The ACCC has approved “a historic restructure of the Australian pay-TV industry that will see Foxtel digitise its nationwide service”.

Foxtel and Optus have agreed to work together in their programming areas, bringing important economies of scale to the businesses.

In return for the ability to merge these areas, the Pay TV providers have agreed to further the interests of the regulators by promising to digitise their transmissions. Free to air broadcasters have been prohibited from using their digital transmission stream to multi-channel for at least 5 years,but are being encouraged to provide other services in the interim.

So what does this mean for the radio industry?

It means that as TV providers all rush towards digital transmission and fight for the prominence of their digital boxes in the home, more people will take up some kind of digital broadcast receivers. When that happens, the free-to-air radio broadcast industry, which is currently not digital, may be squeezed out of some areas of home entertainment if radio signals are not available in digital form which can be integrated into set-top boxes or digital receivers.

ABC Radio’s digital DIG channel is currently available via the Digital TV set as well as the internet and is providing one model for radio broadcasters in the digital age.

This deal puts more pressure on radio broadcasters to move ahead with digital radio and to be seen by consumers to be taking part of the next generation of receiver technology (without of course abandoning the traditional AM and FM receivers which will still be around for a long time yet).

In another related development, SBS has been allocated a datacasting licence by the ABA for an electronic program guide which will enhance its service and will push consumers a little further towards the digital age.