A review of the current situation regarding the media flow between the United States and Australia shows that the traditional pattern--American content dominating the Australian media--still holds, but that there is evidence of movement by the Australians to establish their own media identity. An analysis of the television ratings for Australia's two largest cities, Sydney and Melbourne, reflects the Australian government's policy encouraging the development of Australian programing for Australian television. The analysis nevertheless shows an increased popularity of American programing during a four-year period. Australia also has made efforts to export media materials to the United States, initiating a reciprocal flow of programing. The popularity of certain Australian feature films and television programs in the United States suggests that these efforts to balance media flow between the two countries are beginning to be rewarded, though marketing difficulties still exist. An examination of the dissemination of television news by satellite provides evidence of a pattern similar to overall television programing--that more news of the United States is imported by Australia than news of Australia is imported by the United States. (RL)