But the Lewis report, which looks at efficiency costs for SBS and ABC, has also recommended both broadcasters consider a cost saving by no longer paying the satellite fees required.
Today The Australian sheds some more light on the issue:
The costs for satellite capacity are paid by broadcasters to Optus, not to Foxtel. The broadcasters then decide whether their broadcasts go to Foxtel-transponder homes. It is believed the cost of the satellite hire to the public broadcasters is in the low millions; SBS is understood to have recently renegotiated its contract with Optus.
The satellite cost for carriage on Foxtel is a minor component of the costs of transmission of ABC and SBS services, totalling almost $300 million a year. They are viewed by the federal government as one of the key areas for cost recovery.
Not having ABC and SBS access through Foxtel would be a lose / lose situation.
There may be a cost saving, but what both would lose in terms of brand awareness with the audience would be utterly priceless.