A review into Australia's media industry has recommended sweeping changes to the sector's regulatory oversight and has proposed changes to ownership rules that include the introduction of a new public interest test.

Existing rules that limit a company owning two out of three dominant platforms in the same market should be abolished and replaced with a "minimum number of owners rule" the review said.

Easing those cross-ownership restrictions on television, newspaper and radio could pave the way for further consolidation in the industry.

The review recommends that the new statutory regulator should be set up to oversee ownership rules with the power to block proposed transactions not deemed to be in the public interest. That regulator should also ensure local content quotas are met and an industry-led body should also be established to oversee journalism standards for news and commentary, it said.

"A concentration of services in the hands of a small number of operators can hinder the free flow of news, commentary and debate in a democratic society," the 177-page report by the Convergence Review Committee said.

"Media ownership and control rules are vital to ensure that a diversity of news and commentary is maintained," it said.

A rapidly changing media environment and consolidation in the sector prompted the government to set up the Convergence Review in early 2011 to examine the operation of media and communications regulation. Its findings will now be considered by communications minister Stephen Conroy.

"I expect the recommendations will generate robust public debate," said Conroy.

Australia's media sector is dominated by a handful of large companies including Fairfax Media Ltd. (FXJ.AU), Ten Network Holdings Ltd. (TEN.AU) and Nine Entertainment Co. and News Corp.'s (NWS) Australia unit, News Ltd.

News Corp. owns Dow Jones & Co., publisher of this newswire and The Wall Street Journal. In Australia it owns The Daily Telegraph and The Australian newspapers among other publications and media properties.

The review also wants the government to adopt a market-based approach to pricing broadcast spectrum, similar to practises already in use for other radio communications spectrum.

Adopting measures to protect children from inappropriate content is also among the report's findings.

-By Enda Curran, Dow Jones Newswires; 61-2-8272-4687; enda.curran@dowjones.com

Ten Network Holdings (ASX:TEN)
Historical Stock Chart
From Apr 2024 to May 2024 Click Here for more Ten Network Holdings Charts.
Ten Network Holdings (ASX:TEN)
Historical Stock Chart
From May 2023 to May 2024 Click Here for more Ten Network Holdings Charts.