Foxtel boss Kim Williams has weighed in on the war of words between the ABC and the subscription television industry, sparked earlier this month when the pay TV channel Sky News said public broadcasters should have to compete with the private sector for government money for new channels.
"The ABC sees itself as a solution to every content issue and editorial issue in Australia," Mr Williams said yesterday. "Well, who says? I don't accept that."
"The ABC is the one which is vigorous in its own defence, we make no apology for being vigorous in pushing forward our own case. Contestability is a good public principle in relation to content issues."
Sky News, which is shown on Foxtel and its regional counterpart Austar, argued that funding for a proposed new commercial-free children's channel or education channel should not automatically go to public broadcasters, but that there should be an open tender.
Sky intends to contest the ABC's $20 million contract next year to run the overseas TV station Broadcast Australia, which is airing throughout Asia for the Department of Foreign Affairs and Trade.
The managing director of the ABC, Mark Scott, had fired back that the Government shouldn't "outsource its broadcasting diplomacy to Rupert Murdoch's media empire."
Mr Williams made his comments yesterday after addressing a subscription television industry conference with Austar's chief executive, John Porter.
Both claimed that pay TV would prove resilient in the economic crisis as people went out less and looked for entertainment at home, with viewing levels up 10 per cent from a year earlier.
They also lashed out at the free-to-air broadcasters over their new digital channels. Network Ten will launch a digital sports channel next week, with Channels Seven and Nine following suit with their own new digital channels later this year.
Free-to-air TV will ultimately offer 15 channels in total, including those of the ABC and SBS.
Mr Williams accused the networks of making "false claims" advertising 15 new channels, arguing a dozen of those existed already and were on air.
Seeking to increase its market penetration beyond 30 per cent of Australian households, subscription TV is desperately pushing for changes to the anti-siphoning list, which gives free-to-air broadcasters exclusive rights to more than 1300 sporting events for their main channels.
While the communications minister, Stephen Conroy, has indicated he wants to prevent the free-to-air networks from hoarding events they don't broadcast through a "use it or lose it rule," the industry fears he may amend the list to let free-to-air show big ticket events on their new digital channels, weakening the appeal of subscription TV.
"We have to increase our level of lobbying, public relations and enlisting participation of stakeholders in this debate," Mr Porter said. "If we don't do that, we could get steamrolled."
Mr Williams said that pay TV and the football codes had to coordinate their lobbying "in a much more reliable fashion." Rupert Murdoch's News Ltd, which holds 25 per cent of Foxtel and 50 per cent of Fox Sports, also part-owns the NRL.
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