TV licence debate flares -
http://www.news.com.au
By Jane Schulze
April 2, 2004
THE debate over the fourth free-to-air TV licence has begun, with Ten Network executive chairman Nick Falloon rejecting the idea and one of Australia's top media buyers, Zenith Media's Anne Parsons, arguing it is desperately required.
Their comments came after advertising guru John Singleton said he hoped to buy the next commercial free-to-air TV licence, scheduled to be made available in January 2007.
Mr Singleton said he and his new partner in a radio venture, Virgin group chairman Richard Branson, were keen to start the new TV station.
"Try to hold us back," he said.
Asked about Mr Singleton's plans after an Australia-Israel Chamber of Commerce lunch yesterday, Mr Falloon said he did not expect them to pose a strong threat. "I don't know if they have any plans (but) it's a debate that will take place over the next few years.
"I believe we will need competition in the pay-TV market before we need further competition in free-to-air."
But Zenith Media chief executive Anne Parsons strongly supported new competition in the free-to-air TV sector. "We are desperately in need of more competition, so I'm someone who supports the 2007 opportunity for a fourth network," she said.
"It will make sure the right thinking is going into what the programming is like, and the more opportunity I have to provide certain (advertising) environments for my clients, the better I think it is."
The new free-to-air station is expected to be digital-only, and Ms Parsons believes this will lift viewing of free-to-air digital TV. "I love what digital should be capable of doing but there's such a gap between that and what's going on, so anything that accelerates that would be really good," she said.
She said digital free-to-air TV provided the opportunity for interactive or more integrated advertising and that's what her clients wanted. "They are now talking more about that than the conventional 30-second TV ad," she said.
The federal Government is due to review the issue of the fourth free-to-air TV licence before the end of this year but has yet to announce how or when that will occur.
Only 270,000 of a possible 7million homes have upgraded their free-to-air TVs to digital, but Mr Falloon disagreed with the notion that the digital rollout was slow. "Digital free-to-air in Australia is ahead of the US and proportionately ahead of where the UK was this far along," he said.
Mr Falloon also took a swipe at two of the owners of pay-TV group Foxtel - 25 per cent owners News Ltd (publisher of NEWS.com.au>) and Kerry Packer's Publishing & Broadcasting Ltd. He said the funds they made from their dual ownership of the Fox Sports pay-TV channel covered their losses incurred at Foxtel.
"The third party in Foxtel, (50 per cent owner) Telstra, is losing all the money, so that's you and me funding a pay-TV monopoly for Rupert (Murdoch) and Kerry," he said.
The Australian