Monday, January 12, 2009

Ferguson dumped as Nine scrambles for No. 1, by Conrad Walters - The Sydney Morning Herald - 12th January 2009

The Nine Network, conceding the need to rebuild its 6pm news bulletin if it is to have any hope of dethroning Seven's ratings supremacy, has dumped the newsreader Mark Ferguson in favour of the 60 Minutes journalist Peter Overton.

Last night it began trumpeting the journalistic background of its new frontman, who claims ownership of the anchor desk at Channel Nine tonight, with Mark Ferguson remaining as reader of the weekend news.

The promotional shots featuring footage of Overton in some of the world's hot spots is a clear attempt to distinguish him from Seven's frontman, Ian Ross, also a former Nine news reader.

Media analysts yesterday gave the network cause for optimism, saying Overton was likely to be well received and respected.

"For Nine to start to get a bit of traction of Seven, this is where they've got to make the inroads," said an analyst at PHD, Barry O'Brien.

"They've given Mark Ferguson the opportunity. It hasn't quite worked out. So I suppose in 2009 you've got to try things. Overton's got appeal, [but] television is always a roll of the dice."

Another media analyst, Greg Tingle, agreed that Overton's appeal would help Nine. He predicted an initial boost as curious viewers tuned in. He believed that community work done by Overton and his wife, Jessica Rowe, would extend the appeal.

"I would definitely expect the ratings to boost up, and I think the Australian public is ready for the change," Mr Tingle said.

The move was a "calculated risk", he said of the station that once seemed unassailable in the ratings. "Because, let's face it, Channel Nine can't afford too many more stuff-ups."

Nine Network executives yesterday stressed Overton's journalistic credentials. "[Overton] is the undeniable choice for us," said the director of news and current affairs at Channel Nine, John Westacott.

For the past eight years Overton has been a presenter on 60 Minutes, where he has reported from Afghanistan, Iraq, and Indonesia and as anchor of the September 11 coverage in 2001. He will continue to file stories for the network's flagship current affairs program.

The change in personnel is directed at Channel Seven, where Ian Ross has consistently won the 6pm competition for viewers. "As commercial television always is, we're locked in a very demanding fight for ratings," Mr Westacott said.

"The combination of Peter Overton and Mark Ferguson gives us the best crack at rebuilding our 6 o'clock news." (Credit: The Sydney Morning Herald)

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Tuesday, January 06, 2009

Unless TV networks adapt they will be eaten alive by the internet, by Allan Fels and Fred Brenchley - The Sydney Morning Herald - 3rd January 2009

The commercial television networks are quietly delighted by Telstra's exclusion from the $10 billion national broadband network (NBN) tender.

As both an owner and content provider to the NBN, Telstra would have given the networks two things they dread - competition, and a gatekeeper to the largely unexplored world of broadband television.

Using its new Telstra Media arm, the carrier could have effectively become a fourth commercial TV operator. The NBN operator will have some 100 digital channels to play with, opening the potential of multiple plays in home broadband free to air and pay TV.

Telstra's exclusion (at least in the initial stage) highlights the mega-stakes for television networks, not just in the broadband tender but the big shoe that will drop right behind it - analog spectrum switch-off and the return of old spectrum.

This is the so-called "digital dividend". Viewers get the snazzy new world of digital choice and viewing quality by the analog cut-off in 2013, while taxpayers get what the Communications Minister, Stephen Conroy, estimates could be worth $1 billion from reselling old spectrum.

But viewers and taxpayers shouldn't be holding out for any dividends just yet. Spectrum return and the resale dividend threaten an even bigger commercial and government wrangle than the NBN tender. At least a three-way tussle is looming.

Conroy wants to maximise resale, possibly "restacking" the old analog broadcasting services band to clear larger blocks.

Communications companies, Telstra included, are keen for new spectrum to meet demand for wireless broadband. The analog spectrum is ideal.

As expected, the networks are not only reluctant to hand back spectrum until they get all sorts of assurances about no new competition, but they actually want more.

Their argument is that, unlike analog where picture signals simply fade over longer distances from transmitters, digital signals fall off a cliff, requiring more, not less, spectrum to maintain.

The networks' real dilemma, however, is that they urgently need a new business model. And not just for digital multi-channel broadcasting, but for the even more threatening world of broadband, with its consumer promise of many different methods of utilising video content via internet protocol television (IPTV).

The networks - ABC and Seven excluded - cling to the 1950s mass market control model they have sold to advertisers for decades. But viewers - and advertisers - are fragmenting into pay TV and the internet. Unless networks adapt, they face a similar fate to newspapers: being eaten alive by the internet.

Foot dragging on digital multi-channelling illustrates the reluctance to change. They have created Freeview, promising 15 channels, but only the ABC has rolled out a new channel. Ten has unveiled a sports channel for next year. Nine and Seven are yet to reveal plans.

These are all standard definition digital channels. The networks have declined the opportunity to expand their digital high definition simulcast broadcasting into full channels, which government rules now allow. This exposes the much-touted HDTV as just a spectrum land grab by the networks, which now realise its high costs.

But territorial grabs will be standard fare as the NBN rollout folds into the analog spectrum return and its digital dividend. Telstra could even be a claim-jumper if it quickly rolled out its own broadband network, forcing the government-subsidised successful bidder to follow.

The networks want immunity from competition. They have it until 2012. They also want added digital spectrum space, but really crave subscription services to upset Foxtel/Austar's continuing inroads. Competing services must be a real issue for Conroy now that pay TV has snared about a quarter of the total viewing market.

Of all the clamouring parties in the new media landscape confronting Conroy, the networks will wield the biggest stick. Australians still like their free TV, no matter how much it has been dumbed down. Conroy will want to hand-pass them on into both digital and broadband while also gaining his digital dividend.

At the same time, he has wider business, social and consumer interests to protect as broadband impacts everything from video conferencing to delivery of government services. This means maximising open access to the NBN.

Crucially, the networks need a broadband strategy. After being dragged into digital multi-channelling they now need to understand that high speed broadband will attack all home video markets - particularly network TV.

Allan Fels is dean of the Australia and New Zealand School of Government and a co-author of the Urban Taskforce report. Fred Brenchley is a former editor of The Australian Financial Review. (Credit: The Sydney Morning Herald)

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