No facts? No problem: How the media spins a story regardless of details | Media Watch

Key Concepts Media Consolidation, 7 West Media, Southern Cross Media, Kerry Stokes, Media Mogul, Seven Network, The West Australian, AFL Broadcast Rights, Misinformation, Social Media Algorithms, Voluntary Code of Conduct, Celebrity Journalism, Innuendo, Journalism Ethics.

Australian Media Shakeup: 7 West Media, Southern Cross Merger, and Kerry Stokes' Departure

The program begins by detailing a significant proposed merger between Channel 7's parent company, 7 West Media, and Southern Cross Media, Australia's largest radio broadcaster. This deal is described as one of the biggest media shakeups in Australia for years, welcomed by markets and seen by analysts as "upsizing to survive" against the challenges posed by big tech and streaming platforms. The merger aims to create a $420 million player to rival Nine Entertainment, incorporating a national television network, Western Australia's only metro newspaper (The West Australian), and over 100 radio stations. Significant hope is pinned on securing AFL broadcast rights and the growth of Southern Cross Media's audio platform, Listener.

The merger also marks the end of an era, as billionaire Kerry Stokes will step down as Seven's chairman in February, after guiding the company for decades. His interest in the new merged entity will be halved to just 20%.

The Legacy of Kerry Stokes: Kerry Stokes' background is highlighted as one of overcoming adversity; he was adopted as a toddler, dropped out of school at 14, and had a difficult youth before becoming a successful property developer. He entered the media industry in the 1970s and 80s, eventually seizing the Seven Network, driven by ambitions to be involved in a national network and taking advantage of market "confusion." Under his leadership, Seven rose to become the nation's top-rating network in 2007, surpassing Channel 9, partly due to the success of "Sunrise" and securing AFL broadcast rights. He also built a stake in Perth's only major metro newspaper, The West Australian.

After consolidating his media assets into Seven West Media in 2011, his $4 billion media empire afforded him extraordinary influence, evidenced by his close relationship with a former WA premier and an exemption from mandatory COVID quarantine on medical grounds.

Decline and Controversies: The program notes that the "sun is rapidly setting on the era of the Australian media mogul" due to the internet, streaming services, and social media siphoning advertising revenue. Stokes' $4 billion media play has "steadily winnowing," with the company now worth less than 6% of that figure, having jettisoned magazines and radio stations. Earnings per share have halved multiple times, and no dividend has been paid since Donald Trump's first presidency.

The reputations of Seven and Kerry Stokes have also been "dented by recent controversies":

• The "tory manner" in which Seven secured an interview with Bruce Lehrmann, who was later designated a rapist by a civil court, involving lavish incentives like 12 months of free rent, a $361 tomahawk steak, and Thai massages.
• The bankrolling of Ben Roberts-Smith's unsuccessful defamation campaign against journalism, which ultimately proved him "less war hero than war criminal," costing Stokes "a small fortune." The program questions this, stating, "This is a media proprietor who should believe in journalism. Yet, he was waging a huge war against investigative journalism."

Merger as an Exit Strategy: The merger is presented as an "aging Kerry Stokes exit ramp from Frontline Media ownership," a "timely and financially influenced managed retreat." It may also offer an "escape" for his son Ryan Stokes, despite Ryan's public commitment to media. The program suggests, "Ryan is no Lachlan Murdoch who has ink in his veins. The media baronship of the Stokes family is likely to begin and end with Kerry." The merger terms may also provide Seven Group Holdings (which holds the majority of the $20 billion Stokes fortune) with a tax credit potentially worth hundreds of millions of dollars.

The likely consequences of the merger include the "culling of another tier of journalists," with $30 million already flagged for cuts, and a further tightening of Australia's already concentrated media market.

The Misinformation Epidemic and Tech Giants' Retreat

The discussion shifts to the pervasive issue of online misinformation, exemplified by a bogus "night driving curfew for drivers aged 60 and over" that supposedly came into force. This fake news generated significant public outrage, with one Facebook user stating, "This government is fooked, rotten to its core and needs to be dissolved." The Federal Transport Minister had to publicly deny the policy, stating, "We will never introduce a curfew for drivers over 60 years of age."

The program highlights how "serious journalism and foundational facts" are being dislodged by "urban myth and culture war prop" across the internet, citing other examples like claims about Trump, fruit consumption, and terrorist groups having embassies.

Tech Giants' Inaction: Despite sometimes labeling false information and removing dubious material, social media giants like Google and Meta are criticized for proposing to "weaken further their own voluntary code of conduct," which is already described as "threadbare" and "a joke." A new discussion paper even questions "whether misinformation should remain within the code scope," suggesting that discussion about misinformation might be "generating misinformation alarmism," which "can lower people's trust in media and journalism." The program sarcastically retorts, "Yes, it's our anxiety that's the real problem."

Last year, the federal government's attempt to legislate penalties against social media platforms (fines up to 5% of global revenue) for unchecked misinformation failed to garner support from the coalition and Greens. The industry body, while assuring it does much to protect Australians, continues to be guided by public consultation. The segment concludes by urging greater accountability from tech companies, as "real journalism and trust sinking below the surface."

The Theatre of Celebrity Journalism: The Urban-Kidman "Split"

The final segment critiques the nature of celebrity reporting, using the alleged separation of Keith Urban and Nicole Kidman as a case study. "Breaking news" of their split, originating from TMZ, swiftly dominated breakfast television and other news outlets, despite a lack of concrete evidence. The initial report claimed Nicole "didn't want this" and Keith had "moved out."

Fabricating Content from Scarcity: With "not a scaric of further intel from tight-lipped publicists," gossip writers and reporters resorted to various methods to keep the story alive:

• Geographic angles: Discussing the couple's apartments in Sydney.
• Lyric analysis: Interpreting a changed lyric in Keith Urban's song "The Fighter" to imply a new girlfriend named "Maggie."
• Retrospective "insights": An interviewer from a year prior claiming Urban was "sick of being asked about his much more famous wife."
• Misleading headlines: The Daily Telegraph promised a "major scoop" with "Sunday Rose breaks her silence," which turned out to be the couple's daughter posting a catwalk clip with "jadior heart emoji."
• Meaningless quotes: A friend of the couple stating, "I have nothing to add to this story."

The Daily Mail is singled out for publishing "almost 200 articles and slices of social media," where even silence was deemed "sufficient substantiation to press publish," such as an "exclusive" with Keith's mother offering a "no comment." The reporting also featured a "frankly sexist churn of reports," with headlines like "Nicole Kidman went from besotted wife to a rigid ragd doll. She acted like his mother. Bottomless need for sexual attention led to the end of her marriage."

The program concludes by highlighting that celebrity reporting operates under "its own set of rules by the public where innuendo serves as evidence and scuttlebutt for substance," and stresses the importance of "never confuse any of this scandalizing with actual journalism."

Conclusion

The Media Watch episode paints a stark picture of the evolving media landscape, characterized by increasing consolidation in traditional media, the decline of powerful media dynasties, and the pervasive challenges posed by online misinformation. It critiques the retreat of tech giants from policing false information and lambasts the sensationalist, fact-deficient nature of celebrity journalism. The overarching theme is a concern for the future of genuine, investigative journalism and the erosion of public trust in media, urging a demand for greater accountability from those who govern public discourse.