Corporate Plan AUSTRALIA 2018-19 - About the ABC
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AUSTRALIA
Corporate Plan
2018–19
1
Contents
1. Opening statement......................................................... 4
2. Purpose..................................................................................7
3. The environment............................................................ 10
Media sector.....................................................................................................11
Audience preferences......................................................................... 12
Technology........................................................................................................14
Regulation..........................................................................................................15
Funding.................................................................................................................16
What does this change mean?....................................................17
4. Strategy: Investing in audiences............................20
5. Operating plan: FY19–FY22.......................................22
Creating distinctive content
that matters for all Australians...............................................23
Providing an outstanding
audience experience........................................................................... 24
Delivering programs that reach
and engage with more people................................................. 24
Building a great place to work.................................................. 27
6. Measuring our progress.............................................28
7. Managing our risk..........................................................35
Glossary.....................................................................................39
2 AUSTRALIAN BROADCASTING CORPORATION CORPORATE PLAN 2018–19 3
1.
As the accountable authority for the Australian Broadcasting
Corporation, I present the 2018–19 Corporate Plan, prepared under
section 31B of the Australian Broadcasting Corporation Act 1983 (Cth)
(ABC Act) and section 35(1)(b) of the Public Governance, Performance
Opening
and Accountability Act 2013 (Cth) (PGPA) and associated rules.
This Corporate Plan is prepared for the 2018–19 reporting period (FY19),
statement
and covers the reporting periods FY19, FY20, FY21 and FY22.
Rapid changes in both technology and audience preferences have helped
shape the ABC’s plans to fulfil its Charter and regulatory requirements
over the coming four years.
As Australia’s independent national public broadcaster, our goal is to
be the source of Australian conversations, culture and stories and in
this way fulfil our purpose as defined in the ABC Act. Our strategy puts
audiences first, providing high quality, distinctive content and delivering
outstanding experiences for all Australians.
To that end, the ABC will continue to transform its technology
infrastructure and processes, supporting content-makers in providing
the best and most efficient public broadcasting services to its audiences.
In 2022, the ABC will be 90 years old. The plan outlined in the following
pages is designed to ensure that it remains as relevant for Australians
then, as it has been since it first went to air.
Justin Milne
Chair, Australian Broadcasting Corporation
Disclaimer
This plan contains various long-range plans, projections, high-level estimates and other forward-looking
information (Estimates). Those Estimates are based on the best considered professional assessment
of present economic and operating conditions, present Australian Government policy, and a number of
assumptions regarding future events and actions which, at the date of this document, are expected to take
place. The Estimates involve known and unknown risks, uncertainties and other factors beyond control
that may cause the ABC’s actual results, performance or achievements to be materially different from any
future results, performance or achievements expressed or implied by the Estimates. Other than as required
according to Reporting Obligations, the ABC is under no obligation to update the Estimates based on
circumstances, developments or events occurring after the publication date of this document.
4 AUSTRALIAN BROADCASTING CORPORATION CORPORATE PLAN 2018–19 5
The ABC is Australia’s largest public Digital services including ABC iview,
2.
Purpose
broadcaster. It operates independently Streaming, ABC NEWS and Current
under a Charter approved by Parliament Affairs online, ABC Open, abc.net.au
and is funded by the Federal Government and podcasts.
on behalf of the public.
The ABC is Australia’s largest The ABC employs around 4,000
creative organisation, collaborating people who operate from 56
and supporting the independent locations around Australia.
creative community.
The ABC operates 6 national The ABC projects Australia’s culture
TV channels: ABC, ABC Comedy, ABC ME, and identity overseas through
ABC KIDS, ABC NEWS and ABC HD. international services including
Radio Australia.
4 national radio networks, 8 capital The ABC is rated by audiences
city radio stations, 54 local radio stations as Australia’s most trusted and
and 7 digital radio channels. credible media organisation.
The ABC reaches more than 20 million Australians a month.
6 AUSTRALIAN BROADCASTING CORPORATION CORPORATE PLAN 2018–19 7
2. Purpose
71% of 7.6 million
The Australian Broadcasting Corporation (ABC) is Australia’s Australians Australians
independent public broadcaster and one of the country’s watch, read or use ABC digital
largest and most important cultural institutions. listen to the ABC services each
each week. month.
Our purpose is to fulfil our functions as defined The ABC is best known for the high quality,
by the Australian Broadcasting Corporation distinctive Australian content epitomised by
Act 1983 (Cth) (ABC Act). While the country has flagship programs, from Four Corners to Play
changed significantly since the ABC’s founding School and Conversations. But we also provide
in 1932, our purpose and the community’s need educational material used in classrooms
for our public broadcasting services, have across the country every day, platforms
largely remained the same. promoting Australia’s world-class arts and
92% of ABC
cultural sector, as well as Indigenous drama More than 80%
Today, the ABC Act, and the Charter in particular, funding is spent
and current affairs programs. And we play an of Australians
states that the ABC must provide innovative and important role initiating national conversations, in areas directly
comprehensive broadcasting and digital services consider the ABC
bringing communities together, and delivering linked to content
that inform, entertain and educate all Australians a trusted source
international stories for Australian audiences, creation and
as well as contribute to a sense of national while taking Australian stories to the world. of information.
identity. In doing so, we must also reflect the delivery.
diversity of interests of the Australian community In fulfilling our purpose to date, we have
through a range of distinctive programs of broad become Australia’s largest creative employer.
appeal and specialist interest. Today’s ABC has more than 800 journalists from
Broome to Beirut delivering the most trusted
The ABC’s services span the Australian continent, news service in Australia, 2000 content makers
transmitting to a potential 99.58 per cent of presenting Australian stories amid increasing
Australians across radio, television and online. foreign choice, and a further 1000 people
In a typical week, 71 per cent of Australian adults working to make the ABC’s content and services
engage with the ABC, with more than 12 million We have one
accessible to all Australians.
The ABC
Australians watching ABC television and nearly of the world’s
5 million listening to ABC radio. As Australians broadcasts from
largest dedicated
increasingly choose to consume content on 56 locations
rural reporting
digital platforms, our online services now attract around Australia.
more than 7 million Australians every month. teams.
These numbers are a reflection of the value
Australians continue to place on the ABC and
the trust they have in our content. Our research
shows the ABC remains Australia’s most trusted
media organisation across all age groups and
81 per cent of Australians believe the ABC
provides a valuable national service.
The ABC has
Australia’s We are the
largest southern
broadcast hemisphere’s
footprint and can largest creative
reach 99.58% of employer.
Australians.
8 AUSTRALIAN BROADCASTING CORPORATION CORPORATE PLAN 2018–19 9
3.
The media landscape is changing rapidly.
Over the past decade we have seen, and continue
to see, new entrants, increased digitisation and
the dissolution of geographic and distribution barriers.
The Media sector
New entrants and investment Industry consolidation
environment
The media environment is increasingly The new global players and the ongoing
global and 2017 was a pivotal year in shift in advertising dollars towards digital
this transformation. The US tech giants, platforms are placing significant competitive
or FAANGs – Facebook, Apple, Amazon, pressures on Australia’s commercial free-to-air
Netflix and Google – are now investing networks and other content suppliers. This has
significant sums in video, including contributed to some commercial operators
live broadcasting. withdrawing from unsustainable markets,
many of them in rural and regional Australia.
The scale of investment is significant and The 2018 report from the Senate Select
increasing: Netflix will spend US$8 billion Committee Inquiry into the Future of Public
on content in 2018, comparable to Disney Interest Journalism noted that, as commercial
at US$7.8 billion. Amazon’s content budget broadcasters increasingly withdraw from
is US$4.5 billion, and Apple and Facebook places that are no longer commercially viable,
both US$1 billion each. “...the ABC is often left as the last provider
of local current affairs, particularly for
The content budgets of the ABC and
many regional and rural communities.”
other public broadcasters are dwarfed
by these emerging media entities.
The emergence of these players with
new global distribution platforms
and unprecedented budgets for
commissioning and acquiring content
is creating challenges for the Australian
media industry. The standards of
production expected by audiences
have increased, the costs of producing
and acquiring content have increased,
and the expense associated with securing
the necessary broadcast and digital
rights is also increasing due to increased
competition for those rights across
multiple distribution platforms.
10 AUSTRALIAN BROADCASTING CORPORATION CORPORATE PLAN 2018–19 11
3. The environment
Audience preferences
Audiences are changing the way they consume Alongside shifts in audience preferences,
1987 2017
content. Australians increasingly access news the changed media environment has prompted
and entertainment via a variety of platforms, new audience expectations with regard
in effect fragmenting the media landscape. to access, quality and personalisation:
Audiences are migrating towards • Extended access:
digital platforms for a large proportion Audiences expect extended availability
of their media consumption: for content beyond just catch-up, with an
increasing tendency for binge viewing.
• Australians aged 18+ spend an average of
21.36 hours each month watching videos online • Personalisation:
via a desktop, laptop, smartphone or tablet. Tailoring of content to individual viewing
preferences is increasingly important.
• 17 per cent of radio audiences listen via
a mobile phone / tablet device each week. • State-of-the-art viewing experiences: TV
The increased investment from global players
• 37 per cent of Australians use digital services is increasing quality and choice, and setting And more...
as their primary source of news. new, significantly higher, benchmarks for
premium drama and entertainment.
• At least 82 per cent of Australians are now
sourcing some of their news on mobile In the last 30 years, the number of platforms and
platforms with 43 per cent saying online services operated by the ABC has grown sixfold. 2JJJ 105.7
SYNDEY
FM
news is their main source. We have added four new television channels,
seven new radio networks and a broad range
• There are now more Australian subscriptions
of new content outlets across digital platforms,
to video-on-demand services, than there are
pay tv subscriptions.
including iview, ABC Kids iview and podcasts. RADIO
Australians are increasingly seeking content
And more...
wherever they want, whenever they want. This is
evident in a marked trend towards on-demand
viewing in preference to scheduled content
delivery services, particularly among younger
PODCASTS
AUDIO
audiences. It is also evident in the shift towards 3RD PLATFORMS
media consumption on mobile devices. PARTY SOCIAL
PLATFORMS
PLATFORMS
No digital services
DIGITAL
And more...
6,092 EMPLOYEES 4,093
Full-time equivalent Employees Full-time equivalent Employees
12 AUSTRALIAN BROADCASTING CORPORATION CORPORATE PLAN 2018–19 13
3. The environment
Technology Regulation
New challenges Distribution channels In the first half of 2018, there are three bills before In addition, the ABC is working closely with
The rapid changes in audience expectations Technology innovation and the proliferation parliament seeking to amend the Australian the Government and other stakeholders
and the entrance of new global players are of platforms have also altered the dynamics Broadcasting Corporation Act 1983 (Cth): in relation to a number of inquiries relevant
posing significant technology challenges for of creating and distributing content. to the broadcasting and digital sectors:
• Australian Broadcasting Corporation
established media organisations, including Amendment (Rural and Regional Measures) • The ACCC Digital Platforms Inquiry:
the ABC. In addition to catering for the move In 2018, content needs to be delivered almost
instantaneously across digital platforms; it must Bill 2017: which is looking at the effect that digital
by audiences towards on-demand digital This Bill would amend the Australian search engines, social media platforms
platforms and streaming services, subsequently be available on both digital and
linear services; and it must be tailored to the Broadcasting Corporation Act 1983 to ensure and other digital content aggregation
these challenges include: regional communities are provided for in the platforms have on competition in media
needs of each of these distribution channels.
• The critical importance of leveraging functions of the Corporation, and through and advertising services markets.
data to deliver enhanced personal and representation on the ABC Board. The ACCC’s preliminary report is to be
connected audience experiences and submitted to the Treasurer by 3 December
• Australian Broadcasting Corporation
2000 2018
maintain engagement in an increasingly 2018, with a final report due by 3 June 2019.
(Fair and Balanced) Bill 2017:
competitive market. Seeking to expand the existing statutory duty • The Inquiry into the Competitive Neutrality
• The need for increased investment to transition • Broadcast • Broadcast of the ABC Board by including the requirement of the National Broadcasters:
towards cloud-based technology solutions for to be ‘fair’ and ‘balanced’ in relation to the the scope of which is to explore the
scalable, flexible services that enable media
• Digital gathering and presentation of news and practices of the ABC and SBS and advise
information by the ABC. the Government on whether they are
organisations to continue to meet audience – Streaming operating in a manner consistent with the
demands and remain relevant, while ensuring • National Broadcasters Legislation Amendment
quality of service and security are enhanced.
– Video general principles of competitive neutrality.
on demand (Enhanced Transparency) Bill 2017: This review will report in September 2018.
Seeking to require the ABC and SBS to report
– Social details of annual salaries and allowances of • The ABC and SBS Efficiency Study:
employees and amounts paid to ‘on-air talent’, In May 2018, the Australian Government
in excess of $200,000. announced that a review of ABC and
SBS efficiencies will be undertaken,
In this way, content makers no longer create with reporting to occur in the second
material for a single medium. They need to craft half of the year. This review follows
the same story in a range of ways across multiple the 12 internal and external reviews
platforms to meet the expectations of audiences. completed in the last 15 years. It is the
first government-commissioned review
The move towards cloud-based technology
since the Lewis efficiency review in 2014.
services provides an opportunity for media
organisations, such as the ABC, to improve their The ABC will continue to work with the
capacity to store content in different formats Government as required to ensure the best
and transition between them – simplifying media possible regulatory outcomes for the ABC to
production across multiple formats. continue to provide services for its audiences.
14 AUSTRALIAN BROADCASTING CORPORATION CORPORATE PLAN 2018–19 15
3. The environment
Budget What do changes in the
ABC budgeted expenditure environment mean?
The ABC’s annual budget of one billion by activity 2017/18 8%
dollars is a significant investment
9% Australian storytelling Digital transformation
made on behalf of all Australians. Making content
The emergence of the large US-based global The use of digital platforms is growing
Content delivery players makes ABC storytelling – the drama of rapidly, so we must invest in these platforms
Across platforms and genres, 92 per (transmission/distribution)
Australian neighbourhoods and Australian lives to remain relevant.
cent of that funding is spent on making 21%
Support for content makers 62% played out in Australian voices – more important
content, supporting content makers, (eg, production assistants)
However, the audience for traditional broadcast
than ever.
and distribution: in 2017/18, 62 per cent Finance, human resources, platforms remains large. To serve all Australians,
was spent directly on making content, legal and other non-content
The ABC will seek to invest even more in content the ABC needs to continue delivering traditional
administrative costs
21 per cent on its distribution, and 9 per that is distinctive, high quality and relevant to broadcasting services well into the future, at the
cent on support for content makers. Australian audiences. The ABC is committed to same time as developing new digital platforms.
serving every Australian on the device of their
choice, and to serving audiences overseas. • Broadcast television reaches 82.8 per cent
However, the ABC’s budget is declining as the demands on us are growing.
of Australians each week, who watch over
Since 1986/87, the ABC’s funding has declined in real terms by 28 per cent.
But this change means that the cost of fulfilling 2.5 hours a day.
After Australia’s population growth is factored in, our per capita funding
our Charter responsibilities is escalating as
has halved in real terms. • Broadcast radio reaches 95 per cent
never before.
of Australians each week, who listen
ABC operational revenue from government 1985/86 to 2017/18 (in 2017/18 dollar terms) to more than 2 hours a day.
As part of our Investing in Audiences strategy,
1,250
$1,201 the ABC will require funding for new investments
1,200
in technology to meet the expectations of
1,150
audiences as they migrate from broadcast
1,100
to digital services.
1,050
1,000
$ Millions
950
900 $865
850
800
Change is certain;
750
700
650
transformation is essential.
600
Years
The next section speaks to how we will transform.
This downward trend appears set to continue with an indexation pause announced
in the Federal Government’s 2018/19 Budget.
Against that background, in 2018/19 the ABC will complete triennial funding
negotiations with the Government. The new funding agreement will commence
with the 2019/20 Budget and will continue until June 2022. Over that time, we
will require additional funding to complete the Investing in Audiences strategy
(see next section for discussion of the Investing in Audiences strategy).
16 AUSTRALIAN BROADCASTING CORPORATION CORPORATE PLAN 2018–19 17
ABC’s
economic The ABC contributed
more than $700 million
impact
in wages and salaries
for ABC employees and
for those employed
indirectly as part
In FY2016/17: of the broader
ABC supply chain.
The ABC helped
support more than
6,000 full-time
equivalent jobs Of the 2,500 jobs indirectly
across the supported by the ABC’s
Australian economy. activities, more than
500 are in production
companies, more than 400
The ABC are in the broadcast sector,
contributed more and close to 300 are in the
For every 3 FTE jobs professional services.
than $1 billion to within the ABC, the
the Australian ABC helps to support
More than a third of the
economy. two additional jobs in
ABC’s total economic
the broader economy.
contribution went
towards supporting the
broader media production
landscape e.g. production
companies and suppliers.
Source: Deloitte Access Economics Analysis, 2018
18 AUSTRALIAN BROADCASTING CORPORATION CORPORATE PLAN 2018–19 194.
In fulfilling our purpose, the ABC’s strategic goal is to be the leading
independent source of Australian conversations, culture and stories.
Our Investing in Audiences strategy, launched in March 2017,
is intended to achieve this.
Strategy: The Investing in Audiences strategy encompasses
a series of projects that together will make the
ABC better for our audiences as well as for the
people we employ. The strategy places a twin-focus
for all Australians, the recent restructuring
away from platform-specific teams towards
working groups focussed on subject areas, as
well as the new $15.4 million annual investment
Investing
on making it possible for the ABC to be the best in regional and rural coverage. These are already
public service broadcaster for all Australians – transforming the way we deliver content to
informing, educating and entertaining – audiences and the way we work.
and doing it with the greatest efficiency.
Over the coming four years, the strategy requires
Among other initiatives, Investing in Audiences
in audiences
additional long-term investment to transform
encompasses the technology changes we are the ABC’s digital audience-facing products, and
making to secure the ABC’s ongoing relevance content management and production systems.
The four priorities underlying Investing in Audiences will shape
the ABC’s operations between FY19 and FY22. These priorities are
the pillars of the strategy and will help to provide measures of our success:
Pillar 1: Creating distinctive content that matters for all Australians
We are committed to create distinctive content that reflects our Charter obligations, to delivering
the services audiences expect from us, and to finding new and innovative ways to tell stories.
Pillar 2: Providing an outstanding audience experience
Exceeding the expectations of our audience is a priority. By understanding where they
live and how they use our services we can make it easier for audiences to discover
more of what the ABC offers across TV, radio, websites, podcasts, apps and social media.
Pillar 3: Delivering programs that reach and engage with more people
Audiences have access to more information and entertainment than ever before. The ABC
will use innovative ways to connect with all Australians, including both new and loyal audiences.
Pillar 4: Building a great place to work
Our people are our greatest asset. By developing the best creative environment for our teams,
our audiences will receive more of the high-quality programming they expect.
20 AUSTRALIAN BROADCASTING CORPORATION CORPORATE PLAN 2018–19 215.
The ABC’s operating plan is determined according to the four
strategic priorities outlined in the Investing in Audiences strategy.
The operating plan is described here and the metrics to indicate
our progress are detailed in the following section.
Operating The ABC will report on its performance
in relation to our purpose and strategic
priorities between FY19 and FY22 in our
Through the work of Australia’s largest team
of dedicated foreign correspondents and
Radio Australia, we will also help Australians
plan:
annual performance statements which to understand our place in the world and
will be incorporated in our annual reports. help the world to understand Australia.
The vast majority of this content will continue
Pillar 1: to be delivered on both scheduled broadcast
Creating distinctive content and digital platforms.
FY19–FY22
that matters for all Australians • In a constrained funding environment,
it is vital the ABC continues to work to find
Creating extraordinary, relevant and valued
further savings for investment in content.
content is critical to the success of the ABC
The ABC constantly seeks efficiencies in order
and underpins all the organisation’s activities.
to redirect funding away from back office
Our content is intended to reflect Australian
expenses and towards content. Since 2014,
life in all its diversity and contribute to our
this has allowed $70 million to be reallocated
national identity.
towards making high quality programs for
To help achieve this, in February 2018, the Australian audiences. In coming years, there
ABC implemented a new internal structure will be ongoing work to review and reduce
for its content-making teams to better reflect non-content costs, as well as consider the
audience preferences. The new teams were prioritisation of spending within content areas.
arranged around subject matter rather than
• ABC News provides accurate, impartial
media platforms in recognition that Australians
and independent news and information
increasingly expect all content to be available
that Australians can trust and depend
across multiple platforms.
upon in an era of increasingly contested
There are a number of other projects, both new facts. To enhance our reach and relevance,
and ongoing, that will support better content ABC News will continue to move towards
creation at the ABC over the coming four years. an integrated newsroom model similar to
that used by leading international media
• Australian storytelling is in the ABC’s organisations such as The New York Times,
DNA and is central to our vision, which is the Canadian Broadcasting Corporation
to be the independent source of national and the UK’s Daily Telegraph.
conversations, culture and stories. The Alongside this, improved production
production, acquisition and delivery of high infrastructure will be put in place to enable
quality, distinctive Australian content covering ABC News content to be shared across
a broad range of genres, including children’s, the organisation more often, stored more
drama, news, documentaries and music, efficiently, and be transferred between linear
will continue to be core to our operations. and broadcast platforms more easily.
In keeping with our Charter requirements,
we will also produce high quality specialist
content that inspires, educates and informs
including in the education, Indigenous,
arts and science genres.
22 AUSTRALIAN BROADCASTING CORPORATION CORPORATE PLAN 2018–19 235. Operating Plan: FY19–FY22
The measures of the ABC’s success in continuing • To better cater for audience needs,
to create content that matters for all Australians the ABC is working to further improve
include metrics related to how distinctive its digital rights management. This will
Australians think ABC content is, the editorial require additional investment to secure
quality of the content and the hours produced more extensive digital rights for both digital
across the different genres. and international markets. It will ensure
Australian audiences can continue to access
Pillar 2: the best Australian content through ABC
digital and scheduled broadcast platforms.
Providing an outstanding
audience experience The value Australians place on the ABC will
provide a measure of our progress towards
The ABC is working towards creating a whole- providing an outstanding experience for all
of-ABC experience that’s discoverable, personal our audience members.
and accessible. Each member of our audience
is unique, so we want each one of them to shape
an ABC experience that suits their individual
Pillar 3:
interests and needs. We will create a more Delivering programs that reach
consistent experience across our platforms and engage with more people
and improve the accessibility of ABC content.
Audiences have access to more information
Dependent on funding, over the coming four and entertainment than ever before. The ABC
years the organisation plans to move away will use innovative ways to connect with all
from legacy technology towards fit-for-purpose Australians, including both loyal audiences and
solutions that will ensure the delivery of the new audiences, to remain relevant into the future.
Investing in Audiences priorities and help
the ABC transition to be fit for the future. More people are transitioning to digital
media over TV and radio, so we will reach
This, in turn, will make it easier for audiences and delight more Australians with distinctive
to experience the full range of what the ABC digital products.
offers across TV, radio, podcasts, apps,
the web and emerging platforms. Although there is a shift to digital media,
significant audiences are still using TV and
A number of new and existing initiatives radio services. The ABC will continue to invest in
are working towards achieving this: distinctive content to maximise the performance
of these platforms and use their significant reach
• With significant technology investment, to help audiences discover more of our digital
the ABC will create audience interfaces content and other services.
that are able to constantly improve and
evolve based on data and innovation. Over the coming four years, the ABC will continue
to operate legacy technology at the same time
• We will deliver a seamless video service that as commencing the transition to new digital and
offers effortless transitions for audience cloud-based technology services.
members across all devices, from phone,
to tablets to televisions. This means an ABC
viewer will be able to begin watching Mystery
Road on the bus on the way home from work,
continue on their television after dinner and
finish it on their tablet in bed. It will provide
a high quality, dependable viewing experience.
24 AUSTRALIAN BROADCASTING CORPORATION CORPORATE PLAN 2018–19 255. Operating Plan: FY19–FY22
• In February 2018, the ABC held its first innovative projects as the size of the GIG
Annual Public Meeting to share its plans fund increases. More recently, the Content
and outcomes. In doing so, we sought to Ideas Lab was created to oversee GIG and
engage as many Australians as possible drives the creation of new content to meet
with the organisation’s operating processes. changing audience expectations. It will
We will maintain our commitment to this continue to pursue this over the coming
accountability and transparency over the four years.
period of this corporate plan and beyond.
• The savings also enabled the Connecting
• The ABC will continue to conduct marketing Communities Initiative, which has boosted
online and elsewhere to inform all Australians spending in regional bureaus by $15.4 million
about the content and services that are each year and created 80 new positions
available to them on ABC platforms. around Australia.
How successfully we achieve this reach • As part of the ABC’s digital transformation
and engagement will be evident in the journey, the organisation will put in place
proportion of Australians using ABC services processes and infrastructure that make
and the trust Australians have in our content. it easier for people producing content
The audience numbers for the individual to collaborate and communicate locally,
platforms – radio, television and digital – nationally and internationally. This will
will also indicate the progress in reaching entail some changes to content storage
more people, as will the performance of the and production which, in turn, will allow
ABC’s extensive transmission network. the technology to be updated easily and
at less expense.
Pillar 4: • The ABC is making a material investment
Building a great place to work ($10m) in leadership and training across the
organisation to increase the digital skills of
The achievements of the people working within the workforce so that we are able to provide
the ABC makes a difference in the lives of all outstanding content and services for all
Australians. To ensure that we continue to attract Australians across all platforms.
the best content makers and those who will
support them, the ABC has recognised the need The engagement of the people who work
to ensure a creative environment that makes the at the ABC will provide a measure of the
ABC a great place to work. progress we are making towards building
a great place to work.
It means continued accountability, as well as
the ongoing simplification of business processes,
and the reduction in management layers.
Linked to this, in 2018 other initiatives include:
• The ABC is fostering a creative community
across the organisation to generate distinctive
quality content. This commenced in 2017
with the launch of the Great Ideas Grant (GIG)
which was funded from internal savings and
in its first year provided $10 million to help
realise a range of projects put forward
by ABC employees. Successful projects
included the digital first natural history
project #ABCWildOz and the new ABC Kids
Listen app. The goal is to support further
26 AUSTRALIAN BROADCASTING CORPORATION CORPORATE PLAN 2018–19 276. Performance information
The ABC measures its progress in implementing its strategy
Measuring
and fulfilling its purpose against the metrics below.
Pillar 1: Creating distinctive content that matters for all Australians
our Australian content
The delivery of distinctive Australian content is central to the ABC’s vision to be the source of Australian stories,
conversations and culture. In achieving this, we contribute to the Australian identity and reflect our cultural diversity.
progress
Tier Measure Source 2018–19 2019–20 2020–21 2021–22 Why this is important
1 Australian Analysis 931 hours* Maintain Maintain Maintain The ABC is the
content of hours prior year prior year prior year source of Australian
hours broadcast *FYE conversations, culture
(produced) and available and stories. The Charter
on iview requires us to reflect
the national identity
and inform and entertain.
2 Australian Analysis At least 30% At least 30% At least 30% At least 30% The ABC allocates
children’s of hours resources to maximise
TV content broadcast quality children’s output
from Sydney across the network. This
transmitter is achieved in part via a
financing leverage ratio
of 1:3 (from third party
investment) making
the 30% KPI the product
of a highly efficient
application of resources.
2 Australian Analysis of Network target: Network target: Network target: Network target: Our Australian music
music on hours based RN 25% RN 25% RN 25% RN 25% targets are important
radio on scheduled Local Radio 30% Local Radio 35% Local Radio 35% Local Radio 35% to make sure we
programming Classic FM 35% Classic FM 40% Classic FM 40% Classic FM 40%
are adhering to our
charter obligations
triple j 40% triple j 40% triple j 40% triple j 40%
to support Australian
Double J 35% Double J 35% Double J 35% Double J 35%
musical performance
ABC Jazz 25% ABC Jazz 25% ABC Jazz 25% ABC Jazz 25%
and the arts. The high
ABC Country 30% ABC Country 35% ABC Country 35% ABC Country 35% benchmarks ensure
Unearthed 100% Unearthed 100% Unearthed 100% Unearthed 100% Australian musicians
are heard by Australian
audiences, and that
artists can develop
viable careers to
continue telling
Australian stories and
enriching Australian
cultural life.
2 Digital Google 370,000 400,000 440,000 500,000 As video-on-demand
first run Analytics average average average average becomes increasingly
Australian 360 monthly plays monthly plays monthly plays monthly plays important, exclusive
content on Digital First content
iview becomes an important
trigger for use. We will
place more emphasis
on Digital First Content.
2 Downloads Podsights 1.6 million 1.9 million 2.4 million 2.7 million Podcast downloads
of digital average unique average unique average unique average unique are growing at 6%
first run monthly monthly monthly monthly annually. As more
Australian downloads downloads downloads downloads emphasis is placed
content on on producing unique
podcast podcast content,
we expect continued
strong growth.
28 AUSTRALIAN BROADCASTING CORPORATION CORPORATE PLAN 2018–19 296. Measuring our progress
Pillar 1: Creating distinctive content that matters for all Australians Pillar 1: Creating distinctive content that matters for all Australians
Quality Trust
Audience recognition of the high quality and distinctiveness of ABC programs The trust with which Australians regard the ABC indicates the standard of its content
indicates that the organisation is making content that matters to Australians. at a time of declining trust in institutions and in media organisations in particular.
Tier Measure Source 2018–19 2019–20 2020–21 2021–22 Why this is important Tier Measure Source 2018–19 2019–20 2020–21 2021–22 Why this is important
1 Distinctiveness ABC Quality & 80% 80% 80% 80% Our 2017–18 result 1 Trusted ABC 81% 81% 81% 81% In 2017–18, we achieved a trusted score
– Unique Distinctiveness was 79%. We have source Corporate which was significantly stronger than
market Surveys set benchmarks Tracking other media providers.
position across individual Study We should aim to maintain trust at
pieces of content to above 80% through the plan period.
achieve an 80% score The reason for this is that trust is a
for distinctiveness. constantly moving target.
Therefore, we should
strive to achieve We ask people to compare their level
this as our overall of trust in information provided with
“Distinctiveness Score” other information sources, so looking
across all the content for improvements will be relative to
that we produce, competition.
broadcast and distribute. Trust is also something that can only
be impacted by continuing to do a good
job. It is a measure that is hard to build
2 Editorial Reviews Reviews Reviews Reviews Reviews Our commitment to
up, and can be very easy to drive down
quality commissioned undertaken undertaken undertaken undertaken high quality content
(see Facebook).
or conducted and reports and reports and reports and reports that meets our Charter
by the ABC considered considered considered considered obligations and editorial As the most trusted news source,
standards is an essential we have the highest score in the market
part of our obligations on this measure. We should be looking
to the Australian public. to maintain this lead.
The ABC has a detailed
set of editorial
policies, standards and
guidelines, and regularly
and systematically trains
content-makers in Pillar 2: Providing an outstanding audience experience
this area.
This is underpinned by
the conduct of regular,
proactive reviews of ABC Experience & value
content to ensure these
standards are met and Audience perceptions of their experience engaging with the ABC and the value they place on
to provide advice on the public broadcaster indicate how well the ABC is delivering its services and fulfilling its purpose.
ways to improve.
Tier Measure Source 2018–19 2019–20 2020–21 2021–22 Why this is important
2 Complaints Data from Statutory Statutory Statutory Statutory As well as conducting
management Audience & requirements requirements requirements requirements its own editorial
Consumer met met met met reviews, the ABC has 1 ABC ABC 40% 45% 50% 55% This refers to the percentage of
Affairs in place an effective experience Corporate Australian adults accessing more than
independent complaints Tracking one ABC product or service over a weekly
handling system Study timeframe. There is a direct correlation
which is transparent between the number of touchpoints that
and responsive to any an Australian has with the ABC, with
concerns raised by their perceptions of value of the ABC.
audiences. The more touchpoints that the audience
This is an essential tool member has, the greater the value
to maintain and build the that they feel the ABC provides to the
trust that is necessary Australian community, so if we can grow
for the ABC to fulfil its their touchpoints, we should be able to
role as an independent, influence their perceptions of ABC value.
impartial and valued When new cross-pollination strategies
public broadcaster. are implemented, we should expect
to grow this result.
1 Overall ABC 84% 85% 86% 86% The perception of ABC value has been
value Corporate one of the cornerstone KPI’s over the
Tracking past 20 years. We have seen a decline
Study in value perceptions from 86% in FY16
to 82% in FY18.
We should strive to regain perceptions
of value to 86% by FY21.
30 AUSTRALIAN BROADCASTING CORPORATION CORPORATE PLAN 2018–19 316. Measuring our progress Pillar 3: Delivering programs that reach and engage with more people
Access
Measuring access to ABC platforms provides a quantitative assessment of the ABC’s ability to transmit to Australian
audiences – via linear or digital services – in keeping with its purpose to provide a comprehensive public broadcasting service.
Pillar 3: Delivering programs that reach and engage with more people
Tier Measure Source 2018–19 2019–20 2020–21 2021–22 Why this is important
3 Access to At least 99% At least 99% At least 99% At least 99% Terrestrial and satellite delivered TV
Reach analog radio and radio services are still the main
Reach measures the percentage of Australians who have used ABC services in a given timeframe. way Australian audiences are able
to access ABC content and these will
This indicates the effectiveness and engagement with ABC programming. 3 Access to Broadcast 100% 100% 100% 100% be maintained over the reporting
digital radio Australia period – changes are likely to occur
data as population shifts occur over time.
Tier Measure Source 2018–19 2019–20 2020–21 2021–22 Why this is important Australian
3 Access Bureau of 100% 100% 100% 100% As the ABC augments its terrestrial
to digital Statistics and satellite services with other
1 Digital Nielsen 100 million 110 million 120 million 130 million Australians had 88 million television digital and online services over time,
Engagement Online – digital interactions with the data
the measures used for access to ABC
number ABC in 2017. We will need to content will be revisited to provide
of online grow our digital engagement a consistent and integrated set of
sessions per throughout the course of the audience access measures.
month plan in order to grow overall
reach in light of declines
in reach on traditional 3 Audience Audience & Availability Availability Availability Availability Helping our audiences to access
broadcast platforms. contacts – Consumer of reception of reception of reception of reception our content is vitally important
transmission Affairs advice line advice line advice line advice line to the ABC. The ABC will continue
issues data service service service service to make information available
1 Audience – ABC 72% 73% 74% 75% Reaching all Australians is the to its audience on how to obtain
Reaching all Corporate key strategic indicator of ABC access to the ABC’s transmissions.
Australians Tracking success. In 2017 we reached
– Net weekly Study 71% of Australians per week,
reach an increase of 2% on 2016
performance. As we strive to
be relevant to all Australians,
we intend to increase our Pillar 3: Delivering programs that reach and engage with more people
Net Weekly Reach.
Availability
2 Digital reach ABC 28% 31% 33% 36% As Australians’ media
(weekly) Corporate consumption shifts from Transmission of the ABC’s radio and television content is provided by a third party and managed by the ABC
Tracking traditional broadcast via Transmission Service Agreements. The effective management of these agreements is fundamental to ensuring
Study platforms to digital, we need
to ensure that our digital the ABC is able to achieve its purpose by reaching and engaging with as many Australians as possible.
footprint grows to ensure
that we remain relevant.
Tier Measure Source 2018–19 2019–20 2020–21 2021–22 Why this is important
2 Radio reach GFK Radio 36.5% 36.5% 36.5% 36.5% While time spent listened 3 Transmission Broadcast At least At least At least At least The ABC will continue to actively monitor the
(weekly) Ratings in radio has declined, this performance Australia 99% 99% 99% 99% performance of its transmission contracts to
decline has not been mirrored data for all for all for all for all maximise the availability of the services provided.
in weekly reach. Measurement services services services services
also includes digital listening As the ABC augments its terrestrial and satellite
(streaming and apps), so the services with other digital and online services
strategy of driving digital over time, the measures used for the availability
radio behaviours (ABC Listen/ 3 Operation of Broadcast 100% 100% 100% 100% of ABC content for audiences will be revisited
Websites) is counted in transmission Australia to provide a consistent and integrated set
measurement. facilities data of audience availability measures.
2 Television OzTAM 48% 46% 44% 43% Declines in this measure
reach are expected, as weekly
(weekly) TV audiences generally
decline over time.
Pillar 4: Building a great place to work
2 International Website GA 14m Average 14m Average 14m Average 14m Average Enabling Australian
monthly 360 Monthly Monthly Monthly Monthly citizens living or travelling
engagement Website Website Website Website outside Australia to obtain Culture
Apps/ Flurry Sessions Sessions Sessions Sessions information about Australian
across across across across affairs and Australian The progress towards building a great place to work and ensuring a creative environment can be gauged by the
Analytics
key ABC key ABC key ABC key ABC attitudes on world affairs, engagement of the people working within the public broadcaster. As Australia’s largest creative employer, improvements
websites websites and websites and websites and and encouraging in this measure indicate the ABC is becoming a more creative environment which in turn will enable even better content.
and Apps Apps from Apps from Apps from awareness of Australia
international international international and an international
audiences audiences audiences understanding of Australian Tier Measure Source 2018–19 2019–20 2020–21 2021–22 Why this is important
attitudes on world affairs
are key components of the
ABC Charter. 1 Employee AON Hewitt Above Top Top Top Employee engagement surveys provide
Engagement benchmark median quartile quartile quartile detailed data and insights for leaders and
or similar for for for for managers to use to improve the workplace.
Australian Australian Australian Australian Organisation responsiveness to employee
employers employers employers employers feedback leads to higher retention rates, lower
absenteeism, improved productivity, higher
service levels and better employee morale.
32 AUSTRALIAN BROADCASTING CORPORATION CORPORATE PLAN 2018–19 336. Measuring our progress
7.
Financial information
According to the Portfolio Budgets Statements 2018-19, the ABC is appropriated funds to
undertake two principal activities. These activities and the forward estimates are set out below:
Managing
1. Providing Australian and international audiences
with radio, television and digital media services
2019–20 2020–21 2021–22
2018–19
our risk
Resources Forward Forward Forward
Budget
estimates estimates estimates
Program 1.1
ABC General Operational Activities 921,934 921,514 921,491 928,731
Expenditure ($‘000)
2. Managing the broadcast and transmission
of ABC radio and television services within Australia
2019–20 2020–21 2021–22
2018–19
Resources Forward Forward Forward
Budget
estimates estimates estimates
Program 1.2
ABC Transmission and Distribution Services 180,848 183,699 186,776 190,272
Expenditure ($‘000)
A summary of financial information for the 2018–19 budget
and the forward estimates for the ABC is set out below:
2019–20 2020–21 2021–22
2018–19
Forward Forward Forward
Forward estimates Budget
estimates estimates estimates
$’000
$’000 $’000 $’000
Revenue
ABC Government Appropriations
Operational Appropriations 1,045,911 1,047,963 1,050,990 1,056,011
Total Appropriations 1,045,911 1,047,963 1,050,990 1,056,011
Own Source Revenue 71,838 71,979 72,123 72,008
Total Revenue 1,117,749 1,119,942 1,123,113 1,128,019
Operational Expenditure 1,102,782 1,105,213 1,108,267 1,119,003
Capital Expenditure 65,976 65,612 65,241 82,855
Borrowings 30,995 10,593 191 -
Source: 2018–19 Portfolio Budget Statements.
Note: the inclusion of this table satisfies the requirement of s.31B(1)(b) of the ABC Act in relation to forecasts of revenue and expenditure.
34 AUSTRALIAN BROADCASTING CORPORATION CORPORATE PLAN 2018–19 357. Managing our risk
How well the ABC manages risk is central to its governance. Our significant risks
It is a key pillar upon which the ABC’s good reputation is founded, We actively manage our key risk as follows:
and forms the basis of the trust our stakeholders place in us.
Key Risk How we manage the risk
Loss of Audience
The ABC’s Board of Directors and management The second line of defence is the management Our ability to reach and engage Australian audiences is The ABC works to provide distinctive Australian content that differs
central to our purpose, as outlined in Chapter 2. It means the from what is offered by both domestic and international media
oversee and continue to be committed to and ongoing refinement of a robust risk loss of audience is an ever-present risk, as it is for all media. operators. We innovate to deliver the programming our audiences
developing and refining a fit-for-purpose framework and the development of efficient The emergence of global platforms and a fragmenting media want on the platforms where our audiences want to consume it.
market, makes our ongoing ability to reach those audiences a And, where necessary, we promote that content in the most efficient
risk management framework that will both and effective internal controls by central heightened risk at this time. and effective way.
protect and enhance value through the timely support functions and an oversight
and accurate identification, assessment and management committee. Reduced Funding
management of all risks. The ABC’s annual budget of one billion dollars is a significant The ABC has had a long-standing internal efficiency focus that
The third line of defence is the independent investment made by the government on behalf of all Australians, has ensured that we are using the funding provided in the best
as noted in Chapter 3. possible way.
assurance by the ABC’s internal audit team
Risk management framework (Group Audit) of the existence, efficiency
The ABC’s capacity to generate its own revenue is limited by
its Charter.
More broadly the ABC continues to work with stakeholders to
demonstrate the societal value that the ABC brings to Australia.
and effectiveness of internal controls relating In the event that the government funding is reduced or withheld
The ABC faces a variety of risks – both threats for an extended period of time, there is a risk that the ABC will
to key risks.
and opportunities – that may have an impact on be unable to fulfil its Charter requirements.
our performance, reputation and, more broadly, The appropriateness and effectiveness of the Reputational damage
our social licence to operate. risk management framework is overseen by the The ABC remains Australia’s most trusted media organisation The ABC maintains Australia’s highest editorial standards as a
ABC Board and the Risk & Audit Committee. across all age groups with 81 per cent of Australians believing central measure in ensuring the ongoing trust of our audiences.
These risks manifest themselves as a result the ABC provides a valuable national service. We work to produce content that is of consistently high quality
of the strategic objectives that we seek The ABC risk function is responsible for Loss of trust is a key risk for the ABC. across all our genres and platforms.
Managing reputational opportunities and risks is critical Key to maintaining the trust and regard of our audiences is the ABC’s
to achieve and from the external societal, the continued refinement of the ABC risk to our ongoing relevance. ongoing independence from government or commercial influence.
regulatory, political and market environment management framework. This includes
in which the ABC operates. providing counsel to the Board and management
Harm to our People and Infrastructure
on how to identify, assess and manage risk.
The ABC’s risk management framework The ABC’s people and its infrastructure enable it to fulfil its The risks to our people and infrastructure are managed by not
purpose. Any risk to these is a key risk for the organisation unnecessarily putting our people or assets in harm’s way and having
is designed to address this. As the ABC continues to evolve, the risk mechanisms to identify, monitor and manage the risks when we have
management framework will be enhanced. decided that it is necessary to take them.
The framework has, as its foundation,
the risk policy which aspires to embed During the past year we have appointed a Head Cyber Breaches
a culture of risk awareness in all decisions. The ABC is similar to many organisations in that it protects and We have in place and regularly test our broadcast, transmission
of Risk and further embedded risk considerations needs to continue to protect its cyber assets from unauthorised and business continuity processes to ensure that we can be relied
in the annual business planning, strategy and and malicious access. upon by our audiences at all times.
The aim of the risk management framework
budgetary cycle.
is not necessarily to eliminate a risk but rather
to manage the risk to an approved level to Failure to transform
generate an outcome that enhances the ABC’s Risk Management Framework In order to continue reaching and engaging our audiences as The ABC has found internal efficiencies to enable a small start on the
they rapidly migrate to digital media, it is vital that the ABC transformation that is needed. We are working with stakeholders to
strategic direction of the ABC. continues to undergo significant digital transformation. explain the necessity of further investment to ensure the ABC’s future
The risk of not continuing the digital transformation, would as Australia’s national public broadcaster.
be a loss of audience as well as a more expensive operating
The ABC adopts what is commonly referred environment in the longer term.
ABC Board
to as the ‘three lines of defence’ model for
the management and assessment of risk.
Risk & Audit Committee
The first line of defence is that all ABC employees 3rd line of defence
own the responsibility for identifying and Group Audit
managing risks within Board-approved limits 2nd line of defence
of authority and expenditure. Risk management
1st line of defence
Managerial responsibility
Risk in the business
Embed a culture of risk awareness
in all decisions
36 AUSTRALIAN BROADCASTING CORPORATION CORPORATE PLAN 2018–19 37You can also read
