Outgoing ABC boss Mark Scott has put forward a proposition for a "friendly merger" between the ABC and SBS during his address to the National Press Club.
Mr Scott said the two public broadcasters had become increasingly similar since they were first launched and could be merged together to deliver content for a diverse range of audiences.
"Increasingly, the ABC and SBS have tripped over each other as each strives to meet its audience and programming needs best to maximise audience engagement," he said. "At times we've even bid against each other for programs and content and there have been scheduling frustrations as well.
"This is increasingly been the case as SBS has moved away from multilingual programming on its main channel in recent years as it pursues, legitimately, advertising revenue."
The comments come as SBS announces the launch of a new 24-hour Arabic digital radio channel and online hub, .
An SBS spokesman said: "Our sole focus is on delivering unique services to Australian audiences at a time when it has never been more important to promote the value of cultural diversity."
“To that end, we were pleased to launch SBS Arabic24 last night to Parliamentarians, a 24/7 Arabic digital radio channel and online hub," the spokesman said.
'Difficult conversation'
Mr Scott said the a merger between the ABC and SBS was "last seriously discussed three decades ago".
"It's a difficult conversation to even start with anxieties about the SBS being swallowed up and concerns at the ABC about SBS's commercial activity," he said.
"There will be debate about the size of potential savings and I know some love to reject the idea out of hand before we even contemplate the reform but we need a growing-up conversation."
He said he had previously discussed the possible merger privately with a former SBS managing director and he believed it could save the government about $40 million per year.
"Some years ago, towards the end of his term as SBS managing director, Sean Brown and I had a number of conversations about how a peaceful merger might work," Mr Scott said.
"We felt we could come up with a public broadcasting proposition for government that worked in the interest of audiences, the taxpayers, the broadcasters.
"Increasingly, the ABC and SBS have tripped over each other as each strives to meet its audience and programming needs best to maximise audience engagement."
"A shared solution, not a takeover, but a friendly merger in the interests of the owners. But it wasn't to be. The idea was rejected at the SBS board level and Sean wasn't given licence to pursue the conversation further."
Mr Scott said he envisaged the "friendly merger" would involve shared back-office support, shared IT, legal, studios, HR services, safeguards to maintain a "distinct identity and remit for SBS" and would reduce overlap between the broadcasters.
"But down the track, I think the time will come for a real investigation of this possibility," he said.
"We should see if there is a better way to use scarce resources to preserve identity, celebrate diversity and present a richer, deeper, broader public broadcasting experience to the Australian people."
