The future of sports delivery in Australia: NBN multicast, IPTV and the role of the ISPs

Abstract

Where lucrative media rights deals for sports content currently lie primarily with pay TV and free to air (FTA) broadcasters, Internet Service Providers (ISPs) entering the content delivery market through partners such as Fetch TV may be better placed to compete for distribution rights to sporting and other live events. In response to this shifting environment this paper outlines the technological capacities of NBN-based multicast Internet Protocol Television (IPTV), and examines public comment and interview data from ISPs, sports organisations and NBN Co. regarding their intentions for IPTV delivery. This paper begins with the assumption that diversity in these emerging media forms remains important as ISPs enter the media content market. We demonstrate, however, that despite the emergence of NBN-based technologies, diversity in sports content distribution cannot be assumed. The paper points toward the important role that regulators, such as the ACCC, have in maintaining diversity and competition in IPTV services. IntroductionThe design and rollout of a comprehensive fibre optic National Broadband Network (NBN) across Australia has initiated a great deal of discussion regarding innovation in both media technology and content provision.Recent developments in the testing and pricing of wholesale multicast services by NBN Co.poses the possibility that, amongst other changes to Australia's media landscape, Internet Service Providers (ISPs) will have greater potential to deliver high definition IPTV services over the NBN. This raises the tantalising, or threatening, possibility of transformations to the distribution of premium, desirable televisual content such as sport. For sport media, where lucrative exclusive media rights deals, along with resulting sponsorship and advertising, currently lie with free to air (FTA) and subscription television, one possible outcome is that ISPs would be better placed to compete for web based and managed IPTV rights to sporting and other live events. Multicast technology made available through the NBN renders this scenario more likely. For instance, Landry Fevre, the general manager of media at NBN Co., predicts future negotiations for the rights to broadcast major Australian sports will feature AUSTRALIAN JOURNAL OF TELECOMMUNICATIONS AND THE DIGITAL ECONOMY, VOLUME 1 NUMBER 1, NOVEMBER There are some important qualifications to be made here. Firstly, Australia is by no means leading the way internationally with the proposed FTTP broadband network. Secondly, a great deal hangs on the survival of the FTTP model beyond 2013, where incumbent media interests and the newly elected Coalition policy favour a lower-speed fibre to the node (FTTN) NBN that restricts IPTV capacity. In addition there is ample evidence that on the whole, the current arrangements for sports content rights and market share will become further entrenched with perhaps even greater concentration around exclusive rights deals between major sports organisations and the commercial FTA networks, and subscription Spo...

“The More Things Change, The More They Stay the Same”: Path dependency, sports content, and the suppression of innovation in mobile television

“…This matter has been raised in a landmark national review of media and communications regulations, The Convergence Review, and by the national competition regulator, the Australian Competition and Consumer Commission (ACCC) (McCosker and Dodd, 2013). Indeed, the advent of a possible anti-competitive dynamic was raised by the ACCC almost a decade ago in a guidance paper that specifically discussed premium sport and movies:…”

“…The exercise of this power also contributes to the perpetuation of a notable impasse. Multiplying television platforms and mobile media services possess the potential to vastly expand the diversity of sports content distribution (McCosker and Dodd, 2013), particularly given the remarkable growth in demand for mobile Internet, video and streaming technologies. But in practice a combination of commercial dominance, exclusive and often-lengthy coverage deals, legal threats and actions, and regulatory decisions or inertia combine to limit competition and stifle this potential.…”