Coalition 'sympathetic' to relaxing restrictions on media ownership
Media choices: restrictions may be relaxed on ownership laws.
The Abbott government has given its strongest indication yet that it will relax restrictions on media ownership, paving the way for more consolidation of the industry.
Two days after meeting with Australia's most powerful media executives, Communications Minister Malcolm Turnbull questioned why the country needed specific ownership rules regarding print, television and radio, given the surge in competition from the internet.
Axing the laws would allow a potential takeover of Ten by News Corporation, which has strong links with the network, whose chairman is Lachlan Murdoch.
It could also allow Fairfax Media, owner of The Sydney Morning Herald and The Age, to join forces with a television partner such as Seven.
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Also under scrutiny is the 75 per cent reach rule. This restricts television networks from broadcasting to less than 75 per cent of the Australian population.
A parliamentary committee was of the view last June that the ''reach rule was becoming redundant with the advent of the internet and converging media'' and supported its removal.
Analysts at JPMorgan say the scrapping of the reach rules could make takeover targets of regional TV networks Prime Media and Southern Cross Media.
Prime broadcasts Seven content in regional areas while Southern Cross broadcasts Ten content. The privately held WIN Television broadcasts Nine content.
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Coalition 'sympathetic' to relaxing restrictions on media ownership