Legacy Free-To-Air Broadcasters have secured a double victory with the Federal Government committing to introduce legislation that will see TV Manufacturers forced to promote Free TV apps ahead of more popular services while also providing further protections for sports rights.
The Australian Federal Parliament is set to introduce new legislation this week, targeting the digital landscape of television broadcasting.
This initiative is primarily focused on elevating the visibility of Free to Air (FTA) networks on TV menus, amidst a digital era increasingly dominated by subscription-based applications.
The core of this legislative proposal is to address the current scenario where pre-installed subscription apps on televisions tend to overshadow FTA networks, including public broadcasters. This has sparked a heated debate, pitching arguments about governmental control over TV viewing choices against concerns over big tech’s influence in diminishing free TV access.
The legislation comes despite Stan recently once again being confirmed as the leading commercial commissioner of Australian Drama, while Kayo continues to be Australia’s single largest investor in Australian sport.
Under the proposed legislation, both of these services will be placed at the back of the queue on Australian Television menus behind FTA apps including 7plus and 9Now which have dramatically reduced their investment in Australian drama in recent years and are no longer required to produce Australian Children’s content.
The proposed legislation will also provide a further financial hit for Australian viewers with the cost of new televisions expected to rise to offset the loss of income manufacturers currently receive from subscription providers seeking prominence.
Communications Minister Michelle Rowland emphasised the importance of this move, stating,
“Our existing analogue laws haven’t been updated to reflect the digital age… The rise of global streaming services means Australians could miss out on the free content and services they have enjoyed for generations, with free local services becoming harder to find on connected devices.”
This statement underscores the government’s stance in favoring FTA networks through a new prominence framework, aimed at mitigating the risk of FTA broadcasting services being overshadowed by larger, international players in the Australian market.
While the detailed specifics of this proposal are yet to be disclosed, the government’s commitment to updating and modernizing the existing TV broadcasting framework is evident.
A spokesperson for Foxtel telling TV Blackbox,
“We are pleased to see the Government has taken on board our concerns with restricting search and customisation on smart TVs which would have led to significant frustration for consumers.
We will need to examine the detail of the legislation and in the meantime will continue to advocate for Australian’s right to control their TVs and connected devices they spend thousands on every year and enjoy with their families.
“Research shows that 1 in 2 Australians with a smart TV don’t know how to change the layout of their apps.
This needs to be considered along with the implications of changing a user interface we have invested millions in across both our Foxtel and soon-to-launch Hubbl operating systems.”
Free TV CEO Bridget Fair welcomed the changes stating,
“Right now, Australian viewers are being steered in the direction of services that favour the commercial interests of big tech and TV manufacturers rather than being given access to the full set of free local television services that they want to watch.
This legislation is an important step towards ensuring that people are not being served up incomplete viewing choices based on who has paid the most money to be in the line-up.
“While we are still awaiting full details of the legislation it is clear that there are still a few issues to be resolved with the Government’s proposed model.
We look forward to participating in the next stage of discussions around this important issue.”
Additionally, the Federal Government is also keen on revising laws pertaining to the broadcasting of iconic Australian sporting events, particularly in the context of online streaming services.
The current anti-siphoning scheme, which prioritizes FTA television’s access to broadcasting rights over subscription television providers like Foxtel, is set to be expanded to include online streaming platforms such as Netflix, Amazon and AppleTV+.
However, the changes have been slammed by many in the industry due to the government continuing to only provide protection for legacy free-to-air broadcasters, while modern free streaming services such as Kayo Freebies are excluded.
Minister Rowland highlighted the changes stating,
“Modernising the anti-siphoning scheme will mean the iconic sporting events and moments that bring us together as a nation won’t slip behind the online paywalls of international streaming services… These reforms have been informed by extensive consultation with industry and the community.”
The anti-siphoning list, featuring prominent events like the AFL, Melbourne Cup, Australian Open, Test cricket, and the Olympic and Commonwealth Games, is under the minister’s purview for modifications.
Notably, the Matildas’ future FIFA Women’s World Cup matches were recently added to this list, aligning with the closing of bids for Australian media rights to the 2027 FIFA Women’s World Cup.
In line with these changes, the government is also contemplating a broader inclusion of women’s and para-sports in the anti-siphoning scheme, reflecting a more diverse and inclusive approach to sports broadcasting in Australia.
This legislative shift marks a significant step towards adapting Australia’s broadcasting laws to the realities of the digital age, balancing the interests of FTA networks and global streaming services, while ensuring Australians retain free access to cherished content and sporting events.
A spokesperson for Foxtel telling TV Blackbox,
“This could have been a great opportunity for the Government to bring anti-siphoning laws into the 21st century to reflect viewing habits of Australians today and to protect the future value of much-loved Australian sport. The regime is already anti-competitive and clearly favours free-to-air broadcasters above Australians and above the needs of sporting bodies whose ability to invest in grassroots will be limited.
“Foxtel Group was advocating that truly iconic events of national significance could be streamed free via our free streaming platform that has been built and invested in locally and is used by more than a million Australians.
The outcome adversely affects technology platforms like ours that have a greater capability to invest in world-class innovation to enhance the broadcast experience for Australians.”
Free TV CEO Bridget Fair adding,
“Being able to share in the sporting moments that bring Australians together as a nation is also fundamental to our community. It’s important that the Government has reaffirmed that live and free access to key sporting events remains a central part of the Australian way of life.
With cost-of-living pressures top of mind for Australians, we cannot allow access to key sporting events to be limited by the subscriptions Australians can afford, their internet access or their data plan.
“The expansion of the current anti-siphoning rules to apply to subscription streaming services is an important new measure.
However there is still an element of analog rules in a digital world with the failure to include free streaming rights in the proposed model.
Australians should be able to watch key sporting events whether they choose to access our services through terrestrial broadcast or online streaming.”
Additional Info – ABC
