ACCC cites serious concerns over sports rights and sales as it delays Ten and Foxtel merger
The Australian Consumer and Competition Commission has said it is worried Foxtel’s proposed acquisition of 15 per cent of Network Ten would “substantially lessen competition” for increasingly important sports rights, as well as in ad sales in the market.
In a statement of issues released today to competition watchdog has said any agreement could see Ten and Foxtel enter into “joint bids and other commercial arrangements for acquisition of sports rights, to the exclusion of other free-to-air networks” boosting Ten’s ability to acquire sports rights and ultimately “increase the likelihood of more sport being shown exclusively on Foxtel”.
Foxtel made a move to buy 15 per cent of the third placed free-to-air network in June after the government’s refusal to change ownership laws stopped it making a full takeover bid, although rivals expressed concerns it would lead to a weakening of competition in the market.
In a statement on today’s release of a statement of issues ACCC chairman Rod Sims said: “Given the importance of sporting content to a broadcaster’s ability to compete strongly with other free-to-air networks, the ACCC is concerned that the advantage Ten would gain in acquiring sporting content may lead to a substantial lessening of competition in the free-to-air television market, or in the broader market for the supply of television viewing services.”
Surely having a truly competitive third FTA network should be what the ACCC looks at. At the moment, when all is said and done, Ten can’t access decent content, given the state of its balance sheet (as evidenced by the recent AFL/NRL rights). Green light it, and then lets see some real competition in the FTA sector, not this copycat, repetitive, spoiler nonsense between Seven and Nine. Or we can just wait until VOD takes over, which probably won’t be too long…
Great work by the ACCC, calling out this shamefully anti-competitive deal. It’s a takeover, without paying shareholders a cent, grabbing more power over content acquisition and building potential advertising sales cartel.
As for the comment above regarding Ten’s inability to access decent content and it’s balance sheet – gee I wonder how that happened? What little group has been pulling the strings from a renovated shed in Surry Hills – Pixiland or something like that isn’t it?
This is going to get uglier, especially when they have to unwind that transfer to MCN of the sales ops which was done before the ACCC even closed submissions.
Lets hope the ACCC are allowed follow through.
But Murdoch….
I hate the fact Murdoch et al try to force you to buy their service to watch sporting events (Formula 1 especially.)
This corporation is tyrannical in its behaviour and cries when it is caught out.
Internet television and freedom for all.