Efficient, trusted, valued - About the ABC
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Efficient, trusted, valued
Your ABC: Efficient, trusted, valued
ABC Open
Today, the ABC is better value for Australians than ever before.
The ABC continues to adopt smarter ways of working and harness
the benefits of new technology to deliver more quality and
distinctive content and across more platforms – at a lower cost.
The ABC was created to serve the Australian The ABC acknowledges that it operates in
people. We tell the nation’s story and help a society where there are many competing
Australians understand their place in the world. demands for public funding. The ABC
We connect Australians wherever they live understands that to honour the trust placed in
and bring them together around the moments it by the Australian people, it must manage the
that matter. We are the place where unique funds given to it wisely and responsibly. Over
Australian stories are created, and where young the past thirty years the ABC has continuously
and old alike can be inspired and delighted by sought efficiencies to maximize the amount of
the arts, music and the wonders of science. money we spend on great content and services
for all Australians.
For generations, the Australian people have
invested significant funds in establishing the Despite a real decline in funding per person,
ABC as a critically important social and cultural the ABC has been able to enhance the services
institution. The legacy of this investment: the it provides to the Australian public. Services
unique Australian stories told, the great national like iview, the ABC News channel, the comedy
debates that have been contested, channel, digital radio services, podcasts and
the art and the music that has been created, increased investment in regional reporting have
is woven into the fabric of our country. all been funded without additional real funding
from Government.
1 AUSTRALIAN BROADCASTING CORPORATION EFFICIENCY PAPER 2018
2017 Slate Launch
Funding Creative talent
In 1987 the ABC famously cost eight cents a day. As Australia’s largest creative employer,
Adjusted for inflation and population growth, we enrich the lives of our fellow citizens by
the ABC today costs each Australian just half discovering and showcasing the talents of
that amount. Australian people. We promote and invest in
the broader creative community.
Since the mid-1980s our real funding has
decreased by 28% or $336 million. 56% of the music we play on triple J is Australian.
100% of the music on triple J unearthed features
Our funding is 34% lower than the average of
new Australian talent
18 comparable public broadcasters.
In 2017 we invested $94.5 million in independent
productions, creating private sector jobs for
Efficiency writers, producers, directors, actors and the
businesses that support them.
As technology changes the ABC has provided
Australians with more content, services
and platforms.
Trust
We have done these additional things at lower
In a world of abundant information, the need
cost – and with around 2,000 fewer employees
for trusted information has never been greater.
than thirty years ago. We have achieved this by
Despite the ABC’s declining funding and
continuously looking for ways to improve the
efficiency initiatives, we have invested wisely to
way we work.
ensure that that the ABC continues to maintain
In the last five years alone, working smarter very high levels of trust and quality.
has allowed us to invest an additional $70 million
More than 80% of Australians trust the ABC,
into new programs, services and platforms, while
compared to average trust of 57% for
also returning $254 million back to government.
commercial media.
2 AUSTRALIAN BROADCASTING CORPORATION EFFICIENCY PAPER 2018
In 1987
the ABC cost 19.2 cents per
In 2017
the ABC cost 9.7 cents per
person per day (2017 value) person per day and delivers...
and delivered...
TV
2JJJ SYNDEY
105.7 FM
SYDNEY
RADIO
And more...
PODCASTS
AUDIO
3RD PLATFORMS
PARTY SOCIAL
PLATFORMSPLATFORMS
No digital services
DIGITAL
And more...
6,092 EMPLOYEES 4,097
Full-time equivalent Employees Full-time equivalent Employees
Funding declining in real terms
ABC Operational Revenue from Government incl Capital Indexed at 2016/17 levels -
December 2016, six months CPI Index - 28% reduction from 85/86 to 17/18
1250
$1,201
1200
1150
1100
1050
1000
$865
$ Millions
950
900
850
800
750
700
650
600
85/86
86/87
87/88
88/89
89/90
90/91
91/92
92/93
93/94
94/95
95/96
96/97
97/98
98/99
99/00
00/01
01/02
02/03
03/04
04/05
05/06
06/07
07/08
08/09
09/10
10/11
11/12
12/13
13/14
14/15
15/16
16/17
17/18
Years
The funding that the ABC has available to make content has declined by 28 per cent or $336 million
in real terms since the mid 1980s
ABC cost per person per day – 1987 v 2017
20 19.2
15
Cents
9.7
10
8.0
5
0
1987 Funding Adjusted for inflation Actual 2017 funding
per capita
* Excludes orchestras, transmission and distribution
CPI based on ABS calculator - June 1987 and June 2017
Data sourced from the 2016/17 Annual Report
The decline in real funding combined with population growth means that the ABC now costs
half as much per person compared to 30 years ago
4 AUSTRALIAN BROADCASTING CORPORATION EFFICIENCY PAPER 2018
Per capita funding for public broadcasters, 2014*
A$ per inhabitant
0 50 100 150 200
Norway 179
Switzerland 178
Germany 142
Denmark 127
Sweden 126
Finland 124
United Kingdom 114
Country
Austria 101
France 73
Belgium 69
Ireland 57
Average = 86
Australia 57 Australia
Spain 54
Australia invests 34 per
Japan 54
cent less per person in
Italy 38
public broadcasting than
Canada 29
the average of comparable
New Zealand 17
democracies
United States 3
Source: Nordicity analysis of the annual reports of public broadcasters
* Excludes any commercial revenue earned by public broadcasters
Note: Australia includes ABC and SBS combined
Commercial revenues and per capita funding for public broadcasters, 2014
A$ per inhabitant
0 50 100 150 200 250 300 350 400
Norway 179 179 359
Switzerland 178 61 239
United Kingdom 114 57 170
Germany 142 23 165
Austria 101 38 138
Denmark 127 124
Finland 127 3 127
Country
Sweden 126 126
Ireland 57 48 105
Belgium 69 30 99
Many international public
France 73 15 88 broadcasters supplement
New Zealand 17 69 86
Average = 118 their income through
Australia 57 9 66 commercial activity such
Japan 54 9 63 as advertising. The ABC
Italy 38 18 56 does not take advertising
Spain 54 1 55 on its domestic services
Canada 29 17 46
United States 3 4 7
Per Capita Funding Per Capita Commercial Revenue
Source: Nordicity analysis of the annual reports of public broadcasters
Note: Australia includes ABC and SBS combined
5 AUSTRALIAN BROADCASTING CORPORATION EFFICIENCY PAPER 2018
ABC Funding Comparison
The ABC serves a population one-third the size of the UK but
does so with a total income one-eighth the size of the BBC.
$8.6bn $1.1bn
(£5.0bn)
Source: 2016/17
Annual Report
Source: 2016/17 Annual Report
Exchange rate: 0.5778, 16 Jan 2018
6 AUSTRALIAN BROADCASTING CORPORATION EFFICIENCY PAPER 2018
ABC Open @Clare_Chris
Focused on Efficiency
ABC Open
Cumulative ABC Budget Cuts/Savings - 2014 -15 to 2018-19
120 Cumulative
Budget Cuts $254m
$108m
Cumulative Content
Reinvestment $70m
100
Cumulative $86m 30
Total $324m
80
$71m 20
($M)
60
$47m
40 78
17 71 66
20
$12m 30
3
9
0
2014/15 2015/16 2016/17 2017/18 2018/19
Content Reinvestment Budget Cuts
Over the last decade the ABC has undertaken Savings by the ABC have allowed us to meet the
several substantial reviews and transformation rising expectations of audiences for high quality
programs to improve efficiency and provide content and services.
Australians with greater content and services.
The ABC has found efficiencies beyond those
We have achieved savings by cutting management required to meet more than $200 million in
positions and back office expenses. We have also Government funding cuts. These funds have
reduced the cost of transmitting and distributing been reinvested in regional journalism as well
our broadcasting signal. as the creation of Arts, Science and Education
content. More innovative and distinctive content
Accumulated savings over the 2014/15 to 2018/19
is on the way.
period total $324 million. More than three
quarters has been handed back to government,
while $70 million has been reinvested in new
content for audiences.
7 AUSTRALIAN BROADCASTING CORPORATION EFFICIENCY PAPER 2018
ABC delivers value for money
By working more effectively with the independent The first two series of House of Cards reportedly
sector the ABC is able to drive its investment cost in the order of AUD$125 million to produce.
further to produce significant volume while For the same money the ABC produced 50
maintaining its reputation for quality. Australian programs, including 24 drama series.
$125M looks like:
House of Cards
22 hours
of content over
two series
ABC
277 hours
of commissioned
Australian
content
50
Australian
programs
(including 24
drama series)
8 AUSTRALIAN BROADCASTING CORPORATION EFFICIENCY PAPER 2018
Trusted by Australians
No Australian media 83% of Australians
value their ABC
organisation is more
trusted, valued and of Australians trust the
distinctive than 82% information provided
by the ABC
the ABC
of Australians believe
89% the quality of ABC online
services are good
of Australians believe of Australians
81% that ABC Television
provides good quality
72% believe the quality
of programming on
programming ABC Radio is good
Charter Performance
78% of people regard the ABC as
distinctively Australian and
contributing to Australia’s
78% of people believe the
ABC reflects the cultural
diversity of the Australian
national identity community
76% of people consider the ABC
encourages and promotes
Australian performing arts
75% of people consider the
ABC achieves a good
balance between
such as music and drama programs of wide appeal
and specialised interest
82% of people consider the
ABC provides programs
of an educational nature
9 AUSTRALIAN BROADCASTING CORPORATION EFFICIENCY PAPER 2018ABC NEWS
Trust Survey
Survey question: For the following media institutions and information providers, please indicate
whether you tend to trust the information that they provide.
100
82%
80
73%
58% 59%
60 44% 56%
(%)
56%
40 37%
48% 50%
46%
20 30%
38%
18%
10% 9% 10% 7%
0
ABC Internet search Commercial Commercial Newspaper Facebook
engines like Google Radio Stations TV Stations Publishers
Trust a great deal Tend to trust
10 AUSTRALIAN BROADCASTING CORPORATION EFFICIENCY PAPER 2018Valued by Australians
71% of Australian adults watch, read or listen to
ABC content every week
We produce We produce
Television 12.3 million 8,860 hours 342 hours
Australians of first-run of first run local
watch ABC TV Australian content programming for
each week each year kids each year
Digital 54 million
7.6 million ABC programs are 31 million
unique Australians played on iview ABC kids’ programs
visit ABC online and our apps are played
each month each month each month
Australians
Radio 4.9 million downloaded
Australians in five more than
capital cities 200 million
listen to ABC Radio ABC podcasts
each week in 2017
The ABC News
News channel reaches 5 million 2.3 million
an average of Australians access Australians consume
ABC News content ABC News content
4.4 million online each month through Apple News
viewers each each month
week
11 AUSTRALIAN BROADCASTING CORPORATION EFFICIENCY PAPER 2018You can also read
