ACCC will not oppose Adstream’s proposed acquisition of Dubsat

29 September 2016

The Australian Competition and Consumer Commission will not oppose Adstream Pty Ltd’s proposed acquisition of Dubsat Pty Ltd.

The ACCC’s review focused on Adstream’s and Dubsat’s overlap in the electronic delivery of advertising content to print publishers, television broadcasters, and radio stations. In particular, it considered the impact of the transaction on magazines and brands that do national or large-scale print advertising. 

“Some market participants raised concerns that the acquisition would remove the only alternative third-party supplier of print advertising delivery services, which could lead to higher prices,” ACCC Commissioner Roger Featherston said.

However, the ACCC found that the majority of print advertising is already delivered directly to publishers without using the services of Adstream or Dubsat. In particular, advertisers and advertising agencies deliver content directly to publishers through online portals, including those already developed by Fairfax, News Corporation and other publishers. These portals and other forms of direct delivery represent an increasing competitive threat to Adstream and Dubsat. 

“Adstream and Dubsat are also part of a dynamic industry where the options for direct delivery are likely to further improve with technological advancements,” Mr Featherston said.

“The ACCC took into account the changes affecting the print advertising industry and its decline. We believe most publishers will be receptive to advertising content being delivered by direct methods if brands are dissatisfied with Adstream’s prices or service.” 

“The ACCC also considered the increasing ability of advertisers to reach audiences outside of traditional media, including digital platforms, that don’t rely on the delivery services of Adstream and Dubsat,” Mr Featherston said.   

For television and radio advertising, the ACCC determined that Adstream and Dubsat are likely to face competition from:

  • other advertising delivery service providers
  • the threat that large overseas  players could enter the market
  • the ability of advertisers on radio stations to deliver directly.            

Further information is available at: http://registers.accc.gov.au/content/index.phtml/itemId/1198776/fromItemId/751046

Background

In addition to facilitating the movement of content from advertisers and advertising agencies to publishers and broadcasters, Adstream and Dubsat provide validation and quality control checks to ensure advertising content is delivered in the correct format, and integrated workflows, between advertisers and broadcasters or publishers.

Release number: 
MR 177/16
ACCC Infocentre: 

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