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Austar Maybe Taken Over By Foxtel!


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Austar was just an excuse to rip of country subscribers in the first place - even if taken over I bet they still keep a two tier pricing schedule - One for Country Bumpkins, One for City (get everything cheaper anyway) slickers.
Monthly Price and content differences for Austar are presumably because of two factors. Distance and subscription base. A merger removes (and actually reduces) the subscription base 'excess'. It doesn't do anything about the actual costs in getting a signal to a remote location. Telstra (and now the NBN) are required to make a loss delivering essential infrastructure to remote areas. Never understood why a private company that's delivering entertainment should do the same.

Regards

Peter Gillespie

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Austar was just an excuse to rip of country subscribers in the first place - even if taken over I bet they still keep a two tier pricing schedule - One for Country Bumpkins, One for City (get everything cheaper anyway) slickers.

Foxtel does all of WA and it's has country areas at the same price.

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Sorry? I didn't realize there was one satellit for rural/regional and another pointed only at metropolitan areas.What actually are these extra costs in getting a signal to towns 80+ form a capital city?
The satellite? [Edit: Most] metro regions don't use one.

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Peter Gillespie

Edited by pgdownload
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They're the exception and not what the business model is based on.

Foxtel have stated that only around 40% of their subscribers are on cable. Once the HFC agreement with Telstra expires in 2020 they'll dump cable connections anyway because it's cheaper to service everyone in the country via a single satellite platform.

I don't know why this thread has gone off on a silly tangent because Austar is cheaper than Foxtel, always have been (unless you're on a special negotiated price with Foxtel). Distribution costs would certainly go down lower if Foxtel and Austar were merged and if the HFC network was shut down in favour of a single cheap satellite platform to lease from Optus.

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Foxtel have stated that only around 40% of their subscribers are on cable. Once the HFC agreement with Telstra expires in 2020 they'll dump cable connections anyway because it's cheaper to service everyone in the country via a single satellite platform.

I don't know why this thread has gone off on a silly tangent because Austar is cheaper than Foxtel, always have been (unless you're on a special negotiated price with Foxtel). Distribution costs would certainly go down lower if Foxtel and Austar were merged and if the HFC network was shut down in favour of a single cheap satellite platform to lease from Optus.

Agree Austar is slightly cheaper for most of the basic pakcages but its definately not cheaper at the premium end. For example, with Austar, I pay $130 for the works HD package (17 HD channels) whereas if I lived in a Foxtel area, for the $132 premium package, I would be entitled to 21 HD channels (soon to be 22), access to on demand HD movies plus access to the 3d service. Furthermore, the cost of an additional Mystar HD box is $33, whereas the cost of an additional Foxtel IQ2 box is $25.

I see this discrepancy for the HD package only increasing in magnitude if the merger doesn't go ahead. Stating the obvious, but the current cost pressures on Austar with its smaller subscriber base will continue to stymie its ability to offer more HD channels. I'm not knocking Austar by the way, I think they've done a pretty good job in brining pay TV to rural and remote Australia, the problem is that there is probably little further opportunity for growth; and in the current economic climate, cost pressures will only increase.

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  • 1 month later...


I can't see the ACCC refusing this one. On my reading its already been knocked down in court for overreaching its definition of 'competition' and suggesting that Austar might one day a decade from now be competitive with Foxtel seems to be overreaching its remit.

Against this, in the short term at least everyone benefits.

Regards

Peter Gillespie

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I can't see the ACCC refusing this one. On my reading its already been knocked down in court for overreaching its definition of 'competition' and suggesting that Austar might one day a decade from now be competitive with Foxtel seems to be overreaching its remit.

Against this, in the short term at least everyone benefits.

Regards

Peter Gillespie

Either way Austar is stuffed. If the merger is not approved on the basis of a perceived monopoly, then even without Foxtel operating in its area Austar won't survive beyond the middle of next year. My mail says that customers in remote areas are starting to churn out of Austar in big numbers because they now have VAST (which incidentally is being installed free of charge to all remote Indigenous communitie in northern and central Australia) which provides 15 channels FTA in better quality MPEG 4 video.

I have little confidence that the ACCC is considering this issue without prejudice, for example, premium end (HD) Austar customers are being ripped off in comparison to Foxtel (17 channels for $130 as opposed to 21/soon to be 25 channels with Foxtel for $132 plus access to HD movies on demand). The merger is a no brainer in my view - but am worried that the ACCC has a blind spot when it comes to the mention of the phrase 'News Limited'.

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I have little confidence that the ACCC is considering this issue without prejudice, for example, premium end (HD) Austar customers are being ripped off in comparison to Foxtel (17 channels for $130 as opposed to 21/soon to be 25 channels with Foxtel for $132 plus access to HD movies on demand). The merger is a no brainer in my view - but am worried that the ACCC has a blind spot when it comes to the mention of the phrase 'News Limited'.
Agree that they would definitely like to go with a no, but it seems certain Foxtel will challenge such a decision in court. Based on other recent cases there's every chance such a challenge would succeed. I also suspect that if you assume the NBN will be concluded, then it would make it extremely cost effective for any big overseas content company to pretty much set up a rival paytv operation almost over night. After all the main thing stopping it is the enormous cost of building the distribution infrastructure.

I do wonder if the ACCC are looking to add on a few requirements to the merger. Possibly insist on content/price parity country wide? That works to the consumers interest and against Foxtel's.

Regards

Peter

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Does this agency actually have any enforced timelines? Perhaps the should just delay an announcement on anything until 2014 and then they could all just take a year off to work on their sun tan <_< I'm guessing this means nothing decided until the New Year now. And of course if they run out of staples that could mean a few more months...

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Peter Gillespie

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Does this agency actually have any enforced timelines? Perhaps the should just delay an announcement on anything until 2014 and then they could all just take a year off to work on their sun tan <_< I'm guessing this means nothing decided until the New Year now. And of course if they run out of staples that could mean a few more months...

Regards

Peter Gillespie

Typical Government departmental bureaucracy!

D.

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Does this agency actually have any enforced timelines? Perhaps the should just delay an announcement on anything until 2014 and then they could all just take a year off to work on their sun tan <_< I'm guessing this means nothing decided until the New Year now. And of course if they run out of staples that could mean a few more months...

Regards

Peter Gillespie

Typical Government departmental bureaucracy!

D.

Foxtel were the ones who asked for the latest delay. Didn't you read the article?

This afternoon, the Australian Competition and Consumer Commission (ACCC) said the announcement - which was planned for Wednesday - had been delayed ‘‘at the request of Foxtel to allow it to make further submissions’’.
Edited by duke
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Foxtel were the ones who asked for the latest delay. Didn't you read the article?
Yes they did, and the ACCC granted the request. This has been dragging along for close to a year now. I'm just wondering if there's a real deadline in the offing or if any of the parties are just going to keep saying "A dog ate our submission" as the next one approaches?

That said, Presumably Foxtel has been unofficially informed that its current submission has been rejected and so now its going to try again.

Regards

Peter Gillespie

Edited by pgdownload
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Yes they did, and the ACCC granted the request. This has been dragging along for close to a year now. I'm just wondering if there's a real deadline in the offing or if any of the parties are just going to keep saying "A dog ate our submission" as the next one approaches?

That said, Presumably Foxtel has been unofficially informed that its current submission has been rejected and so now its going to try again.

Regards

Peter Gillespie

I think you're on the money there. These people at the ACCC wouldn't be monitoring what Austar subscribers want would they? I suspect they believe that all big companies are bad and if allowed to get bigger and monopolise the market they'll be even worse.

This is nothing like Banking, telephony or the power supply. No one really 'needs' paytv - though many of us would miss it like crazy. It's a business which self-regulates. They need subscribers, the more the better and subscribers choose whether they want the service or not. If it's too expensive then people churn. It's in their interest to deliver affordability, it's the only way they can increase their subscriber base. So the word monopoly and what it infers cannot really be applied to a business such as this.

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  • 3 weeks later...


Thanks BamBam. This is the booklet Austar sent out entitled "Scheme Booklet" (seriously who asks people to vote yes for The Scheme?)/

Front page pretty much has everything you need, although it also says that "this is an important document requiring your immediate attention. You should read it in its entirety before deciding whether or not to vote in favour of the scheme.

Then follows 274 pages of extra small print legalese. Stuff like "...the scheme is fair. As the scheme is fair it is also reasonable. As the scheme is both fair and reasonable, it is in the best interests of the shareholders..."

It appears the law regards placing a four year old into a University course on Fluid Dynamics as a reasonable attempt to educate said child. If they fail the test its their own damn fault.

Regards

Peter Gillespie

Edited by pgdownload
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