TV networks agree to share programming on new channels

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THE Nine and Seven television networks have renewed discussions about a unique alliance to share programming on the new digital channels they will launch next year.

Media understands the possible "joint venture" proposal would see the rival networks' multi-channels offer distinctly different themes.

PBL Media's Nine Network is likely to launch a "general entertainment" offering that is likely to become a competitor to pay-TV's Fox8 channel, while industry insiders suggest the Seven Network will launch a lifestyle channel.

Sources said this raised the prospect of programs -- like Seven's Ugly Betty, Desperate Housewives and Border Security, and Nine's Kitchen Nightmares and Hell's Kitchen franchises from controversial chef Gordon Ramsay -- crossing over to the rival networks' new digital channels.

But Network Ten -- which will launch a new sports-only multi-channel next year -- will not participate in any program-sharing agreement, preferring to go it alone with its own new offerings.

Next year the TV networks will be allowed to broadcast one new standard-definition digital channel with separate programming from their flagship channels. The federal Government hopes the new channels will convince TV viewers to buy the digital set-top boxes they will need before it switches off the analogue TV signal in 2013.

The talks between Nine and Seven are an attempt to save costs, with senior management of some of the networks privately complaining about the cost of offering programs on the new Freeview platform. At the same time, the networks believe a program-sharing agreement could make the industry's proposed Freeview platform more compelling for viewers.

Freeview launched last week in Canberra amid much fanfare, with signs that the networks will all launch their new multi-channeling offerings around the second quarter of next year.

The Ten sports channel is being set up as a direct competitor to pay-TV's Fox Sports channels -- although the network's programming line-up for the new sports channel, One, received a blow this week. The terrorist bombings in Mumbai have thrown into confusion the network's rights to show the Indian Premier League and Champions League Twenty20 cricket tournaments -- which had previously looked like becoming a threat to existing cricket rights.

A Seven lifestyle multi-channel would be likely to become a rival to the Lifestyle and Lifestyle Food channels on the Foxtel and Austar platforms, while Nine's offering will clash with Fox8. But there could be an obstacle between the unlikely truce between Seven and Nine.

The networks are understood to be applying to the Australian Communications and Media Authority (ACMA) for a PG rating across the multi-channels' programming schedules, after ACMA rejected an application for the multi-channels to be allowed a more adult M rating all day. Foxtel is allowed to screen programming with an M rating across its schedules.

However, the main free-to-air channels have much more in the way of restrictions, with weekday requirements for G-rated programming between 6am-8.30am and 4pm-7pm, and other blocks requiring programming no more adult than PG at various points of the day.

The free-to-air networks are arguing these rules should not be extended to the multi-channels, as only a limited amount of households have digital set-top boxes that enable them to be viewed. They are also maintaining this would put them at an unfair disadvantage against Foxtel, and limit their options in offering a multi-channel that offers viable options in raising advertising and sponsorship revenue.

But the new multi-channels will not have any minimum Australian content requirements, unlike the main free-to-air networks.

Meantime, Ten network chief Grant Blackley said at the launch of the Freeview service last week he also expected one of the TV networks to also launch a news channel as "we all have international news affiliates as well as good local coverage".

"I think it will be one of the channels, as a component of Freeview, in the future," he said.

But he dismissed the idea of a 24-hour reality-TV channel, saying it would be too expensive given the high production values viewers now expected.

The ABC is seeking government funding for a digital-only kids channel, and Mr Blackley believed that would prove popular. And he said a free music-TV channel would be a "relatively easy execution because of the availability of content and low acquisition costs"
 
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