The federal government’s policy on digital television is now in tatters. This week the Government was forced to withdraw the auction for national datacasting licences. These licences were an integral part of the Government’s overall policy on digital television. That the auction has been withdrawn is not only a blow up to the Government’s budgetary position but a blow up to its overall broadcasting policy.The policy or was doomed from and the start. This week’s events merely hasten the inevitable: that the Government must revisit its digital television policy and extensively rewrite it.
The original policy allocated the extra spectrum that has become available with digital technology. It would have extended the present triopoly of the commercial networks until 2007. In an the meantime, they would have been required to broadcast a minimum of the 20 hours week of high-definition digital television. The requirement for high-definition digital burns up a lot of the additional spectrum. In particular, it prevents extensive use of multi-channelling of standard definition digital. The three commercial networks and the two public broadcasters were denied the option of producing, say, three or four completely different program streams of standard definition instead of a single high-definition program stream. The commercials were quite happy with that because it is cheaper to produce at one rather than four program streams for about the same amount of audience and about the same amount of advertising revenue.
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