Anti-siphoning could be 'cracked open' by Foxtel-Ten tie-up, says ABC
November 17, 2014
ABC managing director Mark Scott said Foxtel will "really crack open the anti-siphoning" regime, which currently ensures free-to-air broadcasters have a stranglehold on broadcasting rights for major sporting events, if its joint approach for Ten Network Holdings with Discovery Communications is successful.
Mr Scott also defended the ABC's decision to bid $1.5 million against its sister corporation the SBS for the Asian Cup, after SBS managing director Michael Ebeid said he was "flabbergasted" at the move and Communications Minister Malcolm Turnbull criticised it as a waste of taxpayers' money.
Anti-siphoning laws regulated media companies' access to significant sport events and free-to-air broadcasters usually have first refusal to key events.
"I think what will be very interesting in a public policy setting would be a Foxtel, Channel 10 tie-up because I think that's the thing that could really crack open the anti-siphoning challenge," Mr Scott told the Screen Forever conference in Melbourne.
"Anti-siphoning has clearly been on the public policy agenda for decades now. But the prospect that Ten and Foxtel are bidding for a program, I think could be quite an interesting thing."
"I think that's something that Seven and Nine would look at very, very closely."
Seven West Media chairman Kerry Stokes said last week called for reform of Australia's media laws but said the government should maintain anti-siphoning. "With the exception of anti-siphoning, I'd like to see no regulation."
Mr Scott said he wouldn't attempt to block Foxtel acquiring a stake in Ten.
"I think in a way, particularly around those sporting franchises, that is kind of immaterial to us," he said.
"I sometimes comment that when I was a kid, the Olympic Games, the Commonwealth Games, the Australian rules, the rugby league, the rugby union and the cricket were all broadcast on ABC television.
"You get sentimental about those great days when we broadcast the cricket in black and white and we could only afford cameras at one end of the ground. They were the glory days in some respects. People sometimes say to me 'where's the ABC walked away?' Well that's an area where the ABC really walked away."
Ten met with Foxtel executives last week and is meeting other potential bidders this week. Fairfax Media revealed earlier this month that US cable television giant Discovery Communications was considering a joint bid for the struggling free-to-air broadcaster with Foxtel.
Any bid would involve local pay TV monopoly taking a 14.9 per cent stake in Ten to avoid falling foul of laws restricting concentration of ownership.
SBS managing director Michael Ebeid told Screen Forever said such an arrangement would attract scrutiny from the Australian Competition and Consumer Commission.
"It certainly would create a big player in the market, and I think the ACCC [chairman] Rod Sims has come out saying it's going to something that he'll look at very, very carefully," Mr Ebeid said.
"I'd remind you it wasn't that long ago when Seven tried to take a bit of Foxtel and the ACCC blocked that. I think it would be interesting, and I'm looking forward to see what happens."
In October 2012, the competition regulator knocked back Seven Group Holdings proposed bid for Consolidated Media, which at the time owned 25 per cent of Foxtel.
The ACCC said it was concerned that the proposed acquisition would "put Seven Network in a position of advantage over other free to air networks in relation to joint bids and other commercial arrangements with Fox Sports for the acquisition of sports rights"
Meanwhile, Mr Scott defended the broadcaster's move acquire the rights to the Asian Cup saying Football Federation Australia had made up a deficit to Fox Sports to release the free-to-air rights for the soccer tournament.
He also said the ABC would be colluding with the SBS if it had co-operated on bids. "There seems to be this suggestion that Michael Ebeid and I should pick up the phone and work out who is going to bid for what," Mr Scott said.
He added; "The only way you can get around that is if you merge organisations and no government has a plan to do that."
sport around the world. Do some research on why they paid so much for the NBA rights ....
