Hasta la vista SBS? Experts indicate that the channel is forced to merge with ABC due to falling viewing figures caused by the increase in streaming services
- Morgan Stanley analysts say that the ABC and SBS must merge to save costs
- Streaming services such as Netflix and Stan eat their profits
- At least 13 million households currently have access to at least one streaming service
- Public service broadcasters are also faced with a fall in government funding
The ABC and SBS will have to merge to stay afloat while streaming companies such as Netflix and Stan eat their income, analysts warned.
Morgan Stanley believes that the federal government should consider replacing licensing fees for radio and television with licensing fees for streaming services.
They said the public switched from traditional media to new age streaming services such as Netflix and Stan and Amazon Prime Video.
Some reports suggest that at least 13 million Australian households currently have access to at least one streaming service and this number is expected to increase in the future.
& # 39; We think the two public broadcasters in Australia – the ABC and SBS – may need to consider merging or exploring other alternatives to reduce costs, & # 39; told Morgan Stanley analysts The Australian.
The ABC and SBS will have to merge to keep their heads above water because streaming companies such as Netflix, Stan and Amazon Prime Video are making a huge dent in their advertising revenues, analysts say (see the ABC building in Sydney)
The federal government uses the license fee, which is a percentage of the advertising revenue for television and radio, to finance public service broadcasters.
A decrease in advertising revenues for public service broadcasters means that the government will exert more pressure to make more money available for the ABC and SBS.
The coalition government is already protesting for cuts in ABC and SBS funding, which collectively receive more than $ 1 billion in annual funding.
Morgan Stanley said that the two major public service broadcasters would have a greater chance on the market if they worked together.
& # 39; We think it is plausible that another unintended consequence of the disruption of the rapid growth of streaming TV / music services in Australia is the further cost savings with these two public broadcasters, and whether, as was widely speculated in the previous press , the possibility of a merger of the two entities, as an alternative means to significantly reduce duplication and costs, & the analyst said.
ABC journalist Leigh Sales has a 7.30 report, but the research reports may be threatened by the coalition government that promises funding cuts.
ABC is known for its news programs & # 39; s, including 7.30, on which journalist Leigh Sales and Four Corners are known for his research reports.
SBS football coverage led by Lucy Zelić is one of the station's biggest draws, along with shows with human interests such as Who Do You Think You Are.
SBS TV presenter Lucy Zelic is head of the station's sports program and was their FIFA Wold Cup coverage, but future sports rights would be threatened if they merged with the ABC.
The Media Entertainment and Arts Alliance (MEAA) said that nearly $ 340 million has been cut from the basic ABC financing since 2014.
& # 39; Programs have been scrapped, locally produced drama is far away, foreign agencies have been closed and hundreds of years of journalistic experience have been lost. & # 39;
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