Media Wrap: Reach rule debated; Netflix-ageddon for telcos; McGuire knocks back Seven

By AdNews | 6 July 2015

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Reach rule back on the table?

Changes to the 75% reach rule could be back on the table, with communications minister Malcolm Turnbull reportedly telling TV lobbyists that the rule should be overturned and would likely pass parliament.

A spokesperson told The Australian that the matter was discussed at a dinner in Sydney, and said the minister had said a scrapping of the rule would most likely pass parliament.

The rule prevents one media player from owning services that reach a total of or more than 75% of the Australian population.

Worner goes the tonk on regional TV players

Elsewhere, Seven West Media chief executive Tim Worner has accused regional TV players from running a scare campaign on the issue which he said was more about asset valuation, than concern over a cut to regional news services.

“Regional broadcasters are running a scare campaign that is all about getting them ready for sale and nothing to do with a commitment to regional news,” Worner was quoted by Fairfax as saying.

Regional TV bosses such as SCA chief executive Grant Blackley have been saying the 75% reach rule should be scrapped, allowing them a capital injection from cashed-up media buyers.

Netflix to cause NBN price re-think

If you wanted an appreciation of how Netflix is changing the telecommunications game in Australia, key telcos are now pushing for NBN price reform on the back of popularity of the service.

According to the Australian Financial Review, the telcos' chief complaint is with a fee charged by the NBN called a “connectivity virtual circuit charge”, which is $17.50 per one megabit per second.

At current streaming levels for Netflix, they argue that users on the NBN could be forced to pay another so-called “Netflix tax” of $26 per month for moderate HD streaming, and $60 per month for the ability to watch occasional 4K streams.

Eddie McGuire to stay at Nine

Finally, according to The Australian, Eddie McGuire has turned down a contract at Seven and will remain at Network Nine.

According to the paper, Seven made an offer to McGuire to run a gameshow at 5.30pm, a move to nobble McGuire's current Game show Millionaire Hot Seat.

Millionaire Hot Seat has been consistently outrating Seven's Million Dollar Minute, which is having a flow-on effect to each networks' 6pm news bulletins.

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