THE FUTURE OF

TELEVISIONBROADCASTING

JULIE FLYNN CEO FREE TV

DISCUSSION TODAY1) BROADCAST EVOLUTION

2) DIFFERENCES - BROADCASTING AND TELCOMS SPECTRUM

3) INTERNATIONAL APPROACHES

4) IMPLICATIONS FOR AUSTRALIA:• WHAT’S BEST FOR THE CONSUMER?

• SETTING A FAIR PRICE FOR BROADCAST SPECTRUM

• NEED FOR ACTION NOW

RADCOMS 2014• IMPORTANCE OF FREE-TO-AIR TV

• OUR CONTRIBUTION TO THE PRODUCTION SECTOR

• UNREGULATED AND UNTAXED COMPETITORS

• USING OUR SPECTRUM MORE EFFICIENTLY

LAST 18 MONTHS ADOPTION OF MPEG4

1 MILLION FREEVIEW PLUS

OTT SERVICES A REALITY

A SINGLE LICENSING FRAMEWORK

TELCOS AGITATING FOR MORE SPECTRUM

THE LAUNCH OF NETFLIX, STAN AND PRESTO

FREE TV TODAY• 13 MILLION AUSTRALIANS WATCH FREE TV EVERY DAY

• NEARLY ALL AUSTRALIAN HOMES RELY ON FREE TV

• MAJORITY OF VIEWING TIME SPENT WITH TV

• BROADCASTERS UNDERWRITE THE PRODUCTION SECTOR

• STILL SUBJECT TO THE MOST PUNITIVE LICENCE FEES

Domestic content spend by commercial

free-to-air TV (last 5 years)

Spend on local content by industry

(FY 2014)

FREE TV INVESTMENT IN LOCAL CONTENT

INTERNATIONALLY• CONTENT OBLIGATIONS WITH LOW OR NO LICENCE FEES

• SPECTRUM FEES BASED ON AN ADMINISTRATIVE MODEL

6.33

1.380.42 0.30 0.26 0.25 0.25 0.09 0.06 0.04

A$ cents / MHz / Pop by country

IMPLICATIONS FOR AUSTRALIA• REGULATION NO LONGER FIT FOR PURPOSE

• HANDICAPPED IN OUR ABILITY TO INVEST AND INNOVATE

• GLOBAL COMPETITORS HAVE AN UNFAIR ADVANTAGE

LICENCE FEE REFORM AND A SENSIBLE

FRAMEWORK FOR SPECTRUM CHARGING

IS URGENTLY NEEDED

LICENCE FEES WERE LIKE THE ORIGINAL SUPER PROFITS TAX …

OBVIOUSLY THINGS HAVE CHANGED A HECK OF A LOT SINCE THEN …

WE’VE INDICATED THAT WE’RE PREPARED TO EXAMINE LICENCE FEES IN THE CONTEXT OF THE COMING BUDGET.

AND THAT’S WHAT WE’RE DOING.

SENATOR THE HON MITCH FIEFIELD JAN 2016

BROADCASTING SPECTRUM IS DIFFERENT• BROADCASTING APPARATUS LICENCES & TV LICENCES ARE TIED

• BROADCASTERS SUBJECT TO A RANGE OF REGULATIONS THAT

DON’T APPLY TO ANY OTHER MEDIA PLATFORM AUSTRALIAN CONTENT OBLIGATIONS

TIMEZONE RESTRICTIONS

ADVERTISING TIME LIMITS

RESTRICTIONS ON ADVERTISING CONTENT

AN INAPPROPRIATE SPECTRUM CHARGE WOULD

CONTINUE TO SHACKLE AUSTRALIAN BROADCASTERS

AND LIMIT OUR ABILITY TO COMPETE AND INNOVATE

SPECTRUM PRESSURES• HAVE LESS SPECTRUM (OPERATING BELOW 694MHz)

• CO-CHANNEL INTERFERENCE ISSUES

• IMPACTS MILLIONS OF VIEWERS

USING CURRENT SPECTRUM• MAIN CHANNELS IN HD – THE NEW DEFAULT

• ULTRA HD IN THE WINGS

• EXPLORING DVBT-2 AND HEVC

BROADCASTERS NEED:• REGULATION FIT FOR THE MODERN AGE

• REMOVAL OF LICENCE FEES

• FLEXIBILITY TO CONTINUE TO INVEST AND INNOVATE

AUSTRALIAN VIEWERS

BENEFITS LOCAL PRODUCTION INDUSTRY

ENSURING A STRONG AND AUTHENTIC LOCAL VOICE

THE FUTURE OF

TELEVISIONBROADCASTING

JULIE FLYNN, CEO, FREE TV