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BBC signs drama and comedy deal with Australia's Foxtel BBC signs drama and comedy deal with Australia's Foxtel
(6 months later)
The BBC's best-loved comedies and dramas will no longer be seen first on its Australian counterpart, the ABC, but on Rupert Murdoch's 50%-owned pay TV channel, Foxtel, as of the middle of next year.The BBC's best-loved comedies and dramas will no longer be seen first on its Australian counterpart, the ABC, but on Rupert Murdoch's 50%-owned pay TV channel, Foxtel, as of the middle of next year.
In a deal that took the ABC by surprise, BBC Worldwide will launch a Drama and Lifestyle channel on Foxtel, Australia's major pay-TV network. It means BBC drama and comedy will be fast-tracked to Australia on Foxtel, with free-to-air broadcasters having the right to bid to run programmes 12 months later.In a deal that took the ABC by surprise, BBC Worldwide will launch a Drama and Lifestyle channel on Foxtel, Australia's major pay-TV network. It means BBC drama and comedy will be fast-tracked to Australia on Foxtel, with free-to-air broadcasters having the right to bid to run programmes 12 months later.
The main exception to the deal is, Doctor Who, for which the ABC has a lifetime series agreement. Factual programmes such as QI and Grand Designs will also remain on the ABC.The main exception to the deal is, Doctor Who, for which the ABC has a lifetime series agreement. Factual programmes such as QI and Grand Designs will also remain on the ABC.
"This deal represents a strategic opportunity for BBC Worldwide to further expand our opportunities to showcase outstanding British creativity in Australia," said Jon Penn, managing director of BBC Worldwide Australasia."This deal represents a strategic opportunity for BBC Worldwide to further expand our opportunities to showcase outstanding British creativity in Australia," said Jon Penn, managing director of BBC Worldwide Australasia.
The BBC already has four existing channels on Foxtel: BBC Knowledge, UKTV, CBeebies and BBC world news, which will remain unchanged.The BBC already has four existing channels on Foxtel: BBC Knowledge, UKTV, CBeebies and BBC world news, which will remain unchanged.
The Foxtel clief executive, Richard Freudenstein, said the BBC is loved across the world by millions of viewers.The Foxtel clief executive, Richard Freudenstein, said the BBC is loved across the world by millions of viewers.
"By strengthening our relationship with the BBC we will greatly enhance the viewing experience we offer our subscribers, with even more high-quality content that can only be seen on the Foxtel platform and which we show as soon as possible after its original broadcast," he said."By strengthening our relationship with the BBC we will greatly enhance the viewing experience we offer our subscribers, with even more high-quality content that can only be seen on the Foxtel platform and which we show as soon as possible after its original broadcast," he said.
Foxtel is 50% owned by News Corporation, with the remaining stake held by Australia's biggest telecommunications company, Telstra. Foxtel says it has a 30% market penetration, though some analysts put it at closer to 25%. This is significantly lower than the pay-TV takeup in the UK (more than 50%) and in the US (nearly 90%).Foxtel is 50% owned by News Corporation, with the remaining stake held by Australia's biggest telecommunications company, Telstra. Foxtel says it has a 30% market penetration, though some analysts put it at closer to 25%. This is significantly lower than the pay-TV takeup in the UK (more than 50%) and in the US (nearly 90%).
Recently Foxtel's emphasis has been on acquiring quality drama to complement its sports channels.Recently Foxtel's emphasis has been on acquiring quality drama to complement its sports channels.
"We recognise that home TV drama is now the place to be," said Bruce Meagher, Foxtel's director of corporate affairs in Australia."We recognise that home TV drama is now the place to be," said Bruce Meagher, Foxtel's director of corporate affairs in Australia.
The ABC was not aware the BBC was negotiating with another broadcaster for the first-play rights to its comedies and dramas until the day before the deal was deal was announced. It did not get the opportunity to rebid for its A$15m (£10m), three-year contract. The new deal with Foxtel is thought to be worth significantly more.The ABC was not aware the BBC was negotiating with another broadcaster for the first-play rights to its comedies and dramas until the day before the deal was deal was announced. It did not get the opportunity to rebid for its A$15m (£10m), three-year contract. The new deal with Foxtel is thought to be worth significantly more.
"The ABC is disappointed that this decision was taken without any consultation," a spokesperson said."The ABC is disappointed that this decision was taken without any consultation," a spokesperson said.
"There have been previous attempts by commercial media to outbid the ABC for BBC programming aired in Australia. In the past, the ABC has been able to point to our audience share, distinctive reach and the unique relationship between the two organisations which has lasted 50 years.""There have been previous attempts by commercial media to outbid the ABC for BBC programming aired in Australia. In the past, the ABC has been able to point to our audience share, distinctive reach and the unique relationship between the two organisations which has lasted 50 years."
Communications analyst Paul Budde says acquiring BBC comedies and dramas in this way is unlikely to reverse the fortunes of pay-TV in Australia, where penetration has remained relatively low, largely because of the high costs of subscription (the monthly cost for receiving the new BBC Drama and Lifestyle channel on Foxtel will be A$63, or £42)Communications analyst Paul Budde says acquiring BBC comedies and dramas in this way is unlikely to reverse the fortunes of pay-TV in Australia, where penetration has remained relatively low, largely because of the high costs of subscription (the monthly cost for receiving the new BBC Drama and Lifestyle channel on Foxtel will be A$63, or £42)
"People can pick up TV series from the internet, including from Britain," he said. "There will always be ways to by-pass the sorts of elements that the BBC and Foxtel want to put in place.""People can pick up TV series from the internet, including from Britain," he said. "There will always be ways to by-pass the sorts of elements that the BBC and Foxtel want to put in place."
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