The Australian Broadcasting Corporation is under fire from its commercial media rivals for its plans to expand in the digital space, while the BBC shrinks its operations overseas.
Stephen Conroy, the Federal communications minister has endorsed the ABC’s expansion plans as well as the ABC’s managing director Mark Scott, despite concerns raised by those in the commercial media space that the ABC is expanding beyond its charter, with such offerings including multiple digital channels and aggressive plans to expand in the online space.
The Age newspaper believes Mr Conroy’s endorsement of the ABC is a recipe for controversy with commercial media giants News Ltd and Fairfax.
“The digital revolution is driving changes,” Mr Conroy said.
“To argue the ABC shouldn’t have an internet presence would be a failure of its charter.”
Mr Conroy was dismissive of criticism about Mr Scott and believed he was the right man to take the ABC into the future.
“He’s leading the ABC into the 21st century,” he said.
In contrast to the BBC who announced last week plans to cut up to 600 jobs and a number of programs in order to open up the market for commercial competition, the ABC plans to expand further with multiple digital channels including a 24-hour digital news channel.
The BBC also plans to cut their online budget by 25% as the sprawling media entity refocuses on its core offering.
