Digital TV War Simmers Away

Behind the scenes of free to air TV stations in Australia, a digital TV war is simmering away and while the CEO’s of Seven, Ten and Nine were on their best behaviour last night in Canberra for the launch of Freeview, the relationship between the Federal Government and the free to air TV industry is far from harmonious.

From 6.30pm tonight TV stations across Australia will start flogging a brand new service called Freeview which is an Electronic Program Guide (EPG) that the ABC, SBS, Seven, Nine and Ten Networks, as well as regional broadcasters WIN, Prime Media and Southern Cross claim, will make it simple for viewers to find what they want to watch quickly and easily on every network.

During the next 12 months the participating stations will spend over $20M promoting Freeview and up to 15 new digital TV channels that include five High Definition (HD) and 10 Standard Definition (SD) channels, which will be bought online in 2009.

And here in lies the problem. While Channel Ten have announced their digital TV line up, which includes a new sports channel, both Seven and Nine have refused to announce their intentions until the Federal Government gives them a guarantee that freed up spectrum, which will become available when analogue TV is switched off between 2010 and 2013, will not be used for a new TV channel.

The Federal Government has said that as soon as this  analogue spectrum is freed up they intend to sell it for over $1 billion dollars. However the TV networks, who have a reputation for bullying Governments around Australia, want a guarantee that a licence will not be issued for a fourth commercial network in Australia.

One contender for a new network is News Ltd owners of the Fox Network in the US and part owners of Sky in the UK and Foxtel in Australia.

A senior Seven Media executive who did not want to be named said “Free to air TV is facing a tough time. We are now having to compete with online and when the new fast broadband service is delivered IPTV services though we are better placed than Nine and Ten with our Tivo offering. Now there is the real risk that the government will allow a new network into Australia. It is the TV networks that is funding Freeview education so that the Government can free up spectrum.”

 The Chairman of Freeview, Mr Kim Dalton who is the ABC Director of Television, says the new service will change the face of television while ensuring all Australians continue to enjoy the great range of programming offered by free-to-air networks.

“Freeview is perhaps the most important thing to happen in Australian television since Bruce Gyngell made history back in 1956 with those three simple words, ‘Welcome to television’,” Mr Dalton said. “Last Night’s event is historic because every free-to-air television network is represented. Our traditional rivalries have been suspended in the name of a shared vision, ensuring that every Australian is ready for the future of digital television”.

He added, “The free-to-air broadcasters have pioneered digital television, investing millions in infrastructure and converting equipment and studios. Now it’s time for viewers to reap the rewards.”

To receive all the Freeview channels, consumers will need an HD digital-set-top box, digital video recorder or an integrated digital television. The box that will cost anything between $499 and $599 will be sold alongside personal video recorders and Tivo boxes.

One major retailer said, “This is just one more box that will confuse shit out of the consumer. Now we have to explain PVR’s, Tivo Boxes and Freeview.”