tag:theconversation.com,2011:/global/topics/presto-15634/articlesPresto – The Conversation2018-08-19T19:49:58Ztag:theconversation.com,2011:article/1013112018-08-19T19:49:58Z2018-08-19T19:49:58ZCan Australian streaming survive a fresh onslaught from overseas?<figure><img src="https://images.theconversation.com/files/231410/original/file-20180810-30443-122o9fc.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">shutterstock</span> </figcaption></figure><p>Australia’s already punch-drunk streaming sector is set for even more upheaval, as CBS <a href="https://www.theage.com.au/entertainment/tv-and-radio/cbs-confirms-australian-streaming-platform-to-launch-by-end-of-2018-20180806-p4zvpf.html">will launch</a> its streaming service in Australia as early as October. </p>
<p>Disney is also <a href="https://www.thewaltdisneycompany.com/walt-disney-company-acquire-majority-ownership-bamtech/">set to launch its streaming service in 2019</a>. Based on recent history, Australia will likely be first up when it goes global.</p>
<p>The question is whether Australian streamers can compete locally with the global mammoths. Doing so might require coordination the likes of which we haven’t seen before.</p>
<p>This will impact not just what media Australians have access to, but <a href="https://www.screenaustralia.gov.au/sa/media-centre/news/2017/06-15-abs-survey-results">more than 31,000 people</a> employed by Australian media.</p>
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Read more:
<a href="https://theconversation.com/netflix-arrival-will-be-a-tipping-point-for-tv-in-australia-38386">Netflix arrival will be a tipping point for TV in Australia</a>
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<p>We have already seen huge upheavals in Australian streaming.</p>
<p>Stan is the last remaining Australian streaming service from 2015, <a href="https://theconversation.com/netflix-arrival-will-be-a-tipping-point-for-tv-in-australia-38386">when I wrote about the official launch of Netflix in Australia</a>. At that time there were two Australian-based subscription video-on-demand (SVoD) services, Presto and Stan. </p>
<p>Presto, a joint venture between Seven and Foxtel, was shut down in early 2017. </p>
<p>Foxtel then launched <a href="https://www.foxtel.com.au/now/index.html">FoxtelNow</a> in June 2017. It is already set for an <a href="https://www.channelnews.com.au/foxtel-now-dead-new-4k-uhd-service-coming-cricket-launch/">overhaul</a> later this year, to include 4K streaming, along with sports and entertainment streaming packages. </p>
<h2>Aussie streaming services, more than just subscription</h2>
<p>In addition to Stan, there are also transactional video-on-demand (TVoD) services in Australia, although these are discussed far less. A TVoD service is based upon a single payment being made to view singular content for a limited time, e.g. you have streaming access to the latest release for 48 hours. </p>
<p>One such Australian service is <a href="https://www.quickflix.com.au">Quickflix</a>, which launched in 2014. It went <a href="https://theconversation.com/buyouts-mean-the-future-of-australian-video-on-demand-is-hard-to-picture-66683">into receivership</a> in 2016, before being saved and later relaunched. </p>
<p>Quickflix is still a streaming company, but retains the older <a href="https://www.quickflix.com.au/Join">disc mail-out service</a>. This mail-out service could help Quickflix survive against global streaming services. </p>
<p>With the <a href="https://www.smartcompany.com.au/technology/australias-video-shop-association-set-close-can-streaming-keep-demand-high-quality-video/">closure</a> of video stores and retail stores <a href="https://thenewdaily.com.au/money/consumer/2018/06/28/kmart-australia-dvds-cds/">removing discs</a> from their shelves, a mail-out service still has value for Australians with poor internet speed and access.</p>
<p>The other Australian TVoD service is <a href="https://www.ozflix.tv/">OzFlix</a>, which some Australians may not be aware of. </p>
<p>Its differentiation is plans to source “<a href="https://www.ozflix.tv/#!/page/412/about-us">Every Aussie Movie. Ever.</a>”. A big task, but its specific niche may help it survive the onslaught of global media streaming services, while also giving <a href="https://theconversation.com/with-the-rise-of-subscription-and-online-tv-we-need-to-rethink-local-content-rules-79496">local content</a> a dedicated home. </p>
<h2>Global media giants set their sights on Australia</h2>
<p>Australia has been the first country that many media companies expand to when moving outside their own region. <a href="https://theconversation.com/netflix-arrival-will-be-a-tipping-point-for-tv-in-australia-38386">Netflix</a> and <a href="https://theconversation.com/youtube-red-is-here-and-it-breaks-the-video-on-demand-mould-59656">YouTube Red</a> (now YouTube Premium) are two examples. </p>
<p>More recently we have seen <a href="https://theconversation.com/amazons-new-grand-tour-series-could-be-the-next-illegal-download-victim-68141">Amazon Prime Video</a> launch in late 2016, although it is yet to have a major uptake locally. </p>
<p>The arrival of CBS All Access will impact Stan particularly. Stan features a number of CBS programs, so future programming will need to be from other distributors or through greater investment in original content. </p>
<p>Disney is also set to <a href="https://www.channelnews.com.au/foxtel-netflix-set-to-face-off-with-new-disney-streaming-service/">acquire</a> 21st Century Fox. This will expand its catalogue on the new streaming service beyond its already huge catalogue. The Marvel movies look set to remain on current services, for now.</p>
<h2>Australians and streaming…. what next?</h2>
<p>A recent <a href="http://www.roymorgan.com/findings/7681-netflix-stan-foxtel-fetch-youtube-amazon-pay-tv-june-2018-201808020452">Roy Morgan report</a> found over 9.8 million Australians had access to Netflix, with Stan at over 2 million. While Stan is clearly behind, it has had a 39.2% increase in the last 12 months. </p>
<p>YouTube premium has over 1 million subscribers, FetchTV 710,000 and Amazon Prime Video last at 273,000 (an 87% increase year on year).</p>
<p>The arrival of CBS All Access and Disney will make an already crowded market only more so. But is more choice a good thing? </p>
<p>A 2014 <a href="http://www.nielsen.com/us/en/insights/news/2014/changing-channels-americans-view-just-17-channels-despite-record-number-to-choose-from.html">Nielsen report</a> showed the average channels receivable by US households grew from 129 in 2008 to 189 in 2013. But the average channels tuned in remained at 17.</p>
<p>On top of larger content libraries, the global players also have deeper pockets. Disney looks <a href="https://www.tubefilter.com/2018/08/14/star-wars-live-action-series-will-cost-100-million-be-streamed-exclusively-on-disneys-platform/">set to spend</a> US$100 million on a new Star Wars series for its streaming service. Netflix will <a href="https://variety.com/2018/digital/news/netflix-original-spending-85-percent-1202809623/">spend</a> more than US$8 billion on content in 2018 alone, and Amazon last year spent US$4 billion on content. </p>
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Read more:
<a href="https://theconversation.com/with-the-rise-of-subscription-and-online-tv-we-need-to-rethink-local-content-rules-79496">With the rise of subscription and online TV, we need to rethink local content rules</a>
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<p>Australian services will need to have a point of difference. Quickflix and OzFlix have their points of difference, but what about a larger service like Stan? </p>
<p>Stan can’t compete with the global companies on quantity of content, so it must, like others, have a point of difference. </p>
<p>Stan could become a premium platform for content of which some is broadcast on Nine later. That would be a similar approach to when Australian FTA broadcasters would buy US content months after it was broadcast in the US – to save on costs.</p>
<p>For an Australian service to compete, a better solution would be a combined approach, an all-Australian streaming service that combines the strengths and finances of the Australian media industry. </p>
<p>The <a href="http://www.freeview.com.au/freeviewfv/">Freeview app</a> is an example of how Australian television has tried to work collaboratively but failed. The users can view all the catch-up content from Australian broadcasters, but to view it they are taken from the app to the specific broadcasters’ own catch-up apps. </p>
<p>This requires six apps in total to be installed to view all catch-up content.</p>
<p>But is the Australian media industry willing to come together to fight against global streaming media companies, or will they continue to battle each other? Failure here could result in a further decline in Australian media.</p><img src="https://counter.theconversation.com/content/101311/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Marc C-Scott is a board member of C31 Melbourne (Community Television Station).</span></em></p>Is the Australian media industry willing to come together to fight against global streaming media companies, or will Australian media continue to battle each other?Marc C-Scott, Lecturer in Screen Media, Victoria UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/666832016-10-11T05:14:16Z2016-10-11T05:14:16ZBuyouts mean the future of Australian video-on-demand is hard to picture<figure><img src="https://images.theconversation.com/files/141174/original/image-20161011-3903-1y6nqdd.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">The hugely popular Game of Thrones could be a crucial drawcard for Foxtel Play's new viewers.</span> <span class="attribution"><span class="source">AAP Image/Village Roadshow Production</span></span></figcaption></figure><p>The dust is showing no sign of settling on Australia’s video-on-demand (VoD) media landscape. The past week has seen two seismic shifts which will have a flow-on effect on almost anyone who watches subscription-based television.</p>
<p>First came the news of <a href="http://www.abc.net.au/news/2016-10-04/presto-to-disappear-as-seven-sells-stake-to-foxtel/7900778">Foxtel’s takeover of Presto</a>, with the latter’s customers being transferred to Foxtel Play when Presto shuts down next year.</p>
<p>Then the ailing VoD service <a href="https://www.quickflix.com.au/">Quickflix</a> gained a surprise stay of execution, being <a href="http://www.smh.com.au/business/media-and-marketing/quickflix-snapped-up-for-13m-by-us-entrepreneur-20161004-gruqoq.html">saved by a US buyer</a> after going into <a href="https://theconversation.com/a-shake-up-in-australias-busy-tv-industry-as-quickflix-calls-in-the-administrators-58487">voluntary receivership</a> earlier this year.</p>
<p>The shakeup has left viewers wondering where their subscription fees are going to end up, and what content they will be able to access once the merry-go-round stops.</p>
<h2>Quickflix’s future?</h2>
<p>Quickflix’s problems began in 2014, when former stakeholder HBO sold its shares to Nine Entertainment. The following year the shares were transferred to Stan, Nine’s new joint VoD venture with Fairfax Media. </p>
<p>When Quickflix went into voluntary receivership, it stated Stan’s unwillingness to bargain with potential buyers as a key reason for its <a href="https://theconversation.com/a-shake-up-in-australias-busy-tv-industry-as-quickflix-calls-in-the-administrators-58487">demise</a>.</p>
<p>Quickflix has now been saved, although it is not clear what it will become or what its focus will be. US media entrepreneur Erik Pence has paid A$1.3 million, and the holding for the purchase, Karma Media, plans to retain 24 employees and pay entitlements to former employees. </p>
<p>There will <a href="http://www.smh.com.au/business/media-and-marketing/quickflix-snapped-up-for-13m-by-us-entrepreneur-20161004-gruqoq.html">reportedly</a> be more investment in marketing and a shift towards more niche content. This latter strategy has been a globally successful tactic for other VoD and online platforms such as <a href="http://netflix.com">Netflix</a>, <a href="http://youtube.com">YouTube</a> and <a href="https://www.fullscreen.com">Fullscreen</a>. </p>
<p>But it is unclear whether Quickflix’s new service will support the production of Australian content in any way – or even whether it will primarily offer movies, television series, or both. This makes it difficult to analyse the impact its re-emergence will have on the Australian VoD landscape.</p>
<h2>Hey Presto</h2>
<p>In contrast, the future of Presto has been made very clear indeed. Foxtel has acquired Seven West Media’s interests in the service and confirmed that it will cease on January 31, 2017. </p>
<p>This arguably makes Presto the first real casualty of the battle that has sprung up in Australia’s crowded VoD landscape.</p>
<p>Presto has been constantly reported as struggling for subscribers against competition from Netflix and Stan. A recent Roy Morgan <a href="http://www.roymorgan.com/findings/6839-netflix-stan-presto-subscription-video-on-demand-may-2016-201606141025">report</a> from this year showed how far Presto was behind its competition. </p>
<p>Presto had 142,000 subscriptions, less than half of the 332,000 signed up to its local competitor Stan. Even combined, these numbers are far short of international giant Netflix, which has <a href="http://www.roymorgan.com/findings/6839-netflix-stan-presto-subscription-video-on-demand-may-2016-201606141025">1,878,000 Australian subscriptions</a>.</p>
<p>Foxtel plans to move Presto’s subscribers over to its internet-delivered service Foxtel Play by the end of this year. In a <a href="https://www.foxtel.com.au/about/media-centre/press-releases/2016/foxtel-revamps-its-streaming-video-service.html">media release</a> Foxtel promised that “Presto customers will get access to more premium first run television programs and more recent movies than ever before” – raising the question of whether they were holding back on content before the takeover.</p>
<p>The Foxtel Play service also may not be what current Presto customers are expecting, nor is there a guarantee that it will end up costing the same.</p>
<h2>Does Foxtel really want to compete?</h2>
<p>It is clear that Foxtel is trying to compete with current VoD services, as underlined by its <a href="https://www.foxtel.com.au/about/media-centre/press-releases/2016/foxtel-revamps-its-streaming-video-service.html">recent announcement</a> that Foxtel Play entry prices will be cut to A$10 from the current A$25. But Foxtel Play’s <a href="https://www.foxtel.com.au/content/dam/foxtel/foxtelplay/support/pp-change/foxtel-play-pp-changes.pdf">subscription pricing structure</a> is much more complicated than other VoD services. </p>
<p>Unlike <a href="https://www.netflix.com/au/">Netflix</a> or <a href="https://www.stan.com.au">Stan</a>, which charge a flat fee for all content (although Netflix charges extra fees for more screens and HD qaulity), Foxtel Play has different prices for different content packages, much like Foxtel’s pay TV pricing structure. The content on Foxtel Play is not HD, although will <a href="http://decidertv.com/page/2016/10/7/foxtel-play-foxtel-go-will-make-the-switch-to-high-definition-foxtel">reportedly</a> be upgraded in 2017. </p>
<p>Foxtel Play’s <a href="https://www.foxtel.com.au/about/media-centre/press-releases/2016/foxtel-revamps-its-streaming-video-service.html">packages</a> include a basic offering of Documentary, Lifestyle or Kids programming at A$10 each per month, plus Premium Drama and Premium Entertainment options at A$15 each per month. Customers can also add Sport (A$25 per month) or Movies (A$20 per month) on top of these. So it seems likely that many customers end up paying more than those subscribing to other VoD services.</p>
<p>At first glance, Foxtel shutting down Presto could appear to be a way in which it can gain new Foxtel Play subscribers while dissuading viewers from defecting to Stan or Netflix. But the actual numbers may be small, according to Roy Morgan’s recent <a href="http://www.roymorgan.com/findings/6990-most-presto-subscribers-already-have-netflix-stan-or-foxtel-too-august-2016-201610050930">research</a>. </p>
<p>Of the 143,000 Australian homes with Presto, 77% already have an alternative VoD or pay TV service, which could include Netflix, Stan and Foxtel. Of Presto households, 55% also use Netflix and 27% have signed up to Stan. </p>
<p>Meanwhile, almost half of Presto subscribers already have Foxtel, mainly through its traditional set-top box service. Foxtel itself has <a href="https://mumbrella.com.au/foxtel-admits-subscriber-figures-include-presto-users-but-claims-cable-still-biggest-growth-driver-311968">admitted</a> to using Presto subscription numbers to bump up its own quoted subscriber growth numbers for 2015. </p>
<p>But Foxtel has two key advantages over Netflix and Stan. The first is HBO content, most notably the wildly popular series Game of Thrones. Next year Foxtel will <a href="https://www.foxtel.com.au/about/media-centre/press-releases/2016/foxtel-revamps-its-streaming-video-service.html">significantly increase</a> the amount of HBO content it offers.</p>
<p>The second advantage is sport, which fittingly is where the fiercest competition is set to play out among rival platforms.</p>
<h2>Into the sporting arena</h2>
<p>Sport streaming is poised as the next battleground in Australian video streaming, VoD and video subscriptions. If planned changes to <a href="http://www.acma.gov.au/Industry/Broadcast/Television/TV-content-regulation/sport-anti-siphoning-tv-content-regulation-acma">anti-siphoning rules</a> are made, the battle will become even more intense.</p>
<p>Foxtel Play’s pricing will allow access to Foxtel’s sports package for A$35 a month, A$15 cheaper than its pay TV sports package. But is it cheap enough?</p>
<p>Telcos themselves have now become sports broadcasters, with both <a href="https://www.telstra.com.au/tv-movies-music/sport">Telstra</a> and <a href="http://www.optus.com.au/shop/entertainment/sport">Optus</a> heavily invested in sports streaming – the latter after <a href="https://theconversation.com/optus-the-new-player-in-australias-sports-media-rights-battle-50069">sensationally pinching</a> the rights to the Premier League from Foxtel. </p>
<p>Seven’s recent broadcast of the Rio 2016 Olympics also <a href="https://theconversation.com/the-rio-olympics-are-a-test-case-for-the-future-of-sports-broadcasting-63589">raised many questions</a> about future sports broadcasting and media rights. With Seven no longer involved with Presto, it could set its sights on sport and furthering its partnership with Telstra.</p>
<p>If Telstra were to <a href="https://theconversation.com/bed-fellows-no-more-its-foxtel-versus-telstra-in-battle-for-online-subscribers-56672">sell its stake</a> in Foxtel, it may decide to invest more money in becoming a direct competitor to Foxtel Play.</p>
<p>This will open opportunities for streaming not only for major international competitions, but leagues that currently enjoy less funding and publicity. The Women’s AFL could be a perfect place to start – offering a homegrown product to homegrown viewers.</p><img src="https://counter.theconversation.com/content/66683/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Marc C-Scott is a board member of C31 Melbourne (Community Television Station).</span></em></p>With Quickflix saved but Presto on the way out, it’s hard to predict who will emerge as the winners as battle for video-on-demand viewers intensifies.Marc C-Scott, Lecturer in Screen Media, Victoria UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/603082016-06-05T20:12:58Z2016-06-05T20:12:58ZIs a quota the key to getting Netflix and co. to spend more on Australian content?<figure><img src="https://images.theconversation.com/files/125085/original/image-20160603-11600-1xjwz5z.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Television is changing rapidly in the Netflix era, but are Australia's industry protections keeping up?</span> <span class="attribution"><span class="source">Daniel Go</span>, <a class="license" href="http://creativecommons.org/licenses/by-nc/4.0/">CC BY-NC</a></span></figcaption></figure><p>The European Commission has released a <a href="https://ec.europa.eu/digital-single-market/en/news/proposal-updated-audiovisual-media-services-directive">proposal</a> that will <a href="http://www.investopedia.com/articles/insights/052616/netflix-faces-new-quota-local-content-eu-nflx.asp">require</a> video streaming services, including Netflix, Amazon and Apple to meet at least a 20% quota of locally produced (ie European) works. This is part of a push to create a <a href="http://ec.europa.eu/priorities/digital-single-market_en">digital single market</a> within the European Union.</p>
<p>In Australia, around 10% of <a href="http://www.adnews.com.au/news/netflix-reaches-2-2m-australians-but-growth-is-slowing-down">homes</a> have Netflix (although Stan and Presto are in less than 1%). The uptake of these services is clearly <a href="https://theconversation.com/the-battle-for-audiences-as-free-tv-viewing-continues-its-decline-58051">impacting</a> the local television industry. </p>
<p>Whilst the Australian government has <a href="http://www.smh.com.au/business/media-and-marketing/screen-producers-australia-calls-for-netflix-local-content-quota-nine-prefers-deregulation-20160529-gp6ef9.html">said</a> it “has no plans to expand existing content regulations”, if the EU were to embrace a local content quota, pressure would grow for one here.</p>
<h2>Local Content in the Australian Media Landscape</h2>
<p>The question of a local content quota for online video services in Australia was raised last year. Both the ABC and Screen Producers Australia asked the government to <a href="http://www.smh.com.au/business/media-and-marketing/netflix-and-youtube-should-invest-in-aussie-content-20150916-gjo3pn.html">consider</a> a new digital content fund to which new media distributors, such as Netflix and Google, would contribute.</p>
<p>YouTube’s parent company, Google, responded <a href="http://www.smh.com.au/business/media-and-marketing/netflix-and-youtube-should-invest-in-aussie-content-20150916-gjo3pn.html">by saying</a>:</p>
<blockquote>
<p>We care a lot about Aussie voices reaching a global audience, which is why we invest in programs like Skip Ahead with Screen Australia [a A$250,000 investment for Google], run regular creator training, and bring new business models to Australia so that creators can make money from their talents</p>
</blockquote>
<p>The <a href="http://www.screenaustralia.gov.au/funding-and-support/television-and-online/production/skip-ahead">Skip Ahead</a> initiative funds successful Australian YouTube creators to “make the leap to a longer narrative-driven film of at least half an hour in length”. Content produced as part of the initiative could potentially be used toward original content for YouTube’s new subscription service, YouTube Red. </p>
<p>This subscription service, <a href="https://theconversation.com/youtube-red-is-here-and-it-breaks-the-video-on-demand-mould-59656">launched here</a> last month, is ad-free and includes music streaming and original YouTube content not available for free. Australia is the first country outside of the United States to gain access to it.</p>
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<figcaption><span class="caption">Meet YouTube Red.</span></figcaption>
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<p>Scanning <a href="https://www.stan.com.au/watch">Stan’s library</a>, Netflix’s <a href="https://www.netflix.com/browse/genre/5230">Australian Movies</a> and Presto’s dedicated <a href="https://www.presto.com.au/tv/australian-made-2">Australian Made section</a>, it’s clear that all three provide local content. But gauging the percentage of local content within these libraries is difficult due to the continuous <a href="http://www.lifehacker.com.au/2016/06/heres-everything-coming-to-netflix-stan-presto-and-foxtel-this-june/">additions</a>. </p>
<p>Stan has licensed an extensive <a href="http://www.smh.com.au/entertainment/tv-and-radio/netflix-stan-and-presto-support-local-content-to-a-point-20150602-ghdvfj.html">back catalogue</a> of content both from the ABC and SBS. Presto, as a joint venture between Seven and Foxtel, has acquired a large back catalogue of Seven content.</p>
<p>Despite it being within their libraries, there is a limited amount of new local content being produced by video on demand services. </p>
<p>Recently, Stan produced local content including Wolf Creek and No Activity. It has also <a href="http://if.com.au/2016/05/26/article/Stan-announces-first-feature-with-Screen-Queensland-funded-The-Second/IRLKFFRBFE.html">announced</a> a feature film funded with Screen Queensland, The Second. The other locally owned service, Presto, was involved in the local production Wentworth. </p>
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<figcaption><span class="caption">No Activity - A Stan Original.</span></figcaption>
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<p>The international companies are yet to show the same level of participation in producing local content. Whilst YouTube has begun to show signs that it will assist, with its joint initiative with Screen Australia, it’s not clear if this will be expanded upon. Netflix, which is leading the uptake of video on demand services in Australia, has yet to fund any local production, nor show clear signs that it will. </p>
<p>Since the announcement of the EU proposal, Screen Producers Australia have again called for more to be done. SPA’s chief executive Matthew Deaner <a href="https://screenproducers.org.au/news/svod-regulation/">argued</a>:</p>
<blockquote>
<p>These are big, disruptive, successful businesses that have had time to expand in this market without making any significant investment in local production. It’s time they step up to the plate and contribute to new Australian film and television production.</p>
</blockquote>
<p>In response, Andrew Maiden, the CEO of the subscription television industry body ASTRA, warned that the EU proposal:</p>
<blockquote>
<p>risks adding complexity and cost to over-the-top platforms whose successful growth and innovation is propelled by the unregulated nature of their operations. </p>
</blockquote>
<p>Is a local content quota, similar to the regulation for the Australian commercial free to air broadcasters, the answer to video on demand services supporting the local TV and film production industry?</p>
<h2>Current Local Quotas for Australian Media</h2>
<p>Currently, Australian commercial free to air broadcasters are required to broadcast 55% of Australian content in a calendar year, as stated in the <a href="http://www.austlii.edu.au/au/legis/cth/consol_act/bsa1992214/s121g.html">Broadcasting Services Act 1992</a>, Commercial television broadcasters also have minimum <a href="http://www.screenaustralia.gov.au/fact-finders/television/industry-trends/content-regulation">sub-quotas</a> in areas such as first-run Australian adult drama, documentary and children’s programs.</p>
<p>Nine Network argues these local quotas should be abolished, to allow it to compete with video on demand services.</p>
<p>Overall, it has been <a href="http://www.smh.com.au/business/media-and-marketing/netflix-and-youtube-should-invest-in-aussie-content-20150916-gjo3pn.html">estimated</a> that total local content investment in 2015, including news and sport, by free to air and subscription television was A$3 billion. As well as telling our stories, the local industry employs many Australians.</p>
<p>A 2015 Deloitte <a href="http://www.screenassociation.com.au/uploads/reports/ASA_Economic_Contribution_Report.pdf">report</a> shows that in 2012-2013 the film and TV sector contributed $5.8 billion to the Australian gross domestic product. This was more than Internet service providers ($1.8 billion) and slightly less than air (and space) transport ($6.5 billion).</p>
<p>Still, the report notes that the film and TV sector’s contribution to the GDP had in fact declined by 12.2% since 2009-2010. The period analysed within the report was before the introduction of Netflix, Stan and Presto. Despite this, revenue in the areas of distribution and rental within the film and TV sector had already begun to decline.</p>
<h2>What now for Australian local content?</h2>
<p>In Australia <a href="http://www.oztam.com.au/documents/Other/Australian%20Multi%20Screen%20Report%20Q4%202015%20FINAL.pdf">32% of homes</a> have a connected television - with internet access – well above the projected <a href="https://www.digitaltvresearch.com/ugc/connected%20TV%20TOC%20pdf_toc_83.pdf">global penetration</a> of rate of 26.8% in 2018. This will only increase the uptake of online video services.</p>
<p>It is unclear yet how a quota, or any other regulation, would be managed, but a recent <a href="https://www.communications.gov.au/have-your-say/acma-review-draft-report">draft review</a> of the <a href="http://www.acma.gov.au/theACMA/About/The-ACMA-story/Communicating/introduction-to-the-acma">Australian Communications and Media Authority</a> could shed some light on this. In the draft review, Netflix was given as an example that may fall under the watch of the Authority under an “applications and content” area.</p>
<p>While it’s clear that the new video on demand services are changing the local media landscape, a simple local quota won’t fix this. If a quota were introduced, a company like Netflix could just buy old Australian content, rather than fund original local productions.</p>
<p>Given that Nine jointly owns Stan with Fairfax, and Presto is jointly owned by Seven and Foxtel, a local quota could mean that these broadcasters simply redistribute the same locally made programs airing on free to air TV onto their streaming services. This would not boost local production. </p>
<p>For any new regulation to work, it must mandate the <a href="https://theconversation.com/australia-must-act-now-to-preserve-its-culture-in-the-face-of-global-tech-giants-58724">production of new Australian content</a>, which would help the industry as a whole.</p><img src="https://counter.theconversation.com/content/60308/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Marc C-Scott is a board member of C31 Melbourne (Community Television Station).</span></em></p>The European Union is considering imposing a local content quota on video streaming services such as Netflix and Amazon. With local storytelling under threat from global tech giants, could such an approach work here?Marc C-Scott, Lecturer in Screen Media, Victoria UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/596562016-05-20T01:13:50Z2016-05-20T01:13:50ZYouTube Red is here, and it breaks the video-on-demand mould<figure><img src="https://images.theconversation.com/files/123158/original/image-20160519-22279-fxol34.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Mobile is a big feature of YouTube Red.</span> <span class="attribution"><span class="source">YouTube</span></span></figcaption></figure><p>YouTube this week launched its paid subscription service, <a href="https://www.youtube.com/red">YouTube Red</a>, in Australia and New Zealand. These are the first two countries to gain access to the service outside of the United States. </p>
<p>The introduction of a new major video-on-demand (VoD) service will now challenge many media corporations that may not have seen YouTube as a threat.</p>
<p>YouTube is offering a free trial of the service for a month, with introductory pricing of A$9.99 per month and A$12.99 for subscription via iOS available until June 6th. </p>
<p>The standard pricing fees will be A$11.99 per month, or A$14.99 via iOS. The higher rate for iOS due to the <a href="http://gizmodo.com/dont-buy-your-youtube-red-subscription-on-ios-1737961156">fee charged</a> by Apple, which Google is passing onto iOS subscribers.</p>
<p>The sales pitch by Director of YouTube Content and Operations (Asia Pacific), Gautam Anand, <a href="http://www.gizmodo.com.au/2016/05/youtube-red-is-now-available-in-australia/">stated</a> YouTube Red is about:</p>
<blockquote>
<p>Giving you more choice about how you watch YouTube […] Soon, we hope you’ll be watching what you want, when you want, on any device you want, uninterrupted.</p>
</blockquote>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/123157/original/image-20160519-22319-13jg55j.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/123157/original/image-20160519-22319-13jg55j.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/123157/original/image-20160519-22319-13jg55j.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=186&fit=crop&dpr=1 600w, https://images.theconversation.com/files/123157/original/image-20160519-22319-13jg55j.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=186&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/123157/original/image-20160519-22319-13jg55j.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=186&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/123157/original/image-20160519-22319-13jg55j.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=234&fit=crop&dpr=1 754w, https://images.theconversation.com/files/123157/original/image-20160519-22319-13jg55j.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=234&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/123157/original/image-20160519-22319-13jg55j.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=234&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption"></span>
<span class="attribution"><span class="source">YouTube Red</span></span>
</figcaption>
</figure>
<h2>Why pay for YouTube?</h2>
<p>Some may ask why they should pay for Red when YouTube is already free. It is important to note that Red does not replace YouTube, but rather adds to it. There are <a href="http://www.lifehacker.com.au/2016/05/youtube-red-is-now-available-in-australia/">five key additions</a> if you sign up for YouTube Red:</p>
<h3>1) No more ads</h3>
<p>This includes pre-roll (before a video) and pop-up adds (banner ads over the videos). While this won’t be a key selling point for people to subscribe, it is a small feature that some may appreciate in addition to the other elements. </p>
<h3>2) Offline playback</h3>
<p>Subscribers will be able to save videos while on a WiFi connection for offline viewing.</p>
<p>This will enable subscribers to watch saved content without requiring an internet connection. It’s also a boon for those who travel, or find themselves with no or poor mobile service. It will also take a load off mobile data for those who like to watch on the run.</p>
<h3>3) Background play</h3>
<p>This will enable you to continue to view or listen to YouTube videos while you are using other apps. This includes while the device is locked.</p>
<h3>4) Original content</h3>
<p>Based on Netflix’s success, and the fact that Netflix’s previous Vice President of Content, Robert Kyncl, is now YouTube chief business officer, YouTube will also experiment in the original content space. </p>
<p>On the list of <a href="http://www.wired.com/2016/02/youtube-red-originals-netflix/">original content</a> is a series featuring one of YouTube biggest stars, PewDiePie, entitled Scare PewDiePie.</p>
<p>David Alpert, president of Skybound Entertainment, producer of the series, <a href="http://www.wired.com/2016/02/youtube-red-originals-netflix/">stated</a> that:</p>
<blockquote>
<p>One of the things that was great was, because we did it for YouTube, we didn’t have this standardised length format […] We said, ‘Let’s just make the episode great.’ That part was really freeing.</p>
</blockquote>
<p>But Alpert also <a href="http://www.wired.com/2016/02/youtube-red-originals-netflix/">notes</a> that YouTube’s original content does differ from Netflix’s, particularly due to the flexibility in the length of shows, which breaks free from old commercial television conventions.</p>
<figure>
<iframe width="440" height="260" src="https://www.youtube.com/embed/8tEsxbCl21E?wmode=transparent&start=0" frameborder="0" allowfullscreen=""></iframe>
<figcaption><span class="caption">The Scare PewDiePie trailer.</span></figcaption>
</figure>
<p>YouTube Red original content also includes feature films, such as <a href="http://www.imdb.com/title/tt5333882/">A Trip to Unicorn Island</a>, <a href="http://www.imdb.com/title/tt5017928/">Dance Camp</a> and <a href="http://www.imdb.com/title/tt3864024/">Lazer Team</a>. Dance Camp features YouTube star Meg DeAngelis, along with cameos from a number of other YouTubers.</p>
<p>The head of scripted content for YouTube Red, Tim Shey, <a href="http://www.wired.com/2016/02/youtube-red-originals-netflix/">said</a> this is all part of “giving YouTube’s biggest fans what they want”.</p>
<p>This is also a way for YouTube to make sure that its “stars” don’t use YouTube as a stepping stone to <a href="http://www.hollywoodreporter.com/news/youtube-stars-invade-hollywood-how-874812">traditional film studios</a>. One <a href="http://variety.com/2015/digital/news/lionsgate-buys-dirty-thirty-comedy-with-youtube-stars-grace-helbig-mamrie-hart-and-hannah-hart-1201629006/">example</a> was by Liongate, which recently acquired <a href="http://www.imdb.com/title/tt5521550/">Dirty Thirty</a>, with YouTube stars Grace Helbig, Mamrie Hart and Hannah Hart.</p>
<figure>
<iframe width="440" height="260" src="https://www.youtube.com/embed/1iV6apgKXpo?wmode=transparent&start=0" frameborder="0" allowfullscreen=""></iframe>
</figure>
<h3>5) YouTube music</h3>
<p>YouTube is also launching a music app, which utilises the already existing YouTube music video library, rather than creating an entirely new service and library. By using this approach, YouTube has also “avoided the need to <a href="http://www.lifehacker.com.au/2016/05/youtube-red-is-now-available-in-australia/">renegotiate payment</a> deals with artists”. </p>
<p>In addition to the services available via the YouTube music app, YouTube Red subscribers will get access to premium <a href="https://play.google.com/store/music?hl=en">Google Play Music</a>. </p>
<p>One of the unique features of the YouTube Red service is that it is providing both video-on-demand and music streaming, which are typically offered by different services, such as Netflix and Spotify.</p>
<figure>
<iframe width="440" height="260" src="https://www.youtube.com/embed/uwj1qFPnhow?wmode=transparent&start=0" frameborder="0" allowfullscreen=""></iframe>
</figure>
<h2>YouTube big down under</h2>
<p>Many of the YouTube Red features are focused around mobile or portable devices. This is due to the <a href="https://www.youtube.com/yt/press/statistics.html">fact that</a> more than half of YouTube views come from mobile devices.</p>
<p>In Australia, from March 2013 to March 2015, the Australian YouTube net <a href="http://www.roymorgan.com/findings/6296-website-visitation-by-mobile-phone-and-tablet-march-2015-201506220138">monthly audience</a> grew 14%. Mobile devices viewing of the site also increased during the same period from 36% to 53%.</p>
<p>Nielsen <a href="http://www.nielsen.com/au/en/insights/news/2015/tv-still-the-most-watched-screen-for-connected-aussie-kids.html">reported</a> last year that “YouTube and the ABC are currently key providers in the Australian market” for online video content. </p>
<p>The launch of the YouTube Kids app <a href="http://www.news.com.au/technology/gadgets/mobile-phones/google-launches-youtube-app-for-australias-techsavvy-twoyearolds/news-story/c634114fa498c2b3e3bf5879177cb7ef">late last year</a> and the <a href="http://www.gizmodo.com.au/2016/03/youtube-launched-its-gaming-app-in-australia-today/">YouTube Gaming app</a> this year, in addition to YouTube Red, will continue to assist YouTube in building on its engagement with younger Australians. </p>
<p>Mr Kyncl, YouTube chief business officer, <a href="http://www.theaustralian.com.au/business/technology/youtube-red-launches-in-australia-and-new-zealand/news-story/74ba9cbe91c0f431123e5f8ed7ef8f0f">said earlier</a> in the year that, “our focus is on the under-35s”. </p>
<p>But with YouTube now providing a subscription based services, this places it in competition with companies it has not brushed up against in the past.</p>
<h2>Competition</h2>
<p>YouTube Red’s launch in Australia is also set to shake up the <a href="https://theconversation.com/a-shake-up-in-australias-busy-tv-industry-as-quickflix-calls-in-the-administrators-58487">VoD market</a>. </p>
<p>While Netflix has achieved considerable uptake, Stan and Presto are yet to be declared success stories. Both Stan and Presto had a recent reprieve with the <a href="https://theconversation.com/a-shake-up-in-australias-busy-tv-industry-as-quickflix-calls-in-the-administrators-58487">demise of Quickflix</a>. </p>
<p>But they now face a new international competitor at a time when it is predicted that VoD will reach <a href="http://www.nielsen.com/au/en/insights/news/2016/video-on-demand-to-reach-two-thirds-of-online-population-in-2016.html">two-thirds of online Australians</a> over 16 years old. </p>
<p>That said, YouTube <a href="http://www.news.com.au/technology/online/youtube-red-launches-in-australia-to-challenge-netflix-presto-spotify-and-apple-music/news-story/1554d647757e07a78b4e2f7625e91555">maintains</a> that it is offering a different product from traditional VoD services. </p>
<p>What makes YouTube Red interestingly different is its likely appeal for a younger audience, who have been abandoning traditional television. </p>
<p>But it remains to be seen if they will pay for content, and whether YouTube Red wins over subscribers from existing VoD services in Australia.</p><img src="https://counter.theconversation.com/content/59656/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Marc C-Scott is a board member of C31 Melbourne (Community Television Station).</span></em></p>There’s a new video-on-demand service in Australia, and it might shake up the sector given its unconventional approach and appeal to young people who shun traditional television viewing.Marc C-Scott, Lecturer in Screen Media, Victoria UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/566722016-03-22T23:41:43Z2016-03-22T23:41:43ZBed fellows no more? It’s Foxtel versus Telstra in battle for online subscribers<p>Foxtel has previously been coy about confirming <a href="http://www.news.com.au/technology/home-entertainment/tv/speculation-grows-that-foxtel-will-release-competitor-to-apple-tv-and-telstra-tv/news-story/0dd99f4c3bd9bdb363894694b225f3e0">speculation</a> it is planning to launch a service that will compete with Telstra TV and Apple TV.</p>
<p>But new chief executive Peter Tonagh has now told <a href="http://www.dailymail.co.uk/news/article-3502494/Could-Foxtel-Netflix-join-forces-Pay-TV-company-wants-offer-rival-streaming-service-s-content-win-customers.html">reporters</a> that it would ‘maximise’ all its distribution platforms, leading to speculation it would launch against part-owner Telstra’s own device.</p>
<p>His comments come amid reports Telstra is considering a A$4.5 billion initial public offering or sale of its 50% Foxtel stake. </p>
<p>Tonagh, who in a surprise move recently replaced Richard Freudenstein after four-and-a-half years at the helm, must usher Foxtel through a fast-changing media landscape which continues to be disrupted by subscription video-on-demand (SVoD) operators such as Netflix. </p>
<h2>The SVoD phenomenon</h2>
<p>Last year saw a massive change in the way in which Australians access and view video media. SVoD services launched included Stan, Presto (of which Foxtel is a joint partner with Seven West Media) and Netflix, along with Telstra <a href="http://www.smh.com.au/digital-life/computers/gadgets-on-the-go/hands-on-telstra-tv-streaming-media-player-20151025-gki7sd.html">introducing</a> its Telstra TV service. </p>
<p>This came at a time when the <a href="http://www.oztam.com.au/documents/Other/Australian%20Multi%20Screen%20Report%20Q4%202015%20FINAL.pdf">Australian Multi-screen report</a> continued to show a declining trend in the hours Australians spend watching live broadcast television, along side a rise in online video viewing hours.</p>
<p>Media analysts have forecast that last year’s decline would continue throughout 2016. UBS noted that there would be <a href="http://www.afr.com/business/media-and-marketing/ubs-cuts-valuations-for-seven-nine-as-netflix-steals-eyeballs-20150722-gihrtk">no growth</a> by the Australian television networks in 2016. Commonwealth Bank analysts also <a href="http://www.smh.com.au/business/media-and-marketing/telstra-ponders-foxtels-future-20151106-gkshq9.html">valued</a> Foxtel’s equity at A$3.6 billion, or 7.5 times the broker’s 2016 forecast for earnings, which <a href="http://www.abc.net.au/news/2016-03-18/telstra-may-sell-foxtel-stake-as-pay-tv-giant-struggles/7259506">fuelled rumours</a> that Telstra may look to sell off its 50% stake.</p>
<p>While the SVoD market is still in its infancy within Australia, uptake has been immense, with Netflix the main beneficiary. Foxtel’s venture, Presto, has struggled to <a href="http://www.adnews.com.au/news/netflix-reaches-2-2m-australians-but-growth-is-slowing-down">reach</a> a 1% uptake in Australian homes, far from the currently <a href="http://www.roymorgan.com/findings/6633-netflix-growth-slows-by-end-of-year-december-2015-201601182300">reported</a> 11% uptake of Netflix. </p>
<p>In the last few days another SVoD, Hayu, has launched in Australia, with a special focus on reality TV. It is offering a number of programs that are currently available on Foxtel.</p>
<p>The continuing changes will place further pressure on Foxtel’s desire to maintain its current 30% subscription rate in Australia, particularly with the very limited success of Presto.</p>
<h2>Foxtel TV?</h2>
<p>The recent speculation is that Foxtel will release a service similar to Telstra TV. The <a href="https://theconversation.com/up-next-video-on-demand-shakes-up-the-television-industry-45434">Telstra TV</a> service gives you <a href="https://www.telstra.com.au/tv-movies-music/products/telstra-tv">access</a> to all free-to-air catch-up services, three SVoD services, Netflix, Presto and Stan (although does not include subscription fees) and the Roku App Store. </p>
<p>While Telstra has a stake in Foxtel, its Telstra TV service does not include access to Foxtel content, despite T-Box, the service replaced by Telstra TV, which did have access to Foxtel channels.</p>
<p>A Foxtel TV service would directly compete with Telstra TV, and could add to speculation that Telstra wishes to distance itself from Foxtel. </p>
<p>It has been reported that Foxtel is considering including Netflix as part of its streaming service. In addition, Foxtel has made attempts to secure <a href="http://www.news.com.au/technology/home-entertainment/tv/foxtel-reportedly-considering-including-netflix-in-its-own-on-demand-streaming-service/news-story/79a1f8b3ea51273df635889fce43f473">rights deals</a> with the BBC, Viacom and Discovery.</p>
<p>This could see Foxtel become more of a media aggregator, but there still needs to be a differing factor for a Foxtel TV service to succeed. That could lie within the one key area that Foxtel prides itself on - sport.</p>
<h2>Lured back by sports</h2>
<p>Foxtel has secured the <a href="https://theconversation.com/when-the-afl-gets-richer-who-gets-richer-with-it-46321">media rights</a> to many Australian sports, including the AFL and NRL.</p>
<p>Foxtel has also set its sights on Wimbledon, the US Open and The Masters golf tournament, although these are currently restricted and on the legislated anti-siphoning list. This is a list that Foxtel is arguing should be <a href="https://au.news.yahoo.com/a/31152462/foxtel-wants-more-overseas-sports-rights/">abolished</a> with the media ownership laws currently under debate. </p>
<p>Focusing on its dominance in sport and integrating other services like Netflix, could be enough to help Foxtel entice new subscribers or win Australians back to the service.</p>
<p>Netflix has stated previously it is <a href="https://theconversation.com/ten-and-foxtel-in-box-seat-for-next-wave-of-sport-broadcasting-45656">not interested in sport</a>. With the company <a href="https://theconversation.com/netflix-is-everywhere-almost-so-what-does-this-mean-for-local-media-52857">launching globally</a> it would appear its focus for this year will be on building its global market and with this “Netflix Original Content”.</p>
<p>Telstra group managing director for media and marketing, Joe Pollard, stated late last year that “bandwidth is the <a href="http://mumbrella.com.au/why-telstra-tv-will-eat-foxtel-325006">new oxygen</a>”. While Telstra is a key in this supply. Foxtel now is supplying this oxygen to Australia with its new broadband packages, further establishing it as a major competitor to Telstra in more ways that just Telstra TV.</p>
<p>We could see Foxtel supply Australians with an internet service that includes Netflix and the possibility of streaming sport. Foxtel could also use its 13.84% stake in Ten Network as a way to get it involved in the SVoD. Ten the last of the three commercial FTA stations to be involved in a VoD service.</p>
<p>What is very evident by Foxtel’s recent moves, is that sport is the key to obtaining and growing subscriptions. For this reason Foxtel must use its strength in sport to differentiate itself in an Australian SVoD market that is already beginning to feel a little flooded for a population of 24 million.</p><img src="https://counter.theconversation.com/content/56672/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Marc C-Scott is a board member of C31 Melbourne (Community Television Station).</span></em></p>Foxtel has previously been coy about confirming speculation it is planning to launch a service that will compete with Telstra TV and Apple TV. But new chief executive Peter Tonagh has now told reporters…Marc C-Scott, Lecturer in Screen Media, Victoria UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/545402016-02-16T18:22:46Z2016-02-16T18:22:46ZRegional TV fights back as more programmes are ‘broadcast’ online<figure><img src="https://images.theconversation.com/files/111606/original/image-20160216-22587-1oguh5u.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Nine's new online streaming service means it can reach beyond its metro boundaries, and regional broadcasters are not happy.</span> <span class="attribution"><span class="source">Shutterstock/Antonio Guillem</span></span></figcaption></figure><p>Australia’s broadcasting regulations are under question again following the announcement last week that a regional broadcaster has <a href="http://mumbrella.com.au/win-takes-nine-to-court-over-live-streaming-345668">launched legal action</a> against live streaming online by a rival metro broadcaster, with which it has a programming deal.</p>
<p>WIN television’s owner, Bruce Gordon, argues the Nine Network’s <a href="https://www.9now.com.au/live">9Now</a> service violates an agreement with the metro broadcaster by live-streaming its channels into regional areas in which WIN holds commercial TV broadcast licences.</p>
<p>Nine’s streaming service allows anyone in Australia access to the station’s broadcast via any device with an internet connection. The definition of “broadcast” will be a key argument within the case and whether live-streaming is the same as the traditional broadcast of television stations.</p>
<p>The aim of the legal action is to prevent the Nine’s live stream from being accessed within regional areas where the WIN network’s broadcast is available. </p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/111245/original/image-20160211-29185-1k1jvoz.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/111245/original/image-20160211-29185-1k1jvoz.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/111245/original/image-20160211-29185-1k1jvoz.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=425&fit=crop&dpr=1 600w, https://images.theconversation.com/files/111245/original/image-20160211-29185-1k1jvoz.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=425&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/111245/original/image-20160211-29185-1k1jvoz.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=425&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/111245/original/image-20160211-29185-1k1jvoz.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=534&fit=crop&dpr=1 754w, https://images.theconversation.com/files/111245/original/image-20160211-29185-1k1jvoz.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=534&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/111245/original/image-20160211-29185-1k1jvoz.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=534&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Bruce Gordon’s media interests.</span>
<span class="attribution"><span class="source">ACMA</span></span>
</figcaption>
</figure>
<p>Essentially Gordon is hoping to <a href="https://theconversation.com/unlocking-the-geoblock-australians-embrace-vpns-32373">geoblock</a> Nine’s stream, similar to the debate associated with <a href="https://www.netflix.com/au/">Netflix</a> since the US-based Video on Demand (VoD) service went <a href="https://theconversation.com/netflix-is-everywhere-almost-so-what-does-this-mean-for-local-media-52857">global</a>. </p>
<p>But this increase in live streaming and VoD online continues to raise questions over the future of linear broadcast television in Australia.</p>
<h2>Australian live streaming services</h2>
<p>Nine’s streaming service was <a href="http://mi9.com.au/article.aspx?id=9080034">launched</a> at the beginning of February this year. But Nine was not the first Australian free-to-air (FTA) station to start live streaming its broadcasts. </p>
<p>The Seven Network’s live stream, <a href="https://au.tv.yahoo.com/plus7/live/">Plus 7</a>, launched <a href="http://www.mediaweek.com.au/live-streaming-for-seven-7two-and-7mate/">late last year</a>. Seven also used the tennis and its 7Tennis app as a way to <a href="http://decidertv.com/page/2016/1/17/7-tennis-app-now-available-on-the-big-screen-with-appletv-7tennis-appletv">entice the Australian audience</a> to use the live stream services. </p>
<p>The Ten Network is the only commercial broadcaster to not provide a full live stream. Although the station has a limited <a href="http://tenplay.com.au/live">live stream</a> service that includes programmes such as The Bold and the Beautiful, TEN Eyewitness News First at Five and I’m a Celebrity Get Me Out of Here!. </p>
<h2>Winners and losers</h2>
<p>Gordon is the first to launch legal action over the streaming services by metro based commercial FTA broadcasters. It was made very clear last year that regional broadcaster were <a href="http://mumbrella.com.au/prime-and-other-regional-tv-networks-take-aim-at-new-plus7-mobile-app-in-media-reform-push-313297">less than supportive</a> of the Seven Network’s Plus 7 launch. </p>
<p>Seven launched the new service by asking viewers: what if you could take your TV anywhere?</p>
<figure>
<iframe width="440" height="260" src="https://www.youtube.com/embed/vvBRgR_9rDA?wmode=transparent&start=0" frameborder="0" allowfullscreen=""></iframe>
<figcaption><span class="caption">Seven TV everywhere TV ad.</span></figcaption>
</figure>
<p>But if you can take your TV everywhere, then there are issues associated with media ownership. Regional broadcasters currently don’t have live-streaming services, meaning any viewer who watches a live commercial television stream would be watching the metro-based service. </p>
<p>For the regional broadcasters, this means they are losing out on any advertising revenue they receive with their traditional broadcast business model. For the viewer, it means they will not receive the any local regional content, such as local news.</p>
<p>The regional broadcasters are fighting back and have launched a campaign called <a href="http://www.saveourvoices.com.au/">Save Our Voices</a>, arguing the media laws are “stuck in the last century”.</p>
<figure>
<iframe width="440" height="260" src="https://www.youtube.com/embed/drm6vEkS0u8?wmode=transparent&start=0" frameborder="0" allowfullscreen=""></iframe>
<figcaption><span class="caption">Save Our Voice Campaign.</span></figcaption>
</figure>
<h2>Media ownership laws outdated?</h2>
<p>There have been a number of changes in the television industry within Australia in the past few years. The current media ownership laws <a href="http://www.acma.gov.au/Industry/Broadcast/Media-ownership-and-control/Ownership-and-control-rules/statutory-control-rules-media-ownership-control-acma">say</a> no commercial television license holder can broadcast to more than 75% of the Australian population.</p>
<p>Currently the three commercial networks have the following <a href="http://www.acma.gov.au/Industry/Broadcast/Media-ownership-and-control/Ownership-and-control-rules/statutory-control-rules-media-ownership-control-acma">population reach</a>:</p>
<ul>
<li>Seven 73.81%</li>
<li>Nine 73.55%</li>
<li>Ten 66.70%.</li>
</ul>
<p>In addition there are also rules on the <a href="http://www.acma.gov.au/Industry/Broadcast/Media-ownership-and-control/Ownership-and-control-rules/statutory-control-rules-media-ownership-control-acma">cross ownership of media</a>, including television and radio broadcasting.</p>
<p>The snapshot below shows the interlinking across the media ownership in Australia. What’s absent is the ownership of the Australian VoD services, <a href="https://www.presto.com.au/">Presto</a> and <a href="https://www.stan.com.au/">Stan</a>, in which Foxtel, Fairfax, Seven and Nine have interests.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/111418/original/image-20160214-29188-1uu72gx.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/111418/original/image-20160214-29188-1uu72gx.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/111418/original/image-20160214-29188-1uu72gx.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=493&fit=crop&dpr=1 600w, https://images.theconversation.com/files/111418/original/image-20160214-29188-1uu72gx.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=493&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/111418/original/image-20160214-29188-1uu72gx.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=493&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/111418/original/image-20160214-29188-1uu72gx.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=619&fit=crop&dpr=1 754w, https://images.theconversation.com/files/111418/original/image-20160214-29188-1uu72gx.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=619&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/111418/original/image-20160214-29188-1uu72gx.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=619&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Australian media interest snapshot.</span>
<span class="attribution"><span class="source">ACMA</span></span>
</figcaption>
</figure>
<p>It is clear that these ownership laws are outdated and do not factor in the immense changes that have occurred recently in the television industry. Television stations now not only broadcast linear content to a television set, but also use the internet as a method allowing streaming to internet connected devices.</p>
<p>All Australian television stations now have catch-up services, including the ABC’s <a href="http://iview.abc.net.au/">iView</a> and SBS’s <a href="http://www.sbs.com.au/ondemand/">On Demand</a>.</p>
<p>That means all stations now have access to a potential audience beyond the broadcast restriction of no more 75% of the Australian population.</p>
<p>I would suggest the ownership laws need to be reviewed in light of these developments. Not only is the ownership an issue, but also the platforms that are incorporated into the ownership laws.</p>
<h2>Live streaming of sport</h2>
<p>In addition to the policy factor, there are questions associated with the live stream of FTA broadcasts and the impact this has on recent sport media rights deals.</p>
<p>Both the <a href="https://theconversation.com/when-the-afl-gets-richer-who-gets-richer-with-it-46321">AFL</a> and the <a href="http://www.nrl.com/nrl-broadcast-rights-deal-announced/tabid/10874/newsid/91023/default.aspx">NRL</a> have completed <a href="https://theconversation.com/when-the-afl-gets-richer-who-gets-richer-with-it-46321">billion dollar media deals</a>, with the digital rights encompassed as part of these rights.</p>
<p>How will the live streaming by Seven and Nine impact these deals? Seven is involved with <a href="https://theconversation.com/when-the-afl-gets-richer-who-gets-richer-with-it-46321">AFL deal</a> and <a href="https://theconversation.com/foxtel-boxed-into-a-corner-as-sport-streaming-takes-hold-46074">Nine with NRL</a>. Nine will soon start discussions with Cricket Australia as the media rights <a href="https://theconversation.com/the-future-of-sportscasting-cricket-australia-launches-on-apple-tv-35253">will soon expire</a>. Will the new live streaming service by the FTA broadcasters play a part in these discussions?</p>
<p>Telstra <a href="http://www.smh.com.au/business/telstra-afl-nrl-win-live-footy-court-battle-20120426-1xoth.html">successfully sued</a> Optus over a copyright breach for both the NRL and AFL in 2012. So there is evidence of live streaming being an issue in association to media right deals, particularly sport.</p>
<h2>Australian television will continue to change</h2>
<p>The local commercial broadcasters involved in VoD services are battling with the global Netflix to gain subscriptions. Ten is also the only one of the three metro commercial FTA broadcasters not to have involvement with a VoD service. </p>
<p>This is a market that is yet to get any easier. I have <a href="https://theconversation.com/netflix-is-everywhere-almost-so-what-does-this-mean-for-local-media-52857">said before</a> that I believe we would see more reality and sport on commercial television as a way to focus on a service not provided by the new VoD services. </p>
<p>But now even the reality programmes are about to have another spin in Australia with the launch of <a href="http://www.smh.com.au/digital-life/computers/gadgets-on-the-go/nbcuniversals-hayu-streams-reality-tv-overdose-as-pay-tv-bundle-is-reborn-20160212-gmsd3j.html">Hayu</a>, a new VoD service specially focused on reality TV. The <a href="http://www.nbcuniversal.com/">NBCUniversal</a> service will have many of the titles which are available Foxtel and on Nine’s 9Life.</p>
<p>In addition, Disney is planning to <a href="http://www.smh.com.au/business/media-and-marketing/disney-plots-australian-svod-service-20160212-gmsuye.html">launch a VoD service</a> in Australia, possibly in a deal with a local telecommunications company. This could impact on Foxtel, which currently has four dedicated channels containing Disney content. </p>
<p>It is clear the Australian television industry, including the VoD services, is continuing to change at a far greater rate than we have ever seen. Policy changes will not be able to keep up pace with this rate of change. </p>
<p>The live streaming services by metro broadcasters have again brought Australian media ownership laws into focus. If television stations can now stream online, therefore effective reaching all Australians (with internet access), then the media ownership reach rule is redundant.</p>
<p>But what impact will this have on regional broadcasters, their content and regional audiences? We may find out some answers when WIN’s case against Nine reaches the NSW Supreme Court, due in April.</p><img src="https://counter.theconversation.com/content/54540/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Marc C-Scott is a board member of C31 Melbourne (Community Television Station).</span></em></p>The rise on live streaming of television programs is breaking down the protected geographical barriers on what you can watch, and the regional broadcasters are not happy.Marc C-Scott, Lecturer in Screen Media, Victoria UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/528572016-01-08T04:26:22Z2016-01-08T04:26:22ZNetflix is everywhere (almost), so what does this mean for local media?<p>In his keynote address at the Consumer Electronics Show in Las Vegas this week, Reed Hastings, Netflix CEO, <a href="http://www.bbc.com/news/technology-35247309">announced that Netflix</a> will now be available in 130 new countries. This sees Netflix more than triple its global presence. </p>
<p>The world map of Netflix availability on the company’s website is now a <a href="https://help.netflix.com/en/node/14164">sea of red</a>. Among the countries yet to have access to Netflix is China, although the company is exploring this. Crimea, North Korea and Syria are also yet to be included due to <a href="https://media.netflix.com/en/press-releases/netflix-is-now-available-around-the-world">United States government restrictions</a>.</p>
<figure>
<iframe width="440" height="260" src="https://www.youtube.com/embed/5TR-NRpkW9I?wmode=transparent&start=0" frameborder="0" allowfullscreen=""></iframe>
<figcaption><span class="caption">Netflix CES 2016 Keynote - Reed Hastings, Ted Sarandos - Highlights.</span></figcaption>
</figure>
<p>So what does <a href="https://twitter.com/search?q=%23netflixeverywhere&src=typd">#NetflixEverywhere</a> – as it was dubbed on social media – mean for the new media landscape globally and in Australia?</p>
<h2>Competitors in the VoD market</h2>
<p>While Netflix’s <a href="http://www.news.com.au/technology/home-entertainment/tv/netflix-have-made-a-huge-new-decision-that-will-change-the-lives-of-millions/news-story/f3df3305c7ac5a751d8c4e3db4cdf364">main video on demand (VoD) competitors</a> are seen to be <a href="http://www.hbo.com/">HBO</a>, <a href="http://www.amazon.com/">Amazon</a> and <a href="http://www.hulu.com">Hulu</a>, their current global reach is small scale in comparison.</p>
<p>Hulu is <a href="http://m.hulu.jp/m/faq/en">only available</a> in the US and Japan. <a href="https://order.hbonow.com">HBO Now</a> is <a href="https://order.hbonow.com/providers">available</a> solely in the US and <a href="http://www.amazon.com/Prime-Instant-Video/b?node=2676882011">Amazon Prime Video</a> is <a href="http://www.amazon.com/gp/help/customer/display.html/ref=help_search_1-1?ie=UTF8&nodeId=201423000&qid=1452156681&sr=1-1">only available</a> to customers located in the US and US territories.</p>
<p>In Australia the main VoD competitors are the locally owned <a href="https://www.presto.com.au/">Presto</a> and <a href="https://www.stan.com.au/">Stan</a>. But the uptake of the locally owned VoD services of only 1%, doesn’t come close to Australia’s uptake of Netflix which by September last year was close to <a href="http://www.adnews.com.au/news/netflix-reaches-2-2m-australians-but-growth-is-slowing-down">10%</a>.</p>
<h2>Netflix original content to be expanded</h2>
<p>Netflix is well known for its original content: <a href="http://www.imdb.com/title/tt2372162/">Orange is the New Black</a>, <a href="http://www.imdb.com/title/tt1856010/">House of Cards</a>, <a href="http://www.imdb.com/title/tt2707408/">Narcos</a>, <a href="http://www.imdb.com/title/tt2431438/">Sense8</a> and Marvel’s <a href="http://www.imdb.com/title/tt3322312/">Daredevil</a> to name a few.</p>
<p>The colossal expansion of Netflix can only provide more opportunity for original content, both globally and within the local market.</p>
<p>In a statement, Hastings <a href="https://media.netflix.com/en/press-releases/netflix-is-now-available-around-the-world">noted</a>:</p>
<blockquote>
<p>We’re looking forward to bringing great stories from all over the world to people all over the world.</p>
</blockquote>
<p>The statement also listed the original content for 2016 to include:</p>
<ul>
<li>31 new and returning original series </li>
<li>24 original feature films and documentaries </li>
<li>a wide range of stand-up comedy specials<br></li>
<li>30 original kids series.</li>
</ul>
<p>It is unclear where this content will be produced, but the Netflix original content will be available at the same time to subscribers everywhere. </p>
<figure>
<iframe width="440" height="260" src="https://www.youtube.com/embed/GvQs89U_tV0?wmode=transparent&start=0" frameborder="0" allowfullscreen=""></iframe>
<figcaption><span class="caption">Netflix original content.</span></figcaption>
</figure>
<p>Unfortunately not all content available on Netflix will be released globally. </p>
<p>The <a href="http://www.news.com.au/technology/home-entertainment/tv/netflix-have-made-a-huge-new-decision-that-will-change-the-lives-of-millions/news-story/f3df3305c7ac5a751d8c4e3db4cdf364">licensing contract</a> Netflix has with Walt Disney allows the service the rights to Disney films after a theatrical release, but will be limited to only the US and Canada. This shows a clear disconnect between the distribution business models and distribution potential for streaming services.</p>
<p>This staggered release approach is often cited to be part of the reason for high rates of <a href="https://theconversation.com/from-convicts-to-pirates-australias-dubious-legacy-of-illegal-downloading-39912">piracy in Australia</a>, although recently there has been a <a href="https://theconversation.com/why-the-drop-in-illegal-movie-downloads-in-australia-49042">small decline</a>.</p>
<h2>Local impacts</h2>
<p>These limitations on distribution will assist Australian media companies in the rights battle locally, in particular Foxtel. </p>
<p>In the middle of last year, Foxtel’s CEO Richard Freudenstein <a href="http://www.gizmodo.com.au/2015/08/foxtel-ceo-says-netflix-is-like-the-digital-video-store/">said</a>:</p>
<blockquote>
<p>Foxtel is a premium service, which naturally costs a bit more, whereas Netflix and Presto are add-ons either to free to air for people who don’t watch much TV or to subscription TV.</p>
</blockquote>
<p>Despite this claim there has been a large price drop on Foxtel services to compete with the new VoD services.</p>
<p>Netflix is now a global media network with almost full global reach. Last year, prior to the launch in an additional 130 countries, Netflix subscribers <a href="http://www.news.com.au/technology/home-entertainment/tv/netflix-have-made-a-huge-new-decision-that-will-change-the-lives-of-millions/news-story/f3df3305c7ac5a751d8c4e3db4cdf364">watched</a> 42.5 billion hours of content.</p>
<p>It was also revealed that Netflix subscribers are watching on average 13 hours of content on a weekly basis. These hours of viewing are replacing other recreational time, presumably conventional television viewing.</p>
<h2>Viewing habits have already changed</h2>
<p>An analysis of figures from the Australian <a href="http://www.oztam.com.au/whatsnew.aspx">multi-screen quarterly reports</a>, which monitor people’s viewing habits, show there has already been a drop in television viewing hours by Australians, of more than 18 hours per month between 2011 to 2015. In the same period online video viewing has increased by ten hours per month.</p>
<p>If specifically analysing the teen and 18-24 year old demographics the statistics are more damaging for traditional television viewing. Teens on average watch less than half that of the overall Australian monthly average, 38 hours and 18-24 year olds watch 40 hours on average per month.</p>
<p>With regard to online video viewing, teens watch more than double the Australian average, 28 hours, with the 18-24 demographic watching 22 hours per month. Both demographics viewed fewer than five hours of online video in 2011. </p>
<p>With the increase in smart television purchases in Australia, this will provide greater access to VoD services such as Netflix. This is in addition to the services being available via mobile and portable devices. Recently Apple TV used Netflix programming as part of its advertising campaign for the new Apple TV, titled The Future of Television.</p>
<figure>
<iframe width="440" height="260" src="https://www.youtube.com/embed/OON2bZdqVzs?wmode=transparent&start=0" frameborder="0" allowfullscreen=""></iframe>
<figcaption><span class="caption">Apple TV Ad.</span></figcaption>
</figure>
<h2>The return of live TV</h2>
<p>For Australian television broadcasters we may see a focus on providing content that Netflix won’t, such as live content. This will include more reality and sport programming. It’s interesting to note then, that television is verging back to a live medium, as it started in Australia almost 60 years ago.</p>
<p>It is clear that Australian viewing habits are continuing to change. Netflix is yet to have its first birthday in Australia, but the 10% uptake is impressive. This is compared to <a href="http://www.afr.com/brand/chanticleer/telstras-penn-facing-technology-tsunamai-20150709-gi8upk">Foxtel’s 30% uptake</a>, for a company that started more that 20 years ago. </p>
<p>With Netflix now “everywhere”, there is potential for Australians to benefit from this, including more content and hopefully more Australian content.</p>
<p>The caution for Netflix must be to provide content for the local markets, not just a one-size-fits-all approach across more than 190 countries.</p><img src="https://counter.theconversation.com/content/52857/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Marc C-Scott is a board member of C31 Melbourne (Community Television Station).</span></em></p>Netflix took everyone by surprise when it announced it was tripling its global reach for video on demand. So who are the winners and potential losers in the new deal?Marc C-Scott, Lecturer in Screen Media, Victoria UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/454342015-08-03T02:56:58Z2015-08-03T02:56:58ZUp next: video-on-demand shakes up the television industry<figure><img src="https://images.theconversation.com/files/90396/original/image-20150731-11829-fpge7g.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">There are more television services than ever before.</span> <span class="attribution"><span class="source">Glenn Brown/Flickr</span>, <a class="license" href="http://creativecommons.org/licenses/by-nc/4.0/">CC BY-NC</a></span></figcaption></figure><p>Telstra last week <a href="http://www.smh.com.au/business/telstra-launches-roku-to-take-on-apple-and-google-20150728-giltvh.html">announced</a> that it will launch <a href="https://exchange.telstra.com.au/2015/07/29/telstra-tv-coming-home-near/">Telstra TV</a> in September. This could be the “all-in-one” video streaming service many Australians have craved, bundling together the three leading video-on-demand (VoD) services: Netflix, Stan and Presto. </p>
<p>However, it also puts Telstra in an odd position, straddling multiple services, some of which compete with other products Tesltra is intimately involved in, such as Foxtel.</p>
<p>It also underscores how the introduction of VoD services have <a href="https://theconversation.com/tv-shifts-from-hero-to-zero-but-even-netflix-cant-kill-pirating-45087">disrupted and fragmented</a> the television market in Australia. Even ISPs are now starting to play a role in delivering content to the biggest screen in the house.</p>
<p>So what will the future of television look like in Australia?</p>
<h2>All-in-one</h2>
<p>Telstra TV will run on the <a href="https://www.roku.com/products/roku-2">Roku 2</a> device, which is comparable in function to <a href="http://www.google.com.au/chrome/devices/chromecast/">Google Chromecast</a> and <a href="https://www.apple.com/au/appletv/">Apple TV</a>. The <a href="https://www.roku.com/products/roku-2">Roku 2</a> already runs hundreds of international apps, although it is unclear how many will be available when the device launches in Australia. </p>
<p>An attractive feature of the new service could be that it will launch with access to Netflix and Presto, with Stan to follow. Telstra has <a href="http://www.news.com.au/technology/home-entertainment/telstra-to-launch-roku-streaming-platform-for-netflix-presto-and-stan-in-september/story-fn8tnfhb-1227460964733">said</a> it is trying to negotiate a bundled price for all three services for less than A$30 a month.</p>
<p>The announcement by Telstra raises questions about where the company sees its future and involvement, not only as an ISP but also as a media distributor.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/90395/original/image-20150731-11800-zbc8ye.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/90395/original/image-20150731-11800-zbc8ye.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/90395/original/image-20150731-11800-zbc8ye.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=350&fit=crop&dpr=1 600w, https://images.theconversation.com/files/90395/original/image-20150731-11800-zbc8ye.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=350&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/90395/original/image-20150731-11800-zbc8ye.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=350&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/90395/original/image-20150731-11800-zbc8ye.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=440&fit=crop&dpr=1 754w, https://images.theconversation.com/files/90395/original/image-20150731-11800-zbc8ye.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=440&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/90395/original/image-20150731-11800-zbc8ye.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=440&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">The Telstra TV device, based on the Roku 2, and remote.</span>
<span class="attribution"><span class="source">Telstra</span></span>
</figcaption>
</figure>
<p>Telstra is already heavily involved in a number of areas of the Australian media, across broadcast and streaming. The company has an even share of 50% with News Corp Australia in <a href="http://www.foxtel.com.au/index.html">Foxtel</a>, which has <a href="http://www.foxtel.com.au/foxtelplay/index.html">Foxtel Play</a>, arguably a competitor to Netflix, Stan and Presto. Foxtel itself is involved in a <a href="https://www.foxtel.com.au/about/media-centre/press-releases/2015/presto-confirms-next-stage-for-development.html">joint venture</a> in Presto with Seven West Media. </p>
<p>Foxtel also <a href="http://www.abc.net.au/news/2015-06-15/foxtel-takes-15pc-stake-in-ten/6546298">recently</a> purchased a 15% share in the Ten Network, and last year completed the joint production of <a href="https://theconversation.com/television-is-not-dead-its-just-changing-channels-34001">Goggle Box</a> with the network, which was broadcast on pay television with a one day delay to free-to-air (FTA).</p>
<p>In addition to Telstra’s various media company associations, it also has services that could be argued to compete with its new Telstra TV service. Telstra’s current <a href="https://www.telstra.com.au/entertainment/tbox">T-Box</a> could be seen as offering many similar digital services to Telstra TV. Despite this, there is no discussion that it will be discounted when the new service is launched.</p>
<p>One key reason for this could be due to the fact that T-Box provides access and recording of FTA broadcast television, similar to its competitor <a href="http://www.fetchtv.com.au">Fetch TV</a>, a service linked with Optus and iiNet. The Roku 2 does not allow FTA viewing or recording, therefore solely relying on internet and app entertainment.</p>
<p>As a Telstra spokesperson <a href="http://www.smh.com.au/business/telstra-launches-roku-to-take-on-apple-and-google-20150728-giltvh.html#ixzz3hLhsAvAc">said</a>: “We will not be positioning this as a substitution for Foxtel at all. This is very much for non-pay TV customers.”</p>
<p>Despite this claim, Damien Tampling from Deloitte <a href="http://www.smh.com.au/business/telstra-launches-roku-to-take-on-apple-and-google-20150728-giltvh.html">said</a> there is “potential the move would cannibalise Foxtel customers”. </p>
<p>The Roku service does provide access to <a href="http://www.hbogo.com/">HBO Go</a>, which provided immediate access to the most recent season of <a href="http://www.hbo.com/game-of-thrones">Game of Thrones</a>, a series high on the <a href="https://theconversation.com/from-convicts-to-pirates-australias-dubious-legacy-of-illegal-downloading-39912">piracy list</a> for Australians. If HBO Go was to become available in Australia this would impact Foxtel, which relies heavily on exclusive programs such as Game of Thrones. </p>
<h2>Shake up</h2>
<p>This move by Telstra also raises questions for the future of television and VoD in Australia, such as: who will be the big media players in the future? Will the future of these services rest with the current traditional broadcasters, free-to-air and pay-TV? Or will ISPs play a larger role in this space in the future?</p>
<p>Telstra has the largest number of individual customers subscribed to Netflix of all Australian ISPs, but the <a href="http://www.roymorgan.com/findings/6342-netflix-makes-further-gains-in-australia-svod-market-june-2015-201507140645">lowest percentage</a>: only 5.2%. This is far less than the leader, iiNet, at 16.8%.</p>
<p>Stan and Presto are yet to have a strong uptake since their launch at the beginning of this year. Recent figures show Netflix had <a href="http://www.roymorgan.com/findings/6312-netflix-already-dominates-streaming-video-on-demand-television-may-2015-201506230322">three times more users</a> than Presto, Stan, Quickflix and Foxtel Play combined.</p>
<p>Telstra’s spokesperson <a href="http://www.smh.com.au/business/telstra-launches-roku-to-take-on-apple-and-google-20150728-giltvh.html#ixzz3hLhl8P31">said</a> live sports will be the reasons for customers to stay with Foxtel and free-to-air TV. But even <a href="https://theconversation.com/youtube-could-change-the-way-we-broadcast-sport-in-australia-43332">sports broadcasting is changing</a>, with new players such as YouTube, along with sporting organisations becoming their <a href="https://theconversation.com/the-future-of-sportscasting-cricket-australia-launches-on-apple-tv-35253">own broadcasters</a>.</p>
<h2>What’s next on TV?</h2>
<p>There is no doubt that 2015 will be an interesting year for TV. </p>
<p>We will see how VoD might force old players to adapt to the changing media landscape. Seven and Nine are already involved with VoD services, with only Ten yet to make a move in this space, although the recent purchase by Foxtel could change the network’s direction.</p>
<p>There will also be interest around any new players that may appear as the race continues to establish some structured approach to a changing media distribution environment. In this we might see ISPs take a greater role as media outlets.</p><img src="https://counter.theconversation.com/content/45434/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Marc C-Scott is a board member of C31 Melbourne (Community Television Station).</span></em></p>Telstra’s release of an all-in-one streaming service further complicates the television landscape in Australia.Marc C-Scott, Lecturer in Digital Media, Victoria UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/453622015-07-31T03:56:14Z2015-07-31T03:56:14ZTelstra on the TV casting couch to trump its telco peers<figure><img src="https://images.theconversation.com/files/90371/original/image-20150731-10542-1tvkjle.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">TVappa</span> <span class="attribution"><span class="source">Image sourced from Shutterstock.com</span></span></figcaption></figure><p>What we used to call television is changing before our eyes. </p>
<p>This week, Telstra announced it will shortly introduce a new streaming video set top box. For a number of reasons, this is a very smart move. </p>
<p>Australia’s largest media and telecommunications company has responded quickly to a series of local developments in a way that seems likely to consolidate its market-leading position. It is targeted at the 70% of Australian households that continue to resist signing up to Foxtel’s pay television service. </p>
<p>Some see this as as another <a href="http://www.smh.com.au/business/telstra-launches-roku-to-take-on-apple-and-google-20150728-giltvh.html">nail in pay TV’s coffin</a>, and an indication that Telstra is having an each way bet on the future of television given its 50% stake in Foxtel. </p>
<p>Others say it could benefit the beleaguered commercial free-to-air incumbents and <a href="http://www.theaustralian.com.au/business/netflix-faces-fightback-from-telstra-tvs-coalition/story-e6frg8zx-1227462267116">“check Netflix’s encroachment”</a>. The argument here is that the subscription video on demand (SVOD) services of the free-to-airs will be able to leverage Telstra’s customer base - 3 million broadband subscribers, or over 40% of the Australian market - and use Telstra’s well-developed billing and customer service operations to their advantage. </p>
<p>Telstra TV has already claimed one casualty, however. Telstra’s T-Box personal video recorder will cease to be sold, although the company is promising to continue to support its existing 800,000 users.</p>
<p>In September this year, Telstra plans to make the Roku 2 set top box available to subscribers to its Bigpond broadband service. The new platform strengthens Telstra’s greatest competitive advantage - its capacity to offer bundled services combining home phone, mobile, broadband, pay-television and SVOD. </p>
<p>While it is similar in look and feel to the Apple TV box, the Roku 2 is a much more open system. Its US and UK versions boast thousands of apps and many more services than Apple’s equivalent. Its interface is customisable, and it allows users to search for films or content across multiple services simultaneously. </p>
<h2>Piracy not required</h2>
<p>This may prove to be a major selling point, particularly if all three of the main SVOD services - Netflix, Stan and Presto - are offered on the new Telstra TV box. It may also address one of the industry’s major bugbears: content piracy. After the Copyright Amendment (Online Infringment) Act entered into law in June, <a href="https://theconversation.com/there-are-better-ways-to-combat-piracy-than-blocking-websites-43701">commentators argued</a> that making content more easily accessible could do more than blocking infringing websites in preventing piracy. </p>
<p><a href="https://www.communications.gov.au/sites/g/files/net301/f/DeptComms%20Online%20Copyright%20Infringement%20Report%20FINAL%20.pdf">A recent survey conducted for the federal Department of Communications</a> covering the three months just before Netflix launched in March estimated that roughly a quarter of Australian internet users over the age of 12 had streamed or downloaded content illegally. Of those surveyed who admitted to illegally accessing content, almost 40% said they would stop if content was cheaper. </p>
<p>Almost 40% said they would stop if more legal content was available. And more than 60% said they would sign up to a (legal) movie subscription service if it was priced at $10 or less per month. The SVOD service Stan costs $10 per month, while Netflix is currently $9. It is therefore conceivable that, as in the UK, easier access to content through SVOD services and platforms like Telstra TV, may well lead to a reduction in piracy.</p>
<h2>Foxtel and sport in sight</h2>
<p>As the Telstra TV announcement indicates, the popularity of new SVOD services is clearly having an impact on free-to-air and pay television companies’ business models and strategies. Telstra has a 50% stake in Foxtel, the company <a href="https://theconversation.com/is-foxtel-most-at-risk-in-the-new-game-of-screens-39783">that may be most at risk</a>. In June, Foxtel made a bid for 15% of Channel Ten, shortly after the latter’s CEO warned that falling advertising revenues could see free-to-air fold. </p>
<p>Foxtel’s move - widely considered to have been instigated by its other major stakeholder, Rupert Murdoch’s News Corp - will potentially allow Ten’s content to be included on Foxtel and Seven West’s flagging SVOD service, Presto. It could also place the three partners in the box seat to acquire the rights to major sports events, subject to the approval of various regulatory bodies.</p>
<p>And despite Telstra’s protestations that its interests in sports rights are confined to mobile, the Telstra TV box could indeed provide a platform for the company to launch future bids for online rights to major events. It has already been suggested that a “sports pass” will be offered to Telstra TV users that will provide access to Fox Sports channels. On one hand this could boost viewers of Foxtel’s flagship sports channels. On the other, it represents a further unbundling of the pay television service.</p>
<p>More than anything, though, the Telstra TV announcement reaffirms the company’s ambitions to be a major player in service provision, if not in content production. Just a few days ago, shareholders in the second largest Australian Internet Service Provider, iiNet, voted to approve a merger with the third largest ISP, TPG. The merged company will still have a smaller subscriber base than Telstra’s Bigpond, but it is a significant statement of Telstra’s intent that it has so quickly moved to unveil this new offering.</p><img src="https://counter.theconversation.com/content/45362/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Ben Goldsmith does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Telcos are positioning themselves to be at the top rather than the bottom of the content food chain.Ben Goldsmith, Senior Research Fellow , Queensland University of TechnologyLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/389792015-03-24T19:15:18Z2015-03-24T19:15:18ZHeed Fraser’s warning on Australian media concentration – it’s getting worse<p>The passing of former Prime Minister Malcolm Fraser last Friday prompted me to recall his warning about the state of Australian media ownership <a href="http://electionwatch.edu.au/australia-2013/election-rewind/malcolm-fraser-contemporary-media-and-politics">in an interview</a> I did with him during the last federal election.</p>
<p>He said: “In my term, there were seven print proprietors. Now there is one and a bit. We have the most concentrated media in any democratic country, anywhere in the entire damn world. That is dangerous.”</p>
<hr>
<p>Malcolm Fraser for The Conversation: <a href="https://theconversation.com/malcolm-fraser-does-it-matter-who-owns-our-papers-yes-it-does-7738">Does it matter who owns our papers? Yes it does</a></p>
<hr>
<p>Malcolm Fraser’s warning is one we should take seriously. As Fairfax Media finalises union talks this week to cut 80 local jobs across its regional newspapers, and federal communications minister Malcolm Turnbull is again flagging relaxing media ownership laws, local news is particularly under threat in the global media environment where large audience reach matters.</p>
<h2>More regional cuts</h2>
<p>In Victoria, to remain competitive in this environment, Fairfax has proposed cutting 62 editorial jobs among the 80 full-time positions earmarked for redundancy across 13 regional mastheads including Albury Wondonga’s Border Mail, The Ballarat Courier, Bendigo Advertiser and The Warrnambool Standard. </p>
<p>Local MPs and city councillors in these regions have spoken out against the cuts with independent MP Cathy McGowan telling the <a href="http://www.bordermail.com.au/story/2955199/cathy-mcgowan-stands-up-for-the-border-mail/">Federal Parliament last week</a> that regional newspapers such as the Border Mail play an important role providing local news and any job cuts could impact on this service.</p>
<p>The union representing local reporters, the Media Entertainment and Arts Alliance, will meet Fairfax in Sydney today to discuss the cuts. It is understood that the Border Mail will lose up to 23 staff, the Wimmera Mail will lose 40% of its workforce, the Ballarat Courier will lose some reporting staff and its news director, and most of the newspapers will lose some photographers and sub-editors.</p>
<h2>Diversity being squeezed</h2>
<p>Fairfax’s regional publishing business Australian Community Media (ACM) is also proposing a common newspaper template with opportunities for content sharing. Journalists spared from the sackings will be required to do more with less including taking photographs, sub-editing their stories and uploading them online. </p>
<p>The implications of these changes are concerning for the diversity of local reporting, its accuracy and future print circulation figures, which until now have remained buoyant compared to their city cousins. A well-functioning democracy requires an informed citizenry and, to do this, journalists find and verify information in the public interest, rather than just selecting information from press releases. Citizen journalists can fulfil some of this local news gathering role, but subject coverage can be patchy and lacking editorial authority.</p>
<p>The all-too-soon forgotten <a href="http://www.abc.net.au/mediawatch/transcripts/1205_finkelstein.pdf">Finkelstein media inquiry in 2012</a> reminds us that some local communities are already the poorer for losing local news outlets. </p>
<blockquote>
<p>There is some evidence that both regional radio and television stations and newspapers have cut back substantially on their news gathering, leaving some communities poorly served for local news. This may require particular support in the immediate future, and I recommend that this issue be investigated by the government as a matter of some urgency.</p>
</blockquote>
<h2>Changes mooted for media laws</h2>
<p>Yet, Malcolm Turnbull, photographed last year standing shoulder-to-shoulder with the nation’s media executives and flagging changes to media laws, has this month again raised the prospect of such reforms in a submission to the Prime Minister Tony Abbott. Turnbull’s argument essentially is that the internet has lowered the barriers to entry and enabled greater competition and more media diversity. At face value this sounds promising. Yet, such changes would make possible further media mergers and acquisitions and what such reforms would mean for local news reporting requires careful consideration.</p>
<p>Veteran journalists can readily recall the days when Canadian Conrad Black divested his stake in Fairfax because foreign ownership laws in 1996 prevented his company owning more than a 25% share of an Australian media outlet. </p>
<p>Today, among Australia’s top 10 news websites, all are digital iterations of traditional media outlets. The only new entrants to this list are not new Australian start-ups but large, foreign-owned companies such as Britain’s Daily Mail (fourth) and the Australian version of the British-owned Guardian (sixth).</p>
<h2>Foreign arrivals</h2>
<p>Foreign-owned media companies are reaching out to Australian shores as never before — not only do we have Australian versions of the Guardian and Daily Mail, but BuzzFeed, and very soon the Huffington Post (in a 51-49 partnership with Fairfax). In the broadcast media sphere US-owned Netflix announced it will undercut local competitors — Presto, jointly owned by Foxtel and Seven West Media; and Stan, a Fairfax and Nice Entertainment Co. partnership — to stream video content to Australian subscribers for $8.99 a month.</p>
<p>The arrival of foreign-owned media is interesting in the context that we once had specific laws to guard against it in the name of protecting Australian news content and its democratic function. Oddly, in 2015 when local newspapers are experiencing financial duress, there is little examination about what these offshore arrivals mean for Australian audiences and Australian news content, particularly in terms of local news. </p>
<h2>Start-ups struggling to survive</h2>
<p>Perhaps, the important question arising out of this global media environment is not how to limit competition and potential sources of news diversity; but rather, what can be done to encourage growth in Australian news media start-ups? The current environment makes it very difficult for them to succeed long-term, as Wendy Harmer identified yesterday when announcing her online outlet <a href="http://thehoopla.com.au/">The Hoopla</a> will close. In the US, start-up news reporting entities are tax-exempt non-profits recognised by the IRS under section 501(c)(3) of the tax code.</p>
<p>Australia’s Finkelstein media review also included suggestions for tax breaks for non-profit news outlets. Another idea was to allocate a proportion of Australia’s multi-million dollar government advertising and public notices expenditure for new news ventures.</p>
<p>Of course, the ABC plays a unique role delivering local Australian news across the nation’s states, but it too has suffered recent substantial funding cuts and journalism job losses.</p>
<p>The right formula to preserve the diversity of Australian local reporting might lie elsewhere, but shouldn’t we at least engage in the conversation?</p><img src="https://counter.theconversation.com/content/38979/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Andrea Carson is part of a research team based at the University of Melbourne's Centre for Advancing Journalism that is investigating the civic impact of journalism and local news reporting.</span></em></p>if anything, media concentration is worsening and diversity won’t be improved by changing Australia’s media ownership laws.Andrea Carson, Lecturer, Media and Politics; Honorary Research Fellow, Centre for Advancing Journalism , The University of MelbourneLicensed as Creative Commons – attribution, no derivatives.