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FOXTEL slams LABOR party decision to support FREE TV broadcasters as Sports Rights battle heats up

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The Anthony Albanese led Labor party has today thrown its support behind legacy commercial free-to-air broadcasters in a move that has caused increased frustration for the providers of subscription-based TV services.

As part of a Saturday morning election policy announcement, Labor has backed a call from the Free TV industry for the Federal Government anti-siphoning list to be renewed and expanded to “guard against iconic sports being exclusively locked behind the paywalls of subscription streaming and pay-TV services

Labor’s communications spokeswoman Michelle Rowland stated Australia’s free access to major sporting events was in jeopardy and declared her party would urgently review and reform “anti-siphoning laws to reflect the rise of streaming services” should they win the next election.

“The stakes are only getting higher, both for industry whose business models rely on sports rights and for consumers, who face rising cost of living pressures and who rely on free-to-air TV, particularly those Australians in the digital divide,”

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Originally imposed in 1992, Australia’s anti-syphoning list currently only imposes restrictions on the pay-tv sector of the industry (Foxtel and Fetch TV).

Somewhat bizarrely, internet-based streaming platforms such as Stan Sport, Paramount+, Amazon Prime and the Foxtel owned Kayo are currently exempt from the legislation. If approved, the Labor proposal would see these internet-based services restricted from competing directly against Seven, Nine and 10 for sports on the protection list.

The decision by Labor to back the call for increased protections of free-to-air television has angered many in the subscription sector who believe the legislation is providing unfair protection for a declining industry.

A spokesperson for Foxtel telling TV Blackbox;

“The Foxtel Group believes the anti-siphoning list is inherently anti-competitive, and Australian audiences would benefit from a fundamental review of the out-dated protections that are in place for free to air television.”

The renewed interest in the anti-syphoning legislation comes at a time when the AFL is holding talks with international streaming providers including Paramount+, Amazon Prime and Youtube regarding securing broadcasting rights for the competition.

Amazon Prime is also understood to be expressing increased interest in securing international broadcast rights to the next three summer Olympic Games.

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Foxtel added a free-tier to its Kayo sports streaming service in 2020, and is now pushing for this product to be allowed to compete on a level playing field against free-to-air broadcasters to secure sports rights.

“In the digital age, free is free, and there should be no difference from a regulatory perspective between distribution via a free to air broadcast service and free via the internet.”

A spokesperson for Foxtel told TV Blackbox;

“For example, the Foxtel Group has made games from every competition supported by the women’s and under-represented sports grant available for free on Kayo Sports.

“The recent 2022 Women Cricket World Cup final between Australia and England was also made available free, in front of the Kayo paywall, after free to air television declined to broadcast the tournament.”

Recent years have seen sporting events including Australia’s One Day and Twenty20 cricket tournaments move behind the Foxtel paywall despite them currently being ‘protected’ by the legislation.

The Phillip Island MotoGP and the Australian Formula One Grand Prix are also at risk of becoming exclusive to the Foxtel Group if free-to-air broadcast deals cannot be secured. Both events are currently included on the anti-syphoning list.

Free TV CEO, Bridget Fair today welcomed the support of the Labor party by stating;

“All Australians deserve the right to share our great sporting moments for free, and that right is in serious jeopardy. There is a real risk that iconic sports events could be exclusively acquired by subscription streaming platforms that aren’t covered by the current anti-siphoning rules, which are 30 years old and only cover free-to-air and pay-TV.

We could easily see a major subscription streaming service buy up exclusive rights to the sporting events that bring us together like the Olympics, NRL or AFL and force Australians to pay to watch them.

“What we’ve got is analog legislation in a digital world. The rules urgently need to be updated to protect the access of all Australians to live and free sport,”

In a further win for the free-to-air sector, the Labor party has also expressed its support for new legislation which would see free-to-broadcasters provided preferential treatment ahead of internet-based services on smart-tv’s and devices.

If approved, the legislation would see smart-tv manufacturers required to place apps for free-to-air services such as 7plus, 9Now and ABC iview in the most prominent positions on a TV’s app library.

Currently, smart-tv manufacturers are looking to offset costs by selling these prominent positions in app libraries to the highest bidder.

Seven West Media Managing Director and Chief Executive Officer, James Warburton, welcomed the Labor party’s commitment to regulate the prominence of free-to-air services stating;

 “Today’s announcement is a positive step in supporting Australian audiences and the local free-to-air media industry.

 “Sport is part of the fabric of our country but is under threat of disappearing behind the paywall of international streaming giants. Iconic sporting events of cultural significance need to remain free for Australian families and communities or millions will be obliged to pay to see their favourite sports or will simply miss out altogether.

 “Guaranteeing the prominence and visibility of free-to-air services on connected TVs at no charge is also critical to the sustainability of the industry.

“In a growing digital environment, our services are becoming increasingly hard to find on the home page of the TV screen as deep-pocketed multi-national streaming companies strike global deals with TV manufacturers to buy prominent visibility.

“We want to invest our resources into producing Australian content, not staving off invisibility and bidding against cash-rich conglomerates that want to divert viewers away from free Australian news, sport, drama and entertainment services,”

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Kevin Perry
Kevin Perryhttps://tvblackbox.com.au/author-kevin-perry/
Senior Editor and Co-Owner of the TV Blackbox website, Kevin Perry is an experienced media commentator focused on TV Production, Consumer Tech, SVOD & Sports Broadcasting. Media enquiries please Call or Text 0428-275-111
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