Coonan tried to allay concerns the proposed changes would lead to even more concentration<strong>of</strong> ownership and said reform was needed to adapt to the rapid changes brought to the medialandscape by the Internet and the advent <strong>of</strong> digital television. "It won't necessarily mean(more concentration) at all ... we might have more entrants under the current proposal,"Coonand said on national radio. "What I think we have to recognise is that the wholelandscape for media has changed -- people now get news and diversity from hundreds, if notthousands, <strong>of</strong> unmediated additional sources," she said. But in a bid to meet some critics'concerns, the Coonan plan would require that a minimum <strong>of</strong> five commercial media groups beactive in television, newspaper and radio in major metropolitan areas and four in regionalmarkets. It would also maintain existing restrictions that prevent broadcasters from owningmore than one television license or two radio licenses in any one market. Foreign acquisitions<strong>of</strong> Australian media would also be subject to review by the Treasury. Currently overseasinvestors can only own 15 percent <strong>of</strong> a television broadcaster and up to 25 percent <strong>of</strong> a masscirculation newsapaper. Other changes proposed in Coonan's reform paper titled "Meeting theDigital Challenge: Reforming Australia 's media in the digital age" included delaying aplanned switchover from analog to digital television transmissions from 2008 to 2010.Coonan gave publishers a month to respond to her discussion paper, after which she isexpected to submit legislation embodying her proposals to parliament. Australia has one <strong>of</strong>the highest concentrations <strong>of</strong> media ownership <strong>of</strong> any industrialised Western country, with 90percent <strong>of</strong> metropolitan newspapers owned by Murdoch's News Ltd and John FairfaxHoldings, and television dominated by PBL and the Seven Network <strong>of</strong> rival mogul KerryStokes. AFP; March 14, 2006 TAXESVATHungaryA two-year lobbying effort to reduce the VAT on newspapers and magazines from 15 percentto 5 percent in Hungary has met with success. Subscriptions for newspapers and magazinesare now calculated with the reduced VAT, and all newspapers and magazines sold atnewsstands will also be reduced to the 5 percent level as <strong>of</strong> July 1, 2006. Contact: KatalinHavis, mle.havask@t-online.hu; Newsletter for Directors <strong>of</strong> WAN Member <strong>Association</strong>s - N°34 ; February 2, 2006 COMPETITIONState SupportAzerbaijanThe OSCE Office in Baku welcomed President Ilham Aliyev's decision to cancel the debts <strong>of</strong>newspapers, including leading opposition publications, to the State publishing houseAzerbaijan. The debts, totalling 350,000 euros, will now be paid from the State budget.http://www.bakutoday.net/view.php?d=16207; February 2, 200674
Fair CompetitionKorea, Republic <strong>of</strong>The Fair Trade Commission (FTC) is poised to crack down on unfair business practices <strong>of</strong>some newspaper companies. The anti-trust regulator’s probe will likely be focused onallegations <strong>of</strong> free newspaper subscriptions and gifts such as bicycles being given away tolure more subscribers, according to an FTC director general Tuesday. In an interview withPBC Radio, FTC director general Kim Byung-bae said, "We are making inquiry intoallegations that some newspaper companies are giving away copies free-<strong>of</strong>-charge to theirdistribution <strong>of</strong>fices." Kim said free copies and gifts are being distributed in some areas,including newly-built apartment complexes, though the reported number <strong>of</strong> rule-breakingcases is smaller compared to the past years. "As part <strong>of</strong> efforts to encourage more reports onthese gift-giving instances, we plan to raise the maximum reward for reporting media’s unfairpractices to 10 million won, up from the current 5 million won," he said. However, it remainsto be seen whether such practices are actually declining or the newspapers are using moresubtle ways <strong>of</strong> promotion, as the newspaper market is facing prospects <strong>of</strong> dwindling thanks tothe emergence <strong>of</strong> new platforms <strong>of</strong> news delivery. The practices had been rampant among bigvernacular newspapers, such as the JoongAng Ilbo, the Chosun Ilbo and the Dong-a Ilbo, inan attempt to boost their subscriptions and attract more commercial ads. The three newspapersaccount for roughly 75 percent <strong>of</strong> newspaper subscriptions in Korea. The media firms wieldconsiderable influence and play the role <strong>of</strong> watchdog, enabling them to go unpunished foranti-competition practices. The FTA’s decision is expected to further prod them to brace forstrict market rules. http://www.asiamedia.ucla.edu/article.asp?parentid=42744; April 11, 2006 LABOUR & EMPLOYMENTJob CutsFranceSome 50 France Soir employees organized by trade unions demonstrated outside the FrenchCulture Ministry to ask the government to intervene over the planned job cuts. Thenewspaper's new owners, real estate developer Jean-Pierre Brunois and sports journalistOlivier Rey, envisioned to cut half <strong>of</strong> the 112 employees and relaunch France Soir as apopular newspaper focused on sports, horse racing and show business gossip. France Soir onFriday ran a special edition, with the word "Resistance" crossing the front page and thepolitics and culture pages left blank to reflect the planned closure <strong>of</strong> both departments, as wellas the photography and research services. Founded in 1944, France Soir, once a bignewspaper passing the million-copy in 1960s has seen its circulation shrink to just 50,633copies in 2005. The paper entered bankruptcy proceeding on Oct. 27 due to financialdifficulties. It re-published in February the 12 controversial cartoons <strong>of</strong> the ProphetMohammad after their publication in Denmark and Norway.http://news.xinhuanet.com/english/2006-04/15/content_4425956.htm; April 14, 200675
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