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New Freeview channels take bite out of pay TV – and even bigger one out of sister channels

Free television and subscription TV are in a fierce debate over who is winning the viewing battle after Freeview issued data which CEO Robin Parkes suggested showed there was “no need to pay for TV”.

Freeview issued an analysis of OzTam ratings saying that the share of audience for secondary free to air channels outstrips that of subscription TV channels. The channels include 7Two, Mate, Go, GEM, Eleven, One, ABC2, ABC News 24 and SBS2.

However, the subscription TV industry has  hit back, saying that most of Freeview’s growth has come by cannibalising the audience of the free-to-air networks’ main channels.  

According to Freeview’s analysis of OzTam data for the first six months of the year, the secondary channels’ share has risen to 19.53% to subscription TV’s 16.14%. For last month only, their metro audience share has risen to 20.25% while pay TV’s share was 15.42%.

According to Parkes: “This is an outstanding endorsement of Freeview by the Australian viewing public, and very firm evidence they agree that there’s no need to pay for TV.”

But subs TV sales house MCN responded with its own analysis, saying that when viewing is taken into account from 6am to midnight, all television is up in the 16-54 demographic with pay TV the biggest winner. It said: “STV audiences are up 5.4% year on year, total television is up 4.1% and total FTA audiences are up 3.7%.”

MCN boss Anthony Fitzgerald said: “The truth is the real impact of FTA digital channels is on their own audience. Freeview channels continue to cannibalise the main channel audiences.”

He said that although the free networks’ overall share was up 4.1%, their main channels had all lost out to Freeview, down a total of 14%. The biggest loser was Nine, down 19.6%, followed by Ten, down 17.6% and then Seven down 5.4%.

The MCN analysis said that 27.5% of the free to air audience now comes from Freeview, compared to 12.3% last year. The most extreme example is the Ten network, with 29.8% of its audience now coming from One and Eleven. This was narrowly followed by Nine with Go and Gem contributing 29.6%. Mate and 7Two provide Seven with 23.6% of its audience.

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