Free TV a Foxtel killer?
Posted February 11th, 2010 by debritz
Foxtel's Kim Williams says the pay-TV provider has no reason to fear free-to-air digital services and that any impact from audience drift will be short term. However, in the UK a survey has found that up to 17 per cent of subscribers to Sky TV's paid HD service might make the switch to Freeview HD in the next six months. With the ABC set to launch its fourth digital service and Nine and Seven already talking about their third services, free-to-air viewers in Australia will soon have the choice of 12 channels (although not all of them in HD), with even more to come. And as broadband speeds get faster, there's sure to be a lot of free online offerings (legal and otherwise). If they get the programming right, Foxtel could feel the heat.
PS: My Foxtel contract is coming up for renewal soon, and - although I wouldn't have said this six months ago - I am seriously thinking of ditching it. As I mentioned in my spot on 612ABC last week, what I really want - and I know I'm not alone - is the unimpeded choice to watch what I want to watch when I want to watch it. And, for that, I will pay good money. Hasten the day!
Foxtel isn't "threatened" because there is little to no competition in the subscription TV sector, and those who do operate, either buy channels off Foxtel, or not bother, and expand there offerings with channels Foxtel don't have.
If ACMA got off the couch, and ordered a end to the Foxtel "channel hoarding" (where popular channels such as Nick, Showtime, Arena etc. are exclusive to the Foxtel platform), I'd reckon competition would thrive, and be a more credible threat to the FTA's.