Who's really backing Newscorp's Back Australia campaign? | Media Watch

Key Concepts

• Back Australia Campaign: A News Corp-led initiative promoting the purchase of Australian-made products to boost the local economy and jobs.
• Economic Impact of Buying Local: The campaign claims that a shift in spending habits could add $16 billion to the Australian economy.
• News Corp's Business Model: The video suggests the "Back Australia" campaign is partly a "mega money spinner" to address News Corp's declining financial performance.
• Critique of "Back Australia": The campaign is criticized for overlooking modern economic principles, promoting a romanticized view of manufacturing, and featuring sponsors with reputational issues.
• Corporate Tax Avoidance: News Corp and Vodafone are highlighted for not paying corporate income tax in Australia for a significant period.
• Artificial Intelligence (AI) in Media: Southern Cross Austereo (SCA) is implementing AI to automate news production, reduce staff, and generate content, including synthetic voices.
• Broadcasting Services Act: This legislation mandates regional radio stations to broadcast a minimum amount of local news, which SCA views as a burden.
• Network 10's "10 News Plus": An underperforming current affairs program that is being shortened from one hour to 30 minutes due to low viewership.
• Challenges in Current Affairs Broadcasting: The difficulty of competing with established news bulletins and the financial pressures on media organizations.

"Back Australia" Campaign: A Call for Local Spending

The "Back Australia" campaign, spearheaded by News Corp's capital city tabloids, is urging Australians to shift their spending habits towards locally produced goods. The campaign posits that such a shift could inject an additional $16 billion into the Australian economy, thereby supporting local jobs and industries. News Corp personality Joe Hildebrand has been a prominent advocate, appearing on various media platforms to promote the initiative. The campaign has been supported by a range of companies, including retailers, boot fitters, and Westpac, with Westpac providing statistical data.

Key Arguments and Supporting Evidence:

• Economic Boost: The central claim is that buying Australian-made products can generate an extra $16 billion for the economy.
• National Security and Sovereignty: Joe Hildebrand argues that a strong domestic manufacturing sector is crucial not only for economic reasons but also for national security and sovereignty.
• Prominent Supporters: The campaign features figures like Andrew Forrest (Twiggy Forest), Harvey Norman boss Katie Page, and Dick Smith, though their involvement is questioned by some financial press due to their business dealings.
• News Corp's Motivation: The Australian Financial Review and Media Watch suggest that the campaign serves as a significant revenue-generating opportunity for News Corp, which has been experiencing financial difficulties, including a $27 million after-tax loss in its latest financial results.

Criticisms and Counterarguments:

• Economic Realism: Critics, including economists interviewed by Media Watch, argue that the campaign overlooks modern economic principles, such as the importance of innovation, competition, and openness. They contend that romanticizing outdated industries is not the path to Australia's economic future.
• Cost of Living: The economic reality of the cost of living is presented as a significant barrier, with the "warm inner glow" of buying local potentially diminishing when personal finances are strained.
• Sponsor Scrutiny: The campaign has been criticized for providing a "glowing halo" to sponsors who have faced reputational issues, including Qantas (illegal sacking), Westpac (alleged insider trading), and Coles (underpayment of staff).
• Global Nature of Sponsors: The campaign's message is further complicated by the fact that some prominent sponsors, like Cadbury (owned by Mondelēz) and Vodafone, are multinational corporations. Even News Corporation itself is an American company headquartered in Manhattan, despite its Australian origins.
• Tax Contributions: A significant point of contention is that neither News Corp nor Vodafone has paid corporate income tax in Australia for nearly a decade, raising questions about their commitment to funding public services.
• News Corp's Response: A spokesperson for News Corp stated that "Back Australia" advocates for governments to implement correct policy settings to foster investment and innovation, rather than a simplistic resurrection of all manufacturing. 7 News claimed its involvement was purely editorial and not sponsored.

Southern Cross Austereo (SCA) and the Rise of AI in News

Southern Cross Austereo (SCA), a major regional media company, is increasingly relying on artificial intelligence (AI) to produce local news bulletins, leading to significant staff reductions. Newsreaders are now voicing multiple bulletins across different regions, often from a central location, with AI tools assisting in content generation and scripting.

Key Developments and Processes:

• Consolidated Newsreading: A single newsreader, Tessa Randello, was found to have voiced as many as 39 bulletins across four regions in a single day.
• AI-Powered Content Generation: SCA is using AI to scrape local news from the internet, compile bulletins, and write stories. Staff are expected to check and edit AI-generated content.
• Synthetic Voices: The company is also utilizing AI to create synthetic voices, including a digital clone of newsreader Amy Goggin's voice for weather reports.
• Cost-Cutting Measure: The implementation of AI is explicitly linked to reducing labor costs, with SCA executives viewing it as a "secret weapon" against rising expenses.
• Legal Mandate for Local News: SCA's regional radio stations are legally required by the Broadcasting Services Act to broadcast at least 62.5 minutes of local news per week. This mandate is seen as a burden that the company is seeking to automate.
• AI Investment: SCA has invested in AI companies, including Source AI, Frequency, and Sonnet, indicating a long-term strategy towards AI integration.
• Future AI Aspirations: SCA plans to use AI for podcast creation and to clone the voices of talent for various purposes, including last-minute changes or holiday cover.

Concerns and Criticisms:

• Job Losses: The AI rollout has resulted in significant headcount reductions across SCA's brands.
• Trust and Authenticity: Insiders express distrust in the AI's accuracy and worry about potential breaches of copyright and defamation.
• Devaluation of Journalism: Critics argue that relying on AI and synthetic voices undermines the role of trained journalists and could lead to an "information apocalypse" where trust in news is eroded.
• Lack of Genuine Local Connection: Despite the company's assurances, insiders suggest that SCA's primary motivation is cost-saving, with little regard for the quality or authenticity of local news delivery. Chief Operating Officer Steven Hadad reportedly stated that the company only produces news because it is legally required to.

Network 10's "10 News Plus": A Struggling Current Affairs Experiment

Network 10's current affairs program, "10 News Plus," has struggled to gain traction since its launch, leading to a significant reduction in its broadcast duration.

Program Performance and Changes:

• Reduced Airtime: The program will be trimmed from one hour to 30 minutes as part of Network 10's 2026 lineup overhaul.
• Low Viewership: In its first week, "10 News Plus" averaged only 211,000 viewers nationally, which dwindled to 149,000 within four weeks. This is significantly lower than the combined viewership of its main competitors, Seven and Nine, which attract over 2 million viewers.
• Criticism and Sledging: The program has faced criticism for its poor ratings and was even "sledged" by a panelist on "The Project," the show it replaced.
• "The Project" Cancellation: "The Project" was axed due to the cost of its external production company and high presenter salaries. Network 10's boss, Beverly McGavigan, approved the half-hour "10 News Plus" proposal, but insisted it be extended to 60 minutes without additional resources, contributing to its struggles.

Perspectives on the Program:

• Original Intent: "10 News Plus" was intended to be a return to basics in current affairs, focusing on in-depth reporting and asking tough questions. Hosts Amelia Brace and Denim Hitchcock were poached from Seven to lead the program.
• Challenges of Competition: The program's struggles are attributed to its inability to compete with the established 6 p.m. news bulletins on Seven and Nine.
• Network Identity: The 10 network is generally associated with light entertainment, making "10 News Plus" a departure from its core identity.
• Online Audience Growth: Network 10's news boss, Martin White, highlighted the program's growing online audience and stated that a half-hour slot would better suit its "core DNA."
• Call for Support: Media economist Peter Cox suggested that networks should no longer be required to provide a news service as part of their broadcasting license, advocating for "10 News" to be dropped entirely. However, the video's presenters express disagreement with this sentiment, emphasizing the need for more serious journalists.

Conclusion:

The video presents a critical examination of two distinct trends in the Australian media landscape. The "Back Australia" campaign, while ostensibly promoting local industry, is portrayed as a financially motivated initiative by News Corp that overlooks fundamental economic principles and features questionable sponsors. Simultaneously, Southern Cross Austereo's aggressive adoption of AI in news production highlights a drive for cost reduction at the expense of journalistic integrity and human employment. Network 10's "10 News Plus" exemplifies the challenges of launching and sustaining current affairs programming in a competitive and financially constrained media environment. The overarching theme is the increasing pressure on traditional media businesses to adapt, often through controversial means, in the face of declining revenues and evolving audience habits.