Local content policy in the Australian television industry

This paper examines the impact and effectiveness of the local content scheme currently operating in the Australian Television industry. The television industry is a service industry with public good aspects. Public interest arguments have traditionally been used to support the retention (and indeed expansion) of the local content scheme since it was first introduced in 1961. These objectives have included the promotion of Australian culture, the desire to ensure a diversity of views may be heard and that diverse interests may be catered for when preferences cannot be directly gauged.<br /><br />The problems associated with defining what constitutes "Australian" content are examined along with the costs and effectiveness of the local content scheme in meeting public interest concerns. The paper finds that the local content scheme has become part of a package of protection in the broadcasting industry that has resulted in valuable television licences and powerful and entrenched interests. It also shows that the local content scheme is not particularly effective in meeting it's objectives, and will become increasingly irrelevant in the light of rapidly changing technology. Other methods of meeting public objectives are suggested.<br />