- Exclusive
- Business
- Companies
- Media & marketing
Smart TV showdown on cards as networks fine-tune pitch to Canberra
By Calum Jaspan
Australia’s free-to-air television sector is descending on Canberra this week to lobby politicians to get their apps better visibility on smart TVs.
A group of 16 senior executives from the ABC, SBS, Seven, Nine (the owner of this masthead), Ten and Free TV Australia will be in the capital to boost support for a planned “prominence” framework, which would mandate television and device manufacturers to make local free broadcast video on demand (BVOD) applications – such as 9Now, 10Play and ABC iView – easy to find, and given preferential placement on home screens.
The five broadcasters want a new set of rules to be implemented for TV manufacturers, including access to all TV channels provided by free local networks; installing all local TV apps in the first positions on home screens; and offering free local TV content first in search results and recommendations.
The coalition of media companies already has the support of the federal government, with Communications Minister Michelle Rowland planning to legislate a “prominence” framework, an election promise from the now Labor government.
A Google TV interface with prominence given to local broadcasters.
Greg Hywood, former Fairfax CEO and now chair of Free TV – the industry body which acts on behalf of Seven, Nine and Ten – said free, local TV remains vital for millions of Australians, entertaining and informing with trusted news and emergency updates, as well as providing the “unmatched theatre” of live and free sport.
The government believes all Australians should be able to easily find local content, news, emergency information and entertainment on smart TVs, Minister Rowland told this masthead, which is why legislating it committed to a prominence framework in the lead up to the election.
“Broadcasting plays a crucial role in supporting our shared sense of cultural identity, and prominence is about ensuring Australians can easily access the local services that unite and inspire us all – across news, sports, drama, reality television and more,” she said.
According to Hywood, Australians are finding it increasingly hard to find free local services on modern TV sets, with manufacturers “seeking to profit by selling exclusive access to the key positions on the home screens and on remote controls”.
Communications Minister Michelle Rowland.Credit: Alex Ellinghausen
He added that services such as Netflix and Amazon Prime Video are given preference on screens and remotes, with local providers “forced to pay to even be available on TVs”.
However, the Consumer Electronics Suppliers Association (CESA), which represents Sony, Samsung and Panasonic disputes this claim, telling this masthead “it’s simply not true that our members charge for availability”.
LG and Samsung have developed first-party integrated systems into their hardware, while Google, Amazon and Apple, Roku and others have allowed further smart TV functions to be added to existing products.
CESA says mandating free-to-air apps in the first positions of TV home screens would “radically impact Australian consumers, stifling innovation and viewers’ user experience”, adding that positioning should remain a matter between consumers and content providers.
Google, which sells Android TVs, Google TVs and Chromecast devices, has previously argued against the proposal, arguing it said would affect what viewers prefer to watch, or stifle innovation.
David Anderson, managing director of the ABC said its “important to all of us as a nation” that free local content is easily discoverable.
“Manufacturers of Smart TV’s need to distribute them locally as FTA access ready. Australians are increasingly missing out.”
“That’s why the whole local TV industry has come together in Canberra this week to build support across the Parliament and reinforce how critical it is that action is needed now,” Anderson said.
Free TV’s CEO, Bridget Fair, said the Government’s promise for a prominence framework is widely supported in the community, with research from RMIT showing 57 per cent of Australians being in favour of free local services being pre-installed on TVs.
SBS managing director, James Taylor joined Anderson in urging Canberra to push forward with the steps that would preference Australian stories, and strengthen “our sense of community”.
“Other countries have already taken significant steps to ensure the visibility and accessibility of their local TV service, and we urge the government to deliver on its commitment to do the same,” Taylor said.
CESA argues that content quotas for both local and international streaming services would be a better measure to drive the production of engaging, diverse, local Australian content, as opposed to a prominence framework.
”While we fully support mandated availability of local free-to-air apps, giving them an automatic first position on consumers’ home screens will dramatically impact consumer choice and innovation, without driving local content.“
Nine is also the owner of Stan, while Network Ten’s parent company, Paramount also operates Paramount+ domestically.
In a submission response to the prominence framework proposal, Netflix said the availability of local television networks is necessary to ensuring consumers have access to diverse content and any changes “must take into account that consumers are ultimately in control of what content they watch and how they want to watch it”.
The Business Briefing newsletter delivers major stories, exclusive coverage and expert opinion. Sign up to get it every weekday morning.