15th August 2014

The ABC faces a dramatic overhaul to cope with the "unprecedented scale and pace of change" in the media industry, the public broadcaster's managing director has told QUT audiences today.

In a speech to students from the Faculty of Creative Industries on Friday (15th) morning, ABC managing director Mark Scott said the organisation needed to make significant changes to continue delivering "outstanding content and services that are indispensable to the Australian public".

"We face the immediate future knowing that funding cuts are coming, but their size has not yet been determined," Mr Scott said.

"Last week, and every other, we presented Australian conversations and stories that informed and enriched the lives of Australians and Australian life. But to keep doing this, we will have to change.

"We must acknowledge how much the world has been altered by digital media, and how rapidly and urgently we need to change to deal with this. Changes that might have taken ten years in the analogue age now take place within the space of one.

"We must accept that in the fierce contest for audiences, where old alliances no longer work and where friends can become rivals, the ABC has to robustly review its programming and services, find new ways to keep the audiences we have and to attract new ones."

Mr Scott said the ABC had to be "efficient and effective" and flagged cost-saving measures including reducing the amount spent on administration and support functions, creating fewer websites offering a more personalised experience and outsourcing some functions.

"We need to re-examine our production, our processes, our infrastructure," Mr Scott said.

"There is a strong argument that in an era of scarce funding, the default position should be that unless there is a compelling financial —or importantly, editorial—reason for an activity to remain in-house, or unless it relates to an area of core competence for the ABC, outsourcing must be looked at.

"We're reviewing support activities like property and IT, procurement, HR and finance activities in a robust fashion. Are there activities that we can drop, automate, do differently?"

In a rapidly-evolving digital world, Mr Scott said the public broadcaster had to shift its focus to genres, audiences and content, rather than specific platforms.

"If we are to remain indispensable to the public, operating without increased funding, we are left with one option only—to work out where our dollars are best spent, to interrogate how we will innovate, better service audiences and reach new ones," he said.

"We understand that to be relevant and compelling we need to present and create content for platforms like online and mobile to which audiences are relentlessly shifting. We will need to increase our investment to match that audience shift.

"Inevitably, as we seek to make the ABC a great public broadcaster for the digital age, change is coming ... We will do everything possible to ensure the right changes are made for the right reasons."

After a "challenging year" in which the ABC's "noisy chorus of critics has been in full voice", Mr Scott said the latest Newspoll results showed the public view of the ABC remained "calm and clear".

The poll found 84 per cent of the Australian public believe the ABC provides a valuable or very valuable service, 70 per cent of Australians watch, listen or are online with the ABC every week, and just 9 per cent feel the ABC does a poor job.

"Yes, funding has been cut and we expect, will be cut more. Yes, audiences in the digital age are always on the move. And yes, there will be a period of transition ahead for us," Mr Scott said.

"But we believe the ABC has a great, promising future. And that we will emerge from the challenging days ahead, having not just prevailed but prospered, as a renewed ABC and an enduring home for Australia's conversations and stories."

The massive shift in the media landscape meant there were only "two certainties" for this generation's media students, Mr Scott, who also addressed QUT staff at the Vice-Chancellor's Forum, said.

"The first is that there's never been a more promising time for storytelling in a digital world," he said.

"The second certainty is that there's never been a more difficult time for the media organisations you might want to be part of; places where you might like to practice the skills you are mastering here."

Media contact:
Rob Kidd, QUT Media, 07 3138 1841, rj.kidd@qut.edu.au
After hours, Rose Trapnell, 0407 585 901

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