Current Issues
Special Broadcasting Service (SBS): Operations and
funding
E-Brief: Online Only issued 28 March 2007
Dr Rhonda Jolly,
Analysis and Policy
Social Policy Group
Introduction
The Australian Broadcasting Corporation
and the Special
Broadcasting Service (SBS Corporation) are independent
statutory authorities established under the
Australian Broadcasting Corporation Act 1983 and the
Special Broadcasting Service Act 1991 respectively. Both
broadcast radio and television to Australia in competition with
commercial broadcasters.
The SBS Corporation is Australia's
multicultural and multilingual public broadcaster. It was
established to define, foster and celebrate Australia's cultural
diversity in accordance with obligations in its Charter
to provide multilingual and multicultural radio and television
services that inform, educate and entertain all Australians and, in
doing so, reflect Australia's multicultural society .
Operations
SBS
Radio
SBS
Radio began in 1975 when the experimental ethnic stations 2EA
in Sydney and 3EA in Melbourne commenced broadcasting in seven and
eight languages respectively. The radio service was formally
established three years later. In 2007 SBS Radio broadcasts a five
signal service over a network of 14 transmitters to every capital
city and key regional centres.
SBS Radio produces more than 13,500 hours of
language specific programs each year, in 68 languages. It
broadcasts a variety of programs including news and current
affairs, sport, documentaries, drama and music.
Independent audience surveys of Australia's
largest language groups show SBS Radio reaches up to a million
listeners each week. It is acknowledged as the main source of news
and information for a majority of people in these language groups
and also their primary source of information about government and
community services.
SBS
Television
SBS
Television began transmission in 1980 in Sydney and Melbourne.
In 2007 its analogue service reaches 95 per cent of Australians.
Digital television services which began in January 2001 currently
reach an estimated 80 per cent of the population.
SBS Television presents a mixture of
Australian produced and international programs from over 400
national and international sources and is watched by more than
eight million Australians each week. Based on prime time viewing
share of viewers over 16 years of age in the 6 pm to midnight
timeslot, SBS television audience in 2005 was 6.4 per cent.
Programs broadcast by SBS in languages other
than English are accessible to all viewers through SBS produced
English language subtitles.
SBS Independent
SBS
Independent is responsible for commissioning Australian drama
and documentaries for screening on SBS television. Since its
establishment in 1994 it has commissioned more than 800 hours of
work from independent Australian filmmakers, many of whom are from
non-English speaking backgrounds.
In 2005/06 SBS Independent commissioned over
367 hours of documentaries, dramas and entertainment including such
diverse offerings as the films Ten Canoes and
Look Both Ways.
SBS Independent is responsible for a Special
Production Fund of approximately $7 million annually.
Sport
SBS covers a number of significant sporting
events, including the FIFA World Football Cups. The 2006 FIFA World Football Cup
broadcast in Australia and several countries in Oceania increased
audience share and generated $11.4 million in extra revenue for the
Corporation.
SBS
Online
SBS Online
extends and enhances SBS television and radio programming. It
provides text and video services as well as audio-on-demand in 68
languages. SBS Online incorporates over 130 websites that deliver
news, current affairs, sport, entertainment, and documentary
services and details of its radio programming.
Funding
About 80 per cent of funding for the SBS
Corporation is derived from the Australian Government through
triennial funding arrangements. Funding is legislated annually
through the Budget Appropriation Bills.
Information relating to SBS funding can be
found principally in
Department
of Communications, Information Technology and the Arts
documents also provide information on SBS Corporation funding.
The remainder of SBS revenue is derived from
independent sources. These include
advertising and sponsorship, production services and sale of
programs and merchandise.
One source of complementary revenue for SBS is
derived from the broadcast of commercials. This practice began in
1991 following amendments to the Special Broadcasting Services Act.
Unlike commercial television which, according to the
Commercial Television Industry Code of Practice, is allowed to
broadcast approximately 15 minutes of advertising per hour,
advertisements on SBS are limited to a maximum of five minutes per
hour. Until recently, SBS broadcast commercials and program
promotions in a single block between programs. From June 2006, this
policy
changed to allow the inclusion of commercials and promotions
within programs. SBS argued it adopted this change to address the
loss revenue that resulted from extended breaks between
programs.
All revenue from
SBS derived from independent sources is used for the purchase,
commission or production of programs.
Table 1 below sets out revenues for
SBS by source of funds for each year since 1998/99 in actual
dollars.
Table 2 below sets out revenues for
SBS by source of funds for each year since 1998/99 adjusted to
2004/05 dollars.
In considering the tables it is necessary to take into account
the following:
SBS Annual Reports present operating revenues for the SBS
Corporation alone and for Consolidated revenue, which includes the
accounts of both SBS and Multilingual Subscriber Television Ltd
(MSTL), a wholly owned subsidiary company of SBS.
As a substantial investor in Pan TV, an independent company
which produces the World Movie
Channel for the Australian subscription television market, MSTL
contributes to the overall revenue of SBS. Purchase of films for
the World Movie Channel by Pan TV usually involves free to-air
rights for SBS for screening at a later date.
Table 1 and Table 2 present Consolidated revenues.
-
Transmission service cost
Neither SBS nor
the Australian Broadcasting Corporation broadcast over their own
transmission networks. Prior to 1992, transmission services to the
public broadcasters were provided by Telecom and the then
Department of Transport and Communications. From 1992 to 1999 these
services were provided by the National Transmission Agency. The
National Transmission agency was privatised in April 1999. From May
1999 transmission services have been provided to SBS on a
commercial basis by NTL Australia Pty Ltd, which is owned by
Macquarie Bank Ltd. Commonwealth operating revenue shown in Table 1
and Table 2 for 1998/99 do not include the transmission free of
charge component ($8.8 million).
A capital use
charge was part of changes introduced with the Accrual Budgeting
framework in 1999-2000. It was levied on Commonwealth authorities
and agencies to reflect the cost of government investment in those
entities. Funding for the capital use charge was included in the
annual appropriations for SBS from 1999-2000 to 2002-03 and is
included in the operating revenues columns in Table 1 and Table 2.
The capital use charge has since been abolished.
-
Analogue transmission extension
In 1999 2000, SBS
received $70 million from the Government s Television Fund and $3.4
million from Appropriations to meet the costs over 12 years of
analogue transmission extensions to areas of Australia with
populations over 10,000 that did not have access to the analogue
signal. Funds not immediately required for this purpose were
invested in accordance with the investing requirements of the
Special Broadcasting Service Act 1991 and the
Commonwealth Authorities and Companies Act 1997. The
amount received, including interest accrued, is only recognised in
Annual Reports as revenue when the related expenditure is
incurred.
Amounts reported
as spent on transmission extension are as follows:
- 2000/01 - $24.9
million
- 2001/02 - $6.1
million
- 2002/03 - $5.9
million
- 2003/04 - $5.5
million
- 2004/05 - $5.6
million
- 2005/06 - $6.5
million (less funding for the
Television Black Spots Alternative Technical Solutions Program.
Breakdown of amounts allocated to each program is not indicated in
the SBS Annual Report). This revenue is not included in the
tables.
Table 1
SBS Revenues
|
(actual dollars)
|
Year
|
Revenues (a)
|
Independent revenue (b)
|
Commonwealth revenue
|
|
|
|
Total
|
Operating revenue (c)
|
|
Capital
/ equity
|
|
|
$m
|
$m
|
$m
|
$m
|
|
$m
|
|
2005/06
|
241.2
|
58.8
|
182.4
|
176.5
|
|
5.9
|
|
2004/05
|
204.5
|
40.7
|
163.8
|
158.2
|
|
5.6
|
|
2003/04
|
190.1
|
36.8
|
153.3
|
145.8
|
|
7.5
|
|
2002/03
|
176.9
|
30.9
|
146.0
|
137.4
|
|
8.6
|
|
2001/02
|
169.5
|
34.3
|
135.2
|
127.2
|
|
8.0
|
|
2000/01
|
173.5
|
29.5
|
144.0
|
120.6
|
|
23.4
|
(d)
|
1999/00
|
152.2
|
34.6
|
117.6
|
108.5
|
|
9.1
|
|
1998/99
|
118.0
|
30.3
|
87.7
|
84.0
|
(e)
|
3.7
|
|
(a) Total revenue from Commonwealth and
Independent sources
|
(b) Revenue from sales of goods and services,
rents, interest and miscellaneous sources
|
(c) Revenue from Appropriations Acts not
including equity injections
|
(d) The bulk of this equity injection was to
assist in digital conversion
|
(e) Includes a transmission free of charge
component
|
Table 2
SBS Revenues
|
(adjusted to 2004/05
dollars)
|
Year
|
Revenues (a)
|
Independent revenue (b)
|
Commonwealth revenue
|
|
|
|
Total
|
Operating revenue (c)
|
|
Capital
/ equity
|
|
|
$m
|
$m
|
$m
|
$m
|
|
$m
|
|
2005/06
|
229.7
|
56.0
|
173.7
|
168.1
|
|
5.6
|
|
2004/05
|
204.5
|
40.7
|
163.8
|
158.2
|
|
5.6
|
|
2003/04
|
197.6
|
38.3
|
159.4
|
151.6
|
|
7.8
|
|
2002/03
|
191.0
|
33.4
|
157.7
|
148.4
|
|
9.3
|
|
2001/02
|
188.5
|
38.2
|
150.4
|
141.5
|
|
8.9
|
|
2000/01
|
197.6
|
33.6
|
164.0
|
137.4
|
|
26.7
|
(d)
|
1999/00
|
181.0
|
41.1
|
139.8
|
129.0
|
|
10.8
|
|
1998/99
|
143.4
|
36.8
|
106.6
|
102.1
|
(e)
|
4.5
|
|
(a) Total revenue from Commonwealth and
Independent sources
|
(b) Revenue from sales of goods and services,
rents, interest and miscellaneous sources
|
(c) Revenue from Appropriations Acts not
including equity injections
|
(d) The bulk of this equity injection was to
assist in digital conversion
|
(e) Includes a transmission free of charge
component
|
|
|
|
|
|
|
|
|
|
|
|
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