Pay-TV, Free-to-Air, VPN's and the AFL

Any fan of sport in Australia knows that getting to see their team play live on television each week can be difficult. For example, all of the major football codes in this country use a hybrid broadcasting arrangement, where some games are shown on Free-to-Air television (FTA), while the remaining games, or in some cases all of the games, are shown by a Pay-TV provider.

Purchasing a subscription to Pay-TV is usually an expensive, long-term commitment, and may not be an an option for less affluent consumers. If fans choose not to get a Pay-TV subscription, one place they can go to to get their games live is the internet. This is not surprising given the improvements of internet speed in recent years, and the trend of consumers to get content online.

The Australian Football League (AFL) provides an interesting case study in this respect. Under the current AFL broadcast rights agreement, less than half the games are shown on FTA each week, while every game each week is shown live by the subscription television broadcaster.

A summary of the options available to AFL viewers can be seen here (Click on image for a clearer version):

Notes:

^*As at 14^th July, 2016

^#As at 25^th August, 2016

^{^}Price is estimated on $50/month for 6 months.

^!Quality is contingent on internet speed. Requires high quality internet connection, so additional data charges may apply

Note: Foxtel are currently offering a “Free for One Month” deal. This includes no minimum contract, no installation fee, no Set-Top-Box fee and the first month free. Deal lasts until September 27th. Minimum cost for 6x months under this deal, including Sport is ($51x5) = $251. Minimum cost for 6x months of Sport + HD is ($61x5) = $305.

However, The most affordable option to get games live, on larger screens, and in HD quality, is to purchase an international AFL digital subscription (AFLGlobal Watch). This subscription allows consumers to stream live games to personal computers. From there, the signal can be sent to a television via a cable, or wirelessly using 'casting' technology.

However, this software is 'geoblocked' within Australia. Geoblocking is the activation of location-based Internet-Protocol restriction technology that prevents consumers from accessing content within a certain geography, based on the IP address of their computer.

For those consumers looking for a cheaper alternative than a traditional Pay-TV subscription, this geoblocking measure attempts to squeeze them into purchasing a subscription for the Pay-TV online app (Foxtel Play) or the digital online app (AFL Live Pass). However, the first of these options is still relatively expensive, while the second offers games on mobile devices only.

Watching games via illegal streaming websites is outside what might be called fair access, and it is assumed that most people would prefer to pay a reasonable amount to access content legally rather than risk litigation. Illegal streaming also does little to directly ensure the long term sustainability of the broadcasters, and therefore the game itself.

However, another alternative for fans is to utilise Virtual Private Network (VPN) technology. A VPN changes the IP 'address' of a computer to an overseas location, thereby sidestepping the geoblocking restriction that is in place for the AFLGlobal Pass. Once VPN software is installed, consumers can stream games live onto their computer via the AFLGlobal Pass subscription. Many VPN's offer free versions of their software, although retail versions are relatively affordable.

Is VPN use illegal? LawPath.com and Techly.com indicate that the use of VPN's is not clearly defined as being illegal.

The following statement also appears on the Prime Minister's own web page in relation to VPN technology, indicating the policy-technology debate has reached the uppermost office of government in Australia:

"While content providers often have in place international commercial arrangements to protect copyright in different countries or regions, which can result in ‘geoblocking’, circumventing this is not illegal under the Copyright Act."

Regulation, technology, consumption, and business models in the industry are colliding into each other in new ways, so that change in the industry may be irrepressible. But obviously, it's in the interest of the incumbent broadcasters, who spend huge amounts of money to purchase the exclusive rights to sport, to resist any changes that might occur, lest it threaten their position of dominance in the sector.

The existing business model works by ensuring that the TV audience becomes as large as possible to attract advertisers (in the case of Free-to-Air television), or in the case of Pay-TV, to make sure that consumers can only access the content by paying for it. This model guarantees a stable revenue stream for broadcasters, so they can deliver the huge amounts of money to elite sports governing bodies for their broadcasting rights. These governing bodies in Australia include the AFL, the NRL, and Cricket Australia, among others. Governing bodies in turn use this money to remunerate clubs and players, and to grow and develop the game.

But the sidestepping of geoblocking restrictions represents an undermining of this model. Unsurprisingly, the issue of VPN's has been lobbied against by those that are most negatively impacted by its ability to circumvent their geoblocking measures. Arguing for more government intervention is counter to the previous position held by the same organisations that debated for the lessening of regulation in their sector, especially in regard to anti-siphoning. The anti-siphoning list is legislation introduced by the government that attempts to ensure that sports deemed to be of national cultural significance are available on Free-to-Air so they can be seen by as many people as possible. The list includes events such as the AFL Grand Final, the NRL Grand Final, the Melbourne Cup, and so on. 

Live sport remains impervious to the trend of on-demand consumption, because unlike drama and movies, the attraction and relevance of sport for the consumer drops off dramatically once the result of an event is known. Regardless, more people are going online to get their television content. It seems prima facie that the broadcasting model as it currently exists may be unsustainable. Advances in technology, policy inertia, and changing consumption patterns are all combining to destabilise the sector. Something in the nexus of regulation, technology and industry needs to change without undermining the ability for the AFL to generate revenue from selling the rights to distribute coverage of their game, or preventing the AFL from being as reasonably accessible to as many people as possible.

Moving digitised information across global distances with scant regard for geographic borders and state regulations is becoming easier. For sport fans in such an environment, there are many options available for watching your game live, legally, on big screens, in HD quality, and without requiring excessive amounts of technical knowledge. The cheapest one may just be outside of the traditional broadcast system.