Changes to the sports anti-siphoning list - which determines which major sporting events must be shown on free to air TV - are not included in the package, a blow to pay TV provider Foxtel and its co-owner News Corp. Communications Minister Mitch Fifield took the reforms to cabinet. Multiple sources present commented on the crispness of his shirt. Credit:Wayne Taylor Any changes to anti-siphoning, if the government decides to introduce them, will be made at a later date. The reach rule currently prohibits television networks from broadcasting to more than 75 per cent of the population. The two out of three rule bans media proprietors from controlling a newspaper, television and radio station in the same market. Scrapping the two out of three rule is the more controversial change because of concerns about media diversity. Labor MPs are concerned about the change because it could allow a proprietor such as Rupert Murdoch to extend his control in major markets.

Removing two out of three would allow, for example, Fairfax Media to merge with the Nine Network. The reforms will transform the media landscape in Australia. As part of the arrangements to scrap the reach rule, new laws will be put in place to protect local content in regional areas. Tougher protections for regional content - based on expanding the current "points system" for local content - were demanded by the Nationals as part of the negotiations. The new laws will only come into effect after a "trigger event" - that is, for example, if a regional broadcaster such as WIN was acquired by the Nine Network. A spokesman for Labor's communications spokesman Jason Clare said Labor would not make a decision on its position until the government presents legislation.

It is understood Labor would vote in support of scrapping the reach rule, but would refer changes to two out of three to a Senate committee which would delay the process. Fairfax Media understands Senator Fifield only wants to introduce reforms that will win the support of the Parliament. News Corp Australasia executive chairman Michael Miller said: "We are disappointed that, despite the broad recognition that Australia's media laws are outdated, the government is proposing that only the reach and two out of three rules be changed.



"The fact that broader media reform issues such as the anti-siphoning regime are not part of the proposal makes it difficult to accept this as genuine media reform." A Fairfax Media spokesperson said: "Fairfax has consistently supported media law reform and welcomes cabinet's decision to remove outdated restrictions in the present legislation." Regional broadcasters Prime and WIN also applauded the decision.

"It's encouraging to hear that the government is moving forward on the removal of these outdated pieces of legislation," WIN chief executive Andrew Lancaster said. "Regional broadcasters are being made to compete with companies and new technology that aren't constrained by these old laws. The quicker they are removed the better." Prime Media chief executive Ian Audsley said the current laws were "outdated" and needed to be rapidly repealed. Andrew Maiden, chief executive of the Australian Subscription Television and Radio Association (ASTRA), said the pay television sector was disappointed by the lack of action on anti-siphoning. "Today most Australian households pay for screen content and streaming services can legally hoover up sports rights, meaning the rationale for the anti-siphoning scheme is much diminished," he said. "We look forward to further reform that reflects this reality."