Very interesting artical found on the web from the <br />"Courier Mail"<br />Phil<br /><br />Ten to jump on pay-TV<br /><br />09jun04<br /><br />THE Ten Network plans to push into pay-TV by creating subscription multi-channels on its digital-TV spectrum.<br /><br />The news further fragments the commercial free-to-air TV industry's once unified stance on digital TV just as its future is being reviewed by the federal Government.<br /><br />One of the reviews considers whether Seven, Nine and Ten should be able to provide extra channels (called multi-channels) on digital TV and if they could charge for them like pay-TV companies.<br /><br />Seven has wanted to offer extra digital-TV channels while the Nine Network, which owns 25 per cent of pay-TV group Foxtel, has opposed the move.<br /><br />Ten had also opposed multi-channelling, but in a policy reversal it wants to offer extra channels if it can charge subscribers.<br /><br />Ten network manager, regulatory, Paul Walsh told the Network Insight conference that subscription multi-channelling would ensure more competition in pay-TV without harming the existing free-to-air TV networks.<br /><br />Most capital cities had enough spectrum for two new digital-TV channels.<br /><br />"Those unassigned channels could be assigned to subscription services run by people other than the existing subscription operators," he said.<br /><br />Ten pay-TV channels could be broadcast on one digital "channel".<br /><br />Mr Walsh argued there was little competition in pay-TV after Foxtel and Optus agreed to share their content.<br /><br />But Australian Subscription TV & Radio Association executive director Deb Richards said there were six pay-TV companies in Australia. Apart from Foxtel and Optus, Austar operated in regional areas, as did Neighbourhood Cable and TransACT. And Television & Radio Broadcasting Services provided an ethnic pay-TV service.<br /><br />Lawyer Ian McGill from Allens Arthur Robinson asked if Ten would accept rules applying to pay-TV like the anti-siphoning restrictions on sport broadcasts, the drama content rules and if it would take no ads for the first three to four years like other pay-TV services.<br /><br />"I would love to be a fly on the wall when someone goes to Kerry Packer's office and says, 'Remember that money we spent on (free-to-air) digital TV? Well we are now going to build a subscriber management centre and we think based on $7 a month we will get a return in 25 years'," Mr McGill said.<br /><br />Mr Walsh said he did not work for Nine Network owner Kerry Packer. Mr McGill replied, "Maybe you should."<br /><br />Nine director of regulatory affairs Creina Chapman said Nine could not make money from multi-channelling.