Nick Tabakoff | July 10, 2008
FREE-TO-AIR television networks are looking increasingly unlikely to launch new digital channels by January 1 next year, with the Nine and Ten networks privately indicating their channels could be as much as six months late.
Representatives of at least one network have met Department of Communications officials in Canberra in recent weeks, with growing doubt about an early launch of the new channels believed to have been high on theagenda.
Multi-channelling, or splitting the digital TV signals to provide extra channels, has been portrayed as a potential saviour of the free-to-air TV industry. Products such as the Seven Network's much-vaunted new digital video recorder, TiVo, are relying on the content from the new channels to provide a compelling range of program offerings in competition with pay TV.
On January 1, 2009, the three commercial networks will be permitted to broadcast one new standard definition channel that carries separate programming from their flagship channels. The Government hopes the new channels will help convince TV viewers to buy the digital set-top boxes they will need before it switches off the analog TV signal in 2013.
But Media understands Nine and Ten will almost certainly not be able to deliver the channels on time, with a mid-2009 date considered the likeliest time frame for the launch.
One senior TV executive said: "There is a technical issue, in that there are issues about the capacity and infrastructure to deliver breakaway channels with separate content. There is also no clear business model, which means there is no real urgency to solve the technical issue."
The executive said the new channels would likely start operations from mid-next year.
A Nine source also admitted a January 1 launch date was highly unlikely: "It's likely the channels will be launched some time in the year. But I don't think anyone's got a firm date."
However, another top level free-to-air TV industry executive said the timing of the unveiling of the new standard definition multi-channels may be pegged to the launch of Freeview in Australia, which is believed to be slated for a date some time in the second quarter of 2009: "Nine and Ten may be waiting for the launch of Freeview in order to have a good consumer proposition to go along with the newchannels."
Free-to-air industry sources have also hinted at behind-the-scenes tensions between Nine and Ten on the one hand and Seven on the other over the timing of the launch, amid suggestions Seven may try to ensure it is the first of the new standard-definition channels on offer. One rival executive said: "There is some question about whether Seven may allow the industry to launch on one basis and then go early on its own."
There have been suggestions Seven may be more advanced in its plans than its rivals and may look to launch early to give it a psychological edge. Such a move could also be used as a marketing tool for TiVo, to underline Seven's leadership on such a platform for multi-channelling.
Media executives have said Seven is privately maintaining it can still be ready for a launch of its new channel on January 1, but could equally delay the launch.
The emerging tension between the networks is a continuation of similar friction at the end of last year between Seven and Ten over which of the two networks was first in launching their new high-definition multi-channels. The HD multi-channels have since emerged as largely a simulcast of program offerings on the networks' main channels.
Industry sources believe it will be some time before multi-channelling sees the networks offer three channels of unique programming. One prominent network executive said: "If you're asking: 'Can any one of the three commercial players have three fully separate channels?', the answer is no, I don't think they can. It's not going to happen. No one's ready."
Some free-to-air sources have pushed the line in recent months that the launch of the new standard definition multi-channels next year will see 15 distinct channels offered on free TV within 12 months.
But the network executive has pointed out a likelier scenario by the end of 2009 would be main networks each offering only two channels with distinct programming in standard definition, with the additional HD channel continuing to act largely as a simulcast channel.
A rival executive agreed, saying even when the new multi-channels launch, there will effectively be only 10 channels on the free-to-air platform with separate programming.
Source :
http://www.theaustralian.news.com.au...1-7582,00.html