SBS Corporation

SBS to Bolster News and Current Affairs. Increase Australian Content
01.06.2006

The SBS Board has approved a shift in SBS Television’s program break structure that will enable a boost to its news and current affairs programming and increase the production of Australian multicultural drama and documentaries.

The new program break structure will allow for limited program promotion and advertising within programs while maintaining the legislated cap of five minutes of advertising per hour.

The Chairman of the Board, Carla Zampatti said: "This decision has been under consideration for some time as part of SBS's on-going review of its business model and reflects the significant changes in the broadcast market.

"The Board has directed Management to ensure that the new regime, which will be implemented over the next 6 to 12 months, be constructed so as to preserve the SBS viewing experience and be consistent with the Act and obligations of the Charter."

The Managing Director, Shaun Brown said the precise guidelines for program promotions and advertising placement within programs are being drafted.

"For half hour programs, there could be two short advertising breaks of 60 seconds duration and for one hour programs, there may be three short breaks, each no longer than 90 seconds duration.

"This clearly maintains the difference between SBS and the commercial broadcasters that show up to 15 minutes of advertising in any one hour.

"The new structure will reduce the lengthy, between-program breaks currently in the SBS schedule.

"These lengthy breaks - sometimes up to 10 minutes - are clearly unpopular with viewers. On average we lose more than half our audience during these breaks, this is 30% more than other broadcasters.

The new break structure will raise an estimated additional $10m in the first full year of operation. With additional advertising revenue, SBS will:

• Launch an expanded one hour nightly news bulletin (6.30pm-7.30pm), with increased Australian and international news coverage, commencing in early 2007; and

• Increase its commissioning of Australian multicultural drama and documentaries and other programs in accordance with its Charter obligations.

"SBS has ambitious plans to expand the range of quality programs commissioned from independent Australian filmmakers," Shaun Brown said.

Since advertising was introduced in 1991, SBS has directed all advertising revenue to program making and the commissioning of programs from independent Australian filmmakers.

During the past 14 years, SBS Independent has commissioned more than 1,000 hours of Australian programs, generating for each dollar commissioned an estimated additional three dollars in the film and television sector.

The enormous flow-on benefits include the employment of hundreds of Australian actors, technicians and production crews and the creation of a catalogue of quality Australian film and television productions.

"The SBS Board believes a very limited number of short ad breaks within programs will generate significant additional revenue to allow SBS to expand its flagship news and current affairs programming and at the same time increase its diverse range of programs to the widest possible audience. Up to now, our ability to do this has been increasingly constrained by funding limitations," Mr Brown said.

"In 2004-05, advertising earned SBS $29m and every dollar went into program making. But the value of each advertising minute on SBS has been reduced by the fact that program promos and ads are only run in blocks between programs.

"By placing program promotions within programs, viewers will be informed about forthcoming programs. This, in time, will increase our overall share of audience, and further improve the revenue we can command through advertising."

Over the years, SBS has run program promotions and ads in natural program breaks in various sporting events including the Ashes and the Olympics and other 'event' programs like the Eurovision Song Contest without incurring strong viewer reaction.