Free To Air

Television advertising revenue fell by $3 million for the six months to June, signaling that the free-to-air broadcasting industry was suffering a distinct cooling from advertisers.

Sales were $287.6 million, compared to $290.6 million for the same period in 2006.

Justine Wilkinson of the TV Broadcasters’ Council (NZTBC) tried to throw a positive spin on the dip in revenue, blaming difficult current market conditions. She said “the trend for television advertising was improving” and that television companies were “quietly optimistic” for the remaining six months of 2007.

The reported figures are sourced from returns prepared by Television New Zealand (TV ONE and TV2), TV Works (TV3 and C4), and Sky Network’s free to air Prime channel.

The NZTBC releases television advertising revenue information to the market every six months.

THE longstanding walls protecting free-to-air TV continue to crumble, with the announcement that the commercial networks will make their jealously guarded electronic program guides available to all manufacturers.

The decision, announced by the peak networks body FreeTV, dilutes an agreement reached in May between the Seven Network and TiVo, an American personal video recorder company.

The recorders are digital set-top boxes that enable viewers to record shows using information from electronic program guides.

The widespread availability of electronic program guides is likely to drive digital TV in Australia, which, seven years after it was introduced, has spread to fewer than one in three households with access to free-to-air TV only.

Nigel Trinca, a pioneer of personal video recorders in Australia and managing director of Future Tense Solutions, said: “The free-to-air TV networks’ resistance to electronic program guides is what has been holding back digital television in this country.”

Last year the Nine Network took action in the Federal Court after local company Ice TV began providing an independent electronic program guide. Nine alleged the company used Nine’s TV listings without permission.

Final submissions were made late last year and a judgement is expected this year.

Electronic program guides are not simply an electronic version of a TV guide. Coupled with a personal video recorder, they allow viewers to choose what they watch and when.

The advance means less couch potato sprouting and more “appointment viewing”. Critically, it also means viewers can fast forward through advertisements.

Free-to-air networks and many advertisers have been fearful that video recorders could undermine the annual $3.4 billion TV advertising market.

The overseas experience has not been definitive so far, but it appears that viewers with personal video recorders watch more TV.

After Seven announced its agreement with TiVo, the Australian Media and Communications Authority said it might use the new powers granted under the Federal Government’s media laws package to force free-to-air networks to create an industry-wide electronic guide.

FreeTV spokeswoman Julie Flynn trumpeted the arrival of electronic program guides for free-to-air TV, but would not specify when it would happen.

She said commercial broadcasters would make the electronic program guides available to manufacturers of personal video recorders and set-top boxes, providing manufacturers encrypted them to protect program makers’ copyright.

Seven Network spokesman Simon Francis said: “Today’s agreement underlines the importance of Seven’s partnership with bringing to Australia the world’s best technology in personal video recorders.

“Our plans are to work with other partners to bring some much-needed competition and leading technology to consumers.”

Foxtel spokeswoman Rebecca Melkman said: “If all consumers are able to access free-to-air electronic program information, we look forward to the networks supplying the information to the one-in-four households in Australia that have Foxtel.

“We have had an integrated electronic program guide for 3½ years, which now also operates on the internet and soon on mobile phones,” she said.

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