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The Guardian - AU
The Guardian - AU
Business
Amanda Meade

ABC should partner with Netflix to raise revenue, says Michelle Guthrie

Kate McLennan and Kate McCartney in the ABC’s cooking show parody series the Katering Show
Kate McLennan and Kate McCartney in the ABC’s cooking show parody series the Katering Show, which has been a hit on iView. Michelle Guthrie says consumers should be able to find ABC content on Netflix and other third-party platforms. Photograph: ABC

The ABC must partner with third-party platforms such as Netflix to ensure its programs are seen by more people and earn more revenue, the ABC managing director, Michelle Guthrie, has said in her first major speech.

“The idea that the customer has to come and find you and must play solely within your boundaries is now obsolete,” Guthrie said. “Consumers want a seamless, networked universe.

“If they go to Netflix, why shouldn’t they find ABC content?

“Or if they go to a Fairfax or News Corp site, for example, why can’t they log in with Facebook?”

The ABC had proved historically that it was nimble and innovative – in surviving the introduction of television in the 1950s and the internet in the 1990s – and it could do so again, she said.

“We know that many of the new platforms are anxious to access ABC creativity – we have a trusted brand, provide compelling services and programs across a range of genres and an agility to match output with platforms,” she told the Australian’s Creative Country conference on Thursday.

The first female managing director of the national broadcaster said as budgets from government and revenue from retail were shrinking it was more important to find new revenue streams in order to make more content.

“In this space, distribution matters a lot less than content,” she said. “As I have stressed to our ABC content makers, this is where the ABC must press home its comparative advantage – providing compelling programming that connects with audiences.”

But, she assured audiences, they would always be able to see and hear ABC content for free on ABC platforms first and any partnerships would comply with the charter.

After three months in the job Guthrie says she has consulted widely with staff and she now believes the ABC must be ready to adapt to change in order to serve the audience’s needs in the rapidly changing environment. She signalled staff may be in for a shake-up in work practices and content delivery.

While the ABC had not suffered the “savage downsizing” of other media companies, it was not a “safe haven” to work in and had lost 10% of its workforce in the past few years, she said.

The former Singapore-based Google executive revealed the ABC’s approval rating remained high: 86% of the community believe the ABC provides a valuable service to the community.

Conducted by OmniPoll, the independent poll shows that 49% of people questioned rate the ABC overall as “very valuable”, the highest figure since 2009.

“Importantly, the community believes the ABC far outstrips commercial media in the provision of news and information outside the major population centres,” Guthrie said. “And that the ABC is doing a good job delivering on its charter commitments.”

The media executive and former lawyer said change was extremely difficult because legacy media business models still provided the majority of revenue.

“Australians value the ABC,” she said. “We know this because every year the ABC undertakes an independent poll of public sentiment and – consistently – it shows that more than 80% of the population believe that the national broadcaster provides a valuable service to society.”

Guthrie said her blueprint included “harnessing Australian culture, empowering a workforce open to change and innovation”.

She used iView and ABC Online as examples of ABC innovation.

She again raised the idea that the ABC should be more culturally and ethnically diverse in its workforce and on screen. Guthrie said 28% of Australians were born overseas and “an additional 20% are, like me, second-generation Australians” and the ABC screens must reflect that.

“Over time, you will see or hear from many more like [gardener] Costa Georgiadis, [newsreader] Jeremy Fernandez, [veteran ABC sports broadcaster and Gurindji man] Charlie King, [RN host] Patricia Karvelas, [newsreader] Kumi Taguchi, [finance presenter] Del Irani and [local radio presenter] Christine Anu.”

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