Galaxy (Australian television)
| Company type | Joint venture |
|---|---|
| Industry | Subscription television |
| Founded | 1993 |
| Defunct | 1998 |
| Headquarters | Sydney , Australia |
Area served | Australia |
| Products | Pay-TV services via satellite and wireless cable networks |
Galaxy was an Australian subscription television provider delivering services through satellite and wireless cable networks. Established in 1993, Galaxy set up a National Centre (currently operated by Lockheed Martin Australia), a production facility in Sydney's Pyrmont area (later utilized by Channel 10), along with installation centres distributed across various states.
On 1 January 1995, Galaxy commenced trial broadcasts via microwave transmission, marking it as Australia's inaugural pay-TV service. The official launch occurred on Australia Day, 26 January 1995, initially featuring two channels: the domestic Premier Sports and the international news outlet ANBC. By September 1995, Galaxy had begun digital satellite transmissions employing digital decoders imported from the United Kingdom.
The enterprise was formed as a joint venture between Continental Century Pay-TV and Australis Media, each granted licenses to operate four satellite television channels. They maintained exclusive satellite pay-TV licenses until 1997 and primarily competed against Foxtel and Optus Vision, which provided cable-based television services. Galaxy’s channel lineup was franchised to CETV (later known as Austar) and East Coast Television for distribution in regional areas.
At its height, Galaxy served around 120,000 subscribers. The operation ceased soon after Australis Media entered liquidation on 18 May 1998.
History
In January 1992, the Australian government released tenders for the nation’s initial pay-TV licenses. Entrepreneur Albert Hadid initially acquired the first license but quickly sold it, reportedly realizing a profit of $33 million. Ultimately, the licenses were awarded to Continental Century Pay-TV—a consortium including venture capital firm CVC and US cable operator Century Communications—and Australis Media, supported by Tele-Communications Inc and Guinness Peat Group. Australis invested A$333 million to secure satellite and microwave licenses for launching its Galaxy pay-TV platform.
Galaxy obtained exclusive first-run broadcast rights from three leading Hollywood studios—Sony Pictures, Universal Studios, and Paramount Pictures—resulting in three flagship channels: Showtime, Encore, and TV1. Following Optus Vision’s acquisition of the remaining studio content output, Foxtel was compelled to enter into an expensive content agreement with Australis valued at A$4.5 billion over a 25-year period.
Despite this substantial contract, Australis encountered financial challenges due to the high costs associated with equipment installation (approximately $500 for microwave antennas and $1,000 for satellite dishes), which were heavily subsidized by the company. The demand for Galaxy’s services exceeded expectations, causing prolonged delays in installations and customer support responses. Additionally, supply chain disruptions affecting digital set-top boxes led to frequent hardware malfunctions and slow repair times, aggravating subscriber dissatisfaction.
Increasing competition from Foxtel and Optus Vision forced Galaxy to lower prices, further intensifying Australis’ financial difficulties. Throughout its existence, the company struggled to avoid receivership. Proposed mergers with Foxtel in both 1995 and 1997 were blocked by the Australian Competition & Consumer Commission (ACCC) due to concerns over market competition. A 1996 proposal for satellite infrastructure sharing with Optus received ACCC approval but was subsequently overturned by the Federal Court.
Australis managed to continue operations through capital injections from investors such as Kerry Packer’s Publishing & Broadcasting Limited but ultimately became insolvent. On 18 May 1998, the Supreme Court of New South Wales ordered Australis into liquidation with estimated losses reaching A$800 million. Foxtel emerged as the main beneficiary by acquiring Galaxy’s subscriber base of 65,000 and renegotiating studio contracts directly.
Foxtel’s involvement in Australis’ downfall sparked controversy; in 2003, Australis bondholders initiated legal action against News Corporation alleging a $6 billion loss related to programming rights agreements.
Legacy
After Australis entered insolvency, its suite of eight channels remained accessible on Foxtel, with five continuing to be available on leading Australian pay TV platforms. Galaxy’s general entertainment offerings, including TV1 and Arena, were incorporated into Foxtel's standard package, although TV1 ceased operations on 31 December 2013. The sports channel under Galaxy transitioned into Fox Sports, while the music channel Red was renamed Channel V in 1997. Additionally, Galaxy’s two movie channels operated as Showtime Australia until their 2012 merger with Movie Network Channels, resulting in the creation of Foxtel Movies.
GalaxyTV introduced an innovative service model for Australian viewers by delivering content via microwave transmission from prominent urban locations, with the exception of Darwin. Although remnants of microwave antennas still exist on some residences, this method was eventually supplanted by cable television technology.
During this period of change, AT&T appointed Paula Walzdorf as National Call Centre General Manager. The introduction of digital satellite decoders brought about advanced customer service methodologies that remain in practice today. Galaxy was the first Australian provider to implement Call Routing Technology for outbound calls, allowing the Save Our Subscribers (SOS) team to automate dialing and efficiently connect customers to operators.
Efforts to retain subscribers concentrated on understanding the reasons behind cancellations and providing tailored complimentary incentives, reinforced by personalized follow-up communications from the SOS team.
See also
External links
- Australis Background – detailed history of Australis Media
- Rupert's killer of a deal – article discussing claims that Foxtel played a role in Galaxy's downfall
- Extract from Mark Westfield's 'Gatekeepers' detailing Australis-PBL negotiations
- The Demise of Australis – editorial examining Galaxy’s closure and media regulations in Australia
- Online news article reporting on Australis’s collapse