Mr Murphy asked the Minister representing the Minister for Communications, Information Technology and the Arts, in writing, on 17 November 2004:

(1) Has the Minister seen the article titled “Minister signals `no' to a fourth free-to-air TV Network” by Jason Koutsoukis in The Age on 2 August 2004.

(2) Can the Minister explain why there is not a great need for a fourth television network.

(3) Can the Minister explain how the niche markets being talked about are largely being fulfilled through the Foxtel (pay TV) network.

(4) Can the Minister confirm that (a) less than 20% of the potential television market subscribes to Foxtel, (b) more than 80% of television viewers rely on free-to-air television, and (c) most cannot afford to pay between $60 to $100 per month subscription for pay television.

Mr McGauran (Minister for Citizenship and Multicultural Affairs) —The Minister for Communications, Information Technology and the Arts has provided the following answer to the honourable member's question:

(1) Yes.

(2) The Government considers that the current arrangements for the three existing commercial television licences appear to be working well in providing quality free-to-air television to the Australian public. In accordance with statutory requirements, the Government has commenced a review of matters relating to the end of the moratorium on the allocation of new commercial television broadcasting licences, which concludes on 31 December 2006. The question of whether any further commercial television licence should be issued after 2006 will be one for the government of the day.

(3) A large and diverse range of content is offered by subscription television providers, including Foxtel. Foxtel promotes its digital subscription service as providing over 130 channels and services. It would be reasonable to assume that a broad range of niche markets and interests would be catered for with such a large number of channels and services.

(4) (a) to (c) The Australian Subscription Television and Radio Association (ASTRA) reports that approximately 1.6 million homes are now subscribing to subscription television in Australia. This represents approximately 21.3% of households with television. An alternative way of calculating the share of the television market is as a percentage of population. ASTRA estimates, based on an estimated average of 3.4 residents in a typical subscription television home, that the penetration rate in Australia for subscription television is 26.1%.

Therefore, between 73% and 79% of television viewers rely on free-to-air television alone. Monthly subscription fees can be as low as $44.95 (the price listed for Austar's basic digital package). The amount which any household has available for discretionary expenditure is a matter for the household.