic 87.6, if songs or ‘recognised artists’ could possibly be played by commercial radio at any time, then they can’t be played on a narrowcast service. Does that mean – goodbye Tourist Gold. Unlikely, I would think.

ARN’s KIX FM originally out of Bundaberg is playing great country music, including many of the latest artists. This service is relayed over much of Queensland, NSW and other states, using LPONs in 26 markets, including Emerald in the Central Highlands. The LPON and HPON frequencies are listed on their website.

Emerald has commercial stations owned by SCA and Resonate. Apart from 4HI, Resonate also owns the s40 commercial licence, Hot Country (4EM). Despite this, KIX is playing ‘recognised’ country artists. What’s ACMA going to do about that? Let me guess ….

Super Radio also owns the narrowcast KIK-FM in Mareeba playing country and country rock with many current artists. Very similar situation to Mudgee, where Magic 87.6 operated alongside the Super Radio stations. Mareeba is not a solus market. SCA owns the FM station there. Either commercial station could be playing those ‘recognised artists’ that KIK FM is currently playing.

If the Act is to be applied extremely literally, as it seems to have been in the Magic case, then perhaps ACMA should also be looking closely at the racing services that allegedly have long been broadcasting fully commercial metropolitan breakfast shows on multiple LPON and HPON frequencies that are supposed to carry a racing narrowcast service.

So, how does ACMA define its investigative standards and are those standards ‘one rule for thee and another for me?’ The real question is ‘does their whole approach to enforcement reek of hypocrisy?’

I’m not advocating that the ACMA investigate or shut down these network-owned narrowcasters. It would be a great loss to many communities.

I think these narrowcast stations are doing a good job filling in the holes in the market that local commercial programming simply can’t cover. You can’t be all things to all people as a commercial broadcaster. You have to settle on a format that attracts as broad an audience as possible – that’s the definition of broad-casting.

What I am extremely disappointed in is that ACMA appears to be deliberately targeting small independent operators as low hanging fruit, knowing they don’t have adequate resources to fight back against the government. That’s just bullying. Bureaucracy wins every time.

The original Magic 87.6 format that I’ve recently had a chance to listen to, appears to complement the local commercial broadcasters by providing music that seniors find enjoyable and that the Mudgee commercial stations rarely play.

Magic also appears to provide a much-needed local information service for retirees and the older citizens of the area.

This type of ‘over the fence’ information is too focused, or you could say ‘narrowcast,’ for Super Radio’s syndicated programming from Sydney to provide.

I was genuinely moved when I learnt how Andrew Andrews, his wife and other friends of Magic 87.6 used the station to generate community awareness for a major local concern in the Mudgee region.

By mid-year, it gets bitterly cold in the Mid-West of NSW.

So, earlier this year, they used their tiny LPON to get their listeners to donate blankets so many of the area’s homeless and destitute could have a little warmth and comfort during the bleak mid-western winter. Hundreds of blankets were ultimately collected by the station, yet, during this campaign, the local commercial stations were nowhere to be seen.

Isn’t this the sort of commitment that gives radio a recognised role in a community, and even inspires and creates hope amongst local people, especially the disadvantaged.

Selflessly helping its local community, well Nerida, do you really think that’s a radio service your ACMA needs to be cancelling?

 

 

 

Brad Smart previously owned and operated the Smart Radio Network through regional Queensland.

He sold his stations to the then Macquarie Radio Network.

He has been a journalist, broadcaster and film producer for over 30 years.

Brad is available as a freelance writer, voiceover talent and consultant.

Brad’s articles and podcasts are also available through his website www.bradsmart.com.au

 

See Brad’s previous articles here.

 

 

 

 

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