Foxtel and the commercial TV networks are at loggerheads over current laws designed to keep major sporting events on free-to-air television.
Industry body Free TV, which represents Ten, Seven, and Nine, wants to see the current “anti-siphoning” laws extended to cover streaming providers.
The rules currently state that major sporting events, such as the Australian Open and the NRL and AFL grand finals, cannot be put behind a paywall. When introduced, Foxtel was the only operator in Australia with a pay TV model.
Now with a number of players in the field, and a complete shift in how Australians watch televised content, both Free TV and Foxtel want amendments made.
Foxtel, in its submission to a current anti-siphoning inquiry, argues times have changed.
“There is the potential for 98 per cent of households to view free streaming services on their TV sets,” Foxtel wrote.
“Today free streaming services are readily available to be viewed on TV sets by 91 per cent of households, and at least 94 per cent of households should be able to access free streaming services on mobile devices.”
Foxtel says the current laws are anti competitive, and “distorts the playing field in favour of free-to-air broadcasters.”
“It’s time for the playing field to be levelled – with a fairer regime that reflects the landscape of today, the rights and habits of Australian consumers and in delivering a better outcome for the sporting codes in helping them grow and prosper into the future,” Foxtel Group CEO Patrick Delany said.
”Millions of Australians are watching free and paid-for content on many different platforms and devices today but the current regulation is out of step with their lives and viewing habits.”
Foxtel offered free coverage of numerous sporting events this year through its Kayo Freebies platform, including the women’s World Cup cricket, and the World Surf League.
“Expert analysis shows that if the rules were brought into today’s world, sporting bodies would be able to attract greater revenue through a more competitive rights bidding process.
“This would flow through to players and programs, allow sporting bodies to invest more in new competitions, as well as facilities, and would better support sports at the grass root level.”
Free TV argues that large sporting audiences help keep free-to-air television free.
“Sport continues to be the highest rating genre on television,” it said. “Simply put, without sport, there would be no free TV services.”
Free TV claims “at least 5.6 million Australians cannot access streamed video content”, citing research from Deloitte.
“That is more than one in five Australians that cannot yet rely on the internet for video streaming due to lack of connectivity or restrictive data caps,” the industry body wrote, as opposed to the 97 per cent of Aussie households with a TV antenna.
“No other medium provides this level of reach,” Free TV concludes.
