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‘It’s not right’: Ten’s Russel Howcroft makes impassioned plea

Gruen's Russel Howcroft (right) is fighting back against the video-on-demand revolution.

Gruen's Russel Howcroft (right) is fighting back against the video-on-demand revolution. Photo: AAP

Gruen panelist and Channel Ten boss Russel Howcroft has taken a firm swipe at those who predict the death of television at Screen Forever’s conference in Melbourne on Wednesday.

“The demise of TV is a distorted narrative, driven out of the self-interest of the technology companies of the West Coast of the USA,” he told an audience of television industry professionals.

“[It’s] contorted by the marketers trying to appear innovative in search of their next job and bent out of shape by the prism by which many of us in the media bubble inaccurately view the viewing habits of the general population.”

Mr Howcroft is chair of the newly-formed industry body Think TV – an organisation funded by Seven, Nine, Ten and Foxtel, with a rumoured multi-million dollar budget to change the perception TV is in a prolonged decline.

“To be fair, the TV industry has not always done a great job of putting the facts straight,” Mr Howcroft said.

He noted that television still reaches more than 80 per cent of 25-39 year olds every week.

“The medium’s potency remains unmatched. A reality TV star and provoker of the east coast media machine has just been made the 45th President of the United States.”

It’s undeniable subscription television-on-demand services like Netflix are “taking eyeballs” in Australia.

According to a Roy Morgan poll in June, 1.8 million Australian homes have Netflix subscriptions (including free trial periods and offers) and 891,000 have Stan subscriptions. Before Presto was shut recently, 142,000 homes had subscribed.

But Mr Howcroft argued the digital services have not dented the viewing figures for television on all platforms (when you include catch-up and viewing on other devices) as seriously as their spin would have us believe.

“Today’s TV is a multi-platform, everywhere, any time experience,” he said, noting that 2.3 million devices are used in Australia to access catch-up TV every week.

“Yet, despite all that evidence to the contrary, we read almost daily about the demise of TV.”

And he said it’s those who work in the production business themselves who are helping to perpetuate the death of television message, citing a British survey of TV professionals working in what Mr Howcroft called “the media bubble”.

Russel Howcroft blamed the misleading death-of-TV narrative on 'the West Coast of USA'

Russel Howcroft blamed the misleading death-of-TV narrative on ‘the technology companies of the West Coast of USA’, like American company Netflix, led by CEO Reed Hastings (pictured). Photo: AAP

They were asked to estimate the amount of television viewing by the general public.

“The ‘media bubble’ said 49 per cent. The real number was 87 per cent and, in Australia, that figure is 94 per cent,” Mr Howcroft explained.

He said they were similarly out of touch in their estimation of the reach of video on demand, Youtube and the use of Twitter.

When asked about subscription on demand services, like Netflix, they estimated subscribers watched 84 minutes per day, but the research showed it was 11 minutes a day.

Mr Howcroft argued a prosperous commercial TV business in Australia (funded by advertising) was vital to ensuring the survival of Australian content.

The digital organisations “make a tiny contribution to Australian content and pay minimal tax but they are taking eyeballs away and, as a result, revenue”, he said

“This is a major challenge for all of us. We in TV need all of you to back us.”

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