Australians get ready for the future of free TV

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Amanda Dardanis
December 27, 2008 11:00pm

WITHIN the next 12 months, Australian audiences will have access to a range of brand new digital television channels. And for free.

A news or classic-movies multi-channel, a 24-hour sports network and a channel that plays repeats two hours later are among plans being worked on by the big commercial networks.

From next month, Federal Government legislation allows for the three commercial free-to-air networks to split their signal to create extra channels, as the ABC did in March this year with the launch of ABC2.

Viewers will also be able to buy a Freeview box that will allow them to record and store digital television content and have access to free electronic program guides – all big advantages that subscription TV currently has over free-to-air.

However, most key free-to-air players say they are anxious to avoid a bidding war with subscription TV over content. Nine in particular, with its highly publicised $4.2 billion debt, will need to look at only the most cost-effective options for its new multi-channel offering.

In a rare spirit of collaboration, commercial networks 7, 9 and 10 joined forces earlier this year with public broadcasters ABC and SBS to form the Freeview consortium – aimed at trumpeting the multi-channel message to Australian consumers.

It is the first time the television industry's key players have come together to the market as one.

All acknowledge that a large proportion of Australians still don't understand free-to-air TV, and the channels have an enormous awareness-raising job ahead of them.

The Federal Government hopes the extra content provided by Freeview will stimulate Australians' take-up of digital in time for the 2013 switchover from analogue. About 42 per cent of households have now gone digital, compared with about 30 per cent that have subscription TV.

All five free-to-air networks pledged this month to launch a new multi-channel in 2009.

Some, like Ten and the ABC, are farther ahead in the race, while 7 and 9 are still keeping their multi-channel aces up their sleeves.

Here's a preview of what you can expect:

TEN

Ten was the first commercial station to announce its plans for Australia's first new commercial multi-channel – a 24-hour sports network called ONE expected to broadcast from April. Highlights will include:

• AFL (the 2009 NAB Cup, home and away season and finals, with the grand final returning in 2009);

• 2010 Delhi Commonwealth Games;

• NASCAR (live coverage of Daytona 500 and Nationwide Series);

• Cricket (Indian Premier League matches);

• Golf (US Masters, US Open, Australian PGA, Ladies Masters);

• Also netball, swimming, tennis, Formula 1, NFL and the NBA.

"We see a first-mover advantage because we're first in the market with a sports channel," said Ten chief executive Grant Blackley. "We chose a genre where viewers would know exactly what they're getting and we've picked all the crown jewels. I don't think anyone could duplicate a sports channel with ease.

"The critical thing for us was what we could add to Ten rather than take away. We knew from the US and the UK that the biggest driver of digital take-up was sport.

"We looked into the market to see what was available and found that a lot of content was up for negotiation or was idle."

NINE

The Nine Network says its new multi-channel concept is a "work in progress".

"We'll announce what we're doing some time in the next couple of weeks," said Les Sampson, director of acquisitions. "But our plans are definitely to launch in 2009."

Industry sources speculated that Nine was considering launching a news or classics multi-channel. Mr Sampson confirmed Nine had looked at these options and a range of others, including lifestyle, reality and recent movies. "Nothing's been finalised," he said.

Nine would also need to upgrade its digital technology before launching but Mr Sampson denied the network's finances would be an obstacle.

"We're not going to be hindered by our situation. Channel 9 has had a very good year; we've met all our key targets in terms of our demographics. We have to tweak our technology, work on new computer systems to allow digital compatibility. Everything will have to be cost-effective and efficient. But we've made a commitment to launching the (new) channel," he said.

SEVEN

Seven is the most coy about its multi-channel plans.

"We're committed to multi-channelling. We're ready. We'll announce our plans shortly," said a spokesperson.

Senior industry sources, however, say that Seven had a lifestyle channel in the pipeline that may have been overtaken by a recent seven-year deal between Foxtel and the BBC over premium lifestyle content.

Other options mooted by Seven were allegedly a Plus-Two multi-channel that re-broadcasts content on the main channel two hours later.

"Plus-Two is a very popular option," said a senior source, who declined to be named. "The only problem is that, in my view, it's the best way to cannibalise your audience."

ABC

Our public broadcaster has just enjoyed its most successful ratings year ever, a fact director Kim Dalton puts down to its early inroads into multi-channelling.

"The way we offer content across a number of platforms and channels distinguishes us from other broadcasters and positions us very strongly in what is an increasingly crowded marketplace," Mr Dalton said.

The ABC is in advanced talks with the Government about a children's channel (working title: ABC3), to be launched within six months of the May Budget.

The new standard-definition channel would broadcast from 6am to 9pm and feature drama, factual, documentaries and entertainment.

"The commitment we've made to the Government is that it would be 50 per cent Australian content within a few years," said Mr Dalton.

"The final decision is theirs, but we're having quite detailed and positive discussions about it."

Mr Dalton said the broadcaster had also put forward the idea of a 24-hour news channel.

"We have the most extensive newsgathering service in Australia. We could provide a very good service."

SBS

Like the ABC, SBS already has a second standard-definition channel, SBS2, which broadcasts a partial foreign news service. In 2009, SBS hopes to upgrade it to a full comprehensive channel (working title: SBS World) to also feature international movies, drama, foreign language children's programs and new Australian content.

"We've put a proposal to the Government that includes a full second channel initially and then possibly up to two more," said SBS director of strategy and communications Bruce Marr.