Free-to-air television needs reform

Free-to-Air (FTA) television is in trouble. But the reasons are not as simple as you might think.

The trouble is clear. Ten Network Holdings share price has tanked from around $1.50 in late 2010 to about 22 cents today. It is hoping that Foxtel will be the white knight that saves it – at 15 cents per share and subject to ACCC approval!

Shares in Seven West Media, the owner of Channel Seven, have slumped from around $7 in late 2010 to around $1 today. Nine Entertainment Company appeared to be performing better – until it announced a profit update in early June. Its shares fell 8% in one day.

This decline is not just due to the internet. The television remains our favourite video screen with FTA television our favourite content.

Australians watched an average of 89 hours and 28 minutes (89:28) of broadcast television – free-to-air and subscription channels – on TV sets per month. This is almost 90% of all time spent watching video on all devices.

The demographic data shows that the internet TV platform may kill FTA TV in the long term. But the problem today is that FTA TV has new technology with old regulation.

Read the entire story here.