Seven & Nine on Foxtel Digital

[AJL1503559590]

There has been some understandable criticism of the Seven & Ten Networks

reluctance to provide their respective services to Foxtel for retransmission

on the digital satellite and cable platforms. I have tried to explain the

issues and risks below when answering a previous News-Group question - on

review of this rather long explanation, I though it may be of greater

interest to others and create some useful debate.

The issues may be simple but the reasons far more complex and the

positioning of some players could be considered somewhat under-hand and not

in the Australian Media's long term interest, I shall try to explain.

News Limited and PBL (Nine Network) have some very interesting 'irons in the

fire' and some may argue, 'conflicts of interest' when it comes to FTA (free

to air) service carriage on Foxtel, that are not immediately obvious to the

television viewer. Believe me, your FTA (free to air) rights are at risk

here - I shall try to explain.

If Seven & Ten Networks join ABC, SBS & Nine and agree to carriage on

Foxtel, some persons who currently have Foxtel may cease to maintain their

terrestrial FTA antenna's - or when they move premises, possibly not even

fit an FTA antenna - preferring to rely on their Pay TV STB (set top box)

to provide the FTA content access This may initially seem a good outcome

from the consumers perspective, a simple one technology solution to digital

television, however there is a very big risk. Whilst Foxtel currently say

they will carry FTA channels for no cost to the FTA terrestrial broadcaster

or for that matter the Foxtel subscriber, there is no legislation that

requires them to do so ongoing. Indeed any suggestion of 'must carry'

through legislation has been consistently opposed by Pay TV Industry

lobbyists.

Reason:

Once all FTA channels are carried on the Foxtel/Austar

infrastructures and then when inevitably a certain percentage of viewers can

only receive via this infrastructure - there is a likelihood that at the

end of the current carriage agreements with FTA broadcasters that

Foxtel/Austar will wish to charge FTA broadcasters for service carriage and

even possibly the pay-TV consumer as well. FTA broadcasters then have the

option to either pay or not pay, the latter resulting in the signal removed

off the pay platform. Such removal, would of course result in an immediate

drop in viewers and HUTS (Houses Using Television metric -the basis for

advertising rate calculation) thus reducing advertising revenue and thus the

income of the FTA station concerned. Simply, stations would no option but

to pay or face loss of viewer numbers and revenue. This is clearly an

unpublicised intention for Foxtel down the track as part of their future

revenue strategy. The outcome for the public, FTA is no longer FTA so to

speak.

The reason Foxtel want Seven & Ten on board is three fold

- firstly, it makes their current customer offering more attractive as it

provides a single STB technology solution including PVR (personal video

recorder) benefits with an integrated Electronic Program Guide .

- secondly, it diminishes pressure for digital FTA take up (which is a

potentially superior service given the lower bit rates of digital pay TV and

future FTA HDTV options) plus provides an alterative after the 2008 analogue

FTA service shutdown.

- and thirdly, it provides the Pay-TV carriers an additional future revenue

stream and resulting in increased costs to the FTA Broadcaster and

diminished quality of FTA content..

Now, the Foxtel Executives who trawl this site will vigorously dispute all

of this - saying that this 'view' is flawed and that they will contract

'free carriage' with any FTA broadcaster that comes 'on board'. But

remember, all such contracts by very nature have an end date - thus the

longer the 'must carry' contract with each FTA Broadcaster, the greater the

number of households that will drop FTA terrestrial digital as a reception

option - thus increasing the cost in ' reduced viewer numbers' on the FTA

Network should they go it alone down the track. This is particularly

relevant as time marches toward the analogue terrestrial cut off date (at

present scheduled for post 2008). If viewers can use their Foxtel / Austar

STB to receive all digital terrestrial services, the less likely they are to

purchase a FTA DVB-T terrestrial digital receiver. Of course one could

argue all FTA stations might drop out as a group should Foxtel decide to

make such as carriage charge - however that is unlikely, given the fierce

commercial competition between FTA Networks (eg. Ten & Seven) and given

that PBL (owner of the Nine Network) is a substantial shareholder in Foxtel

and is currently sharing 25% of Foxtel's current losses and long term, 25%

of it's profits.

Finally, as a business model, Foxtel's intention must include the intention

to marginalize and minimise their FTA commercial competitors, or at least

generate an additional revenue stream - they may not publicly admit it, but

it clearly makes clear commercial sense from their perspective. A secure

and viable FTA Broadcasting infrastructure is what gives Australia the high

quality and low cost TV services we enjoy today. Foxtel continues to lose

heavily (est. $140m this FY) and there appears to be no possibility of them

showing a profit in the foreseeable future, despite Kim Williams claims to a

2006 break-even. Foxtel have been consistently claiming profitability

within two years for over the past 8 years. Of course they would be

profitable much sooner if they can hold the FTA providers to ransom and

charge them an access fees.

As an aside, it worth noting the time it has taken the ABC co consider and

to agree to carriage on Foxtel/Austar platforms. The reasons the ABC took

so long to agree to carriage on the Pay-TV platforms was that there were a

great number of issues & risks for the National Broadcaster to consider.

Indeed, in the final agreement as protection to the free carriage of their

FTA signals, the ABC choose to pay directly for and control the satellite

carriage themselves by having the transponder relationship directly with the

satellite provider - Optus, not through Foxtel as an agent. The risks for a

legislated Government FTA and commercial free entity like the ABC were

great - these risks needed to be considered and mitigated to the greatest

extent possible. The risks to the protection of the ABC's Charter and Act

obligations needed to weighed up against the benefits of greater viewer

access to ABC services afforded by satellite delivery, especially when

carriage of the new ABC2, Dig and existing Radio services were considered.

However, despite these negotiated safe guards, some believe there is still a

significant risk for the National Broadcasters, SBS and ABC, down the track.

Under the old satellite arrangement (pre the new generation of Foxtel

Digital Boxes)- any satellite carried channel not specifically access

restricted or encrypted could be received on a standard DVB-S satellite box

(such as the previous generation of Foxtel satellite boxes) simply by

scanning the available satellite channels. The so called new 'Digital Box'

from Foxtel can now selectively stop this - so even though ABC and other

FTA's could in theory lease their own transponder space & un-encrypted,

Foxtel could still block the reception on their new generation of set top

box if they wished. One could ask, why would Foxtel have required this

enhanced restrictive access control, if not for the purposes of using this

enhanced control to eventually hold the FTA Networks to ransom and charge

all FTA broadcasters if access is required through the dominant Foxtel

set-top box proprietorial hardware. Further, it is interesting the ABC and

SBS have both decided to continue with their respective Aurora Satellite

delivered Television and Radio Services for regional viewer access despite

to great extent these service being duplicated by the new Austar/Foxtel

carried services. This decision, whilst economically more costly to

Government, reflects the National Broadcasters need to remain independent

and avoiding any possible risk to it's transmission infrastructure by being

under the control of a third commercial party.

As is often the case, any short term benefits may well cost a great deal

more in the future. Foxtel's motivation in this matter, is not often clear,

but the overseas actions of other News Limited satellite operations speak on

where News Limited would want Foxtel positioned in the Australian media

market, long term - the dominant and profitable television provider. It is

clear, Foxtel will need to be profitable long term to survive, Australia

should enjoy a sustainable pay TV industry, but not at the cost of our

existing FTA services. Simply remember, the majority of our FTA

broadcasters are commercial, the Government has not agreed to additional FTA

channels to ensure ongoing economic sustainability . Despite best

legislative efforts, unfortunately, we have seen a significant and

quantifiable diminution in program quality as a result of the 'cost of the

digitisation of the FTA terrestrial infrastructure (estimated at $180m per

FTA network) over the past four 5 years. This impact was foreseen by the

existing players, and as they complete this necessary digital technology

conversion and move toward the proposed shutdown of analogue terrestrial

transmitters in 2008 (and the resultant elimination in costs of dual

transmission - digital and analogue), we should see a return in program

quality as FTA networks can divert monies back to program acquisitions and

local production. We must not allow a permanent additional cost to be

levied on FTA Networks (ABC & SBS included) through a potential access

charge / carriage charge by the likes of Foxtel.

Whilst initially appearing self-serving and belligerent, the Ten and Seven

Networks actions are totally appropriate given the lack of any 'must carry'

Government legislation' on the satellite & cable providers, such as Foxtel &

Austar. It is in the long term interest of a viable and quality FTA

terrestrial industry that Ten and Seven are with withholding access. All

readers of this News Group and indeed all existing subscribers to

Foxtel/Austar should understand this - and not simply whinge because all FTA

channels are not on their new Foxtel digital boxes and that they have to

maintain a FTA aerial.

In closing, Digital terrestrial FTA has much to offer and whilst rollouts

are only just starting become significant and FTA Digital STB's affordable,

it is still in it's infancy. FTA DVB-T does offer superior quality than

access restricted Foxtel/Austar DVB-S - it would be sad to see it

marginalised by the actions (current and future) of the pay TV players.

More than any other country in the world, Australia risks a monopolistic

satellite and cable based pay-TV media infrastructure - Foxtel knows this -

it thus can be a very profitable business environment for Rupert Murdoch -

possible at the expense of what we enjoy today. A strong and viable FTA

terrestrial industry (including a strong and well funded public

broadcasters) is essential and only it stands in the way of a totally

monopolistic pay infrastructure desired by the likes of Rupert Murdoch.

They can coexist, but only on a level playing field.

What can we all do, well ensure we all transfer to the new digital

terrestrial infrastructure (DVB-T STB) sooner than later - the 2008 analogue

cut-off should not be deferred. To make it affordable, the existing FTA

broadcasters and Government need to develop a funded program where all

financially disadvantaged (such as pensioners and disabled) can obtain a

'simple & no frills' terrestrial digital STB at no cost - including

assistance with installation and operation - remember, this newer technology

can be quite confronting for the aged less technically inclined. And

finally, we all need to lobby the Government to legislate 'must carry at no

cost' of all current and future FTA services on all pay platforms as well as

maintain current anti-syphoning restrictions and the like - until that

happens Seven and Ten Networks are completely correct in not permitting

their channels to be carried on Foxtel digital. Write to your local member

or the Australian Broadcasting Authority to lobby a 'must carry provision'.

as well as maintain / enhance the current anti-syphoning restrictions and

the like.

AJL

[anddy]

What is your personal belief as to whether or not Seven and Ten will commit to the Foxtel Retransmission agreement? And if so, when do you believe that it will happen????

[boxhead]

Ok,

I understand seven & ten don't want to come to the party on foxtel, and I appreciate the explanation.

But heres my personal experience.

I have had foxtel digital for over a year now, and had IQ since the start of the month.

I have a 42" hdtv rptv which came with a fta hd set top box which is now 3 years old.

I practically never watch 7 & 10 anymore (desperate housewives the exclusion).

I would give my fta stb to my parents, but they are in regional qld & get naff all reception which means it drops out like crazy.

I love watching hdtv, but it meant keeping up with the printed tv guide rather than using the foxtel epg and swapping inputs etc.

Slowly over the year I reduced watching these channels.

Now that i have IQ, i practically never watch them.

All my watching is organized a week in advance and then i watch it when I want to (not when it is on).

As a result i couldn't be bothered setting pvr recordings for 7 & 10, and when i do, the analogue retransmission is very average.

As I said, I understand the reasonings, BUT if 7 & 10 don't act they will lose market share.

Strangley enough i was just thinking last week about getting rid of my aerial because i never use it (and crows sitting on it crap on the roof). The twin tuners on the IQ more than make up for losing the fta.

Again, I do appreciate your explanation of the situation.

Cheers

Brett

[John_Barber]

There has been some understandable criticism of the Seven & Ten Networks

reluctance to provide their respective services to Foxtel for retransmission

on the digital satellite and cable platforms.

...

Interesting post D... er, AJL and makes perfect sense.

I don't think Rupert will be acting altruistically forever, and there would surely come a day where they start charging the networks.

I think that even Transurban charge the ABC for radio coverage in the tunnels, it's either that or some commercial "contra" to get "free" repeaters in the tunnels. (well that's what I read)

I believe that in the USA there is FTA carriage on cable with a huge reduction in the number of people actually capable of receiving FTA with their own TV aerial.

Cheers

JB

[nagelixin]

Ok,

I understand seven & ten don't want to come to the party on foxtel, and I appreciate the explanation.

But heres my personal experience.

I have had foxtel digital for over a year now, and had IQ since the start of the month.

I have a 42" hdtv rptv which came with a fta hd set top box which is now 3 years old.

I practically never watch 7 & 10 anymore (desperate housewives the exclusion).

I would give my fta stb to my parents, but they are in regional qld & get naff all reception which means it drops out like crazy.

I love watching hdtv, but it meant keeping up with the printed tv guide rather than using the foxtel epg and swapping inputs etc.

Slowly over the year I reduced watching these channels.

Now that i have IQ, i practically never watch them.

All my watching is organized a week in advance and then i watch it when I want to (not when it is on).

As a result i couldn't be bothered setting  pvr recordings for 7 & 10, and when i do, the analogue retransmission is very average.

As I said, I understand the reasonings, BUT if 7 & 10 don't act they will lose market share.

Strangley enough i was just thinking last week about getting rid of my aerial because i never use it (and crows sitting on it crap on the roof). The twin tuners on the IQ more than make up for losing the fta.

Again, I do appreciate your explanation of the situation.

Cheers

Brett

<{POST_SNAPBACK}>

I am in the same situation, having a 42", the IQ and a HD box. Since getting Cable years ago my viewing habits drematically have changed. (Desperate Houswifes - I watched that in a marathon on a HDTV copy from a friend - courtesy of TiVo)

Another thing which I recall reading somewhere is that Network 10 do not like Channel 9 being the first channel in the Foxtel Digital Guide.

[AJL1503559590]

Hi JB, yes you are right - I believe that there must be a legislated 'must carry' but it is reasonable that it be at cost. The way to do this is for carriage on transponder or Telstra cable to be charged directly to the relevent Network by the actual infrastructure provider - this divides content provider from carriage provider. This way, all Foxtel need do is authorise reception on their boxes at no cost - a not unreasonable request and frankly dead easy to do at no additional cost.

In regard to Transurban - you are correct, but the negotiated cost to the ABC is reasonable and there is no contra or such as that would be against ABC charter.

[AJL1503559590]

What is your personal belief as to whether or not Seven and Ten will commit to the Foxtel Retransmission agreement? And if so, when do you believe that it will happen????

<{POST_SNAPBACK}>

Doubt they will until 'must carry' legislation is put in place by the Governement - and to date there is no sign of that. Whilst there is an arguement that Seven and Ten may lose market share, the need to take off-air as opposed to a direct feed creates a quality problem plus it excludes satellite customers. Of course in Adelaide, Foxtel subscribers do not even get Nine in SA as Nine is an affiliate there, not owned by PBL.

So to answer simply, it will be a while.

[alanh]

All,

Consider the following;

1. When the current deliberations are concluded we will have digital radio which will remove the need for dig etc, which can only be listened to at home. through a STB whether it isw DTV or Pay.

2. The ABA has been forced by public pressure particularly in Qld to restore locally generated news bulletins for individual viewing areas. This will not be possible using a common footprint of the satellite.

3. Local advertising, community announcements etc will also be impossible.This will mean that either the Sydney or Melbourne view of the world will have to be everybodys even if it is imappropriate. It is not what they transmit which matters, it is what is left out!

4. The aggregation of the country TV areas, decimated local production and the above plan will remove it altogether.

5. Current media ownership laws make your proposal impossible because a commercial operator must not control the whole market.

AlanH

[laurie]

I must be missing something here!! why in the hell would I pay Foxtel to watch FTA that means I would have to tieup my pay stb up to watch fta at present the pay stb is in one room and FTA in another so people within our household can CHOOSE what they want to watch so with one box if I want to watch a movie at the same time someone wants to watch the news then I'm forced to get another Foxtel stb........don't think so

cheers laurie

[anddy]

Perhaps another reason why seven is not committing to the FOXTEL digital agreement is that Seven has launced a lawsuit against Nine, TEN and FOXTEL in regards to the AFL tv rights that they lost about 3 or 4 years ago. Seven alledges that FOXTEL, nine and ten conspired against them to gain the AFL rights from them.

[AJL1503559590]

There has been some understandable criticism of the Seven & Ten Networks

reluctance to provide their respective services to Foxtel for retransmission

on the digital satellite and cable platforms.  I have tried to explain the

issues and risks below when answering a previous News-Group question - on

review of this rather long explanation, I though it may be of greater

interest to others and create some useful debate.

The issues may be simple but the reasons far more complex and the

positioning of some players could be considered somewhat under-hand and not

in the Australian Media's long term interest, I shall try to explain.

News Limited and PBL (Nine Network) have some very interesting 'irons in the

fire' and some may argue, 'conflicts of interest' when it comes to FTA (free

to air) service carriage on Foxtel,  that are not immediately obvious to the

television viewer.  Believe me, your FTA (free to air) rights are at risk

here - I shall try to explain.

If Seven & Ten Networks join ABC, SBS & Nine and agree to carriage on

Foxtel, some persons who currently have Foxtel may cease to maintain their

terrestrial FTA antenna's - or when they move premises, possibly not even

fit an FTA antenna - preferring to rely on their Pay TV STB (set top box)

to provide the FTA content access  This may initially  seem a good outcome

from the consumers perspective, a simple one technology solution to digital

television, however there is a very big risk.  Whilst Foxtel currently say

they will carry FTA channels for no cost to the FTA terrestrial broadcaster

or for that matter the Foxtel subscriber, there is no legislation that

requires them to do so ongoing.  Indeed any suggestion of 'must carry'

through legislation has been consistently opposed by Pay TV Industry

lobbyists.

Reason:

        Once all FTA channels are carried on the Foxtel/Austar

infrastructures and then when inevitably a certain percentage of viewers can

only receive via  this infrastructure - there is a likelihood  that at the

end of the current carriage agreements with FTA broadcasters that

Foxtel/Austar will wish to charge FTA broadcasters for service carriage and

even possibly the pay-TV consumer as well.  FTA broadcasters then have the

option to either pay or not pay, the latter resulting in the signal removed

off the pay platform.  Such removal, would of course result in an immediate

drop in viewers and HUTS (Houses Using Television metric -the basis for

advertising rate calculation) thus reducing advertising revenue and thus the

income of the FTA station concerned.  Simply, stations would no option but

to pay or face loss of viewer numbers and revenue.  This is clearly an

unpublicised intention for Foxtel down the track as part of their future

revenue strategy.  The outcome for the public, FTA is no longer FTA so to

speak.

The reason Foxtel want Seven & Ten on board is three fold

- firstly, it makes their current customer offering more attractive as it

provides a single STB technology solution including PVR (personal video

recorder) benefits with an integrated Electronic Program Guide .

- secondly, it diminishes pressure for digital FTA take up (which is a

potentially superior service given the lower bit rates of digital pay TV and

future FTA HDTV options) plus provides an alterative after the 2008 analogue

FTA service shutdown.

- and thirdly, it provides the Pay-TV carriers an additional future revenue

stream and resulting in increased costs to the FTA Broadcaster and

diminished quality of FTA content..

Now, the Foxtel Executives who trawl this site will vigorously dispute all

of this - saying that this 'view' is flawed and that they will contract

'free carriage' with any FTA broadcaster that comes 'on board'.  But

remember, all  such contracts by very nature have an end date - thus the

longer the 'must carry' contract with each FTA Broadcaster, the greater the

number of households that will drop FTA terrestrial digital as a reception

option - thus increasing the cost in ' reduced viewer numbers' on the FTA

Network should they go it alone down the track.  This is particularly

relevant as time marches toward the analogue terrestrial cut off date (at

present scheduled for post 2008).  If viewers can use their Foxtel / Austar

STB to receive all digital terrestrial services, the less likely they are to

purchase a FTA DVB-T terrestrial digital receiver.  Of course one could

argue all FTA stations might drop out as a group should Foxtel decide to

make such as carriage charge - however that is unlikely, given the fierce

commercial competition between FTA Networks (eg. Ten & Seven) and  given

that PBL (owner of the Nine Network) is a substantial shareholder in Foxtel

and is currently sharing 25% of Foxtel's current losses and long term, 25%

of it's profits.

Finally, as a business model, Foxtel's intention must include the intention

to marginalize and minimise their FTA commercial competitors, or at least

generate an additional revenue stream - they may not publicly admit it, but

it clearly makes clear commercial sense from their perspective.  A secure

and viable FTA Broadcasting infrastructure is what gives Australia  the high

quality and low cost TV services we enjoy today.  Foxtel continues to lose

heavily (est. $140m this FY) and there appears to be no possibility of them

showing a profit in the foreseeable future, despite Kim Williams claims to a

2006 break-even.  Foxtel have been consistently claiming profitability

within two years for over the past 8 years.  Of course they would be

profitable much sooner if they can hold the FTA providers to ransom and

charge them an access fees.

As an aside, it worth noting the time it has taken  the ABC co consider and

to agree to carriage on Foxtel/Austar platforms.  The reasons the ABC took

so long to agree to carriage on the Pay-TV platforms was that there were a

great number of issues & risks for the National Broadcaster to consider.

Indeed, in the final agreement as protection to the free carriage of their

FTA signals,  the ABC choose to pay directly for and control the satellite

carriage themselves by having the transponder relationship directly with the

satellite provider - Optus, not through Foxtel as an agent.  The risks for a

legislated Government FTA and commercial free entity like the ABC were

great - these risks needed to be considered and mitigated to the greatest

extent possible.  The risks to the protection of the ABC's Charter and Act

obligations needed to weighed up against the benefits of greater viewer

access to ABC services afforded by satellite delivery, especially when

carriage of the new ABC2, Dig and existing Radio services were considered.

However, despite these negotiated safe guards, some believe there is still a

significant risk for the National Broadcasters, SBS and ABC, down the track.

Under the old satellite arrangement (pre the new generation of Foxtel

Digital Boxes)-  any satellite carried channel not specifically access

restricted or encrypted could be received on a standard DVB-S satellite box

(such as the previous generation of Foxtel satellite boxes) simply by

scanning the available satellite channels.  The so called new 'Digital Box'

from Foxtel can now selectively stop this - so even though ABC and other

FTA's could in theory lease their own transponder space &  un-encrypted,

Foxtel could still block the reception on their new generation of set top

box if they wished.  One could ask, why would Foxtel have required this

enhanced restrictive access control,  if not for the purposes of using this

enhanced control to eventually hold the FTA Networks to ransom and charge

all FTA broadcasters  if access is required through the dominant Foxtel

set-top box proprietorial hardware.  Further, it is interesting the ABC and

SBS have both decided to continue with their respective Aurora Satellite

delivered Television and Radio Services for regional viewer access despite

to great extent these service being  duplicated by the new Austar/Foxtel

carried services.  This decision, whilst economically more costly to

Government, reflects the National Broadcasters need to remain independent

and avoiding any possible risk to it's transmission infrastructure by being

under the control of a third commercial party.

As is often the case, any short term benefits may well cost a great deal

more in the future.  Foxtel's motivation in this matter, is not often clear,

but the overseas actions of other News Limited satellite operations speak on

where News Limited would want Foxtel  positioned in the Australian media

market, long term - the dominant and profitable television provider.  It is

clear, Foxtel will need to be profitable long term to survive, Australia

should enjoy a sustainable pay TV industry, but not at the cost of our

existing FTA services.  Simply remember, the majority of our FTA

broadcasters are commercial, the Government has not agreed to additional FTA

channels to ensure ongoing economic sustainability .  Despite best

legislative efforts, unfortunately, we have seen a significant and

quantifiable diminution in program quality as a result of the 'cost of the

digitisation of the FTA terrestrial infrastructure (estimated at $180m per

FTA network) over the past four 5 years.  This impact was foreseen by the

existing players, and as they complete this necessary digital technology

conversion  and move toward the proposed shutdown of analogue terrestrial

transmitters in 2008 (and the resultant elimination in costs of dual

transmission - digital and analogue), we should see a return in program

quality as FTA networks can divert monies back to program acquisitions and

local production.  We must not allow a permanent additional cost to be

levied on FTA Networks (ABC & SBS included) through a potential access

charge / carriage charge by the likes of Foxtel.

Whilst initially appearing self-serving and belligerent,  the Ten and Seven

Networks actions are totally appropriate given the lack of any 'must carry'

Government legislation' on the satellite & cable providers, such as Foxtel &

Austar.  It is in the long term interest of a viable and quality FTA

terrestrial industry that Ten and Seven are with withholding access.  All

readers of this News Group and indeed all existing subscribers to

Foxtel/Austar should understand this - and not simply whinge because all FTA

channels are not on their new Foxtel digital boxes and that they have to

maintain a FTA aerial.

In closing, Digital terrestrial FTA has much to offer and whilst rollouts

are only just starting become significant and FTA Digital STB's affordable,

it is still in it's infancy.  FTA DVB-T does offer superior quality than

access restricted Foxtel/Austar DVB-S - it would be sad to see it

marginalised by the actions (current and future) of the pay TV players.

More than any other country in the world,  Australia risks a monopolistic

satellite and cable based pay-TV media infrastructure - Foxtel knows this -

it thus can be a very profitable business environment for Rupert Murdoch -

possible at the expense of what we enjoy today.  A strong and viable FTA

terrestrial industry (including a strong and well funded public

broadcasters) is essential and only it stands in the way of a totally

monopolistic pay infrastructure desired by the likes of Rupert Murdoch.

They can coexist, but only on a level playing field.

What can we all do, well ensure we all transfer to the new digital

terrestrial infrastructure (DVB-T STB) sooner than later - the 2008 analogue

cut-off should not be deferred.  To make it affordable, the existing FTA

broadcasters and Government need to develop a funded program where all

financially disadvantaged (such as pensioners and disabled)  can obtain a

'simple & no frills' terrestrial digital STB at no cost - including

assistance with installation and operation - remember, this newer technology

can be quite confronting for the aged less technically inclined.  And

finally, we all need to lobby the Government to legislate 'must carry at no

cost' of all current and future FTA services on all pay platforms as well as

maintain current anti-syphoning restrictions and the like - until that

happens Seven and Ten Networks are completely correct in not permitting

their channels to be carried on Foxtel digital.  Write to your local member

or the Australian Broadcasting Authority  to lobby a 'must carry provision'.

as well as maintain / enhance the current anti-syphoning restrictions and

the like.

AJL

<{POST_SNAPBACK}>

There is a error in my original post which I should correct, 7 & 10 are available on digital cable, although I understand it simply a retransmit of a signal obtained off-air in each market. TWhilst this does not change the points made in the post, I wanted to correct the error.

[alanh]

AJL,

The reason you can add FTA commercials to cable is that it is restriced to one licence area (viewing area) at a time.

AlanH

[andrewfossey]

<{POST_SNAPBACK}>

There is a error in my original post which I should correct, 7 & 10 are available on digital cable, although I understand it simply a retransmit of a signal obtained off-air in each market. TWhilst this does not change the points made in the post, I wanted to correct the error.

<{POST_SNAPBACK}>

Only the analog transmission of 7 and 10 are avalible to cable viewers not the digital transmissions.

[taspool]

As with others I know, and previous posters on this topic, I simply find myself watching less shows on 7 and 10. Without presence on the IQ menu they just drop off the radar, unless its some very highly promoted show.

Seems to me 7 and 10 are losing audience right now, so worrying about maybe losing audience some years down the track is a bit pointless.

Regards

Greg

[Mantaray1503560001]

There has been some understandable criticism of the Seven & Ten Networks

reluctance to provide their respective services to Foxtel for retransmission

on the digital satellite and cable platforms. 

If Seven & Ten Networks join ABC, SBS & Nine and agree to carriage on

Foxtel, some persons who currently have Foxtel may cease to maintain their

terrestrial FTA antenna's.

      and viable FTA

AJL

<{POST_SNAPBACK}>

A little long post ..is it a thesis?

Just to start Foxtel has been retransmitting all the channels on cable for years. This was intended to help the people in bad reception areas that could not recieve a good signal of their antenna. It was just that retransmitting standard analoge TV , anyone that is not on the new foxtel digital is still getting that.

Then digital became the rage and so did big TV's .

First of the TV channels have copyrights , especially the news. Foxtel asked the stations if they would allow the use of their digital tv transmissions rather than analogue ( EPG is also copyrighted) . CH2 SBS and ( CH9 except in Adelaide (as it not owned by CH9 nationally) have ageed to allow foxtel to add the extra features of FTA digital to the digital cable, this includes EPG and ABC2 a additional ABC channel.

The others said no. So its just a retransmission of a analogue signal. As above.

So thats why these have poorer quality ,no EPG or extra channels.

The rest is your speculation.. Be real

[John_Barber]

Just to start Foxtel has been retransmitting all the channels on cable for years. This was intended to help the people in bad reception areas that could not recieve a good signal of their antenna. It was just that retransmitting standard analoge TV , anyone that is not on the new foxtel digital is still getting that.

The rest is your speculation.. Be real

<{POST_SNAPBACK}>

There is a bit of a difference between re-transmissions of FTA on Sat vs Cable and how it affects Mantaray's dismissal of AJL's theory.

Cable is limited in coverage, and apparently there is little or no extension of the cable network. This will have less and less bearing on the whole argument, as cable viewers form a smaller proportion of the viewing audience.

I understand that FTA via cable is injected in each city from the off-air signals.

Satellite would need a different system with either all digital services from all major metro stations being transmitted from the satellite with geographic based access restrictions at the receiver end , or alternatively only one feed from each network (eg Sydney's channels) is available on the satellite.

Lets face it, Foxtel or whomever are not doing it out of altrusim, it is purely and simply a business case.

By re-transmitting the FTA networks they provide additional channels to attract viewers. They can say to potential customers that you still can watch what you get now on your local FTA channels as well as all these extra pay channels. No mucking about switching between boxes or whatever, it all comes from the one remote control. This "simplicity" would be attractive to many less technically minded viewers.

By using the Pay STB to view pay channels and FTA channels the customer relies on the Pay STB for all their viewing. I am not sure how this affects pay "ratings" either, but I am sure that if someone's watching an FTA network on the Pay box, then the Pay company will be wanting the ratings "credit" too.

It is logical that the viewers with Pay will ignore their FTA antenna and if and when they tire of the Pay offerings, will factor in the access to FTA channels to maintain the Pay subscription.

Cheers

JB

[Stux]

Yup,

but the simple matter is people on foxtel satellite are drastically reducing their ch 7 and 10 viewing.

I personally do not watch ANY 7 or 10 material. Just yesterday my sister came up to stay from wagga and she wanted to watch neighbours...

I had to figure out how to reconnect the DVB-T box, switch the TV to it, and retune it!

Which just proves that I *really* don't watch *any* 7 or 10!

And I don't miss it at all either. In fact during neighbours I found the adverts quite disturbing :-\

[Foz1503559960]

Being really lazy with the remote etc I too find myself watching more of 9,SBS and 2 then I used to.

Blue Heelers gets a run if I remember its on but otherwise the Imax show is the only thing I can remember thats on 7.

That Lost show sometimes too.

Anything in HD on either channel for a geek but that is it.

Surely 7 and 10 would know they would be missing out in the ratings.

I dont care if they ever go over to Fox or not but the chances of me watching their shows is greatly reduced by them not being on it.

Having said that I would go to the trouble of putting on the Set Top Box if I saw a programme I like on Fox that is FTA.

A perfect example is the other night I was scrolling through the Fox channels looking for something to watch.

I came across Getaway.

It had interactive menu and everything.

In my mind though I knew the Picture Quality would be a lot better through my set top box so I switched over.

I didnt leave the STB on but if I had any interest in the show that followed there would of been a chance of this happening.

Maybe watching 9,SBS and 2 via Fox dont count in the ratings war.

I dont know.

[GregA1503560021]

I believe that in the USA there is FTA carriage on cable with a huge reduction in the number of people actually capable of receiving FTA with their own TV aerial.

<{POST_SNAPBACK}>

In fact, the cable providers not only HAVE to rebroadcast the FTA, they have to provide a service with JUST the FTA channels (I think it was free, but it's been 10 years so I'm not sure).

Of course, you could simply plug your VCR straight into the cable socket in the wall to get the channels, you didn't need a set top box (you used to be able to do that with Optusvision here too).

I believe that there must be a legislated 'must carry' but it is reasonable that it be at cost.  The way to do this is for carriage on transponder or Telstra cable to be charged directly to the relevent Network by the actual infrastructure provider - this divides content provider from carriage provider.  This way, all Foxtel need do is authorise reception on their boxes at no cost

<{POST_SNAPBACK}>

In NZ, TVNZ has put their own channels on the satellite, which are then received by Sky TV subscribers. Apparently if you have your own dish and receiver, you can receive the TVNZ stuff for free (they're working at adding the other FTA- TV3/Prime etc).

I assume Foxtel Satellite uses the existing ABC and SBS signals on the satellite, not their own? So that'd be roughly your idea AJL?

Anyone know?

Greg

[cyril]

To follow on from GregA's comments, the BBC also do the same, own their own transponders for their own service's and make them available for BskyB to map into their network.

Cyril

[andrew1503559519]

Nine and SBS pay Foxtel something like one million dollars per year to have a transponder accessible by Foxtel customers. ABC also pay a large sum to Optus. All of this is to reproduce all the local states programming city by city.

As mentioned, this is already on Optus Aurora on the same satellite! In neither case is it available free, though Aurora will charge only a one-off fee for a smart card unlike Foxtel. Aurora also allow customers to purchase their own receiving equipment.

At one stage Aurora was trying to persuade Foxtel to include their free to air channels but it was not taken up.

I would have thought that the free to air should charge Foxtel for the privilege of using their programming! Of course the common ownership meant that Nine was always going to do what Foxtel asked.

[GregA1503560021]

I would have thought that the free to air should charge Foxtel for the privilege of using their programming! Of course the common ownership meant that Nine was always going to do what Foxtel asked.

<{POST_SNAPBACK}>

I'm sure this could get into a complaints about the stupidity when cable started.... which hopefully it won't...

BUT, in the US, cable TV started by wiring up all the marginal reception areas and retransmitting FTA signals. They got a huge uptake in those areas, easily justifying their investment. Then they expanded content and area. Cable got subscribers by including FTA, and FTAs got more happy viewers... a win win.

Pity it's not so simple here? - In Australia, they wired up the central cities first, there are still marginal areas on the outskirts of Sydney that don't have cable at all. Ah well.

Greg

[tHiNg]

I would have thought that the free to air should charge Foxtel for the privilege of using their programming! Of course the common ownership meant that Nine was always going to do what Foxtel asked.

<{POST_SNAPBACK}>

I'm sure this could get into a complaints about the stupidity when cable started.... which hopefully it won't...

BUT, in the US, cable TV started by wiring up all the marginal reception areas and retransmitting FTA signals. They got a huge uptake in those areas, easily justifying their investment. Then they expanded content and area. Cable got subscribers by including FTA, and FTAs got more happy viewers... a win win.

Pity it's not so simple here? - In Australia, they wired up the central cities first, there are still marginal areas on the outskirts of Sydney that don't have cable at all. Ah well.

Greg

<{POST_SNAPBACK}>

[/Rant] Marginal? I wouldn't call Kellyville marginal as it's one of the biggest growth areas isn't it? I rue the day I moved into a house there and not only could I not get cable (broadband), ADSL wasn't available either! Telstra/Foxtel also told me they had no plans to instal cable in the area - satellite was the only option for PFV (and ISDN for internet AAAAAaargghhh!). [/Rant over.]

Now I'm a happy camper in the Western suburbs of Perth with cable fulfilling all my worldly needs.

Off topic, I know. Sorry.

[GregA1503560021]

Marginal?  I wouldn't call Kellyville marginal as it's one of the biggest growth areas isn't it?

<{POST_SNAPBACK}>

Marginal reception.... marginal RECEPTION

:-)

Put cable with good FTA reception in a marginal reception area and the uptake will be higher. US did it, Australia did not.