SBS On Demand will allow users to opt out of gambling, alcohol and fast food advertising from 2024, as the publicly funded broadcaster takes a choice-based approach to a potentially harmful material.

James Taylor, managing director of SBS, said users will benefit by having greater control over the ads they see.

“The advertiser benefits by not paying to reach people who have no interest in their product,” he said.

“This is responsible advertising at its best.”

A beta opt-out for wagering, alcoholic beverages and ‘quick service restaurant’ advertising will be launched in quarter one, 2024, with On Demand users able to register their interest to take part.

Unlike Australia’s other public broadcaster, the ABC, SBS can raise revenue through advertising because of the way legislation for it was written.

SBS can run advertising as long as isn’t longer than five minutes per hour of broadcast and only before and after programs or during natural breaks.

SBS raised $173 million in the 2022-23 financial year through advertising, a 12.7 per cent increase from 2021-22.

Gambling reform

Gambling reform has been on the agenda for the Albanese government, but Taylor signalled upcoming legislation wasn’t the reason for the change.

“SBS already takes significant steps to ensure we are meeting the responsible advertising expectations audiences have of us,” he said.

“We have age restrictions on SBS On Demand and we remove certain ad categories from particular programming, especially shows that deal with difficult or sensitive topics, such as Addicted Australia.”

A parliamentary committee recommended “a comprehensive ban on all forms of advertising for online gambling, to be introduced in four phases, over three years, commencing immediately,” alongside 30 other recommendations, earlier this year.

Australians spend about $25 billion on legal gambling each year, according to estimates from the Australian Institute of Health and Welfare.

Fast food and alcohol

Alcohol advertising already has several restrictions in place, including a ban on advertising during children’s shows and on times outside noon and 3pm on school days.

Alcohol advertising will be able to be opted-out of. Photo: Getty

One in four Australians aged 18 and over consumes more than the recommended intake each week, and alcohol consumption is a factor in more than 200 diseases and injury conditions.

Currently, there are no restrictions on fast food advertising, even directly to children, despite research showing its link to childhood obesity.

The average child is exposed to at least 827 unhealthy food advertisements on television each year, while Australian adolescents are exposed to almost 100 promotions a week from online sources.

According to SBS, TabCorp and Endeavour Group both backed the changes.