Should Foxtel pay FTA networks a retransmission fee?
Free to Air networks hail a government report that says Pay TV should be paying them a fee for re-broadcasting their content.
- Published by David Knox
- on
- Filed under Subscription
It’s been a thorny question for years: should Foxtel be paying Free to Air networks for the right to rebroadcast their content?
Yesterday the Australian Law Reform Commission issued its ‘Copyright and the Digital Economy’ report as part of its inquiry into copyright and the digital economy.
Free TV said it welcomed the report recognising that subscription television providers benefit commercially because they are able to provide free-to-air channels as part of their subscription packages without having to negotiate a commercial fee, or conditions, with broadcasters.
In a statement it said that a repeal of the current scheme should be considered as a matter of urgency so that broadcasts are protected in the same way as other copyright materials.
Andrew Maiden, CEO of the Australian Subscription Television and Radio Association told TV Tonight, “By giving them convenient access to larger audiences, the current arrangements already serve the commercial interests of free-to-air broadcasters.
“An additional payment for retransmission would lead to some households paying to receive what their neighbor gets free – it would see free-to-air networks double dipping into the pockets of the viewing public.
“Any call to impose a regulatory solution on what should be a commercial negotiation would fly in the face of the new government’s deregulatory agenda”.
18. Retransmission of Free-to-air Broadcasts
Recommendation 18–1 In developing media and communications policy, and in responding to media convergence, the Australian Government should consider whether the retransmission scheme for free-to-air broadcasts provided by pt VC of the Copyright Act and s 212(2) of the Broadcasting Services Act 1992 (Cth) should be repealed.
Note: This would effectively leave the extent to which retransmission occurs entirely to negotiation between the parties—broadcasters, retransmitters and underlying copyright holders.
Recommendation 18–2 If the retransmission scheme is retained, the scope and application of the internet exclusion in s 135ZZJA of the Copyright Act should be clarified.
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30 Responses
Lots of anti-foxtel people posting in this thread, sour grapes perhaps because of the locking up by foxtel of game of thrones and other HBO shows, pretty much all the yes they should pay are people who don’t have foxtel, and so, think that foxtel subscribers don’t have any right to FTA channels through their box- something like either get a seperate tuner for the FTA channels, or pay the extra amount each month for the rebroadcasting of these channels on foxtel, otherwise tough titty, no FTA for you!
Can I give you some of these? . ; ,
Foxtel is boosting its offering by including the FTA channels so why shoudn’t they pay?
My answer: If there were more than one major subscription TV operator in Australia, like there was in the 90’s: I’d say yes to “fee for carriage”.
If “fee for carriage” were introduced without moves to breakup the Foxtel monopoly, Foxtel will simply rollout STBs with FTA tuners, instead of paying the FTA networks to retransmit the FTA signal.
But I thought the best things in life are free???
If there were no longer FTA channels on foxtel, I would watch them less. Now if I’m flipping around I will look through the FTA networks as well to see if there’s anything interesting on. If it was more difficult to do that (If I have to change to another AV channel to see the FTA) then I wouldn’t bother a lot. So the FTA networks would miss out.
It is in the free to air networks interest to have the channels broadcast by foxtel. In my own case recording things on iq means I don’t use the FTA aerial but also means rarely watch gem, one or 7mafe and can’t record. So FTA gets more viewers, therefore can charge more for advertising so yes they should pay foxtel
Harry, Foxtel hasn’t gone cap in hand to the FTAs and said “please can you let us show your channel on our pay TV platform”. Every single retransmission of a commercial FTA service that you see on Foxtel is there because the originating network has paid and made it’s own arrangements for the service to be carried on Optus’ sats and then approached Foxtel to have the service included in Foxtel’s channel line up.
Remember, Foxtel viewers have made a concious decision to get Foxtel, ie FTA doesn’t float their boat. If the FTAs insist on Foxtel paying them to carry it won’t be any skin of Foxtel’s nose to remove the re-transmissions and simply use their IQ3 boxes to provide integrated access to FTA TV. Now, should that happen, will you see the FTAs launching legal battles to prevent Foxtel IQ3s from being able to record / time shift FTA TV using an EPG? Something about snow…
When I used to work in Foxtel support, one of the main equiries we used to field was “Where is ch7 and ch10?” (context: this was back during the the first few years of digital foxtel)
You guys are crazy if you dont think that Foxtel has more to gain by having FTA on their service than the other way around – Foxtel penetration has slowed down, they need to add value to their service and with digital multichannel anecdotally stealing Fox customers, its unwise to think anything opposite
This happens then monthly subscription goes up when you can switch to DTV to see them anyway, so just stop Foxtel retransmitting them, then problem solved
My understanding was (from a few years ago) that FTA pays Foxtel to retransmit their channels (as in pays for the bandwidth etc) which is the reason why GEM, ONE and 7mate are not on Foxtel satellite due to being HD channels and taking up more bandwidth and therefore costing FTA more.
If Foxtel want to carry the FTA signal they should pay! The cable operators in the US pay so why not here?
Why as a Foxtel subscriber should I pay for the rebroadcast of FTA channels? I live in an apartment block, and not everyone here has foxtel, the ones who don’t have a digital tuner for the fta channels, so they get the FTA channels for free, meanwhile, someone who pays a monthly subscription, and is fortunate enough to have the FTA channels also, is forced into paying a extra amount every month for the ability so see 7,9,10,2,sbs and the various hd channels. How is this fair exactly???
Yes please, more govt regulation. Foxtel should not be forced to pay the FTA networks nor forced to carry their content.
Foxtel and the FTA networks should be free to negotiate a commercial arrangement between themselves without govt interference. If Foxtel sees value in retransmitting FTA channels, they will pay commensurate with that value. If the benefit is greater for the FTA networks, they may choose to permit retransmission for free.
No, FTA should be paying Foxtel for the privilege of being on the best PVR and EPG in the country. Here in Perth all we’ve ever had is ABC1 & SBS1 and Sydney versions of ABC2 & SBS2 in EST
I have to agree with Bogues. Murdoch will not pay and Foxtel will simply drop the re-transmission. I am an IQHD user who relies on that box to record the few shows that I actually do watch on FTA, as there is no further space in the entertainment unit for another PVR.
And if the re-transmission goes, you know where I am going to source those programs…that’s right, Channel BeeTee. Actually, it’s probably a better idea anyway – at least I could get them in 720p at the least.
FTA is a joke in this country, and the government is largely to blame.
I wonder if ASTRA has been too quick to say “consumers will pay more” rather than “Murdoch will pay more.”
The most popular content and channels by far on the Foxtel platform are the main FTA networks: ABC1, Nine, SBS1, Seven and Ten. By far more watched on Foxtel than Foxtel’s own channels.
Why should Foxtel get this content for Free?
– As a monopoly with a license to print money, Foxtel should be required by law to carry all local FTAs (including digital channels) in all markets on cable and satellite
– They should pay the FTA’s a retransmission fee, as they profit from selling these channels to Australians
– The FTA networks should be required by law to broadcast ABC1, SBS1, Ten Nine and Seven in HD. Foxtel should also carry these in HD.
I think FTA should be paying Foxtel for carrying their programs!
I thought this story was a joke at first!
This won’t be an issue once the new iq3 launches with the terrestrial tuners.
If Foxtel was made to pay for the FTA channels, they would simply drop them. And FTA loses out. I can’t see the FTA channels forcing Foxtel to pay, even if the laws are changed.
It won’t be Foxtel who are paying it will be their viewers. And they will be paying to watch the ads on FTA!
Here there are few households without an aerial and it is only a minor convenience to subscribers to have FTA channels on the same system as their cable (it saves them pushing a button).
Foxtel will probably just do what the did in the beginning which is refused to carry FTA until the dropped their demands for payment because it is mostly a benefit to FTA increasing their viewing in cable homes.
It the US it is different because most cable subscribers don’t have working aerials and basic cable is selling FTA as a service.
Of course the internet is rendering the whole argument irrelevant in the US anyway. Though people are pissed off that NBC won’t stream the W!nt3r @l^mp!cs to households without a cable subscription.
Yes – Fox should pay to re-broadcast FTA signals
Yes – it should be a government regulation that Foxtel carries all FTA signals on their services at their cost to all subscribers (cable, satellite and iptv)
How about the government worry about more important stuff like forcing the FTA channels to show sport and new shows in HD (and decent HD, not the low bitrate tripe they have now).
Foxtel should just stop transmitting the FTA channels if they have to pay, I for one won’t miss anything.
Why should Foxtel pay? fta has a broader ranger for their ads reaching more consumers so Foxtel may claim a percentage of income from the fta ads its like the fta networks asking David to pay a fee for reporting their news!!
Which would suffer more? The FTAs that are already scrabbling for hundreds of millions of dollars of government subsidy and in some cases are struggling to even stay afloat – or – Foxtel that has no significant debt and is turning a quite healthy profit?
If the FTAs force Foxtel to pay for retransmission rights Foxtel may just say “stuff it” and the FTAs will be the losers.
Of course Foxtel should be paying for this. The example of neighbours that they give is specious, both parties are free to erect antennae and receive the same FTA broadcast. Mind you, if Foxtel’s argument is going to be seen as correct, then there is nothing stopping me, nor anyone else, retransmitting FTA broadcasts for profit.