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The satellite elephant in the room

How many ways can you say "No comment"? Read all about the topic that had Nine, TEN and Seven ducking for cover.

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If ever there was a topic that commercial Free to Air Networks are reluctant to discuss it is the issue of channel availability via Foxtel satellite.

Nine, TEN, Seven and WIN were all coy in their answers when TV Tonight asked about Foxtel satellite subscribers being able to access their full suite of channels. Many experienced spokespeople were doing their level best to avoid the words “No Comment.”

Some wouldn’t even answer some questions.

While Foxtel cable viewers enjoy a full suite of channels, the situation for Foxtel satellite viewers is more complex, compounded by problems depending on where you live.

Upstaging the commercial broadcasters are public broadcasters ABC and SBS who offer all their channels to all Foxtel viewers around the country, whether they are cable or satellite subscribers.

Seven, 7TWO, Nine, GO! and TEN are re-transmitted via satellite in Sydney, Melbourne and Brisbane, but not in Adelaide, Perth, regional WA or Canberra. This is because the networks have not agreed to bear the satellite costs associated with retransmission.

Their HD channels are not transmitted to satellite viewers on Foxtel anywhere in the country for the same reason. The HD signal requires a larger bandwidth and therefore a higher cost.

But who should bear the satellite costs? Foxtel or the Free to Air networks?

A Foxtel spokesperson told TV Tonight, “Foxtel does not guarantee subscribers access to all of the retransmitted commercial free to air services.

“Foxtel has a standing offer to all the Broadcast Networks that Foxtel will retransmit their channels on satellite so long as they pay the cost of the satellite bandwidth, at cost, from our satellite provider – Optus.

“ONE, 7Mate and GEM are all HD channels and to date the relevant networks have not seen fit to pay the costs to retransmit.”

Even SD channel ELEVEN isn’t transmitted.

Free to Air networks appear to be reluctant to foot the bill, any bill, where the number of subscribers does not justify the expense.

A Seven spokesperson said the decision is based on the economics of the HD market and its growth forecasts from publicly known subscriber data.

“We are constantly reviewing subscription numbers, it is very hard to justify SD bandwidth in more markets based on publicly known SD subscriber data in these markets.

“When will Foxtel increase its HD subscribers to justify the cost of Satellite bandwidth?”

A TEN spokesperson said the matter was commercially sensitive but was continuing ongoing and protracted discussions with Foxtel.

“There is a cost to them to do it and they try and recoup the cost of that with us,” they said.

In January the network launched ELEVEN, abandoning its former TEN SD signal. ONE underwent a programming revamp this month adding new dramas -but neither is available via Foxtel satellite.

“This has been something we’ve been discussing with them for quite some time. Clearly when ONE was operating as it was last year and the audience wasn’t particularly strong for us there were factors that we had to take into consideration,” they explained.

“ELEVEN is a completely different kettle of fish because its audience is strong and it did well really quickly. So we’re still going through that process with them.”

Nine has markets in Sydney, Melbourne and Brisbane where Nine and GO! are currently available, but not GEM. The markets of Adelaide and Perth have none of the Nine suite via satellite, but these fall under the domain of WIN Television.

Nine was the most reluctant of the big three to discuss the issue, simply confirming what was currently available and deferring to WIN for other markets.

Nine declined to answer some questions, but on the question of whether the bandwidth cost of an HD channel in GEM differs significantly from the costs of an SD channel, it simply answered: “No.”

WIN Television declined to answer any questions at all.

So what’s the big deal? Can’t viewers simple exit the Foxtel platform and watch these channels like everybody else through conventional methods?

That’s what networks are counting on.

But if subscribers are lax at exiting the Foxtel platform, it could impact on ratings as well as missing promotions of upcoming programming.

It also means those programmes cannot be recorded on IQs: including The Amazing Race, Survivor, An Idiot Abroad, The Simpsons, Neighbours, Family Guy, The Big C, Nurse Jackie, Supernatural and Sons of Anarchy.

For Perth and Adelaide viewers the problem is much worse, given Seven, Nine an TEN are also unavailable.

Despite some of these channels approaching their second birthday, networks publicly push a line about “on-going discussions” to address the problem. It’s just as well the question wasn’t about HD content.

It seems viewers are being left behind while the political football of transmission costs drags on.

As one spokesperson told TV Tonight, “We hope that we will find a resolution but I can’t say when the resolution will be.”

71 Responses

  1. Really interesting article, thanks David. I don’t have Foxtel, but surely for a paid service you should be able to have all the same programs.

  3. @ Tyson, what a load of unqualified b.s you speak. You only have to look at the amount of commenters on this site to know there are many people visiting it on a regular basis. I have read many fantastic interviews on this site, and it is the source of many good stories each week. What do you want for nothing ?

  5. You can understand it from both sides not wanting to bear the cost for finite satellite bandwidth. I’m sure if either saw it as an economic benefit to their business they would do so.

  6. You know what at least Austar boxes accomodate FTA even though its though the local antenna on the top of the house i can still record all channels because of this. I haven’t had any problems what so every with Austars box.

    1. Tyson: ps. those same reluctant networks are also using quotes from reviews here in network promos, including Nine for Come Fly With Me. At the end of the day any blog will stand up or fall down based on whether readers engage with the content, but I feel the site has broken enough news and has enough traffic to have justified its existence. Comments here are indicating frustration amongst Foxtel subscribers. 2 years of silence was long enough without anybody else raising the question and the revamp of ONE was enough for me to put it to them all, Foxtel included.

  8. “Their HD channels are not transmitted to satellite viewers on Foxtel anywhere in the country for the same reason. The HD signal requires a larger bandwidth and therefore a higher cost.”

    That would make sense if the FTA HD channels actually transmitted any worthwhile quantity of HD programming.

  9. as a perth resident with foxtel for over 5 years, this situation where i cannot watch free to air tv on my IQ is to the detriment of the free to air channels.
    i cannot remember the last time i watched 7, 9, 10 (or the multi-channels) as its a hassle to change AV inputs and fire up the Set top box etc etc.
    the only exception is sporting telecasts that i Must watch on free to air as they have the rights. but at least with afl from next year, even that will change as foxtel will have all 9 games live.

    its funny i hear all about these shows on tv people watch like masterchef, two and a half men, hot seat etc etc and i have Never seen 1 episode….

  10. @ Tyson – that is just plain rude insulting David and the TV Tonight brand. TV Tonight is the largest Australian TV related website in Australia that is not owned by a TV network (e.g. yahoo7 owned by the Seven West Network). With it being the largest privately owned TV related website in Australia obviously there is more than a handful of visitors, so get your facts straight and if you don’t like the website then don’t visit it – Simple.

  11. In the USA They have ‘must carry’ laws, which force all FTA networks to be broadcast with cable/satellite providers. The government should step in here as well.

  13. I’m not sure you understand how journalism works, Tyson. No one is obligated to answer any question. Why shouldn’t David ask these questions? Perhaps he should only make polite enquiries about ‘up and coming stars’ instead, just to keep the networks happy.

  14. So when the governments satellite service becomes active does that mean the FTA will get free access or will they have to pay a fee?

    @Ryan – “Foxtel Subscribers want it; foxtel subscribers should have to pay for it;”. – FTA customers want AFL and NRL they should have to pay for it. LOL.

  15. I agree with @Russell – that by far the most popular programmes accessed on the Foxtel service are the FTAs.
    One quick look at the daily rating shares of the whole Foxtel service shows that. The FTA sector on the Foxtel platform is streets ahead. If the FTAs were unavailable to Foxtel, then it would be a sadly under-visited place.
    Unless I’ve mis-read the article, I’m surprised to learn that the FTAs are not being paid by Foxtel for their re-transmission in any format (Sat or Cab). If they aren’t, then they should be.

  16. I’m really p*ssed off that I can’t record Neighbours & The Simspons on my IQ. At least with Neighbours, Eleven makes it available on Catch Up TV. If Foxtel don’t take notice of complaints, people will just watch everything on the internet in future and cancel their Foxtel subscriptions.

  17. ’cause I visit here, I’m an industry peep? Sweet! Wanna pay me now, Tyson? 🙂

    Hopefully satellite does eventually get the channels. Perhaps, one day, you might get answers to your questions also? 😉

    When I had satellite a few years back, it was when the other free-to-air channels weren’t available beyond the metropolitan areas. Would have loved to have gotten them through satellite. However.

    I would rather keep with Pay-TV/Satellite, than leave it for the extra free-to-air channels.

    They’re only shooting themselves in the foot.

  19. Tyson, you are so rude. Who are you to tell David the industry “peeps” deal with him reluctantly? Have you proof of this allegation?

  20. We don’t exit the platform and the only way we can record shows is through the iQ2. They are losing our ratings. I think it would be money well spent.

  21. David – the networks are under no obligation to answer your every question. After all, it is widely accepted that this site only has a handful of visitros. And even then, they are just industry peeps. The networks deal with you only very reluctantly. Stories like this don’t do you any favours.

    1. Tyson: Nobody I interview is ever under any obligation to answer a question, but that doesn’t mean I’m about to stop asking them, especially when nobody else is. Viewers have been waiting for up to 2 years for some of these channels to resolve their discussions over satellite costs. Networks dealing “reluctantly” with this site are more than happy to contact me on a daily basis for interviews, set visits etc. but appreciate that not every story is going to be a free kick. They also know I will de-bunk some myths peddled by print media and provide a right of reply. But this site is not seeking to be an online version of TV Week. I respectfully disagree with your interpretation of both the quality and quantity of visitors here, but if it isn’t to your liking there are other alternatives.

  22. IMO Foxtel Subscribers want it; foxtel subscribers should have to pay for it; The Network is gaining anything out of their channels being broadcast on the foxtel platform – unless they start getting a share of the subscription fees. If they get nothing out of it why would they fork out additional $$ to have their channel on Foxtel?

  23. Well if it makes Foxtel subscribers feel better, Austar has inbuilt 2 terrestrial tuners so subscibers have access to FTA channels in their area, but because Austar’s STB and fireware has soo many bugs the FTA channels either appear and disappear, or never appear on your STB. Funny how even though Foxtel subscribers don’t have access to FTA channels because of money, Austar dont because their idiots.

  24. No one has ever bothered to ask this question:

    How does Foxtel treat networks it has no commercial interest or financial stake in such as CNN, E!, Nat Geo, ESPN etc.

    Does Foxtel charge them for HD satellite cost?

    If the answer is yes – then Foxtel should charge Gem, News 24, 7mate and One.

    If the answer is “no” then Foxtel should treat all networks equally.

    In the US the networks charge the pay TV operators for the right to re-broadcats their signals.

    Let’s not forget the FTA networks have the most popular and loved programming BY FAR. masterchef, AGT, Rafers, AFL. NRL etc. Whys should the networks pass this programming on to Foxtel for free?

    They should charge Foxtel!

  25. Which would be the bigger problem: FTA channels losing viewers due to them being unable to watch on the Foxtel platform, or Foxtel losing viewers of pay channels because viewers are able to watch FTA via Foxtel?

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