Sky News goes free-to-air in WIN for regions

Free-to-air TV viewers will get a dedicated 24/7 commercial news channel in a deal between Sky News and WIN Network.

Angelos Frangopoulos, CEO of Australian News Channel, with Andrew Lancaster, CEO of WIN Corp, at Foxtel’s studios in Sydney. Picture: James Croucher

Television viewers will soon be able to watch a dedicated 24/7 commercial news channel on a free-to-air network for the first time with the signing of a historic deal between Bruce Gordon’s WIN Network and Sky News Australia.

A program supply deal between Australia’s largest regional commercial network and the subscription-TV broadcaster brings Sky stars Andrew Bolt, Peta Credlin, Paul Murray and David Speers to a bigger, broader audience of up to 5.2 million Australians.

The landmark deal is an unprecedented move for 22-year old Sky, which has never appeared on a free-to-air television network, until now.

Called Sky News on WIN, the channel will launch at a still-to-be determined date this year in 29 markets across WIN’s regional network, broadcasting to regional areas of Queensland, NSW , Victoria, South Australia and Western Australia as well as statewide across Tasmania and in the Australian Capital Territory.

Offering a combination of live and time-shifted program highlights from Sky News, Fox Sports News and Sky Weather, Foxtel’s longstanding arrangement with Sky News continues regardless of the deal, with the full suite of Sky News channels still exclusive to the subscription-TV platform.

Only on Foxtel will subscribers be able to watch five live 24/7 Sky News and Fox Sports News channels, or access them via streaming service Foxtel Now and the Foxtel app on tablets and smartphones.

For Sky News, the strategic rationale behind the deal is to use the channel as a shop window to attract new subscribers to Foxtel, allowing free-to-air viewers to sample the broadcaster’s premium news content without giving too much away.

Angelos Frangopoulos, chief executive of Sky’s parent company Australian News Channel, said it provides the opportunity to “showcase our national affairs programming” while giving a ­“renewed national focus to some of the issues facing regional ­communities”.

“We’re a company forged on journalism. As a 24-hour news business, that’s our cornerstone,” Mr Frangopoulos said in an interview with Media.

Talking up new opportunities through the WIN partnership to shine a spotlight on regional ­stories ahead of a forthcoming federal election, he said: “More than any other broadcaster in regional Australia, WIN has an unrivalled commitment to covering local ­stories that really impact the ­communities.”

The financial terms were not disclosed, but it is understood Sky will receive a share of advertising revenue generated by WIN’s sales team. Multi Channel Network, which is owned by Foxtel and Ten, will continue to work as the sales representative for Sky in the ­national market. Foxtel is majority- owned by News Corp.

The deal signals a new strategic direction for Sky as it seeks to broaden its audience base and open new revenue streams by striking affiliate agreements with networks outside of the subscription-TV market.

Talks are still continuing between Nine and Sky News Business about an arrangement that could begin in September, as first revealed by Media.

As well as controlling the privately owned WIN, Gordon is the biggest individual shareholder in Nine, with a 14.97 per cent stake. He also owns 14.99 per cent of Prime Media Group.

In 2016 WIN and Southern Cross swapped affiliations with their metropolitan network partners. Now WIN carries Ten programming, and Southern Cross airs Nine content. “The exciting part from a business perspective is the ability this will give us to highlight some of our programmings on free-to-air television,” said Frangopoulos. “It will be an opportunity to share the premium quality content we create in the subscription-TV environment.”

Regional bulletins are valuable to viewers because they often cover local news that no one else will, leaving broadcasters like WIN and Sky to fill the gap. The Australian Broadcasting Corporation is frequently criticised for neglecting regional issues in favour of city-centric news.

Andrew Lancaster, CEO of WIN Network, said the deal would bolster the broadcaster’s efforts to put local stories on the national agenda, noting it produces 16 ­dedicated local news bulletins every day. “It’s a great fit,” Mr Lancaster said.

“WIN has been committed to delivering more news in regional Australia than anyone else for a number of years.

“Sky has been focused on reaching regional Australians and focusing on telling Australian stories and that’s something we have a great affinity with.”

Sky News on WIN will occupy channel 83 across the regional network and 53 in northern NSW, which has been vacant since Nine’s deal with WIN ended. The new channel effectively stops Ten launching another digital channel with WIN in regional markets.

Sky has also held preliminary talks with Seven West Media about a program supply deal as free-to-air broadcasters double down on local content to hold on to viewers. Given the myriad choices viewers have on broadcast, cable and streaming services, getting attention is increasingly difficult.

Sky has developed a reputation in recent years for shaking up TV news through a combination of strong breaking news, compelling analysis, must-watch commentators and high-profile news personalities, winning fans outside of the channel’s traditional base.

Under the deal, Sky News will have access to Australia’s largest regional news operation with the ability to broadcast local WIN News content on its premium news channels on Foxtel. WIN News will be able to cherrypick a limited amount of Sky News national affairs content for dedicated local news bulletins.

Sky News was taken over by News Corp Australia in late 2016, prompting extra investment in journalism. Paul Murray Live, for example, Sky’s popular weeknight current affairs and commentary program and Foxtel’s No 1 talk show, has embarked on a series of regional initiatives, crisscrossing the country each month to broadcast from suburbs and regions.

Australian News Channel used to be owned equally between Seven, Nine and pan-European broadcaster Sky, part of 21st Century Fox, which shares common ownership with News Corp, publisher of The Australian.

Following the change of ownership, Sky unveiled a new broadcast studio and business centre based at News Corp’s headquarters in Sydney. And last month Sky News announced plans to launch a members-only digital service.

Gordon, who splits his time between Wollongong and Bermuda, has played a key role in Australian TV since the late 1970s.