Public broadcasters the ABC and SBS should fundamentally change the way they operate by charging for content, selling property, increasing advertising revenue and outsourcing production, according to the Lewis review commissioned by the government.



Dumping the ABC’s digital radio service is high on the list of options for saving money outlined in the confidential efficiency review commissioned by the communications minister, Malcolm Turnbull, in January.

Guardian Australia understands the blueprint, if implemented, would totally transform the way public broadcasting functions and would lead to the loss of hundreds of jobs, services and the relocation of SBS staff to ABC properties.

The Lewis review recommends charging a fee for iView, which would be the first time the ABC has charged the public for its services. Sources say after a free window, each download would attract a charge because it is costing the ABC every time someone watches a show on the catch-up TV service. The review also says SBS should merge its catch-up service with iView.

The review has also recommended abandoning plans for the new $90m ABC studios in Melbourne, which the previous Labor government committed to funding. However, construction is already underway and it would be a costly exercise to stop building now, sources say.

The Lewis review plan for a smaller ABC and SBS:

• Charge fees for iView

• Sell ABC studios in each state

• Sell SBS in Artarmon and move staff to Ultimo

• Dump digital radio channels

• Increase advertising on SBS

• Shutdown SBS in Melbourne and move staff to ABC

• Save $90m by not proceeding with new Melbourne studios

• Get out of internal production

The plan is not without risk for the government. Dumping digital radio would cause a political headache because many listeners have already invested in digital radio sets which are relatively expensive.

Allowing SBS to carry more advertising – which would require legislation – would also antagonise the commercial TV sector because the advertising market is already soft.

Some public broadcasting executives have labelled the review “lightweight” and said some of the initiatives would cost as much to implement as they would save.

For example, relocating SBS staff to the ABC’s studios in Ultimo in Sydney would result in an additional $50m from the sale of the Artarmon property but then would cost almost as much to move.

One source said the whole point of the review was about “shifting production out of the ABC into a different sector”.

The Community and Public Sector Union has warned that outsourcing all TV programs would lead to a bland public broadcaster and risked losing the ABC’s uniquely Australian identity.

But the Screen Producers Australia’s executive director, Matthew Deaner, disputed the CPSU claims.

“All ABC comedy and drama is outsourced to the independent production sector,” Deamer said on Tuesday.

“We’ve seen landmark and hugely successful programs – both in audience and critical terms – such as the various Chris Lilley comedy series, Shaun Micallef’s Mad as Hell, The Slap, Old School, Miss Fisher’s Murder Mysteries, The Dr Blake Series, Janet King, Nowhere Boys, Dance Academy and numerous more lauded programs made by independent producers.”

The ABC has a hybrid model of internal and external TV production but the level of internal production has fallen dramatically in the past five years.

All ABC news and current affairs would still be made in-house and produced in ABC studios.

Turnbull said on Tuesday the Lewis review identified “very substantial savings that can be achieved from back-office matters, administration, use of properties and so forth.

“The review’s terms of reference, as you know, were focused on the back of house and there is plenty that can be saved there. In the review it considered using facilities, someone else’s studio, someone else’s equipment, rather than having to own all those properties yourself.”