ABOUT THIS PUBLICATION
This publication presents results, in respect of the 1996-97 financial year, from an Australian Bureau of Statistics (ABS) census of businesses in the radio and television services industries. This is the second ABS survey of these industries, with the previous collection being conducted in respect of 1993-94.
This publication is one of a series to be issued in respect of 1996-97 covering cultural industries, which were partially funded by the Cultural Ministers' Council. Other publications in this series are:
- Commercial Art Galleries, Australia 1996-97 (cat. no. 8651.0)
- Film and Video Production and Distribution, Australia, 1996-97 (cat. no. 8679.0)
- Libraries and Museums, Australia, 1996-97 (cat. no. 8649.0)
- Motion Picture Exhibition, Australia, 1996-97 (cat. no. 8654.0)
- Performing Arts Industry, Australia, 1996-97 (cat. no. 8697.0)
- Sound Recording Studios, Australia, 1996-97 (Cat. no. 8555.0)
- Zoos, Parks and Gardens Industry, Australia, 1996-97 (cat. no. 8699.0)
The ABS welcomes comments and suggestions from users recommending industries and data items for inclusion in future service industries surveys. These comments should be addressed to:
The Director, Service Industries Surveys, PO Box 10, Belconnen, ACT, 2616.
RADIO SERVICES - PRIVATE BROADCASTERS
TYPES OF BUSINESSES
At the end of June 1997, there were 261 employing private broadcasters in the radio services industry, consisting of 103 commercial broadcasters, 121 community radio broadcasters and 37 other broadcasters (mainly narrowcast and aspirant businesses). The 261 employing private broadcasters operating at June 1997 represented a small decrease from the 265 employing private broadcasters operating at the end of June 1994. This reduction in the number of private broadcasters was mainly due to a decline of 14 in the number of commercial radio broadcasters since June 1994.
SIZE OF INDUSTRY
At the end of June 1997, the 261 private broadcasters in the radio services industry employed 5,064 persons and generated total income of $623 million in respect of 1996-97. The industry employment of 5,064 persons represented an increase of 5% since June 1994.
While industry total income increased by 21% between 1993-94 and 1996-97, total expenses increased by only 7% in the same period. This has resulted in an operating surplus for 1996-97 of $93 million, compared to only $19 million in 1993-94.
The industry gross product of the private broadcasters industry in 1996-97 was $343 million.
SOURCES OF INCOME
Private broadcasters in the radio services industry in 1996-97 generated total income of $623 million. The main source of income was the sale of airtime ($546 million) which represented 88% of total income. Income from the sale of airtime has increased by 14% since 1993-94.
EXPENDITURE
Total expenses for private broadcasters in the radio services industry in 1996-97 were $530 million. Labour costs of $197 million accounted for 37% of the total expenses. Labour costs accounted for only 34% of total expenses in 1993-94.
PROFITABILITY
In 1996-97, private broadcasters in the radio services industry had an operating surplus of $93 million. Commercial radio broadcasters were the main contributors to this operating surplus and had an operating profit margin of 16%, a significant improvement on the operating profit margin of 3.7% recorded in 1993-94
1.1 KEY AGGREGATES BY TYPE OF PRIVATE BROADCASTER
 | Commercial | Community | Other | Total |
| | | | |
| Businesses at end June (no.) | 103 | 121 | 37 | 261 |
| | | | |
| Employment at end June | | | | |
| Full-time (no.) | 3304 | 278 | 101 | 3682 |
| Part-time (no.) | 1057 | 221 | 104 | 1382 |
| Total (no.) | 4361 | 499 | 204 | 5064 |
| | | | |
| Volunteers during June (no.) | - | 10343 | 860 | 11203 |
| | | | |
| Income | | | | |
| Gross income from the sale of airtime ($m) | 529.3 | 8.8 | 7.7 | 545.8 |
| Funding from government ($m) | 0.1 | 7.0 | 1.0 | 8.1 |
| Program sales ($m) | 10.3 | 0.1 | 2.6 | 13.0 |
| Other income ($m) | 45.2 | 7.8 | 2.7 | 55.7 |
| Total ($m) | 584.8 | 23.8 | 14.0 | 622.7 |
| | | | |
| Expenses | | | | |
| Labour costs ($m) | 181.8 | 9.7 | 5.1 | 196.6 |
| Payments to freelancers ($m) | 24.3 | 0.3 | 1.2 | 25.8 |
| Other expenses ($m) | 286.3 | 12.3 | 9.2 | 307.8 |
| Total ($m) | 492.4 | 22.3 | 15.4 | 530.1 |
| | | | |
| Operating surplus/loss ($m) | 92.5 | 1.3 | -1.2 | 92.6 |
| | | | |
| Operating profit margin (%) | 16.0 | n.a. | n.a. | n.a. |
| | | | | |
| Industry gross product ($m) | 325.4 | 12.7 | 4.5 | 342.7 |
TELEVISION SERVICES - PRIVATE BROADCASTERS
TYPES OF BUSINESSES
At the end of June 1997, there were 48 employing private broadcasters in the television services industry, consisting of 34 commercial free-to-air businesses, 7 pay television businesses and 7 community broadcasters. At the end of June 1994 there were 43 businesses in the industry. The increase in the number of private broadcasters was mainly due to the emergence of pay television in the intervening period.
SIZE OF INDUSTRY
In 1996-97, the 48 private broadcasters in the industry generated total income of $3,351 million, which represented a 51% increase in total income compared to 1993-94. The industry gross product of the industry in 1996-97 was $776 million.
At the end of June 1997, 8,873 persons worked for private broadcasters, of which 6,758 (76%) worked for commercial free-to-air businesses. There has been a slight increase (5%) in employment since the end of June 1994, when 8,422 persons were employed by private broadcasters. There has also been a shift in the type of employment with a 14% increase in full-time employment since June 1994.
SOURCES OF INCOME
Of the total income of $3,351 million during 1996-97, there were two main sources of income, each of which varied by type of business. Gross income from the sale of airtime of $2,365 million related almost entirely ($2,361 million) to commercial free-to-air businesses, which was an increase of 19% since 1993-94. The other major income source for the industry was subscriptions and membership fees of $311 million which related to the operations of pay television businesses.
EXPENDITURE
Total expenses for private broadcasters in the television services industry in 1996-97 was $3,675 million. The two major single items of expenditure were labour costs of $676 million and program rights/licence fees used and payment to channel providers of $803 million which accounted for 18% and 22% of total expenses, respectively.
PROFITABILITY
During 1996-97, private broadcasters in the television services industry recorded an operating loss of $324 million. The main reason for this loss was the pay television businesses which recorded an operating loss of $1,058 million for 1996-97. In contrast, commercial free-to-air businesses had an operating surplus of $734 million during the financial year, which represented an operating profit margin of 28.2%. This profit margin was a significant increase on the 17.7% operating profit margin recorded for commercial free-to-air broadcasters in 1993-94.
2.1 KEY AGGREGATES BY TYPE OF PRIVATE BROADCASTER
| Commercial free-to-air | Pay television | Community | Total |
| | | | |
| Businesses at end June (no.) | 34 | 7 | 7 | 48 |
| | | | |
| Employment at end June | | | | |
| Full-time (no.) | 5986 | 1810 | 24 | 7820 |
| Part-time (no.) | 772 | 275 | 6 | 1052 |
| Total (no.) | 6758 | 2085 | 30 | 8873 |
| | | | |
| Income | | | | |
| Gross income from the sale of airtime ($m) | 2361.0 | n.p. | n.p. | 2365.0 |
| Income from the provision of production services to other businesses ($m)(a) | 113.8 | n.a. | - | 128.2 |
| Subscription and membership fees ($m) | n.a. | 311.4 | - | 311.4 |
| Other income ($m) | 459.2 | n.p. | n.p. | 546.1 |
| Total ($m) | 2934.0 | 414.6 | 2.0 | 3350.7 |
| | | | |
| Expenses | | | | |
| Labour costs ($m) | 395.8 | 279.1 | 0.6 | 675.6 |
| Program rights/licence fees used and payments to channel providers ($m) | 553.5 | 249.2 | - | 802.7 |
| Interest ($m) | 130.1 | 104.5 | - | 234.7 |
| Depreciation and amortisation ($m) | 163.4 | 313.8 | 0.2 | 477.4 |
| Other expenses ($m) | 956.8 | 526.5 | 1.0 | 1484.3 |
| Total ($m) | 2199.7 | 1473.1 | 1.9 | 3674.6 |
| | | | |
| Operating surplus/loss ($m) | 734.3 | -1058.4 | 0.2 | -324.0 |
| | | | |
| Operating profit margin (%) | 28.2 | n.a. | n.a. | n.a. |
| | | | |
| Industry gross product ($m) | 1112.3 | -337.2 | 1.0 | 776.1 |
| (a) Income from the provision of production services to other businesses for pay television businesses, has been included in Other income. |
RADIO AND TELEVISION SERVICES - PUBLIC BROADCASTERS
At the end of June 1997, there were two public broadcasters which made an important contribution to the radio and television services industries during 1996-97.
These two broadcasters employed 5,248 persons at the end of June 1997, which was a 7% reduction in employment since the end of June 1994.
Government funding of $641 million accounted for 83% of the total income of public broadcasters during 1996-97. Since 1993-94, government funding to public broadcasters has decreased by 2%.
3.1 KEY AGGREGATES, HISTORICAL COMPARISONS
| 1993-94 | 1996-97 | Change |
| | | |
| Employment at end June | | | |
| Males (no.) | 3306 | 3024 | -8.5 |
| Females (no.) | 2361 | 2224 | -5.8 |
| Total (no.) | 5667 | 5248 | -7.4 |
| | | |
| Income | | | |
| Funding from government ($m) | 651.7 | 641.2 | -1.6 |
| Other income ($m) | 109.1 | 134.3 | 23.1 |
| Total ($m) | 760.8 | 775.6 | 1.9 |
| | | |
| Expenses | | | |
| Labour costs ($m) | 326.8 | 356.5 | 9.1 |
| Other expenses ($m) | 416.9 | 415.6 | -0.3 |
| Total ($m) | 743.7 | 772.1 | 3.8 |
| | | |
| Industry gross product ($m) | 369.6 | 394.8 | 6.8 |
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