WIN Corporation says metropolitan TV networks are eroding the value of regional broadcasters after it lost a bid to stop Nine Entertainment streaming its programs.
The NSW Supreme Court ruled on Thursday that live streaming over the internet is not broadcasting and rejected WIN Corporation's bid to block Nine's internet channels.
Billionaire Bruce Gordon's WIN had sought to stop Nine transmitting its programs via the internet in areas where WIN holds broadcasting rights for Nine content.
WIN, which is an affiliate of Nine and holds the license to broadcast the network's programs in regional areas, said it was disappointed with the outcome of the case.
"The case should serve to remind regional broadcasters entering into future affiliation agreements that the value of these agreements is decreasing as metro broadcasters set out to erode regional broadcaster value by directly competing with their affiliates for viewers and revenue in regional Australia," WIN said in a statement.
The company said the case also highlighted the absurdity of the 75 per cent audience reach rule and the need for the federal government to remove the outdated legislation.
In his judgement, Justice David Hammerschlag ruled that live streaming is not broadcasting within the meaning of a program supply agreement between Nine and WIN, and that Nine is under "no express or implied obligation not to do it".
Nine went live with its 9Now streaming and video on demand service in late January.
Nine has supplied WIN with programming and licensed WIN the right to broadcast it over many agreements dating back to 1987.
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