Media briefs and TV ratings

Pay TV gets wiser and cheaper. Foxtel revealed cheaper Pay TV
prices today for new and
intending subscribers that will cut the entry cost by around 30% from
the
existing starter price its million or so subscribers are paying. The
reasons for the price cuts are not too hard to work out – at nearly
$51 a month to $99 a month Pay TV is becoming expensive, despite all
the glorious viewing and other benefits spruiked by Foxtel, Austar and
Optus. But with around 1.7 million pay TV subscribers across all
three groups in Australia, Foxtel risks alienating existing customers
with price cuts to new subscribers. It also risks upsetting its steady
move to profits. The cheaper packages follow extensive market research
late
last year in which Foxtel discovered that there were quite a few
potential new
subscribers out there who were put off by things like location, cost,
availability of relevant
packages and a general unease with paying for something you can get for
nothing on the Free To Air Networks. It
trialled a cheap starter offer and was surprised at the uptake. This
came as Foxtel (and Austar) moved into the black for
the first time on a consistent basis (but not on an after tax basis,
yet). Earlier this year Austar started trialling a cheap starter
pack for $29.95 a month compared to the basic package cost of $46.95 a
month.
The idea was to try and get the “dollar a day” idea in consumers minds.
Sales rose strongly in a test market, as they did for
another offer – a two month trial period for new subscribers.
Since then, Austar has been having difficulty convincing
suppliers to cut their charges to allow these starter packs to
be offered, a point made earlier this week when Austar released its
first quarter results showing a $10 million pre tax profit. Austar CEO
John Porter
complained that negotiating with suppliers was proving tough and he
accused
them of a lack of vision. – Glenn Dyer

Commsec jumps to Nine. In a
decision that’s raised eyebrows in TV and inside the bank, Commonwealth
Securities has jumped ship from the Ten Network to
Nine, with the first new link-up to be seen as early as next Monday on the
Today show.

Commsec had been providing finance
links into Ten news programs. The network is
reluctant to talk but CBA sources say the decision to shift hasn’t been wholly
supported within Commsec. Ten and
Commsec had a non financial relationship in that the
broker supplied information and someone to comment on financial matters, markets
etc, on the basis of getting good exposure. It’s
not known if Nine and Commsec have changed this to a
financial relationship, but if they have, will whatever Commsec supplies to Nine be disclosed as a form of
product placement? Will
there be a Commsec sign in any financial reports
presented on Today, the various Nine news, the 6pm broadcast or
Nightline? – Glenn Dyer

Commander in Chief struggling in the US. The
Seven Network has suffered a small blow with its much hyped US program, Commander in Chief being “rested” for a second time in the
US, leaving it highly
doubtful to be renewed for the 2006-07 season. Seven
is showing Commander in Chief on Monday nights after Desperate Housewives and the
audiences for both programs have declined in recent weeks; C-in-C is
off more than 40% from its opening with last Monday night’s audience around a
million viewers. There
are three C-in-C episodes to go in the US and about six
for Seven to show here. But Seven has half a dozen other well performing
US programs to replace it, with Bones
and Criminal Minds two likely candidates. Grey’s Anatomy is yet to return – it did
very well after Housewives finished last year in that 8.30pm Monday night
timeslot. – Glenn Dyer

Last night’s TV
ratings