We spend more per viewer than FTA: Pay TV
The Australian Subscription Television and Radio Association has revealed, for the first time, data about its investment in local content, with $541.4m spent in production in 2009.
“FTA invested almost $1b in that period, but they reach 100 percent of the audience. Considering that we reach a third (34 percent) of the population, the fact that we’ve spent that amount is very significant given our reach in the market,” said ASTRA CEO Petra Buchanan.This figure is the result of ASTRA’s survey of its more than 30 members, in the areas of local production and employment. Figures were only released as an aggregate of total industry investment, and no individual channel/organisation data is available. ASTRA did not provide an investment breakdown by genre, but said that the figures include all genres including news, sport, drama, light entertainment, movies, lifestyle, documentaries, music and children’s programming.
The latest report from the Australian Communications and Media Authority found that the sector had spent $28.47m on Australian drama in the 2008/09 financial year, but ASTRA’s finding were much higher.
“That amount is what the Government would be aware of in terms of expenditure, but coming up with this $541.4m is significantly different,” said Buchanan.
According to ASTRA, production investment increased by 26 percent from the 2007-2009 period. In the words of ASTRA Chairman, Steve Bracks, this survey “clearly demonstrates the significant financial contribution subscription television is making to entertainment in Australia. It is indicative of subscription television’s support for Australian talent and content creators”.
Buchanan added that these new figures would support the sector’s negotiations with Government to secure support for local production.
“The figures validate that the pay TV industry is doing much more than it would need to do in any regard.
“We really hope that Government and the industry at large – including Screen Australia and other bodies – will really start to take notice of the ample amount of expenditure that subscription television is making. We’ll be rolling out this information to Government; ASTRA is here to make sure they understand the contribution that the sector is making to the Australian economy and the creative industries,” she explained.
In other findings, ASTRA reported that employment rose by 7 percent in the subscription TV sector, and found “near gender equity” amongst its 4,643 strong staff – a figure that contrasts with the preliminary findings of RMIT’s Girls on Film gender equity survey.
“Given that this is the first time we’ve done the research, it’s very hard to know why this has happened, but we’ll find more information in future years; we are looking to do this on an annual basis and to make that information available.
“The subscription television sector tends to embrace new entrants to the market, as well as people who are looking for a change from the FTA environment.That’s what I saw in the US cable market; when that industry began a lot of women moved across from FTA into cable. I’m not saying that’s exactly what’s happened here in Australia, but it will be interesting to monitor that over time and see what’s driving this equity,” said Buchanan.
A statement from the industry body said pay TV’s audience grew during the global financial crisis – a time when households were curbing discretionary spending. Buchanan, however, defined this growth as “relatively flat”.
“There’s confusion right now in the marketplace about free TV and the multichannels. I don’t think it’s convenient. Confusion slows people from making decisions, so that’s why we think we have a relatively flat subscriber growth on our platforms. Once it passes, people will make a decision and hopefully come over to subscription TV.
“It’s great that there are more [FTA channels], but it will never be on the scale of 200 channels. Anyone who loves TV will always want more; they’ll want the quality and diversity you get on subscription TV. A study by PriceWaterhouseCoopers predicts that subscription TV will grow by 6.2 percent annually in the next few years,” said Buchanan.
I couldn’t live for very long with my foxtel.
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