Corporate Plan 2021-22 - Transparency Portal

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Corporate Plan 2021-22 - Transparency Portal
Corporate Plan
2021-22
Corporate Plan 2021-22 - Transparency Portal
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
Corporate Plan 2021-22 - Transparency Portal
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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