Corporate Plan 2021-22 - Transparency Portal
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Contents Opening Statement 3 Our Purpose 4 External Environment 5 Social and Demographic Influences 5 Regulatory Influence 8 Market Influences 10 Financial Context 12 Planned Performance 16 Significant Activities 16 Cooperation with other bodies 18 1. Content Creation, Acquisition and Curation 18 2. Content Broadcast, Technology and Transmission 22 3. Content Commercialisation 24 4. Content Support Activities 26 Summary Financial Performance 29 Capabilities 30 Risk Management 33 Appendices 36 Appendix 1: The SBS Charter 36 Appendix 2: Role and Duty of the SBS Board 36 Appendix 3: Community Consultation Measures 37 Appendix 4: Cooperation with other bodies 38 Appendix 5: References 42 SBS Corporate Plan 2021-22 2
Opening Statement (Statement of Preparation) I, as the head of the accountable authority of the Special Broadcasting Service Corporation present the 2021-22 SBS Corporate Plan for the period 2021-22 to 2024-25 as required under paragraph 35(1)(b) of the Public Governance, Performance and Accountability Act 2013 and under section 48 of the Special Broadcasting Service Act 1991. The plan is prepared in accordance with the Public Governance, Performance and Accountability Rule 2014. George Savvides AM Chair Special Broadcasting Service SBS Corporate Plan 2021-22 3
Our Purpose “SBS inspires all Australians to explore, respect and celebrate our diverse world and in doing so, contributes to a cohesive society.” As described in our Charter, the principal function of SBS is to provide multilingual and multicultural broadcasting and digital media services that inform, educate and entertain all Australians, and, in doing so, reflect Australia’s multicultural society. SBS was established to positively contribute to Australian social outcomes, recognising we are a nation built on immigration. For over 45 years, SBS has been recognised for its contribution to Australia’s success as a multicultural society. SBS contributes to the ongoing development of a vibrant and cohesive multicultural society by providing a holistic suite of multilingual and multicultural radio, television and digital media programs and services to meet the needs of Australia’s multicultural society and First Nations Australians. In doing so, SBS promotes understanding and acceptance of the cultural, linguistic and ethnic diversity of all Australians. Through delivery of its content and services, SBS helps migrants understand and appreciate the country they now call home, whilst helping all Australians to better understand and respect each other and our many cultures, in aid of social cohesion. The global COVID-19 pandemic has illustrated the important role SBS plays in Australian society by delivering on our Purpose. Our factual multilingual coverage and our amplification of vital health public service announcements in over 60 languages is keeping Australian multicultural communities safe during the crisis. Our goal in delivering on our purpose and our Charter in the upcoming years will include a continued focus on building a distinctive network across both traditional and digital platforms, to allow a diverse array of views and voices to be represented in mainstream media. SBS provides unique services that support migrant communities and First Nations Australians and promote the benefits of diversity to all Australians, at a time when inspiring a greater understanding of the value of multiculturalism has never been more important. Maintaining Australia as a healthy, vibrant, diverse and inclusive society is key to our future success as a nation. SBS Corporate Plan 2021-22 4
External Environment Throughout 2020 and first half of 2021, COVID-19 has had a significant impact on Australia. The country experienced economic turbulence, resulting in negative GDP growth and higher unemployment. In response, federal and state governments implemented major stimulus packages to support households, help employers stay in business, and keep people in jobs. The Australian economy has largely recovered with national unemployment and GDP growth figures returning to pre-COVID levels (although this may be impacted by new lockdowns imposed due to the spread of the COVID-19 Delta strain since June 2021). Certain industries, however, remain negatively impacted with travel and tourism, as well as tertiary education experiencing a sustained downturn due to ongoing border closures and travel restrictions. In response to COVID-19, SBS quickly implemented a range of measures to protect our people, operations and the organisation. While longer-term challenges to the industry may arise from COVID-19, the updated SBS four-year strategy remains relevant and fit-for-purpose. Social and Demographic Influences Migration has been central to the economic and social development of Australia as a nation and has played an important role in Australia’s cultural identity. The Australian population increased to an estimated 25.8 million people as of June 2021.1 Overseas migration has been the main driver of recent population growth but slowed in financial year 2019-20 due to international travel bans imposed in March 2020. Net overseas migration is expected to be -96,600 people in 2020-21 (compared to +154,000 the prior year), and -100,000 people in 2021-22. Positive net migration is expected to return in 2022-23 (+95,100) with the resumption of most international travel. Pre-pandemic levels of net-migration are expected to return from 2024-25 onwards.2 The latest Census (conducted in 2016) reflects an increasingly diverse Australia – by language, country of birth, and religion. There were over 300 separately identified languages spoken in Australian households and more than one-fifth of Australians speak a language other than English at home.3 After English, the next most common languages spoken in Australian homes are Mandarin, Arabic, Cantonese, and Vietnamese. The next Census will be held in 2021. As of June 2020, the ABS estimated that 29.8% of the population (7.7 million) was born overseas, up from 29% (7.3 million) in 2018.4,5 The number of Australians born overseas is changing to be less European- centric, with North-East Asian and Southern and Central Asian countries experiencing the largest growth since 2010. This change is expected to continue over the medium term, building on a long-established trend of growing linguistic and cultural diversity. The below table (Table 1) represents the share of Australia’s overseas born population by region: 1. Australian Bureau of Statistics, Population Clock, accessed 18 June 2021, at: https://www.abs.gov.au/ausstats/abs@.nsf/0/1647509ef7e25faaca2568a900154b63?OpenDocument 2. Financial Review, Migration won’t return to pre-COVID-19 levels for years, accessed 18 June 2021, at: https://www.afr.com/politics/federal/migration-won-t-return-to-pre-covid-19-levels-for-years-20210510-p57qmg 3. Australian Bureau of Statistics (2017), 2016 Census: Multicultural, retrieved from: https://www.abs.gov.au/ausstats/abs@.nsf/lookup/media%20release3 4. Australian Bureau of Statistics, Migration, Australia 2018-19, retrieved from: https://www.abs.gov.au/statistics/people/population/migration-australia/latest-release#net-overseas-migration 5. Australian Bureau of Statistics, Migration Australia 2019-20 financial year. Retrieved from: https://www.abs.gov.au/statistics/people/population/migration-australia/latest-release#australia-s-population-by-country-of-birth SBS Corporate Plan 2021-22 5
External Environment Continued Table 1: Share of Australia’s Overseas Born Population by Region ABS – Share of overseas born population by region6 2009 2020 North-West Europe (e.g. UK, Ireland) 27% 20% Southern and Central Asia (e.g. India, Sri Lanka) 9% 16% South-East Asia (e.g. Vietnam, Philippines, Malaysia) 13% 14% North-East Asia (e.g. China, Korea, Taiwan) 10% 13% Southern and Eastern Europe 14% 10% North Africa and the Middle East 6% 7% Americas 4% 5% Sub-Saharan Africa 5% 5% Oceania (e.g. New Zealand) 3% 3% Since 2007, the Scanlon Foundation has released the annual Mapping Social Cohesion report, which measures Australia’s progress against key social cohesion indicators. The 2020 survey showed that while there is some concern about the level of immigration, Australians continue to recognise its benefits: — 92% of respondents indicated that they have a ‘sense of belonging in Australia’ — 84% of respondents agreed that multiculturalism has been good for Australia — 83% agree that immigrants are good for Australia’s economy — 74% agree that accepting migrants from different countries makes Australia stronger 7 However, we cannot take social cohesion for granted – when asked whether too many immigrants are not adopting Australian values’, 60% of respondents agreed, higher than the 57% result of 2019. Although attitudes to multiculturalism are generally positive, specific cultural groups are subject to periodic increases in racist experiences. The 2020 Scanlon Foundation survey also uncovered a spike in negative sentiment towards Asian Australians, likely caused by the assumed origin and spread of COVID-19 from China being used as an excuse for racist incidents. Forty percent of people with a Chinese background reported an increase in the amount of discrimination experienced during the height of the pandemic. SBS was established over 45 years ago to ensure that Australia’s growing migrant population was provided with vital community information to support engagement with Australian society and increase social cohesion. With increasing cultural and linguistic diversity, and the likely social, economic, and physical and mental health challenges Australians will continue to face in the wake of the COVID-19 pandemic, there is even greater need to build mutual understanding and respect between different sections of the community. Reflecting the diversity of Australian society will be increasingly important, not only for broadcasters but for the general public good. 6. Ibid. 7. The Scanlon Foundation (2020), Mapping Social Cohesion 2020, accessed on 18 June 2021, retrieved from: https://scanloninstitute.org.au/sites/default/files/2021-02/SC2020%20Report%20Final.pdf SBS Corporate Plan 2021-22 6
External Environment Continued SBS stands at the forefront of servicing an increasingly diverse Australia by providing unique multicultural and multilingual services and broadcasts, sharing culturally diverse stories and presenting a range of viewpoints. SBS ensures that multicultural, First Nations and other diverse communities have their stories shared and voices heard in the Australian media landscape. SBS provides a forum for debate and discussion vital to Australia’s capacity to address significant issues facing communities and our society as a whole. SBS has a long legacy of ensuring that news and information is available to Australia’s multicultural and multilingual communities, and these services are more relevant now than ever before – for example, reaching all Australians with vital public health information has been essential to saving lives during the COVID-19 crisis. SBS has a unique ability to reach Australia’s many language communities through its multiplatform services in English and over 60 other languages. Indigenous Affairs The resident population of Indigenous Australians (based on the 2016 Census result) was 798,400 people as at June 2016, representing 3.3 percent of the total Australian population.8 The Indigenous population is forecast to grow to one million people by 2028.9 160 Indigenous languages were reported as being spoken at home, by 63,754 of those who identified as Indigenous. The 2020 Closing the Gap10 report found that only two of the seven targets to reduce the disparity between Aboriginal and Torres Strait Islander peoples and the general population, in health, education and employment outcomes were met. The Federal Government and State and Territory governments agreed to overhaul their approach by entering into a Partnership Agreement on Closing the Gap with First Nations peak bodies, which meant for the first time First Nations peoples, through their peak body representatives, will share decision making with governments on executing the new National Agreement on Closing the Gap.11 In addition, the Government commenced a co-design process with Aboriginal and Torres Strait Islander representatives to develop models for an Indigenous Voice to advise the ruling government and parliament on Indigenous affairs. A final report from the Indigenous Voice Co-Design Groups is expected to be published by the end of 2021. During COVID-19 SBS’s National Indigenous Television (NITV) service’s news and current affairs coverage was expanded to provide a daily news service, seven days a week, delivering accurate and up-to-date information. The importance of NITV as a news source has also been particularly apparent recently against a background of Black Lives Matter demonstrations and national discussions on issues including race, police conduct including deaths in custody, and incarceration rates. For example, the most recent national deaths in custody report by the Australian Institute of Criminology found that Indigenous people die in police custody at more than six times the rate of non-Indigenous people.12 According to the ABS in 2020, 8. Australian Bureau of Statistics, Estimates of Aboriginal and Torres Strait Islander Australians, published 31 August 2018, accessed 18 June 2021. 9. Australian Institute of Health and Welfare, Profile of Indigenous Australians, published 11 September 2019, accessed 18 June 2021. 10. Australian Government, Closing the Gap Report 2020, published Feb 2020. Available at: https://ctgreport.niaa.gov.au/sites/default/files/pdf/closing-the-gap-report-2020.pdf 11. Australian Government, National Agreement on Closing the Gap, published July 2020, Available at: https://www.closingthegap.gov.au/national-agreement/national-agreement-closing-the-gap 12. Australian Institute of Criminology, Deaths in custody in Australia 2018-19, published Dec 2020, available at: https://www.aic.gov.au/publications/sr/sr31 SBS Corporate Plan 2021-22 7
External Environment Continued Aboriginal and Torres Strait Islander people made up 29 percent of the prison population, while constituting only 3 percent of the overall population.13 SBS, including NITV, will continue to provide a platform for bringing stories and issues important to First Nations peoples to light, drive the national conversation and action on First Nations issues and make a significant impact on reconciliation in Australia. Developing and maintaining trust with audiences will continue to be a challenge for traditional media, social media and digital platforms in the face of growing media polarisation. Public broadcasting plays an important role in setting the tone of public discourse and ensuring diverse viewpoints and stories are presented, particularly in a landscape where mass media ownership is concentrated. In the wake of COVID-19, there is increased reliance on public broadcasters for factual, trustworthy, impartial news and information. SBS continues to be one of Australia’s most trusted news sources with a long-held and well-earned reputation for quality news and analysis on global events, especially issues across multicultural and First Nations Australia.14 SBS is the only major Australian network providing a nightly World News service, news services made by and for First Nations Australians, and the only network servicing communities with Australian news in more than 60 languages. SBS represents a unique proposition in the market that is essential to maintaining diversity in the Australian media landscape. and in the coming year, we will also launch news bulletins in Arabic and Mandarin. In delivering on our Charter, over the course of this four-year plan, SBS will continue to evolve its services to meet the needs of audiences, reflecting changes in social and demographic composition, and technological developments and innovation. Regulatory Influence Over the reporting period covered by this Corporate Plan, SBS’s operations are likely to be impacted directly and indirectly by regulatory change. Media Regulatory Reform As part of the Government’s response to the ACCC’s initial Digital Platforms Report it was agreed that the ACCC will continue to inquire into digital platforms until March 2025. As SBS is reliant on these platforms in many aspects of our organisation, SBS will continue to engage with these reviews. In March 2021, on the recommendation of the ACCC, the Government enacted the News Media and Digital Platforms Mandatory Bargaining Code. This legislation has been designed to provide a framework through which Australian news media businesses can negotiate with large technology platforms for fair payment for the provision of local news content. The introduction of the News Media Bargaining Code is intended to significantly improve the business transparency and accountability of these platforms, in their relationships with news media businesses such as SBS. At the time of writing most Australian media organisations have entered into paid content output arrangements with Google and Facebook or are in the process of negotiating agreements. 13. Australian Bureau of Statistics, Prisoners in Australia 2019-20 financial year. Retrieved from: https://www.abs.gov.au/statistics/people/crime-and-justice/prisoners-australia/latest-release 14. Essential Research (2019), Trust in Media Outlets, accessed on 18 June 2021, retrieved from: https://essentialvision.com.au/trust-media-outlets SBS Corporate Plan 2021-22 8
External Environment Continued The Government has also directed the ACCC to undertake a separate inquiry into the advertising technology market (‘ad-tech’). In January 2021, the ACCC released its interim report15 which found there was a lack of competition and transparency in the digital advertising technology supply chain. Recommendations to be provided in August 2021 may have flow-on effects on SBS’s commercial activities. Media Reform Green Paper In November 2020, the government published its Media Reform Green Paper16 which sets out proposed reforms to harmonise Australian content obligations across both free-to-air television and internet-based content providers and support the strained free-to-air television sector. The Green Paper proposed several measures to assist the industry which included — reduced regulatory burden for commercial FTA (Free-to-air) broadcasters in return for eventually moving to less radiofrequency spectrum — promoting the public interest by using proceeds from freed-up spectrum to invest in content funds for journalism and Australian content — introducing an Australian content spend obligation on large video-on-demand services such as Netflix and Disney+ and, — amending current legislation to impose an Australian content obligation on the ABC and SBS to broadcast new Australian programming, in line with obligations for other providers The mechanisms proposed in the Green Paper aim to boost the local screen industry generally (including FTA broadcasters) but may also create more vibrant competitors for SBS. SBS has supported local content obligations if they are appropriately funded and do not interfere with SBS’s editorial independence. In May 2021, SBS provided a comprehensive submission to the Australian Government on the Media Reform Green Paper to reflect the needs of Australian audiences now and into the future. In addition to calling for greater direct funding to meet any content obligations imposed by government, SBS has also proposed that manufacturers of connected and smart televisions should ensure that public broadcaster applications are prominently positioned within the user interface. In their submission SBS also proposed that broadcasters transition to new transmission and compression technology settings, to provide for a release of spectrum for auction to telecommunications companies. Any auction proceeds may partly be used to fund Australian content production. SBS looks forward to engaging constructively in further discussions with the Government that will have wide-ranging impacts for the audiences we serve. Audio Description SBS is committed to telling stories that matter and recognises that audio description (AD) can provide meaningful benefits to blind or vision-impaired Australians by increasing access to these stories. AD services provide an auditory narration of the non-verbal elements of a program describing visual elements such as scenes, settings, actions and costumes. 15. ACCC, Digital advertising services inquiry – Interim Report, published Jan 2021, available at: https://www.accc.gov.au/focus-areas/inquiries-ongoing/digital-advertising-services-inquiry/interim-report 16. Australian Government, Media Reform Green Paper – Modernising Television Regulation in Australia, published Nov 2020. Available at: https://www.communications.gov.au/have-your-say/new-rules-new-media-landscape-modernising-television-regulation-australia SBS Corporate Plan 2021-22 9
External Environment Continued SBS launched broadcast AD services in 2020 on SBS main channel (standard definition and high definition) and SBS VICELAND. In 2021 SBS expanded AD services to NITV and SBS World Movies broadcast channels; and, to the Viewer Access Satellite Television (VAST) platform for audiences in regional and remote locations where reliable terrestrial reception is not available. State of Media Diversity Inquiry In November 2020, the Parliament (Senate) initiated an inquiry into the state of media diversity, independence and reliability in Australia. The inquiry will examine the current state of public interest journalism in Australia and any barriers to access to reliable and balanced news media. In December 2020, SBS provided a detailed submission to the Senate Standing Environment and Communications References Committee regarding its views on the inquiry issues and related impacts on public interest journalism and democracy. The Committee will report in November 2021. As a public broadcaster, SBS continues to play an extremely important role in delivering public interest journalism to all Australians, addressing potential under-provision of certain forms of journalism including to particular language communities and First Nations peoples, and contributing to media plurality. Market Influences Over the past several years SBS has seen significant changes unfold within the markets in which it operates. The changes and trends observed are consistent with those seen in overseas markets and SBS anticipates that current trends will continue over the next planning cycle as audiences move online, and competition for digital audiences intensifies. Audiences Traditional linear broadcast TV continues to represent the majority of free-to-air video viewing in Australia. However, Australians continue to evolve and expand the ways that they consume and engage with content, with a proliferation of new local and international streaming video on demand options having become available to audiences. Observations — The launch of many new streaming services in market (e.g. Kayo, Binge, Stan Sport, Disney+) has led to a fragmentation of content availability for audiences, with Australians required to subscribe to multiple services to enjoy different content. — While free-to-air television will continue to have the largest share of video consumption, due to its significant reach, the shift to digital platforms will accelerate as content options on alternate platforms continue to improve and faster 5G mobile internet will allow consumers to easily watch content on the go through their mobile devices. — Smart TVs, connected gaming consoles and portable devices have changed the way Australians are consuming media. The ACMA reported that in 2020, Australian internet users on average used 4.4 types of devices to access the internet (up from 4.0 in 2019).17 Almost half of adult internet users (46%) used 5 or more types of devices to access the internet in 2020, double the 23% of users surveyed in 2017. 17. ACMA, Communications and media in Australia: How We use the internet, published May 2021, available at https://www.acma.gov.au/publications/2021-05/report/communications-and-media-australia-how-we-use-internet SBS Corporate Plan 2021-22 10
External Environment Continued — Increasingly, content recommendations will be highly personalised and curated based on audience profiles and consumption patterns (e.g. preferred time of day and genre). Traditional media organisations will also need to consider the breadth of their digital offers and content distribution via multiple products and platforms, as they will begin to consolidate audiences on fewer, larger interfaces to generate efficiencies at scale and customer loyalty. — Younger audiences lead the charge in adopting new technologies and alternative modes of content consumption. The uptake and use of new social media platforms has broadened significantly across age demographics and will become increasingly mainstream for content distribution and advertising across all age groups. — Due to the natural shift in the way audiences are consuming content, reality and live sport are commanding an increasingly important place on network linear television schedules across the country. Implications — As audiences continue to embrace “best-in-class” digital experiences from other local and international media organisations, SBS focuses on delivering against audience needs and expectations. Personalisation of the video on demand experience is a core pillar of SBS’s product strategy, continually improving content curation, recommendations and user experiences being key priorities for the SBS On Demand platform. — To enable content discovery and sharing of our English and multilingual content, SBS is investing in its product capabilities. This will allow content, news, audio and video content to be better surfaced to audiences whatever their platform of choice. — SBS will continue to acquire and commission distinctive content to educate, entertain and inform all Australians, in line with its Charter, on all SBS platforms. We will also continue to undertake content distribution strategies on social media, to be where the audience is consuming content and in particular younger audiences. — The ability to promote SBS flagship content events, such as the Tour de France, which captivate large audiences will play an increasingly important role in defining SBS’s brand. SBS will continue to focus on creating impact via executing and partnering with others on events such as NAIDOC week that strengthen the relationship it has with the community. — As audiences increasingly move from traditional linear television to digital platforms, SBS will need to adopt new advertising technologies to ensure that it can continue to adequately continue its commercial activities, in support of its Charter content. Competitive Observations — Since 2015, a proliferation of new over-the-top providers have entered the Australian market, heightening overall interest in on-demand video streaming and the rapid growth in digital video consumption. The Australian streaming video on demand market is crowded, with Disney+, Apple TV+, Binge/Kayo/Foxtel Now, Netflix, Amazon Prime and Stan all available for Australian TV viewers. The period from 2022-2025 will likely be one of consolidation as the market hits maturity. SBS Corporate Plan 2021-22 11
External Environment Continued — There is ever increasing competition amongst commercial free-to-air broadcasters whose business models are geared to global reality formats and live sports, in pursuit of acquiring and retaining large scale audiences. Audience interest in reality television is persisting, with dating/ relationship, cooking and renovation formats ubiquitous on Australian television. We can also expect acceleration in the product offer from Broadcaster Video On Demand (BVOD) services and Subscription VOD services (such as Nine’s 9Now and Stan), as commercial free-to-air operators (FTAs) look to transition to viewership and revenues on digital platforms. — The relative value of access to free-to-air spectrum as a competitive advantage will continue to diminish as consumption of digital content continues to grow. This was reflected in changes to the licence fee and spectrum pricing structures applicable to commercial free to air broadcasters in 2018. In April 2020, the government also announced a 12-month waiver of spectrum licence fees for all commercial television and radio broadcasters, as part of its industry relief package in response to COVID-19. Implications — New entrants to the market may impact SBS’s competitive standing when they compete directly with SBS for content and /or compete with SBS for audience time. However, it is worth noting that not all new market entrants have an impact on SBS – for example those which focus on premium sports or children’s content. — Public service broadcasters can remain relevant in this shifting environment by creating and promoting local multilingual and First Nations content, a unique proposition that is not provided by the global services. SBS will continue its investment in local commissions that are uniquely Australian and aligned with its Charter. SBS intends to continue the legacy of commissioning high quality content which is thought-provoking, ambitious and which promotes social cohesion. COVID-19 enabled SBS to demonstrate the vital role our multilingual services play in serving Australian communities, with the SBS Multilingual Coronavirus portal widely used and positively received.18 Our digital video offering in SBS On Demand has also seen growth and is holding audience beyond the easing of movement restrictions related to the panemic. In FY22, SBS will look to further extend our multilingual offering across our audio and digital video platforms including more in-language subtitling and news production in languages other than English. Continued investment in digital content (including longer term supply contracts), curation and user experience, is crucial to allow SBS to deliver on its Charter in a competitive media landscape. Financial Context Government Revenue Observations — In 2019, SBS’s budget was confirmed for the 2019–20 to 2021–22 financial years, following completion of the triennial funding process. SBS will receive $897 million over the period 2019-20 to 2021-22. — In the May 2021 Federal Budget, SBS received an additional $29m in funding across the three years 2021-22 to 2023-24, for delivering enhanced language services. 18. For example, see Australian Federal Parliament Senate (2020), Official Hansard (Wednesday 13 May 2020) – Motion on SBS Multicultural Coronavirus Portal, accessed on 18 June 2021, retrieved from:https://www.aph.gov.au/Parliamentary_Business/Hansard/Hansard_Display?bid=chamber/hansards/d1b94f32- 61e9-47e8-ab31-cc37f40b5093/&sid=0000 SBS Corporate Plan 2021-22 12
External Environment Continued — SBS will submit a funding request in 2021-22 for the upcoming triennial funding cycle (2022-23 to 2024-25 financial years). — Over the five-year period up to 2020-21, SBS’s efficiency program has culminated in over $54 million of realised savings in 2020-21. These efficiencies have been generated through vigilant annual planning processes, workflow improvements, the renegotiation of supplier agreements, an evolved operating model utilising best-in-class technology solutions, and investment in a working environment that fosters agile practices and a highly engaged workforce. SBS has reinvested these efficiencies in the growth of its digital services and distinctive cross-platform content in line with its Charter. Implications — SBS will continue to make a strong case for ongoing and sustainable levels of government funding to ensure the continued delivery of its valued services to the Australian community. — SBS is committed to ensuring that the content which it produces reflects its Charter and continues to do so in a cost-effective manner. — SBS’s unique hybrid funding model means that commercial returns can be channelled back into acquiring and curating Charter content, while continued government funding support allows for stability and long-term creative ambitions to be realised. Own-source revenue Observations — SBS generated approximately 31% of its total operating revenue in 2020-21 from its commercial activities. — With advertising expenditure gradually shifting from television to online platforms, most industry research companies predict modest negative growth forecast for linear broadcast advertising revenues over the period of this Corporate Plan. This is partially offset by rapid growth in digital video advertising, gently tapering off over the next four years. — The immediate impact of COVID-19 saw the advertising market slow down, with companies reducing their marketing spend to cut costs. However, since late 2020, the Australian advertising market has returned to normal levels of spending across most ad categories. — Over the past several years the programmatic system has become the primary way in which digital advertising inventory is sold globally. Implications — As the traditional free-to-air advertising model comes under increasing pressure, SBS’s content commercialisation activities will seek to maximise financial returns on available multiplatform inventory, in line with the restrictions on the amount of advertising permitted on SBS broadcast services and in keeping with SBS’s editorial guidelines. — SBS will continue to invest in its digital advertising capabilities to capitalise on the growing shift to digital content. This will include investing to grow SBS On Demand and other digital properties to maximise the value of online inventory. — SBS must ensure our commercial capabilities are fit-for-purpose and attractive to advertisers by appropriately leveraging available data and utilising integrated advertising and reporting systems. SBS Corporate Plan 2021-22 13
External Environment Continued — SBS has programmatic advertising capabilities already in use and continues to evolve our advertising technology in-line with the market, ensuring constant “best-in-breed” technology and performance. — It is also important that SBS continues to build on existing and new commercial partnerships to ensure consistent growth of advertising inventory across all platforms. Figure 1: SBS and the Australian advertising market (2020-21)19 Australian FTA Australian (linear + BVOD) SBS Advertising revenue advertising TV advertising ($124.6m, approx. 4% market market of FTA market) ($15.4bn) ($3,297m) Note: For reference only. The data from PwC is presented for calendar year 2020, whereas SBS data is for financial year 2020-21. Cost Considerations Observations — Increased competition from new entrants in the Australian media landscape, particularly from global SVODs (Streaming Video On Demand) and FTAs ramping up their BVOD (Broadcast Video On Demand) services, is driving up competition for quality content. This includes competition for premium international content as companies seek to build deep and wide content libraries to attract and retain audiences. — There is also increased competition from telecommunication companies as they expand their content provision services including sport, placing upward pressure on the cost of certain content rights. — COVID-19 has had a significant effect on the Australian media production sector, with delays and cost increases to many local productions in 2020-21 due to ad-hoc Australian state lockdowns and ongoing COVID safe requirements on production sets. — International content has become more expensive to acquire for Australian broadcasters (and globally) due to increased demand and lower supply. Additionally, international studios such as Disney, Warner Media (HBO) and Paramount have begun distributing their content direct to consumer or partnering with SVOD players in exclusive content deals, applying further pressure to content supply and pricing. 19. PwC Australian Entertainment Media Outlook 2021-2025, available at: https://www.pwc.com.au/industry/entertainment-and-media-trends-analysis /outlook.html SBS Corporate Plan 2021-22 14
External Environment Continued — Pre-COVID-19 it was becoming increasingly challenging for organisations to acquire and retain talent in knowledge areas and for ‘newer’ skills such as software engineering and data science. COVID-19 may exacerbate this problem further, with university revenue from international students set to suffer and restriction-free international travel only set to resume in 2022 and beyond. Attracting strong talent with commercial and digital experience will put upward pressure on our human resource cost-base as these roles are in high demand across most industries. Implications — With external forces putting upward pressure on our largest cost categories (content and employees) there will be even greater emphasis on ensuring SBS’s support and back-office functions are delivered as effectively and efficiently as possible. — SBS will continue to engage in co-productions and leverage appropriate funding opportunities, to provide distinctive quality commissioned content at a reduced cost. Additionally, SBS will also continue to secure appropriate acquired content deals in partnership with other organisations to ensure the best use of funds available. SBS will continue to identify and deliver further efficiencies within its operations. The pressure to be cost-aware helps drive the continuous improvement of existing delivery methods across the whole organisation. As a lean organisation, SBS is suitably structured to transform itself to overcome external pressures to deliver content in the most efficient and effective manner. SBS Corporate Plan 2021-22 15
Planned Performance Significant Activities The following activities and goals cover the planning period spanning 2021-22 to 2024-25. SBS’s operations can be broken down into four key activities, all of which contribute to SBS delivering on its Charter and achieving its purpose: “…SBS inspires all Australians to explore, respect and celebrate our diverse world and in doing so, contributes to a cohesive society…” These activities are: — Content creation, acquisition and curation; — Content broadcast, technology and transmission; — Content commercialisation; and — Content support activities. Table 2 describes these activities in more detail. Table 2: SBS’s significant activities Significant activity Description Content creation, — Commissioning, in-house production, acquisition and curation of content for the acquisition and following platforms: curation — Broadcast television — Broadcast radio — Online content including digital (IP-based) delivery of on demand and live streaming video and audio content — Delivering formal and informal learning outcomes, as content extension activities. Content broadcast, Transmission of SBS’s created or acquired content via linear broadcast and technology and IP-delivered platforms. This also includes broadcast operations and broadcast transmission technology and systems. Content Commercialisation of SBS’s created or acquired content via a range of commercialisation commercial activities which include: — SBS advertising media sales — International and domestic content sales — Subscription services and other commercial partnerships Content support The corporate and other back-office functions required to support the above activities significant activities. These include: — Enterprise-related IT — Finance and accounting — People and culture — Legal — Facilities maintenance (Corporate services) — Corporate affairs SBS Corporate Plan 2021-22 16
Planned Performance Continued The below framework sets out the five focus areas for the organisation, over the course of the four-year Corporate Plan. Figure 2: Strategic Framework Delivering against our Charter and Purpose SBS inspires all Australians to explore, respect and celebrate our diverse world and in doing so, contributes to a cohesive society SBS FY21-22 SBS FY21-22 Strategic Pillars Goals reat People; G Keeping our people I’m hearing great things about working at SBS Great Culture COVID-safe and — Our strong focus on our people and our culture is ‘how’ we are building a more going to succeed inclusive culture — Creating new opportunities and ways of working whilst protecting our people, operations and organisation against the effects of COVID-19 — Building a more inclusive culture Distinctive Accelerating our Showcasing Australia’s Diversity Network languages strategy — Exploring, respecting and celebrating diversity in all its forms and extending is central to our content activities, especially via culturally and First Nations linguistically diverse content to TV, radio and online audiences content across SBS — Expanding SBS’s First Nations content offering as we continue to explore and celebrate the experience of First Nations Australians Inspired Build trust and It’s all about our communities Communities drive social — Maintaining trust with audiences. Building on our cohesion NAIDOC partnership and further cornerstone activities that help to define SBS, and our services with the wider Australian community Great Grow our revenue Best-in-class operations Business to reinvest in — Best-in-class operational cost base, processes and globally Charter content unique deals — Building upon SBS’s commercial capabilities to allow the business to reinvest in high-quality content Engaged Continue Deep audience engagement on all platforms Audiences investment in — Continuing with our digital acceleration plan and providing an digital acceleration excellent audience experience across all platforms to drive to enhance engagement and consumption the audience experience We are We are We We engage We look SBS Values audience bold embrace and participate out for one obsessed and brave difference fully another SBS Corporate Plan 2021-22 17
Planned Performance Continued These focus areas will help SBS achieve its purpose by: — Reaching more Australians with SBS’s distinctive, trusted and multilingual content — Accelerating our language offering and capabilities to Australia’s multilingual and multicultural communities — Expanding upon our First Nations content offering available to all Australians — Building audience awareness, scale and engagement on our digital platforms to ensure our relevance as people increasingly consume content on these platforms — Delivering “best in class” user experience for audiences on our digital platforms to improve audience engagement and loyalty — Growing the share of funding that is invested into Charter content by increasing returns from commercial activities, while continuing to innovate and find better ways of conducting our existing operations — Keeping our people safe during the ongoing COVID-19 pandemic, and attracting and retaining the best people by making SBS a great and inclusive place to work Cooperation with other bodies SBS cooperates with a range of government, corporate, industry and non-profit organisations that make a significant contribution to SBS to help it deliver on its Charter and achieve its purpose. The list of organisations and the nature of each of these relationships can be found in the Appendix. 1. Content Creation, Acquisition and Curation Content creation (covering in-house and commissioned content), acquisition and curation are at the heart of SBS’s purpose. Through our core content activities delivered across all platforms, we create and curate content for our audiences that: — Inspires inclusivity and social cohesion — Informs, enriches and entertains — Offers surprising perspectives — Provokes with purpose Content creation, acquisition and curation activities span a number of areas: SBS Television and Online, SBS On Demand, SBS News and Current Affairs, SBS Sport, SBS Radio, National Indigenous Television (NITV), social media and marketing. The success of our content is measured in a number of ways, notably audience awareness, engagement, consumption and reputational outcomes. These reputational outcomes range from Charter alignment to community impact and trust. Our TV content creation, acquisition and curation activities cut across an expansive linear and digital network: SBS, SBS VICELAND, SBS Food, SBS World Movies, NITV and SBS On Demand. Together each channel amplifies the overall content offering, creating distinct editorial opportunities by targeting different demographics with different genres and tones. SBS Corporate Plan 2021-22 18
Planned Performance Continued SBS main channel is the home of distinctive programming that inspires all Australians to explore, respect and celebrate our diverse world and in doing so, contributes to a cohesive society. It is a trusted source of news, current affairs, live sporting events and entertainment, distinctive scripted drama, and factual programming as well as showcasing our SBS originals that fearlessly pursue innovative, world class ideas that both inspire and entertain. SBS VICELAND continues to drive growth within the SBS Network by targeting a younger audience. SBS VICELAND builds on the breadth of the SBS main channel’s offering by adding ‘edgier’ factual and entertainment series to the network, mixed with cult movies, quirky comedies and provocative dramas. The channel also remains the home of Australian and international basketball. SBS Food broadcasts accessible and aspirational food programs which take viewers on a journey of cultural discovery through cuisine. We have seen a broadening base of viewers to include families and LOTE speakers who are looking for authentic food, cooking and travel programs presented in a fun and informative way. Our slate of local brand-supported productions continues to grow each year, with new and established homegrown talent bringing Australia’s own diverse culinary culture to life. SBS World Movies showcases uniquely diverse global stories in 50 languages, complementing other genres and deepening engagement across the network. SBS World Movies blends new releases and classics through thematic collections balancing broad appeal and international titles with a focus on under-represented language groups. NITV supports and strengthens the oldest living culture in the world through the most distinctive content offering in Australia. The channel shares and celebrates unique stories that inspire, instil pride and lead to a greater understanding of First Nations peoples and culture. Through compelling and entertaining original commissioned content, NITV shares culture and language, championing First Nations storytelling, including children’s content, and empowering a new generation. Its news and current affairs give First Nations Australians a vital voice as well as sport and events which celebrate First Nations achievements and connect communities. The channel also brings unique global perspectives to a local audience, with programming from partners around the world. Using the strength of storytelling to foster change, champion equality and make an impact, NITV is committed to building a strong, sustainable First Nations media for the future. The content of NITV is now increasingly amplified across the network through our Indigenous Content Strategy, with SBS, SBS VICELAND, SBS Food and SBS On Demand all involved in a variety of co-productions, simulcasts and encores to drive audience reach and build broader awareness of the channel. SBS On Demand is Australia’s most distinctive streaming destination, enabling SBS to deliver its Charter in a digital environment. SBS On Demand represents the very best of SBS: diverse entertainment delivered by a seamless digital experience that is available free, anytime on all major devices. Through our extensive content catalogue, SBS On Demand is adding depth and breadth to our major content genres, extending the life of our originals and exploring new pathway opportunities for new culturally and linguistically diverse audiences through a rich selection of in-language and captioned titles and enhanced multilingual log-in and discovery options. SBS Corporate Plan 2021-22 19
Planned Performance Continued SBS Radio is the world’s most linguistically diverse public broadcasting service – available on radio, online, digital television and social media. Servicing over 60 languages including SBS Chinese and SBS Arabic24, SBS Radio is dedicated to the nearly five million Australians who speak a language other than English at home, while three music channels (SBS PopAsia, SBS PopDesi and SBS Chill) engage all Australians through music and pop culture from around the world. SBS Radio services produce original content, which also feeds into SBS English-language news and current affairs services. SBS has provided in-language radio, online and digital programs and services to Australia’s LOTE speaking community since its inception. The next Census will take place in August 2021 and SBS will review its language services following the Census, to ensure we reflect today’s Australia and are meeting the needs of the community. SBS broadcasts news and current affairs across its TV, radio and digital platforms that reflect the integrity of SBS journalists and editorial processes which ensure alignment with community expectations. As onewof Australia’s most trusted media organisation and the most trusted amongst multicultural audiences,20 SBS has a well-earned reputation for quality news and analysis on global events and stories and issues from across multicultural Australia. SBS has played a crucial role in providing public information and support during the COVID-19 crises, offering vital health and wellbeing information in over 60 languages to many diverse communities around Australia. SBS Sport secures and broadcasts a wide range of international and local sport to Australians free to air on its network, including football, basketball, cycling, motorsports and figure skating, uniting communities through shared passions and experiences. This includes some of the world’s biggest sporting events, such as the FIFA World Cup Qatar 2022™, the Tour De France, Giro d’Italia, Dakar Rally and the US Open Tennis Championships. SBS delivers its extensive sports coverage across linear and digital platforms. SBS’s social media offering shares stories, videos and other diverse content that connects Australian audiences to the world of SBS. SBS’s social media profiles including Facebook, Twitter and Instagram and extend the reach of SBS’s content and raising awareness of the SBS brand and its unique offering with new audiences. SBS also provides the SBS Learn program, which delivers formal and informal learning outcomes based on research and global partnerships. SBS Learn operates as an extension of SBS commissions, sport and network-wide activities, and is delivered through educators and community and digital engagement. SBS Learn plays a crucial role in building capacity for Australian teachers and students to expand understanding of non-dominant cultural narratives and the exploration of a range of narrative voices. This is broadly distributed to fulfil SBS’s commitment to educating all Australians as a contribution to a more cohesive society. SBS Learn regularly publishes learning materials in languages other than English. 20. SBS Brand Pulse Internal Research: FY21 Average of Quarterly Results (July, October, January and April). SBS Corporate Plan 2021-22 20
Planned Performance Continued Intended results The fulfilment of SBS’s purpose is predominantly realised through the distinctive and compelling content that SBS provides across its many platforms. Through the content that our audiences consume and through our brand, SBS brings our Charter and purpose to life – across broadcast television and radio, online, and social media platforms. We want our audiences to be inspired by a richer more holistic understanding of our world which we seek to achieve by presenting surprising perspectives in entertaining ways. Over the course of this Corporate Plan, there are three major goals that our Content activities are focused on delivering: 1. A Distinctive Network; 2. Engaged Audiences; and 3. Inspired Communities. Achieving these three goals will further enhance our reputation as Australia’s multicultural and First Nations broadcaster and affirm our ongoing contribution to Australia’s success as a vibrant, diverse and cohesive society, while also securing our relevance in a fragmenting media market. Another key focus for SBS in 2021-22 and beyond will be the ongoing implementation of the second iteration of the SBS digital acceleration plan to ensure that SBS continues to evolve with audience expectations and engagement patterns across our digital portfolio. Over recent years, SBS has enhanced its delivery of services to the Australian community through investment in online, video, podcasting, and social media content, which has generated strong audience growth. SBS continues to accelerate digitally to adapt and reflect the rapid changes in audience consumption habits, and to maintain SBS’s relevance to diverse Australian communities. Delivery strategy In order to achieve these outcomes, SBS will look to: — Deepen engagement with multicultural and First Nations communities to share their stories — Accelerate investment in digital content, platforms and capabilities — Invest in enriching content that is purposefully provocative and promotes social cohesion and cross-cultural understanding at its core Content creation – resourcing Table 3.1: Proposed resourcing of SBS’s Content activities FY21-22 FY22-23 FY23-24 FY24-25 Budget Forward Forward Forward Resources estimates estimates estimates Expenditure ($ millions) 222.5 229.1 219.2 215.7 People (Full time equivalent) 706 706 706 706 SBS Corporate Plan 2021-22 21
Planned Performance Continued Performance measurement and assessment SBS currently uses a range of metrics across platforms to assess the distinctiveness and diversity of its content activities. Table 3.2: Key performance assessment metrics – SBS Content activities FY21-22 FY22-23 FY23-24 FY24-25 Budget Forward Forward Forward Key Performance Indicator estimates estimates estimates Number of hours of TV programming broadcast in CALD 28,500 28,500 28,500 28,500 Number of hours of locally commissioned content broadcast (first run) on all linear channels except NITV 180 180 180 180 Number of hours of locally commissioned content broadcast (first run) on NITV 35 35 35 35 % of radio broadcasts in languages other than English 90% 90% 90% 90% Total Digital Registrations 10.20m 11.00m 11.60m 12.00m Average Monthly Radio Podcast Downloads 3.3m 4.0m 4.8m 5.7m Primetime Metro TV Share 8.5% 8.5% 8.5% 8.5% 2. Content Broadcast, Technology and Transmission The Content Broadcast, Technology and Transmission activities at SBS fall largely under the responsibilities of the Technology Division. These teams ensure SBS achieves the most effective and efficient means to distribute its distinctive content across TV, Radio and Online platforms to as many Australians as possible. Technology continues to advance in broadcast and IP-delivered TV. Most households now own connected TVs (that are internet enabled,) and/or streaming boxes and devices such as Telstra TV and Google Chromecast. With larger, cheaper and ‘smarter’ televisions available to consumers every year, connected TVs are becoming the primary method of long form video consumption. Additionally, the ubiquitous use of mobile phone devices, coupled with the rolling out of the 5G network across Australia has meant that, increasingly, audiences are consuming more content on a more fragmented and ad hoc basis. As audience consumption shifts to digital platforms, SBS will continue to find innovative ways to store, manage and publish content across all its platforms while also seeking to provide best in class user experience, better content discovery and personalisation for its audiences. SBS Corporate Plan 2021-22 22
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