#ABCKids

Your ABC – shocking inefficiency created by demotivated staff

While it might seem like another beat up on the ABC, we need to take a long hard look at how it operates. How is it TVNZ can operate as a self funded government entity which collects a currency adjusted 1/4 the ABC’s revenue on 1/8th staff? How many people actually understand their ABC?

Salary increases and budget increases have a 90.34% R-squared correlation meaning that budget increases tend to lead to paying higher salaries.

While some may talk about “good” content, sadly ABC’s ratings have slid considerably for over a decade in regional and metro areas. TVNZ’s have risen. So hard core left has the ABC shifted that it has created a narrower audience. The MD openly stated that if Australians wanted to protect the ABC they shouldn’t vote LNP. So much for respecting its charter which bans political bias.

TVNZ must cater to the free market for advertising dollars therefore content must meet the audience needs. It’s simple. ABC should follow suit.

Throwing more money at the ABC has not solved ratings problems. One guesses that diverting more tax dollars at kids programs that disparage white privilege, comedy shows that openly call conservative politicians “c*nts” during by-elections and producers that allows indigenous comedians to defecate on a white woman probably has a very narrow audience. Content IS the problem.

Look at The Guardian as case in point of journalism that fails to address market needs. It is free and in recent years gone cap in hand for donations because its user base aren’t prepared to stump up cash to support it. Do we need a public broadcaster to subsidize views of the left? The Guardian is simply competing in the “same” area as the ABC. ABC starves The Guardian of oxygen because we as taxpayers fully fund it. The ABC crowds out left leaning media.

Look no further than CNN. It has doubled, even trebled down on its unhinged bias. The ratings have plummeted. Fox on the other hand has risen. Whether one likes the content of Fox is irrelevant. Advertisers go there because the reach is self evident.

Moan all you want about Murdoch. His users pay and the ratings are up. Don’t shoot him if his product sells. Try self reflection. The Sydney Morning Herald tried to tell users its product was worth subscribing to. Unfortunately it ignored slumping readership and ended up being acquired by Nine Network. If you don’t cater to your audience, they won’t support you.

Staff levels at the ABC have never been higher. Ratings never been lower. Lifting the budget hasn’t caused any change. Cutting dollars will cause much needed restructuring. It is like feeding a dying patient with more morphine hoping to numb the pain. Unfortunately the body grows resistance to that. ABC staff feel this.

In the 2018 annual report, the ABC staff survey revealed engagement is at 46%, 6% below the previous survey. This puts in the bottom quartile of all ANZ businesses. #Reform desperately needed.

ABC staff complained that management doesn’t do enough to get rid of under-performers. Another clear signal that state-sponsored mediocrity is tolerated.

The culture of the organization won’t be turned around by management unless it is given a reality check of being rapidly withdrawn from the taxpayer teat. That way the c.70% of staff dedicated to content can finally listen to what the broader public want to consume rather than the echo chamber they live in. By the way, those who love the ABC needn’t worry. The limited number of good programs will stay if the audiences demand them. The unhinged radical left programming can be cut with little loss to anyone with a modicum of intelligence.

Your ABC vs Jacinda’s TVNZ

If you want to look at why the ABC doesn’t need more money, look at the staff costs to income ratio. Despite plateauing between 2008 & 2011 it quickly exploded. It now sits at 46% of income generated. That is $524mn on staff costs per year and rising. 4,939 staff grace the ABC. Revenue per employee is $232,000. A decade ago it was $232,700. Is that what the management target for hiring? Give the ABC $2bn and presumably it will have employment costs of $1bn.

Channel 9 must fight hard for every advertising penny but still manages a 29.1% staff cost to revenue ratio. $380m in staff costs on $1.3bn revenue. 3,310 employees converts to $392,750 revenue per staff member.

Sevenwest Media raked in $1.62bn in revenue on staff costs of $395mn or 24%. Same cutthroat world of earning a living instead of expecting one. Seven West has 4,528 staff meaning it generates $357,800 in revenue per employee.

Maybe ABC should channel the New Zealand state broadcaster, TVNZ. It gets $310m of its $318m purse from advertising. It’s staff costs excluding capitalizing into programs is $72m which converts to 23% staff cost/revenues. They do with 642 FT employees. Revenue/employee is $495,000. It paid a dividend back to the government of $3.7m. i.e. it is a revenue generating asset.

In 2007, TVNZ had $339m in revenue. It employed 1,023 people. Therefore revenue per employee was $331,380. So in a decade, TVNZ efficiency improved almost 50%. A 6% cut to revenue on 63% of the staff.

Instead of the long term ratings slide at the ABC across metro and regional Australia, TVNZ’s figures keep improving. Last year, TVNZ had a 43.2% all day audience up 1.3%.

Comparing 2017/18 and 2015/16 at the ABC we see that TV audience reach for metro fell from 55.2% to 49.7% and regional slumped from 60.3% to 54.0%. If we go back to 2007/8 the figures were 60.1% and 62.4% respectively. For the 2017/18 period, the ABC targets 50% reach. Hardly a stretch.

Maybe ScoMo should consider that the ABC compete and become self funding? The New Zealanders aren’t just better than us in rugby union but also in media.

No bias at the ABC?

CM can absolutely guarantee there is no bias at the national broadcaster, ABC. This ABC Kids program seals the verdict. Note the above link won’t allow it to be played on this website. The link in the previous sentence will.