Question 1

Is it commercially viable to move all free-to-air television to the internet today?

Accepted Answer

No. A full migration would impose a $4 billion annual cost on retail service providers, which is five times the current $800 million industry transmission spend. Furthermore, 20% of Australian households currently lack the fixed broadband connection required to support such a transition.

Question 2

Does the current national broadband infrastructure have the capacity to handle this traffic?

Accepted Answer

The network is currently insufficient for a total shift, as 34% of nbn connections are unable to support 100Mbps speeds. Regional areas are particularly vulnerable because current satellite services lack the unlimited capacity needed for real-time linear streaming.

Question 3

Are viewers actually moving away from traditional broadcast TV?

Accepted Answer

Yes, the trend is downward with average daily viewing falling from 155 minutes in 2017 to 138 minutes in 2020. While 69% of consumers now own an internet-connected TV, they express significant concern—rated 3.3 out of 5—regarding data limits and reliability in an online-only model.

Question 4

Is there a technical solution to lower these delivery costs?

Accepted Answer

Nbn Multicast technology is the primary lever to bring distribution costs back down toward current broadcast levels. However, the industry has yet to adopt this solution, leaving the sector exposed to the high costs of unicast delivery.

Taking Free-to-Air TV online in Australia: opportunities and challenges

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Key Takeaways

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