TV's slow death: Why broadcasters are in panic mode | Media Watch

Summary

The digital TV signal for Network 10 in Mildura, Victoria, is being switched off due to economic losses, affecting 70,000 people. This raises concerns about other regional TV stations. The TV industry is struggling with declining ad revenue, rising costs, and reduced viewership, with audiences shifting to online streaming. The industry's challenges include a significant drop in ad revenue, reduced drama and children's programming, and technological changes affecting sports broadcasting. Analysts warn that the industry may not sustain three commercial networks, suggesting consolidation for survival.

Takeaways

• 📺 The TV industry in Australia is facing a crisis with Time network's Free To Air television signal set to be switched off in Mildura, affecting 70,000 people due to economic reasons like falling advertising revenue and rising costs.
• 🚫 The shutdown of the 10's Digital Signal is a result of broadcasting being a financial burden from the start, and Mildura Digital television will hand their license back to the government, ceasing operations.
• 👀 Alternative viewing options remain for Mildura residents, such as smart TVs and the 10 play app, which may require purchasing a new TV for some.
• 📉 There is a broader crisis in the TV industry with job cuts at major networks, including 150 at 7 West Media and 200 at Nine Entertainment, indicating a struggling market.
• 📉 TV ad revenue is plummeting, down 11% from the previous year, with online platforms taking over as the primary choice for advertisers.
• 📺 The audience for free-to-air TV is shrinking, with a significant number of viewers shifting to streaming services for their entertainment.
• 📉 Australian drama on commercial networks has been in decline for two decades, with a drastic reduction in the number of hours produced, affecting the diversity of stories being told.
• 👶 The situation for children's TV on commercial networks is dire, with a significant decrease in programming hours, which affects younger audiences.
• 🏆 The reliance on news, sports, and game shows by commercial networks is highlighted, as these are seen as cost-effective and appealing to their aging audience base.
• 🚫 There is a potential threat to the networks' control over sports broadcasting, with changes in legislation affecting how sports are viewed by the public.
• 🌐 The failure of commercial networks to adapt to the on-demand market is noted, with suggestions that the industry may not be sustainable with the current number of broadcasters.

Q & A

What is the current crisis affecting Australia's TV industry?

The Australian TV industry is facing a crisis due to the shutdown of Time network's Free To Air television signal in the Victorian town of Mildura, which is affecting 70,000 people. This has raised concerns that other Regional TV stations might follow suit.

Why is the Free To Air television signal in Mildura being switched off?

The Free To Air television signal in Mildura is being switched off because it has been a financial burden since its inception, with falling advertising revenue, rising costs, and continuous operation at a loss.

What alternatives do viewers in Mildura have to access Network 10 after the shutdown?

Viewers in Mildura will still be able to receive Network 10's signal through smart TVs and the 10 play app, although this may require purchasing a new TV.

What broader implications does the shutdown of the TV signal in Mildura have for Regional Australia?

The shutdown could mean that Regional broadcasters might no longer be able to provide a voice to Regional Australia through local news, advertising opportunities, and support for local community groups and charities without government help.

What is the current state of the TV industry in terms of job losses?

The TV industry is experiencing significant job losses, with 7 West Media cutting 150 jobs and Nine Entertainment cutting 200 jobs due to a weak advertising market and loss of funding from Meta.

How has the decline in TV advertising revenue impacted the industry?

The decline in TV advertising revenue, which dropped 11% from the previous year, has led to a decrease in the industry's share of ad revenue from 7.7 billion in 2017 to 3.8 billion in 2021, with online platforms now accounting for more than half of all ad spend.

What is the impact of technological change on the commercial networks' grip on sports broadcasting?

Technological change is threatening the commercial networks' control over sports broadcasting, with the potential for millions of Australians to be blocked from viewing events such as the NRL and AFL Grand finals for free if they stream via an internet connection.

What is the current trend in Australian-made drama on commercial networks?

Australian-made drama on commercial networks has been declining for two decades, with the number of hours going from around 500 in the year 2000 to just 116 hours last year, and most of that coming from just two shows.

How has the decline in children's TV on commercial networks affected the industry?

The decline in children's TV, from 33 hours in 2020 to zero, has led to fewer viewers and a decrease in the potential audience for advertisers, as teenagers now spend on average only 13 minutes a day watching commercial television.

What suggestions have been made to improve the sustainability of the Australian TV industry?

Suggestions include the Australian market potentially not being able to sustainably support three broadcasters, and the need for the networks to work together and unite in marketing the benefits of television for mass exposure.

What was the political context surrounding Senator Fatima Payman's decision to cross the floor and resign from the Australian Labor Party?

Senator Fatima Payman crossed the floor and voted against her party over recognizing Palestinian statehood, leading to her resignation from the Australian Labor Party. This act was met with backlash from the party, with senior Labor figures raising questions about her Afghan citizenship as a potential risk to her remaining in the Senate.