efficient, trusted, valued - about the abc€¦ · the abc continues to adopt smarter ways of...

Efficient, trusted, valued

Your ABC: Efficient, trusted, valued

The ABC was created to serve the Australian people. We tell the nation’s story and help Australians understand their place in the world. We connect Australians wherever they live and bring them together around the moments that matter. We are the place where unique Australian stories are created, and where young and old alike can be inspired and delighted by the arts, music and the wonders of science.

For generations, the Australian people have invested significant funds in establishing the ABC as a critically important social and cultural institution. The legacy of this investment: the unique Australian stories told, the great national debates that have been contested, the art and the music that has been created, is woven into the fabric of our country.

The ABC acknowledges that it operates in a society where there are many competing demands for public funding. The ABC understands that to honour the trust placed in it by the Australian people, it must manage the funds given to it wisely and responsibly. Over the past thirty years the ABC has continuously sought efficiencies to maximize the amount of money we spend on great content and services for all Australians.

Despite a real decline in funding per person, the ABC has been able to enhance the services it provides to the Australian public. Services like iview, the ABC News channel, the comedy channel, digital radio services, podcasts and increased investment in regional reporting have all been funded without additional real funding from Government.

Today, the ABC is better value for Australians than ever before. The ABC continues to adopt smarter ways of working and harness the benefits of new technology to deliver more quality and distinctive content and across more platforms – at a lower cost.

ABC Open

1 AUSTRALIAN BROADCASTING CORPORATION EFFICIENCY PAPER 2018

FundingIn 1987 the ABC famously cost eight cents a day. Adjusted for inflation and population growth, the ABC today costs each Australian just half that amount.

Since the mid-1980s our real funding has decreased by 28% or $336 million.

Our funding is 34% lower than the average of 18 comparable public broadcasters.

EfficiencyAs technology changes the ABC has provided Australians with more content, services and platforms.

We have done these additional things at lower cost – and with around 2,000 fewer employees than thirty years ago. We have achieved this by continuously looking for ways to improve the way we work.

In the last five years alone, working smarter has allowed us to invest an additional $70 million into new programs, services and platforms, while also returning $254 million back to government.

Creative talentAs Australia’s largest creative employer, we enrich the lives of our fellow citizens by discovering and showcasing the talents of Australian people. We promote and invest in the broader creative community.

56% of the music we play on triple J is Australian. 100% of the music on triple J unearthed features new Australian talent

In 2017 we invested $94.5 million in independent productions, creating private sector jobs for writers, producers, directors, actors and the businesses that support them.

TrustIn a world of abundant information, the need for trusted information has never been greater. Despite the ABC’s declining funding and efficiency initiatives, we have invested wisely to ensure that that the ABC continues to maintain very high levels of trust and quality.

More than 80% of Australians trust the ABC, compared to average trust of 57% for commercial media.

2017 Slate Launch


RADIO

DIGITAL

TV

In 1987 In 2017the ABC cost 19.2 cents per person per day (2017 value) and delivered...

No digital services

And more...

And more...

the ABC cost 9.7 cents per person per day and delivers...

EMPLOYEES 4,097Full-time equivalent Employees

6,092Full-time equivalent Employees

2JJJ 105.7 FMSYNDEY

AUDIOPLATFORMS3RD

PARTYPLATFORMS

PODCASTS

SOCIALPLATFORMS

2JJJ 105.7 FMSYDNEY

ABC Operational Revenue from Government incl Capital Indexed at 2016/17 levels - December 2016, six months CPI Index - 28% reduction from 85/86 to 17/18

$1,201

$865

$ M

illio

ns

Years

600

650

700

750

800

850

900

950

1000

1050

1100

1150

1200

1250

85/86

86/87

87/88

88/89

89/90

90/91

91/92

92/93

93/94

94/95

95/96

96/97

97/98

98/99

99/00

00/01

01/02

02/03

03/04

04/05

05/06

06/07

07/08

08/09

09/10

10/11

11/12

12/13

13/14

14/15

15/16

16/17

17/18

Funding declining in real terms

ABC cost per person per day – 1987 v 2017

0

5

10

15

20

Cen

ts

1987 Funding Adjusted for inflation Actual 2017 funding per capita

8.0

19.2

9.7

* Excludes orchestras, transmission and distribution CPI based on ABS calculator - June 1987 and June 2017 Data sourced from the 2016/17 Annual Report

The decline in real funding combined with population growth means that the ABC now costs half as much per person compared to 30 years ago

The funding that the ABC has available to make content has declined by 28 per cent or $336 million in real terms since the mid 1980s


Per capita funding for public broadcasters, 2014*

Cou

ntry

A$ per inhabitant

Average = 86

0 50 100 150 200

Norway

Switzerland

Germany

Denmark

Sweden

Finland

United Kingdom

Austria

France

Belgium

Ireland

Australia

Spain

Japan

Italy

Canada

New Zealand

United States

179

178

142

127

126

124

114

101

73

69

57

57 Australia

54

54

38

29

17

3

Source: Nordicity analysis of the annual reports of public broadcasters* Excludes any commercial revenue earned by public broadcastersNote: Australia includes ABC and SBS combined

Source: Nordicity analysis of the annual reports of public broadcastersNote: Australia includes ABC and SBS combined

Commercial revenues and per capita funding for public broadcasters, 2014

0 50 100 150 200 250 300 350 400

Norway

Switzerland

United Kingdom

Germany

Austria

Denmark

Finland

Sweden

Ireland

Belgium

France

New Zealand

Australia

Japan

Italy

Spain

Canada

United States

359179 179

23961178

170114 57

142 23 165

138101 38

124127

1273127

126 126

10557 48

993069

88

17 69 86

1573

6657 9

6354 9

5638 18

54 551

4629 17

3 4 7

Cou

ntry

A$ per inhabitant

Average = 118

Per Capita Funding Per Capita Commercial Revenue

Australia invests 34 per cent less per person in public broadcasting than the average of comparable democracies

Many international public broadcasters supplement their income through commercial activity such as advertising. The ABC does not take advertising on its domestic services


ABC Funding ComparisonThe ABC serves a population one-third the size of the UK but does so with a total income one-eighth the size of the BBC.

$8.6bn (£5.0bn)

$1.1bn

Source: 2016/17 Annual ReportExchange rate: 0.5778, 16 Jan 2018

Source: 2016/17 Annual Report

ABC Open @Clare_Chris


Focused on Efficiency

Cumulative ABC Budget Cuts/Savings - 2014 -15 to 2018-19

0

20

40

60

80

100

120

($M

)

2014/15 2015/16 2016/17 2017/18 2018/19

$12m

$47m

$71m

$86m

$108m

93

30

17 71 66

20

30

78

Content Reinvestment

Cumulative Content Reinvestment $70m

Cumulative Total $324m

Cumulative Budget Cuts $254m

Budget Cuts

Over the last decade the ABC has undertaken several substantial reviews and transformation programs to improve efficiency and provide Australians with greater content and services.

We have achieved savings by cutting management positions and back office expenses. We have also reduced the cost of transmitting and distributing our broadcasting signal.

Accumulated savings over the 2014/15 to 2018/19 period total $324 million. More than three quarters has been handed back to government, while $70 million has been reinvested in new content for audiences.

Savings by the ABC have allowed us to meet the rising expectations of audiences for high quality content and services.

The ABC has found efficiencies beyond those required to meet more than $200 million in Government funding cuts. These funds have been reinvested in regional journalism as well as the creation of Arts, Science and Education content. More innovative and distinctive content is on the way.

ABC Open


By working more effectively with the independent sector the ABC is able to drive its investment further to produce significant volume while maintaining its reputation for quality.

The first two series of House of Cards reportedly cost in the order of AUD$125 million to produce. For the same money the ABC produced 50 Australian programs, including 24 drama series.

ABC delivers value for money

House of Cards

ABC

$125M looks like:

22 hoursof content over

two series

277 hoursof commissioned

Australian content

50 Australian programs(including 24 drama series)


No Australian media organisation is more trusted, valued and distinctive than the ABC

of Australians believe that ABC Television provides good quality programming

of Australians believe the quality of programming on ABC Radio is good

of people believe the ABC reflects the cultural diversity of the Australian community

of people consider the ABC encourages and promotes Australian performing arts such as music and drama

of people regard the ABC as distinctively Australian and contributing to Australia’s national identity

78%

of people consider the ABC achieves a good balance between programs of wide appeal and specialised interest

75%

78%

76%

of people consider the ABC provides programs of an educational nature

82%

Charter Performance

Trusted by Australians

81%

89%

of Australians value their ABC

of Australians trust the information provided by the ABC

of Australians believe the quality of ABC online services are good

83%

82%

72%


Trust Survey

Survey question: For the following media institutions and information providers, please indicate whether you tend to trust the information that they provide.

0

20

40

60

80

100

(%)

Internet search engines like Google

ABC Commercial Radio Stations

Commercial TV Stations

Newspaper Publishers

Facebook

82%

44%

38%

56%

18%

48%

10%

50%

9%

46%

10%

30%

7%

73%

58% 59%56%

37%

Trust a great deal Tend to trust

ABC NEWS


Valued by Australians

Television

Digital

Radio

News

12.3 millionAustralians

watch ABC TV each week

We produce

8,860 hoursof first-run

Australian content each year

We produce

342 hoursof first run local

programming for kids each year

7.6 millionunique Australians

visit ABC online each month

54 millionABC programs are

played on iview and our apps each month

31 millionABC kids’ programs

are played each month

4.9 millionAustralians in five

capital cities listen to ABC Radio

each week

Australians downloaded

more than

200 millionABC podcasts

in 2017

5 millionAustralians access ABC News content online each month

2.3 millionAustralians consume

ABC News content through Apple News

each month

71% of Australian adults watch, read or listen to ABC content every week

The ABC News channel reaches

an average of

4.4 millionviewers each

week


efficient, trusted, valued - about the abc€¦ · the abc continues to adopt smarter ways of...

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