★★★★★ 0/5

Networks want Foxtel to pay for retransmission

Free TV Australia wants to charge Foxtel and IPTV providers for carrying TEN, Nine and Seven signals.

22
Leave a comment

Commercial free-to-air television networks want Foxtel to start paying for the retransmission of their channels on the Pay TV platform.

The Australian reports that industry group Free TV Australia last week lodged a submission with the government’s convergence review that could allow them to charge for carrying TEN, Nine and Seven signals.

They also want internet TV providers to pay a fee, a principle based on a US model.

In October 2009, News Limited’s Rupert Murdoch announced FOX would be asking cable companies “to pay a small portion of the profits they make by reselling broadcast channels, the most watched channels on their systems” to help “ensure the health of the over-the-air industry” in the US.

Foxtel already charges networks to retransmit channels on their satellite.

But a Foxtel spokesman said of the proposal: “This is just another example of the terrestrial networks running off to government seeking yet more protection and subsidies . . . There is zero case for government intervention here. The commercial and regulatory settings between here and the US are totally different.”

Senator Conrol recently extended the $250m licence fee rebates for the free-to-air networks until the end of his department’s “convergence review” into media regulation.

22 Responses

  2. In Perth Foxtel via satellite does not carry any FTA channels apart from SBS & ABC1. And SBS2 and ABC2 are on a eastern feed so, eastern aust time.

    Get your act together Foxtel, Austar offer a solution the HD Mystar box which has a HD FTA tuner. (maybe if you guys own austar now could offer this solution to Perth metro)

    Looks like the Foxtel HDIQ (made by Pace UK) is a dumb box.

  3. FTA’s, just a little free ‘market research’ from me. When I had Foxtel Satellite before FTA’s were added, I watched only Foxtel channels. When the FTA’s were added, I recorded and watched probably 50:50 FTA/Pay.

    Now, neither.

  4. I don’t have Fox, so don’t know the answer to this. When Fox re-broadcast FTA channels, do they keep the ads from the FTA channels or put their own ads in. If they are taking the FTA ads out, then there is a case that advertisers are not getting full value; and therefore will not pay full value; for the FTA advertising slot. For Foxtel to then pay some compensation for lost FTA revenue is reasonable. If the ads are shown as per the FTA channel, then that argument doesn’t apply.

  5. Content is King, and despite any personal opinions regarding FTA programming, we’re talking about a great deal of content and a considerable market base of traditional television watchers. Foxtel management has been keenly aware for many years, that its PAY TV service is a far more attractive product by including for the convenience of its subcribers, access to the FTAs. Is it reasonable for the FTAs to expect payment – of course.

  6. Simple, if foxtel stops rebroadcasting all of the fta channels, then I will cancel my subscription, and invest the money in a digital tuner.

  8. “FTA needs Foxtel far more than Foxtel needs FTA. What fools, expecting to be paid by a company that simply gives them more viewers.”

    Quite the reverse actually. If Foxtel didn’t carry the FTA channels far less than 30% of households would have Foxtel.

    Rupert meet barrel.

  9. This is stupid, why is the word ‘force’ being used here? Foxtel never forced anyone to pay for satellite bandwidth. They simply require any network that Wants to be on the satellite to pay for their own bandwidth. Obviously the networks Want to be on the Foxtel service, because they are paying for it.

    And the reason that Foxtel pays for Nat Geo, Fox Sports etc, is because those channels attract subscribers to Foxtel. Very few people are going to pay for Foxtel because of FTA (it’s Much cheaper to buy a PVR than to pay a $50-100 fee, plus a minumum of $54/month).

    Networks on the other hand are available for free, and are not a selling point for Foxtel.

    If the networks feel they shouldn’t be paying to be on Foxtel satellite, then there’s an easy solution, don’t. They will get fewer viewers as a result.

    This smacks of the networks trying to get something for nothing.

  10. I watch FTA tv through foxtel. If it went from there, i’d watch less fta tv. Especially as I would not buy another PVR just for FTA tv.

  11. There is no need for govt intervention. If it makes commercial sense for Foxtel to pay for FTA channels then Freeview will be able to secure a small fee from Foxtel to rebroadcast them. Given that the FTA networks are currently paying for retransmission via satellite, perhaps it’ll even out and nobody will need to pay for anything.

  12. If Foxtel passes on the cost to customers (which we all know they will), I will be disconnecting my foxtel for good.

    Over the last few years the value of foxtel has greatly diminished and now the multi-channels pretty much show everything that is on foxtel anyway …. for free.

    The only channel I would desperately miss is CMC, but I can download most American country clips from youtube for free anyway …… and they are the only clips I want to see anyway ….

  14. So, could we see Foxtel charging Extra to it’s customers for all the FTA channels(including the digital ones like go, 7Two etc)? Either as a new package or increasing the subscriptions rates?

  16. I would rather they force foxtel to re-transmit all the local free view stations to all the regions that they sell foxtel (rather than just the eastern states) and called it even.

  17. Foxtel is paying for the satellite bandwidth so if Foxtel doesn’t care whether FTA channels are on their system or not, the FTA channels will have to pay the cost of re-transmission.

  18. @Chris – thats hillarious. Foxtel’s penetration is 30% and would be lower if there was no FTA available – who do you think needs who here?

  19. I actually agree with the networks here.
    The most watched channels on the Foxtel system are the FTA networks. And Foxtel onsells them to millions of customers making money off them.
    The same way Foxtel pays CNN Showtime MTV and Nat Geo for their channels, They should also pay Te FtA nets

  20. I don’t think Seven, Nine, Ten, ABC or SBS should have to pay for the privlige of being on Foxtel … Foxtel shouldn’t get to pick and choose which channels it carries, it should be made to carry all the Freeview channels.

  21. If they’re going to charge Foxtel is there any danger of us getting channels like 7 Mate, Gem etc. retransmitted?

    The FTA networks are really missing out on viewers if i’m an example because i simply don’t think of those channels because they don’t show up on my Foxtel guide.

Leave a Reply