How would you characterise the main difference between commercial and community stations? You might say that while one goes all out to make a profit, the other is supposed to go all out not to. Simple enough, you would think. Yet given two news stories last week – first that one in five commercial stations made a loss last year and second that some community stations made too much profit – it seems that some operators are finding it difficult to get the desired result in their respective sectors. Maybe they should consider switching from community to commercial and vice versa.
Last week the ACMA released new draft guidelines for community stations on how not to make a profit. Profit, after all, is unbecoming a not-for-profit organisation.
It’s not hard to understand the ACMA’s purpose in all this. First they want to ensure that community licenses don’t encroach on commercial interests. Secondly they want to ensure that individuals don’t rort the system for personal gain and third they want community stations to remain true to their charter and work for the good of the community and not for the good of a balance sheet.
The ACMA draft states, “The licensee can use the broadcasting service to generate revenue in accordance with the Act, and can have a modest surplus so long as such surplus is used for the continued operation of the broadcasting service and is not distributed for personal use among persons who are involved in the management or operation of the broadcasting service.”
Fine, but what is a “modest” surplus?
While the ACMA draft is precise in many areas, it is vague in others, particularly those dealing with how much money a station can make and how much individuals can make as well as how many individuals can make it.
Maybe a salary cap is what is required. Perhaps an audience cap too.
As much as they may discount it or deny it, many community operators see popularity with listeners and the potential revenue that naturally follows as a mark of success. The ABC also actively pursues popularity, but it is provided with the bulk of its funding from the government. Meanwhile the community sector must raise its money from the locals while competing with commercial stations for revenue.
It seems like a recipe for mediocrity, if not failure. Yet, some community station operators can’t produce a loss if they try and have trouble keeping profits low.
Should they be applauded, re-educated or hired by the commercial sector?