Seven West media CEO James Warburton has urged the newly-elected government to reassess the federal 'anti-siphoning' laws, as the AFL seek to lock in its new broadcast deal post 2024.
Prior to last month's federal election, Labor made a pledge to change the anti-siphoning laws, which would restrict global streaming services such as Paramount+ and Amazon Prime Video from accessing leagues such as the AFL before any free-to-air broadcasters could.
With the process of finalising the AFL's new broadcast deal still ongoing, Warburton said maintaining free access to major sporting events should be a priority for the government.
“Free means keeping sport on free TV by ensuring Australians have access to events like the Olympics or their local AFL derby without having to pay,” Warburton said speaking at the Committee for Economic Development of Australia in Sydney (CEDA).
“This is achieved through the anti-siphoning list, which ensures the most popular sporting events are on free-to-air television and not on subscription television."
The anti-siphoning laws were introduced in 1992 after the launch of Foxtel. The key takeaway is that the laws do not interdict the pay TV operator Foxtel from accessing sport, but rather stipulate a list of sporting events (including the AFL) to which free-to-air broadcasters must have first access in broadcast rights negotiations.
The AFL's current broadcast contract with Seven (and Foxtel) is due to run out at the end of the 2024 season. But the incumbent free-to-air broadcaster is concerned that the current state of the anti-siphoning laws could effectively act as a loophole for streaming services to circle and outbid Seven for Australia's top sport.
"But there is a loophole in the anti-siphoning list. Currently, there is nothing preventing sporting codes selling directly to streaming companies, with the entire sport disappearing behind a paywall," Warburton continued.
“Closing this loophole should be an important priority for the new government, and we are pleased that the Prime Minister and (Communications) Minister Rowland have both committed to keeping sport free and a review of anti-siphoning as a policy of this new government.”
Warburton's concerns come as AFL executives, including Gillon McLachlan, travelled to the United States in April to meet with global streaming services Amazon Prime Video and Paramount+, who have both shown interest in the AFL rights.
The new deal is expected to be part of Gillon McLachlan's parting legacy and bring a massive financial injection to the sport.
Stan Sport streaming would also be a likely component of any pitch from Nine Entertainment Co.
But a lag in the legislation would seemingly add to a delay in the AFL reaching its final deal, with the potential repercussions for free access to sport in Australia very real.
Free TV Australia (the main lobby group for Seven West Media, Network Ten and Nine Entertainment) has long advocated for law reform to include the restriction on global streaming services in order to ensure the continuation free access to sport.
A Sydney Morning Herald report claims that Foxtel also wants the laws overhauled and updated so it can bid more effectively, believing "they are only designed to protect free-to-air television rather than all local companies" in the new-age global and digital media market.
"Australians also want, expect and deserve to be able to watch sport on TV, for free – be it AFL, NRL, cricket, the Olympics or the Melbourne Cup. The love of sport – and access to sport for free on TV – is a core part of Australian life," Warburton continued.
"The immediate priority for Minister Rowland is to regulate prominence of free-to-air television services.
"We were delighted that prior to the election the Labor Party committed to regulating prominence. Now they are in government, this is set to become a reality, and we hope that this can be put into legislation by the end of 2022."