The decision earlier this year by the Federal Government to give the major commercial TV networks a $250 million rebate on their licence fees to help fund their Australian content, has been exposed as a complete crock by the latest six month ad revenue figures, and a statement last Friday by ACMA, the broadcast media regulator.

Free TV Australia said today that January to June ad revenues jumped by 17.7% nationally, nearly 19% in the metro markets and by a more sedate 14.2% in regional areas.

The increases are some of the largest in memory, especially the surge in the five metro markets. Sydney revenue was up 20.4%, Melbourne by 20.59%.

Revenue for the half was $1.821 million nationally, compared with $1.546 billion in the first half of 2009.

In metro areas, revenues were $1.392 billion, against $1.171 billion in the six months to June 2009. Regional revenues for the first half of 2010 came in at $428.9 million, compared with $375.4 million a year ago.

The rises mean that the industry’s revenues will be significantly higher, thus increasing the size of the rebate announced earlier this year.

That was estimated to cost the Federal Government around $250 million, but if the near 20% rise in revenues are maintained into 2011, then the final figure will be closer to $300 million. By any measure the fortunes of the heavily indebted Seven and Nine Networks have taken a turn for the better (and for their management, who are shareholders or equity participants in the owning companies).

And yet it was only in early February of this year when Communications Minister Stephen Conroy revealed he’d taken the bait from the FTA networks and given them a belated Christmas present, or was it an early Budget gift?

“Licence fee rebates will be 33% in 2010 and 50% in 2011 to ensure that commercial broadcasters can continue to invest in new Australian content. According to the Australian Communications and Media Authority, Television Licence fees were $286.8 million in 2008-09,” the minister’s statement read.

“The Government will protect Australian content on commercial television by offering licence fee rebates to broadcasters in 2010 and 2011,”  Conroy announced:

“Senator Conroy said the rebate recognised the importance of the Australian Content Standard in ensuring TV audiences have strong levels of Australian programs.

“The rebate is also in recognition of the current level of licence fees in Australia compared with other countries such as the US, UK and Canada, and the new technology and commercial challenges facing the sector, including the switch to digital television.

“The Australian Content Standard requires commercial television broadcasters to produce and screen Australian content, including 55 per cent of transmission between 6am and midnight, 7 days per week, and provides for the production of Australian drama and children’s programming.”

That’s a load of codswallop because last Friday as this statement from ACMA revealed that the commercial networks had no trouble in meeting those Australian content requirements in the year to June, 2009:

“All metropolitan and regional commercial television licensees exceeded the requirements of the Australian Content Standard and Children’s Television Standards in 2009, according to figures released today by the Australian Communications and Media Authority.

“In 2009, Seven Network licensees in the five mainland state capital cities broadcast around 65 per cent Australian content while Network Ten licensees averaged 57 per cent. Nine Network licensees in the three metropolitan markets of Sydney, Melbourne and Brisbane broadcast more than 62 per cent Australian content. In addition, all regional licensees broadcast more than 55 per cent Australian content in 2009.

“The metropolitan networks each exceeded the annual quota of 20 hours for first release Australian documentaries, with Seven broadcasting more than 113 hours, Nine Network 47 hours and Network Ten 38 hours.

“The metropolitan networks also exceeded the annual requirement of 250 points for airing first release Australian drama programs during the year. Seven Network licensees averaged 387 points, Nine Network licensees averaged 300 points, while Network Ten licensees scored 265 points.

“The metropolitan and regional licensees also met all the quota requirements for children’s programs in 2009.”

The 12 months to June 2009 saw all three major commercial networks and some of the regionals operate at or below break even. After their interest bills and other payments are accounted for, the sector lost money, and yet they found money to make sure they met their content quotas.

Tony Abbott has not said whether he will take away the $250 million plus gift from the networks bestowed on them by the government.