KEY POINTS:
Sky Television is telling its installation and maintenance contractors they cannot install Freeview, but still insists it is not concerned the new digital TV competitor will hurt profits.
Sky chief executive John Fellet yesterday confirmed the no-Freeview obligations he said applied to about 11 Sky contractors, which he
said was to ensure they were available to install and maintain Sky.
"We need people to be available. We had a situation recently where there were a lot of callouts because of bad weather and while Freeview has no obligation to assist people with reception problems, we do to our subscribers."
Fellet said Sky's approach was not harmful to Freeview because there were a lot of installers and nothing to stop anybody setting themselves up as one.
But the rule applies to some ot the big installation companies, such as Hill's Signalmasters, which has been contracted to Sky - and is also the importer and distributor for one of the two set-top box brands approved by Freeview.
The approach suggests Sky is not as relaxed about Freeview as it appears.
Freeview general manager Steve Browning said that he was especially disappointed that Hill's Signalmasters was not prepared to install Freeview, as it had been given the contract for set-top boxes that would carry its name.
"They have been approved as importer and distributor, so you would have thought they could install them as well."
"They have told us their approach, and we can only say we find it disappointing. It is something we will be keeping an eye on very carefully in the early days, to find out how long it is taking for people to get Freeview installed."
Warm reception
Freeview starts on satellite tomorrow with TV One, TV2, TV3, C4 and Maori TV. Financial analysts agree with Fellet that it is not a threat to Sky - at least while it has such limited content.
But Freeview on satellite is an alternative for people who are ambivalent about having lots of channels.
Some people get Sky to avoid reception problems from the standard analogue TV signals sent from transmission towers.
Wellington, with all its hills and valleys, is particularly vulnerable, and as a result Sky's satellite service has a high level of penetration in the capital.
Sky offers a basic 20 channel package on its digital service for $48 a month, but also has a super-basic service giving only free to air channels that costs $18.29 a month.
The service is not marketed, and some say Sky goes out of its way to keep it quiet.
Those people paying $18.29 a month or who are ambivalent about the Sky packages they have signed up to will now be able to use their Sky satellite dishes to receive free-to-air channels on Freeview.
With no ongoing cost they would pay off the $300 cost of their Freeview set top box and installation within six months.
TVNZ claims its research shows that up to 20 per cent of people subscribe to Sky because it resolves reception problems.
With no new content until the TVNZ digital family channel in October and the 24-hour news channel early next year, it is no wonder that Freeview is marketing itself initially as solving reception problems.
Regionals cry foul
The chairman of the Regional Broadcasters' Association, Triangle Television chief executive Jim Blackman, says he is not surprised that Sky installers are unavailable for Freeview work
He said that the installers of Sky digital often omitted to reconnect the analogue service cutting out independent channels not available on the Sky digital service.
"We've had a lot of problems with Sky installers," he said.
"Sky will tell you that this has nothing to do with them but it is a problem that continues to this day - we've had two calls this morning here at Triangle TV."
Blackman says the installation of Freeview will create similar problems, and that customers should specify when ordering installation that they want to retain their standard TV connection.
No regional channels have yet signed up for Freeview but some are expected to when the terrestrial part of the service starts in February
Stir-fry TV
New Zealanders have a reputation for being early adopters of technology. But it was encouraging to see the reaction to a report about a Kiwified low-tech approach to the media revolution.
nzherald.co.nz reported a story from the Oamaru Mail about a new local station for North Otago, 45 South, which is transmitting its signal from a wok.
Apparently the local computer enthusiasts who started the channel worked out the configuration for a wok was the same as for much more expensive satellite dishes.
Rather than spend $20,000 for a commercial link up - which they did not have - they bought several woks from The Warehouse. The online story was a huge hit with readers around the world.
No TVNZ 24 on SKY
TVNZ will be encrypting its new family and 24-hour news channel for the Freeview channels so viewers cannot pick them up on Sky.
With 42 per cent of the country already on Sky the audience for the new channels is going to be severely limited.
But it is understood that TVNZ has developed a deal where it charges Sky a licensing fee for access to the channel.
The advertising-free channels are getting $79 million in taxpayer subsidies over five years to encourage people on to the new platform.
But TVNZ says the decision to keep new channels off Sky is common sense, as any new channels could be marketed by Sky to raise money. This could help it to pay more in negotiations with programme suppliers than its free-to-air rivals.
This might be irrelevant right now, but it shows clearly the tensions that are growing in the digital world.
Canwest goosed
Canadian media firm CanWest Global Communication is having trouble selling its 56 per cent stake in the Aussie Ten network, while buyers are lining up to to look at Kiwi radio and television assets.
Several companies are understood to be undertaking due diligence
Management, headed by CanWest MediaWorks New Zealand chief executive Brent Impey, expected to negotiate for a management stake.
The Canadians are known as tough businessmen so it was intriguing to see a report from Canada's Globe and Mail newspaper suggesting the CanWest father and son team of Izzy Asper ( now deceased) and Leonard Asper came out second best in the 2000 negotiations to buy the Hollinger newspaper chain from Conrad Black.
The sale has come under scrutiny during the magnate's trial in Chicago.
The Globe & Mail suggested the present CEO, Leonard Asper, was feeling uncomfortable about the way the terms of the deal had been made public.
The paper reported that a lawyer for Hollinger, Elizabeth De Merchant, said Black and Hollinger outfoxed the Aspers several times during negotiations.
Among the problems - CanWest paid US$175 million for the National Post newspaper which had a book value of US$25 million.
Prospective buyers for TV3 and New Zealand radio assets will be hoping CanWest will also come out short when it is the seller.
