Abc corporate plan 2017-18 - About the ABC

 
 
A B C C O R P O R AT E P L A N 2 0 1 7 – 1 8


  INTRODUCTION ............................................................................................................................. 2
  PURPOSE ....................................................................................................................................... 3
  BOARD OVERSIGHT ..................................................................................................................... 5
  ENVIRONMENT .............................................................................................................................. 6
      EXTERNAL MEDIA ENVIRONMENT ................................................................................................... 6
      AUDIENCE TRENDS ....................................................................................................................... 6
      AUSTRALIAN CONTENT .................................................................................................................. 7
      INTERNATIONAL BROADCASTING .................................................................................................... 8
      BROADCASTING TECHNOLOGIES .................................................................................................... 8
      FINANCIAL SITUATION.................................................................................................................... 9
      FORWARD ESTIMATES ................................................................................................................... 9
      GOVERNMENT CONTEXT ............................................................................................................. 11
  PERFORMANCE .......................................................................................................................... 12
      ACTIVITY 1—PROVISION OF RADIO, TELEVISION AND DIGITAL MEDIA SERVICES ............................... 12
      ACTIVITY 2—BROADCAST AND TRANSMISSION OF RADIO AND TELEVISION SERVICES ...................... 15
  CAPABILITY ................................................................................................................................. 17
      INVESTING IN AUDIENCES ............................................................................................................ 17
  RISK OVERSIGHT AND MANAGEMENT ................................................................................... 19
      RISK MANAGEMENT .................................................................................................................... 19
      INTERNAL AUDIT ......................................................................................................................... 19
      FRAUD CONTROL........................................................................................................................ 20
ABC Corporate Plan 2017–18



Introduction
As Australia’s primary national broadcaster, the ABC provides broadcast and digital media services that
span diverse social, cultural, and geographical audiences throughout Australia. By telling the stories of
the nation, the Corporation enables Australians to better understand their society, connect communities,
advance the national conversation, and contribute to a sense of national identity.

The ABC provides audiences with independent news and information services of the highest standard,
fosters the performing arts and reflects the nation’s cultural diversity. It delivers international media
services beyond Australia’s shores, offering Australian perspectives to the people of Asia and the Pacific,
and connecting with Australians living and working overseas.

Ultimately the legislation that guides the ABC is about serving audiences and the wider community with
the greatest efficiency. At a time of unprecedented change in the domestic and global media sectors, the
ABC must adapt to meet challenges posed by new competitors, increasing audience demands and
declining reach across traditional broadcasting platforms. The ABC seeks to be agile and innovative,
adapting to meet the changing needs and expectations of Australian and international audiences whilst
meeting its legislative requirements.

The ABC Corporate Plan 2017–18 sets out the ways in which the Corporation will meet its purpose and
fulfil its vision over the four-year period from 2017–18 to 2020–2021.

The Plan has been prepared in accordance with s.35(1) of the Public Governance, Performance and
Accountability Act 2013 (PGPA Act). It fulfils the requirements of the Public Governance, Performance
and Accountability Rule 2014 and s.31B of the Australian Broadcasting Corporation Act 1983 (ABC Act).




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ABC Corporate Plan 2017–18



Purpose
The ABC’s purpose is to fulfil its functions as set out in the ABC Act, particularly the ABC Charter. This
can be summarised by the Corporation’s unique vision statement:

To be the independent source of Australian conversations, culture and stories.

To meet the requirements as outlined by the ABC Charter the ABC has developed four strategic priorities
and vision statements, and aligned these with the performance metrics reported in this document.

 Strategic priority                 Vision                              Metrics that reflect

 To create extraordinary content    We will foster a creative           • Perception metrics
                                    community to create distinctive     • Quality metrics
                                    and quality content: * News *       • Australian content measures
                                    Entertainment * Specialist
                                    content


 To deliver an outstanding          We will create a whole of ABC       • Perception metrics
 audience experience                approach that is discoverable,      • Reach measures
                                    personal and freely accessible.     • Access and Availability
                                                                          measures

 To reach with more Australians     We will use smart, integrated       • Reach Measures
                                    thinking to get the right content   • Access and Availability
                                    on the right platforms for the        measures
                                    right audiences.                    • Australian content
                                                                          measures

 Build a great place to work        We will hold each other to          • These will be monitored and
                                    account by simplifying                reported internally only
                                    processes, eliminate over
                                    management, and commit to
                                    the ABC ways of behaving.



ABC Charter

The ABC’s Charter is set out in s.6 of the ABC Act as follows:

      (1)    The functions of the Corporation are:

             (a)   to provide within Australia innovative and comprehensive broadcasting services of a
                   high standard as part of the Australian broadcasting system consisting of national,
                   commercial and community sectors and, without limiting the generality of the
                   foregoing, to provide:

                   (i)    broadcasting programs that contribute to a sense of national identity and inform
                          and entertain, and reflect the cultural diversity of, the Australian community;
                          and


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ABC Corporate Plan 2017–18


                 (ii)    broadcasting programs of an educational nature;

          (b)    to transmit to countries outside Australia broadcasting programs of news, current
                 affairs, entertainment and cultural enrichment that will:

                 (i)     encourage awareness of Australia and an international understanding of
                         Australian attitudes on world affairs; and

                 (ii)    enable Australian citizens living or travelling outside Australia to obtain
                         information about Australian affairs and Australian attitudes on world affairs;
                         and

          (ba)   to provide digital media services; and

          (c)    to encourage and promote the musical, dramatic and other performing arts in
                 Australia.

    (2)   In the provision by the Corporation of its broadcasting services within Australia:

          (a)    the Corporation shall take account of:

                 (i)     the broadcasting services provided by the commercial and community sectors
                         of the Australian broadcasting system;

                 (ii)    the standards from time to time determined by the ACMA in respect of
                         broadcasting services;

                 (iii)   the responsibility of the Corporation as the provider of an independent national
                         broadcasting service to provide a balance between broadcasting programs of
                         wide appeal and specialized broadcasting programs;

                 (iv)    the multicultural character of the Australian community; and

                 (v)     in connection with the provision of broadcasting programs of an educational
                         nature—the responsibilities of the States in relation to education; and

          (b)    the Corporation shall take all such measures, being measures consistent with the
                 obligations of the Corporation under paragraph (a), as, in the opinion of the Board,
                 will be conducive to the full development by the Corporation of suitable broadcasting
                 programs.

    (3)   The functions of the Corporation under subsection (1) and the duties imposed on the
          Corporation under subsection (2) constitute the Charter of the Corporation.

    (4)   Nothing in this section shall be taken to impose on the Corporation a duty that is enforceable
          by proceedings in a court.




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ABC Corporate Plan 2017–18



Board Oversight
In undertaking its activities, the ABC Board will:

         Ensure that the functions of the Corporation are performed efficiently and with the maximum
          benefit to the people of Australia.

         Maintain the ABC’s independence and integrity.

         Ensure that the gathering and presentation of news and information is accurate and impartial
          according to the recognised standards of objective journalism.

         Ensure that the ABC does not contravene, or fail to comply with its statutory obligations.

         Develop codes of practice relating to programming matters, and notify those codes to the
          ACMA.

The Board discharges its duties through its regular schedule of meetings, where it has the opportunity to
make decisions as required (including relating to annual budgets), monitor compliance with statutory
obligations, and review non-financial performance. The Managing Director and Board Chairman work
together closely and ensure that the Board is informed and consulted about relevant matters as
appropriate.

The Board convenes specialist committees to focus on particular areas of responsibility and provide
informed feedback and support to the Board. An Audit, Risk and Finance Committee, comprising a group
of Directors with the appropriate skills and experience, meet throughout the year and report to the Board.
The Committee assists the Board to optimise the efficiency of the Corporation, and to establish and
maintain best practice financial management services. It provides with Board with assistance and advice
on the ABC’s risk, control and compliance framework and its external accountability responsibilities. An
external expert is appointed as a member of the Audit, Risk and Finance Committee. A People Committee
meets throughout the year to provide advice and support to the Board in relation to the Corporation’s
people and remuneration practices and strategies; assist the Board to discharge its duties in relation to
work health and safety; and to establish a plan for the attraction, retention and development of talent.

The Board commissions regular independent reviews of editorial matters. The editorial reviews enable
the Board to ensure that the gathering and presentation of news and information is independent, accurate
and impartial.

From time to time, the Board convenes specialist Reference Panels which draw on expertise outside the
Corporation on matters of particular relevance to the ABC’s Charter. The panels enable the Board to
assess the depth and breadth of ABC content in particular areas. In recent years these have included a
Science Reference Panel and an Arts Reference Panel.

The Board has overall responsibility for the development of the ABC Code of Practice. Any changes to
that Code are considered and approved by the Board. The ABC Code of Practice, which was most
recently updated on 1 March 2016, is available on the ABC’s website: http://about.abc.net.au/reports-
publications/code-of-practice




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ABC Corporate Plan 2017–18



Environment
External media environment

Over the past decade, the domestic and global media environments in which the ABC operates have
undergone considerable transformation. While audiences for traditional appointment-to-view broadcast
media remain large, audiences are increasingly inclined to seek the media experiences they want at the
times and places of their choosing. This is causing an accelerating feedback loop between digital
technologies and audience behaviours, driving a proliferation of applications, services and platforms that
compete with established media services for the limited attention of audiences. Additionally, there is
significant variation in the way different community segments are consuming various media, requiring
media organisations to provide a wider number of services and platforms with reduced funding and
revenue opportunities.

In March 2017, the ABC announced a significant transformation strategy that will come into effect across
the lifetime of this plan. The transformation sets out to improve the organisation’s agility and resilience in
response to the rapid changes the media environment is facing. In part, this transformation responds to
the significant challenge of reduction in the Corporation’s funding appropriation announced in 2014–15.
Over the life of the Plan, the ABC will continue to implement efficiency initiatives allowing it to operate
within this reduced funding envelope, as well as seeking further efficiencies and adjusting its resourcing
priorities to enable it to adapt its services in line with changing audience needs.

To date, the ABC has been able to maintain its commitment to services for regional communities in the
face of the contraction or withdrawal of commercial media services from these markets. In 2015, the ABC
created a dedicated Regional division to oversee its activities across rural and regional Australia, with
staff stationed in 48 regional locations. In March 2017, under a connecting communities internal funding
arrangement the Regional Division was provided with capital to increase resources and funding for an
additional 80 jobs to service rural and regional areas.

Audience trends

Live radio and television broadcasting continue to enjoy significant audiences. Broadcast television
remains the dominant delivery method for audio-visual content in Australia, although its use is declining
over time. In 2017, 19.6 million metro and regional Australians watch TV in an average week, a decrease
on the average of 19.9 million the previous year. TV viewers spend an average of 3 hours and 53 minutes
watching television each day, down 7 minutes on the previous year. 1 Australians are increasingly
complementing their use of broadcast television with video-on-demand (VOD). In December 2016, 43%
of online Australians included Catch Up TV in their audio-visual consumption, with 30% viewing via VOD
services (both up from the previous year).2 Netflix is the number one VOD service in Australia reaching
17.5% of the population each month. ABC iview is second, with a monthly reach of 9% of the population. 3

Radio reach has remained stable in recent years, reaching 12.9 million (or 95%) metro Australians in an
average week in 2017. Similar to television, time spent with radio has declined. Radio listeners spend
an average of 17 hours and 11 minutes listening each week, a decrease of 22 minutes on the previous



1 OzTAM 5 City Metro data, 2017 Jan-Mar, People 0+
2 Nielsen, Australian Connected Consumers Report, 2017
3 Nielsen Digital Ratings Monthly, 2017 Jan-Mar; Australia, Desktop (Ppl 2+), Smartphone and Tablet (Ppl 18+)



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ABC Corporate Plan 2017–18


year.4 While radio listening remains strong in Australia, especially with the addition of Digital Radio
Stations in the major metro markets, live radio’s share of audio listening now competes with global music
streaming services and on-demand streaming and podcast offerings. ABC is considered the largest radio
podcaster in Australia. ABC Podcasts recorded 167 million downloads and streams in 2016 or a monthly
average of 13.9m, up 23% compared to 2015.5

Australia is a mature market in terms of internet usage and one of the most digitally-connected countries.
In December 2016, 89% of the population aged 18+ were active online.6 Audiences are continuing to
evolve and expand the methods by which they watch, listen and read across different platforms and
devices as technology improves. Smartphones in particular have become a dominant platform.
Ownership is creeping towards saturation with eight-in-10 connected consumers now owning a personal
smartphone device. Likewise, the number of homes with tablet computers has grown, with 59% of
households owning one at the end of 2016. 7

The ABC has addressed the rise of social media as a content distribution opportunity, which has created
communications and commentary networks that have become increasingly entangled with traditional
media. More than eight in 10 (84%) online Australians participate in social media activities each month,
with Facebook (81%), YouTube (77%), Instagram (44%) and Twitter (35%) having strong usage amongst
online Australians.8

Australian content

Consistent with its vision of being the independent source of Australian conversations, culture and stories,
the ABC is committed to showcasing Australian content across all of its platforms. On a day-to-day basis,
the ABC produces a significant amount of Australian content on television, radio and digital platforms.

ABC radio networks broadcast almost exclusively Australian content. Consistent with its Charter, the ABC
places a focus on Australian musical performance and sets targets for Australian music content on all
networks that play music. A number of its digital channels are able to exclusively showcase Australian
music. For instance, triple j Unearthed plays 100% Australian music—and actively works to discover
young, Australian talent—while Classic 2 plays 100% Australian performances of classical music.

ABC Television is similarly committed to commissioning and scheduling quality Australian screen content.
Its ability to consistently meet annual output targets is shaped by a range of factors. As outlined above,
the increasingly competitive media market is driving up the cost of producing ‘high end’ Australian content.
In response, the ABC has announced a $20 million content fund in 2017-18 that will build to $50 million
during the lifetime of this plan. The fund will be allocated competitively and exclusively for Australian
content that reflects Australian life and all its diversity.

For consistency, and to effectively identify the impact of funding, the ABC reports the volume of Australian
content made available to audiences via broadcast or distribution on digital platforms in a given year,
rather than the number of hours commissioned in that year. The variable nature of the production process,




4 GfK 5 City Metro data, 2017 S1-2, People 10+
5 Webtrends 8
6 Nielsen, Australian Connected Consumers Report, 2017
7 Nielsen, Australian Connected Consumers Report, 2017
8 Nielsen Digital Ratings Monthly, 2017 Jan-Mar; Australia, Desktop (Ppl 2+), Smartphone and Tablet (Ppl 18+)



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ABC Corporate Plan 2017–18


including the availability of highly sought-after talent, is such that it is not always possible to predict when
a commissioned program will be completed and available for broadcast.

The ABC continues to explore the potential to meaningfully measure its Australian content output on
digital platforms, including social media.

International broadcasting

Alongside its domestic activities, the ABC delivers content and services to international audiences. This
is both to influence the understanding and attitudes of foreign populations, primarily in the Asia-Pacific
region, and to provide information to the million-strong Australians living and travelling abroad.

Australia Plus Television is available via re-broadcasters in over 40 countries in the Asia-Pacific, and
Radio Australia continues broadcasting into Papua New Guinea and the Pacific. The Asian and Pacific
markets are extremely diverse, ranging from advanced economies like Hong Kong and Singapore, which
have saturated and sophisticated media markets, to the developing economies of the sparsely-populated
islands of the Pacific. Broadcasting markets throughout the region are becoming increasingly competitive
and international media services must compete for the attention of local audiences in markets that are
increasingly congested and well-served by domestic radio and television providers, as well as global
digital content platforms.

It should also be noted that there are distinct limits to the availability of robust and pan-regional audience
data for radio and television audiences.

The ABC’s international services are currently under review and will be adjusted over the lifespan of this
plan to ensure that ABC content will both help Australians understand their place in the world and for the
world to understand Australia. Services delivered will operate within a restricted funding envelope. The
Corporation will apply an international strategy that leverages ABC content and products and that focuses
resources on the priority markets of Indonesia, India, Papua New Guinea, the Chinese diaspora, and
Australians abroad. It will continue to expand and deepen its network of syndication partnerships with
leading media companies in Asia to deliver programs and content directly to the media services that local
audiences are using, and will utilise digital platforms to deliver content and grow engagement with
audiences. By growing reach with audiences it will continue to develop an attractive proposition for
potential commercial investment.

Broadcasting technologies

The transformation of digital media consumption has been accompanied by a series of related changes
in broadcast and production technologies that have operational and cost implications for media
organisations such as the ABC.

Television broadcast production technologies are moving to file-based systems housed in a networked
infrastructure. As a result, many of these technologies are now software-based. While this has enabled
workflow improvements, process efficiencies and improved information-management capabilities, it also
exposes media organisations to much shorter equipment upgrade and replacement cycles. As a result,
the working lifespan of such capital items has effectively halved. Software license models are also
changing to a subscription basis with potential increased costs.

The move to processing high-quality video with the introduction of high-definition (HD) formats has
required the replacement of core station infrastructure, including switching and cabling.

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ABC Corporate Plan 2017–18


While radio production is now fully digitised, the challenge for the radio industry is to manage effectively
an evolution from analogue to digital transmission. ABC Radio is currently available via analog (AM and
FM), digital broadcast radio in the five major markets (DAB+) as well as trial broadcasts in Darwin and
Canberra, and IP (encompassing both live streaming and podcast download). This multiplicity of
transmission pathways will require careful scrutiny and flexible planning into the foreseeable future. The
next challenge for the industry will be the successful introduction of both DAB+ and IP radio into the car.

The rise of internet content consumption has also created significant responsibilities for broadcasters in
relation to protecting the intellectual property and commercial rights of program owners. Digital rights
management (DRM) is a new core infrastructure capability required for all IP-delivered services, including
catch-up television, streaming, downloads and transactional video-on-demand. Video asset and delivery
infrastructure must also address content-protection obligations that are increasingly being incorporated
into the contractual requirements of major production studios.

Financial situation

The ABC’s financial circumstances continue to be influenced by a reduction in funding of $207 million
over the five-year period from 2014–15 to 2018–19, announced in November 2014 in the context of the
2014–15 Mid-Year Economic and Fiscal Outlook (MYEFO). As requested by the Corporation, the budget
reductions were phased, with no cut in 2014–15 and increasing reductions over the remainder of the
period. They included larger budget reductions in 2016–17 and 2018–19. This reduction came on top of
the 1% cut to base finding of $9 million p.a. and the cessation of the Australia Network contract with DFAT
of $21 million p.a., announced in the May 2014 Budget.

To meet the budget reduction, the Corporation introduced a series of savings initiatives focused on its
support and transmission areas, rather than its content activities. This suite of support initiatives will
continue to be implemented and deliver increasing savings to offset the funding reductions for 2017-18
and 2018-19.

The 2017–18 Budget represents the second year of the current triennial funding period for the ABC, and
funding includes the second tranche of $41.4 million over three years announced in the 2016-17 Budget
for the Enhanced Newsgathering program, with this funding terminating at the end of the 2018-19 year.

At the same time, in order to further adapt to meet changing audience needs and expectations, the ABC
is also in the process of implementing the Investing in Audiences strategy announced by the ABC
Managing Director, Michelle Guthrie, on 7 March 2017. The initiatives announced involve significant
transformational change, including a revised ABC organisational structure. Savings made from this
restructure will be redirected towards the creation of the Great Ideas Grant content fund that will be
reinvested in priority content areas, including regional journalism, as well as in enhanced audience
engagement.

A summary of the forward estimates for the ABC is set out below.

Forward estimates

                                           Estimate         Estimate          Estimate          Estimate
                                           2017–18          2018–19           2019–20           2020–21
Revenue                                       $’000            $’000             $’000             $’000
ABC Government Appropriations
  Operational Appropriations               1 043 680         1 045 911         1 062 586         1 079 787


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ABC Corporate Plan 2017–18


Total Appropriations                            1 043 680           1 045 911           1 062 586           1 079 787
     Own Source Revenue                             77 200              77 338              77 479              77 623
Total Revenue                                   1 120 880           1 123 249           1 140 065           1 157 410
Operational Expenditure                         1 117 791           1 100 782           1 117 836           1 142 564
Capital Expenditure                               109 887               61 696              61 332              60 961
Borrowings                                          50 000              30 000              10 000                      -
Source: 2017–18 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.




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ABC Corporate Plan 2017–18


Government context

At the commencement of this Plan, numerous Government reviews and processes are on foot, each with
the potential to affect the broadcasting and wider media industry.

Over the past two years, the ABC has participated in consultations with the Department of
Communications and the Arts on proposed changes to spectrum licensing under the
Radiocommunications Act 1992. As a significant user of spectrum, the ABC is likely to be affected by any
changes that are enacted. The recommendations of the Department’s review have been adopted by
government and the ABC is now consulting with the Department on the new spectrum framework. The
Corporation will continue to respond to the regulatory proposals as they develop.

In early 2017, following the conclusion of the second government-funded audio description trail in mid-
2016 and the ABC’s report to government in late 2016, the government announced the establishment of
an audio description working group with members from across the broadcasting sector. The ABC looks
forward to participating in the working group and sharing its findings from its two audio description trials.

In May 2017, the Minister for Communications and the Arts announced his intention to amend the media
ownership rules set out in the Broadcasting Services Act 1992 and anti-siphoning regulation. While these
changes do not have a direct impact on the ABC, they have the potential to affect media diversity and
competitive dynamics in the Australian media and the level of media services provided in regional
Australia. Ultimately, the changes are also likely to impact Australian audience media experiences.

In addition to the above, in early 2017, the ABC provided evidence to the Senate Committee inquiry into
a Private Senator’s Bill seeking to amend the ABC Act in relation to regional services. The ABC also
prepared submission to a House of Representatives Standing Committee Inquiry into the Australian film
and television sector and Private Senator’s Bill into cessation of the ABC’s shortwave services. The ABC
also made a submission to the Senate Committee Inquiry into Public Interest Journalism, announced on
10 May 2017. The ABC will continue to participate in these inquiries and, in due course, will consider the
outcomes, and any consequent impact their recommendations may have on the ABC and its operations.




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ABC Corporate Plan 2017–18



Performance
The ABC is one of Australia’s most important cultural institutions. As the primary national public
broadcaster, it reflects Australia’s national identity and cultural diversity, informs and educates, facilitates
public debate and fosters the performing arts. The ABC plays a significant role in the lives of all
Australians, not only through the broadcasting and digital media services it delivers, but also through
direct engagement with local communities around the country.

In order to achieve its purpose, the ABC is appropriated funds to undertake two principal activities:

     • Providing Australian and International audiences with radio, television and digital media services.
     • Managing the broadcast and transmission of ABC radio and television services within Australia.

These activities correspond with Program 1.1 and Program 1.2 in the Portfolio Budget Statements 2017–
18.

Activity 1—Provision of radio, television and digital media services

Intended results

Consistent with its purpose, the ABC will provide innovative and high quality content to Australian
audiences via its television, radio, and digital media services that inform, educate and entertain. It will
likewise deliver programs and services to international audiences that reflect Australian perspectives and
provide information to Australians abroad. In all of these activities, the ABC will maintain the highest
editorial standards.

Delivery strategy

In order to achieve these results, the ABC will undertake the following:

     • Provide distinctive radio programs that serve all local and regional communities throughout
       Australia, and satisfy diverse audience needs, nationally and internationally.
     • Present television programs of wide appeal and specialised interest that contribute to the
       diversity, quality and innovation of the industry generally.
     • Engage audiences through digital media services, including on mobile platforms.

Resourcing

                                                                    2018–19          2019–20         2020–21
                                                     2017–18
 Resources                                                          Forward          Forward         Forward
                                                      Budget
                                                                   estimates        estimates       estimates

 Program 1.1—ABC General Operational
 Activities
 Expenditure ($‘000)                                 939 570          919 934         934 138         955 608




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ABC Corporate Plan 2017–18


Performance information

                                                                                                                   Beyond
 Performance measure                                 Source                  2017–18            2018–19
                                                                                                                    2019


 Perception—Central to the ABC’s purpose is the delivery of valuable services to all Australians. An effective
 way of understanding, at a high level, the impact of the ABC’s services and the extent to which they are
 valued is to directly survey the Australian community.

 Perceptions—Overall value                             Annual ABC           Maintain or       Maintain or         Maintain or
 Percentage of the people who value the ABC            Appreciation         improve on      improve on prior      improve on
 and its services to the Community                     Survey                prior year          year              prior year
                                                                              (84% in
                                                                             2016–17)

 Perceptions—loyalty                                   Custom survey             369          Maintain or         Maintain or
 The likelihood of recommending the ABC to a                                                  improve on          improve on
 family member or friend, on a scale of 1 to 10                                                prior year          prior year
 (Net Promoter Score)

 Trust                                                 Annual ABC               80%           At least 80%          At least
 The percentage of people who trust the ABC.           Appreciation                                                  80%
                                                       Survey

 Reach—Audience reach measures the percentage of the population who have used the ABC services in a
 given timeframe. It allows the ABC to ensure it is delivering content and services that are relevant to the
 daily lives of its audiences. Measuring audience reach contributes to demonstrating the effectiveness of the
 ABC’s activities. The ABC is exploring mechanisms to accurately measure and report reach of all video and audio
 content (beyond the reach of linear broadcast content) for inclusion in future corporate plans.

     Net reach (avg weekly)                           Population            Maintain or        Maintain or        Maintain or
     Combined national audience reach across          Based Survey          improve on       improve on prior     improve on
     television, radio and online                                            prior year           year             prior year
                                                                             (69.5% in
                                                                             2016–17)

     Digital reach (avg monthly)                      Nielsen Online            39%                40%                41%
     The percentage of the Active Digital
     Universe who have used ABC Online
     Network on browsers or apps

     Radio reach (avg weekly)                         Nielsen                Maintain at        Maintain at        Maintain at
     The percentage of the total population who                             least 36.5%        least 36.5%        least 36.5%
     have listened to any ABC radio

     Television reach (avg weekly)                    OzTAM and             Maintain at        Maintain at        Maintain at
     Percentage of the total population who have      Regional TAM          least 50%          least 50%          least 50%
     watched any ABC television channel

     International digital reach (avg monthly)        Webtrends and           At least      At least 170 000       At least
     Combined visitors to ABC’s International’s       Google                  170 000                              170 000
     digital properties (Australia Plus, Australia    Analytics
     Plus TV, and AustraliaPlus.cn)




9 The NPS is calculatedbased on a likelihood to recommend, based on a 0 to 10 scale. Promoters are those who respond 9 -10;
Detractors are those who respond 0-6. The NPS is calculated by subtracting the percentage of customers who are Detractors
from the percentage of customers who are Promoters. The result is presented as a ‘score’ between –100 and 100. Scores over
30 in the media industry are generally considered to be good.

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ABC Corporate Plan 2017–18



Performance measure                             Source               2017–18              2018–19         Beyond 2019


Quality—Delivering services of a high standard to all Australians is an important element of the ABC’s
purpose. In order to assess its editorial performance, the ABC commissions regular qualitative assessments
of its content. Together with assessment of the effectiveness of internal editorial complaints management
processes, this enables the Corporation to ensure that it is delivering services of the highest standard. The
ABC is exploring quantitative measures of quality and distinctiveness for potential inclusion in future
corporate plans.

     Editorial quality                      Reviews                  Reviews              Reviews           Reviews
     Independent editorial reviews          commissioned          undertaken and         undertaken        undertaken
     conducted                              by the ABC          reports considered       and reports       and reports
                                            Board                                        considered        considered

     Complaints management                  Data from            100% within 60         100% within       100% within 60
     Timeliness of complaints               Audience and             days                 60 days             days
     management                             Consumer
                                            Affairs

 Quality and distinctiveness                Custom survey         85% Quality           Maintain or           As for
 Percentage of survey respondents who                          75% Distinctiveness       improve             2018–19
 consider ABC content is high quality                                                    2017–18
 and distinctive                                                                          results



Australian content—As the nation’s primary public broadcaster, it is important that the ABC effectively
reflects Australian stories, conversations and culture. Measuring the amount of Australian content on
television and radio helps to demonstrate the extent to which the ABC is achieving its purpose, including
contributing to a sense of national identity.

     Australian first-run TV content        Analysis of             Over 1,000 hours          Maintain         As for
     Number of hours of first release       hours broadcast                                      or           2018–19
     television content available on ABC    and available on                                  improve
     domestic distribution platforms        iview                                             2017–18
     (including iview)                                                                         results


     Australian children’s TV content       Analysis of               At least 30%             At least     At least 30%
     Percentage of Australian children’s    hours broadcast                                     30%
     television programs on ABC KIDS        from Sydney
     and ABC ME                             transmitter
                                                               Network               Target
     Australian music on Radio              Analysis of                                       Maintain         As for
                                                               RN                     25%
     Levels of Australian music on those    hours based on                                       or           2018–19
                                                               Local Radio            25%
     radio networks which broadcast music   scheduled                                         improve
                                                               Classic FM             30%
                                            programming                                       2017–18
                                                               triple j               40%      results
                                                               Double J               35%
                                                               ABC Jazz               25%
                                                               ABC Country            25%
                                                               unearthed             100%




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ABC Corporate Plan 2017–18


Activity 2—Broadcast and transmission of radio and television services

Intended results

In order to achieve its purpose, the ABC seeks to ensure that all Australians have access to television
and radio transmissions that carry its services. The ABC will achieve this through the effective
management of Transmission Service Agreements, including ensuring that transmission performance
exceeds contractual minimums.

Delivery strategy

In order to achieve these results, the ABC will undertake the following:

     • Negotiate and maintain Transmission Service Agreements that maximise the availability of ABC
       services.
     • Respond to audience issues and rectify faults as soon as practicable.

Resourcing

                                                                 2018–19        2019–20        2020–21
                                                  2017–18
 Resources                                                       Forward        Forward        Forward
                                                   Budget
                                                                estimates      estimates      estimates

 Program 1. 2—ABC Transmission and
 Distribution Services
 Expenditure ($’000)                               178 221        180 848        183 698        186 956




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ABC Corporate Plan 2017–18


Performance information

                                                                                                                  Beyond
                                                                              2017–18          2018–19
Performance measure                                     Source                                                     2019



Access—Measuring access to television and radio services is a quantitative assessment of the ABC’s
physical ability to impact audiences with high quality, innovative and comprehensive broadcasting services
in accordance with its Purpose.

     Access to analog radio                     Broadcast Australia data       At least      At least 99%          At least
     Percentage of the Australian                                               99%                                 99%
     population who are able to receive
     ABC analog radio transmissions

     Access to digital radio                    Broadcast Australia data       100%              100%              100%
     Degree to which the five mainland
     state capital cities have access to ABC
     digital radio transmissions

     Access to digital television               Broadcast Australia data       100%              100%              100%
     Percentage of Australian homes able        Optus data via VAST
     to receive ABC digital television          satellite
     transmissions

     Audience contacts—transmission             Audience and Consumer      Availability of   Availability of   Availability of
     issues                                     Affairs data                Reception         Reception         Reception
     Availability of a service to monitor and                              Advice Line       Advice Line       Advice Line
     respond to enquiries regarding                                          service           service           service
     television and radio transmission
     issues


Availability—Transmission of the ABC’s radio and television content is provided by a third party and
managed by the ABC via Transmission Service Agreements. The effective management of those
Agreements is fundamental to ensuring that the ABC is able to achieve its purpose.

     Transmission performance                   Broadcast Australia data   At least 99%      At least 99%      At least 99%
     Total network and on-air availability                                     for all           for all           for all
                                                                             services          services          services

     Operation of transmission facilities       Broadcast Australia data       100%              100%              100%
     Percentage of facilities which operate
     within agreed limits




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ABC Corporate Plan 2017–18



Capability
In a complex and changing media landscape the ABC intends to build on existing capabilities to deliver
on its legislative purpose and vision. The Corporation seeks to achieve this via the implementation of an
‘Investing in Audiences’ strategy.

Investing in Audiences

The ABC Investing in Audiences strategy has four priorities that reflect the purpose and vision of the
organisation. The below table outlines the strategic priorities and capability enhancements that will assist
the Corporation achieve its projected performance during the lifetime of this plan.

 Strategic priority             Capability enhancements 2017-18 and beyond
 Creating      extraordinary    The development of a content fund ($20 Million in 2017-18 building to
 content                        $50 Million over the lifespan of the plan) to enhance the creation of
                                distinctive Australian content.
                                Commissioning processes to be reviewed and diversified, allowing for a
                                greater scope of Australian stories and conversations to be developed.
                                Increased opportunities for audience engagement and audience
                                generated content to be distributed.
                                Investment in technology and infrastructure to rural and regional centres
                                to ensure quality content is produced from all ABC sources.
                                Fostering more valuable partnerships with communities and scientific,
                                educational and artistic institutions.

 An outstanding audience        The implementation of an over-arching ICT Strategy which allows the
 experience                     Corporation to integrate technologies across platforms, promote content
                                sharing, derive the greatest benefits from technology projects, and
                                better manage funding limitations to ensure sustainability. There are
                                also in place more specific strategies addressing aspects of ICT
                                including Information and Media Management, Cyber Security and
                                Business Resilience.
                                The ABC’s ICT strategic goal is to collaboratively provide innovative,
                                integrated and sustainable systems that:

                                     •   Provide and engage audiences with diverse, comprehensive
                                         and quality media services and content
                                     •   Keep the ABC on-air and on-line
                                     •   Empower staff to achieve their objectives
                                     •   Support the delivery of the ABC Charter, Corporate Plan and
                                         Divisional objectives
                                     •   Demonstrate value for money for the ABC, audiences and the
                                         broader Australian public.


                                The ABC Executive has stewardship of this Strategy and is responsible
                                for providing oversight and reasonable assurance to the ABC Board that

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ABC Corporate Plan 2017–18


                           the ABC has in place an organisation-wide ICT Strategy, ICT Strategy
                           framework and ICT roadmaps that are operating effectively and
                           efficiently.
                           Development of easily identifiable branding that links all ABC resources
                           in the eye of the user.
                           Personalisation strategies for digital content to ensure a more tailored
                           audience experience.
                           Review and develop accessibility goals and practices.
                           Renegotiate technology contracts where required to keep the ABC on-
                           air, demonstrate value for money for the ABC, audiences and the
                           broader Australian public.
Reaching more people       Increasing digital offering to reflect audience use.
                           Creation of a community engagement team and building greater staff
                           capability to have regular contact with audiences via engagement
                           opportunities.
                           Development of a pan ABC education strategy to engage schools,
                           universities and other learning institutions.
                           Developing an international strategy to internationalise the ABC to a
                           wider more global audience.

Building a greater place   Reviewing and improving reporting lines to simplify internal processes.
to work
                           Moving towards an action based values system.
                           Increasing rural and regional staffing resources to support the
                           development of unique Australian content.

                               •   Provision of training with a focus on:

                               •   Cultural awareness and unconscious bias training

                               •   Digital and social media training

                               •   Work, health and safety training

                               •   Leadership training




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ABC Corporate Plan 2017–18



Risk oversight and management
Risk Management

The ABC’s Risk Management Framework was first established and approved by the Board Audit and
Risk Committee in 2007 and is based on the approach set out in the International Standard ISO
31000:2009. The ABC’s Framework aligns with the Public Governance, Performance and Accountability
Act 2013 (PGPA) and the Commonwealth Risk Management Policy 2014, and is reviewed on a regular
basis to ensure it remains current.

The Risk Management Framework is made up of a number of key elements, including risk governance,
accountability and responsibility, risk reporting structure, an Integration Plan, and a Risk Management
Policy and associated Procedures. Together, these elements provide the foundation for developing a
healthy culture and understanding of risk management and creates the environment for managing risk
within the Corporation.

A key element of the framework is the ABC’s Risk Management Policy, which states that the ABC will
take informed risks without exposing the Corporation, its assets, employees or other stakeholders to
unnecessary harm. The Policy is reviewed every two years. In addition, the ABC recently embarked on
a Strategic Risk review which amongst others delivered a new Risk Appetite Framework to guide the
Corporation on risk management.

The ABC is committed to maintaining the stability and resilience of its operations, as well as prioritising
the safety and wellbeing of employees during and after any business disruption event. The ABC’s
Business Resilience Program independently operates within and supports the Corporation’s broader
governance, policy and risk management framework to maintain and improve the planning and response
activity to adverse events that may impact ABC people, facilities or operations. The Business Resilience
Program aims to continually improve the leadership, process and communications requirements of the
ABC crisis management, business continuity and operational recovery processes and emergency
coordination. Understanding and effectively managing these risks through the Business Resilience
Program is part of the ABC’s commitment to building organisational resilience

Internal Audit

Group Audit provides an independent and objective audit and advisory service which is designed to add
value and improve the Corporation’s operations. Group Audit helps the ABC to achieve its objectives by
bringing a systematic and disciplined approach to evaluate and improve the effectiveness of risk
management, control and governance processes.

Group Audit undertakes scheduled audits which included comprehensive compliance, information
technology and project assurance audits. Group Audit also performs unscheduled reviews at the specific
request of management and the Audit, Risk and Finance Committee. Group Audit utilises technology to
undertake continuous auditing and monitoring of transactional data. Group Audit uses a combination of
in-house staff and external companies to deliver audits and provide the most appropriate industry
experience and technical expertise.

Group Audit provides guidance and advice to ABC management and staff on good governance, risk
management, internal controls and policies. Internal audit activities are coordinated with the external audit
work undertaken by the Australian National Audit Office and its nominated representatives.

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ABC Corporate Plan 2017–18


Fraud Control

The ABC has a Fraud Control Plan to ensure the Corporation meets the requirements of the PGPA Rule
s.10. This includes regular fraud risk assessments, an established fraud policy, controls to prevent and
detect fraud, and investigation processes. Group Audit promotes awareness of the ABC’s fraud control
measures, including the Confidential Fraud Hotline. The Corporation also participates in the annual ABC
Commonwealth Fraud Control Guidelines Annual Reporting Survey, which is administered by the
Australian Institute of Criminology.




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