MEDIA and COMM ASS

MEDIA and COMM ASS - KCB 104 Media and Communication...

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KCB 104 Media and Communication Industries Assessment Item No. 2 NAME: Lina Dai STUDENT I.D: 9193995 TUTOR: Janice Caza WORD COUNT: 2314
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PART 1 Essay With the launch of Netflix into the Australian media sector, the struggle for audiences will intensify between Australia’s IPTV (internet protocol television), pay-TV and free-to-air TV networks. Presently, IPTV is the big mover in Australia’s TV market, with its revenue forecast to grow by 14.5% over the next five years (IBISWorld, 2014). With well-established global IPTV services looking to enter the Australian market, rivalry between media platforms is intensifying and existing players are seeking for new approaches to help their viewership and income. In recent years, Australian commercial TV networks have expanded creating more channels for its consumers. Australian TV consumers now have much more options to choose from than back in the 2000s. Consumers can now pick up to 11 digital channels of commercial free to air TV as well as extra four channels on both the ABC and SBS (Media Watch , 2015). Also, if consumers were willing to pay for services such as Foxtel or Tivo, there would be countless more channels to choose from. There are also catch up services including Freeview Plus, iview and SBS On Demand where individuals can view any programs when they want to. It’s clear that competition is arising within the Australian TV market. It’s clear that many TV executives claim that it is disrupting the Australian market and is a great threat to Free- to-air TV (Hopewell, 2014). However, the Australian commercial TV networks need to stop blaming Netflix and other IPTV services. The streaming platforms are not the reasons to why consumers are making the switch but the disloyalty amongst viewers that has been caused by the arrogance of TV networks in the way they treat viewers It’s no lie that many Australian TV network executives are upset and intimidated by the existent of Netflix, which is said to have secured between 50, 000 and 200, 000 Australian subscribers, and other IPTV platforms (The Australian, 2015). Most commercial TV networks claims and believes that these services poses as the newest and perhaps biggest threat and competition to broadcast TV in Australia with online audiences taking off. The ABC’s director, Richard Finlayson (2015) states that, “Netflix may not pose as immediate threat, but a commercial free-to-air TV license is no longer the permit to print money that it used to be”. And also according to Media Watch, “as audiences fragment and competition increases, commercial television is in the fight of its life” (Media Watch, 2015). Additionally one of the main issues that the Australian commercial TV networks now face is that any local subscribers Netflix allows reduces the value of their production deals with international partners, for instance Nine’s with Warner Bros or Foxtel Movies with numerous Hollywood studios.
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