ABC rule changes: storm in a teacup

Totally overlooked

What appears to have been totally overlooked is that the figures provided have always been transparent and this will not change.

These are the facts:

The ‘50% rule' has been under discussion for more than a year, given that the cut-off point of 50% of the cover price was a fundamental tenet of ABC paid circulation for newspapers. However, a member raised the concern, backed by legal opinion, that the 50% rule might contravene the Competition Act.

Further legal opinions were sought by the ABC, as well as by other members, which gave contrary views. The ABC then decided to meet with the Competition Commission, stating the reasons for only allowing paid circulation for newspapers at 50% or more of the cover price.

Investigation

Its view was that sales at 50% and above as well as below 50% of the cover price should be reflected, and the user should then decide which figures were relevant. Nevertheless, the commission indicated that an investigation into the matter could be undertaken.

The debate was put forward to Print Media SA, which proposed that sales below 50% of the cover price should be included in circulation figures. The ABC Board agreed to implement the proposal to avoid a possible contravention of the Competition Act.

It is important to note that sales of newspapers below 50% will be shown separately on the ABC certificates and reports. The marketing and advertising representatives on the ABC Board have made it clear that their concern is only in core circulation numbers, which excludes a number of other categories of circulation shown in the ABC report. There is no attempt being made by the print industry to obfuscate the figures nor would the ABC be a party to such attempt.

Reviewed in 12 months

What has not been made clear in any of the debate is that the matter will be reviewed in 12 months time after the impact of this rule change on the circulation data has been further assessed.

Since 2006, the ABC has, in the interests of transparency, gone to great lengths to provide meaningful circulation data. It provides a full breakdown of all the classes of circulation, which was not the case in the past. It is up to the user to decide which classes of circulation are relevant.