The rise of television via broadband is finally giving pay TV viewers a choice,
writes David Braue.

Let’s face it, when it comes to pay TV options in Australia, there hasn’t been much of
a choice: Foxtel (or Austar in regional areas). No wonder writer and 10-year Foxtel
customer Anna Spargo-Ryan was amazed to find she was paying more for pay TV
than she needed to. Like most of us, she thought she had no alternative.

That changed when she found most of the same channels she, her partner and
children liked could be watched for about $20 a month, plus the cost of a broadband
connection. She switched to FetchTV, a fast-growing pay-TV provider that delivers
the National Geographic Channel, Animal Planet, E!, MTV and free and on-demand
movies through various internet service providers (ISPs).

”We were getting frequent price increases on Foxtel and it got to the stage where it
just seemed like too much to pay for TV,” Spargo-Ryan recalls.

Increasingly, people are questioning their subscription choices as television via the
internet – known as IPTV (internet protocol TV) services – begin to push their way
into more homes via ADSL, cable, video game consoles and mobile connections.

In many cases, internet service providers are presenting them as lower-cost
alternatives with more choice than free-to-air TV. ISPs such as iiNet, Internode,
Adam Internet and Optus offer services from FetchTV to their subscribers but they

are not alone. Foxtel offers its services over IPTV to Xbox 360 users, while Telstra’s
T-Box has more than 300,000 users who access IPTV channels and Foxtel via its T-
Box. TPG Internet has offered IPTV for years – it includes 17 primarily overseas-
based channels in its broadband subscription package.

Lack of big-name licensing content agreements had kept IPTV on the fringes and
viewer reluctance to download high-quality TV over internet connections measured
by strict monthly quotas didn’t help. But download quotas and perceived quality
issues have all but disappeared. Bundled broadband and IPTV packages now offer
quota-free and quality-guaranteed services.

Telstra moved early in this space, promoting its T-Box to its massive BigPond
internet customer base with great success. It has been aided by incentives such as
early access to newHomeland episodes and extensive AFL coverage.

Thanks to mainstream support for IPTV and moves to exempt it from monthly
quotas, access prices are expected to come down and offerings expected to expand
significantly in coming years. Analysts from research firm IDC Australia believe the
market will grow rapidly, particularly on the back of the National Broadband
Network – Australia’s newest national infrastructure project – which promises faster
internet speeds.

IPTV is also becoming popular thanks to smart TVs (our story last week), with
brands such as Samsung, LG, Sony and Panasonic offering on-demand IPTV
services, although they are usually not quota-free.

FetchTV – fetchtv.com.au

Set-top box delivers quota-free channels, free-to-air channels and on-demand video
to your lounge room. Supports recording, time-shifting, iPhone app and more.

Cost: Full service about $20 a month, basic service $10 a month; must rent a set-top
box and subscribe to Adam Internet, iiNet, Internode or Optus.

Foxtel on Xbox 360 – foxtel.com.au/xbox/packages

Xbox 360 users can subscribe, then access IPTV channels such as MTV, National
Geographic, Nickelodeon, Discovery Channel and more. Unmetered for BigPond
internet customers, so if you’re with a different ISP, ensure you have an internet plan
with a large download quota (more than 100 gigabytes).

Cost: Basic service $19.50 a month; sports $10, Showtime movies, Movie Network
and Entertainment ($15 each) add-ons available.

Telstra T-Box – telstra.com.au/tv/tbox

Set-top box includes Foxtel channels, free-to-air and other content. Records, rewinds
and has an iPhone app.

Cost: Buy the box outright for $299 or pay $35 + $11/month on 24-month contract.
Add plans at $19.50 a month; sports $10 and Showtime movies, Movie Network and
Entertainment ($15 each) add-ons are available. Unmetered for BigPond internet
customers.

David Brue, SMH – April 22, 2012