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Foxtel Management Pty Ltd. 5 Thomas Holt Drive, North Ryde 2113 GPO BOX 99 NSW 2001 +61 (2) 9813 6000 www..com.au From our CEO

Welcome to Foxtel’s Community Review for 2012.

During the year, our successful companies face fast-changing merger with created the fi rst economic pressures. Our approach truly national subscription television is to keep investing, innovating entertainment service for Australian and delivering new digital products consumers. We brought together and content of outstanding quality communities in rural, regional and across all the technologies that metropolitan areas. It was the consumers want. The merger with beginning of an exciting new Austar gave us the support of extra phase for us all. scale to achieve this. Richard Freudenstein As a result of the merger, we Last fi nancial year, our industry Chief Executive Offi cer consolidated our place as one of invested more than $600 ’s most progressive and million in all forms of Australian dynamic media companies. Today, programming, in the process we directly employ approximately promoting Australian culture and 2,500 people, service around helping to foster creativity and skills 2.3 million subscriber households in the wider production sector. and entertain 7.2 million Our expenditure on not-for-profi t each year. community support activities and We remain dedicated to partnerships are broad-based, community engagement and but we continue to place a special forging long-lasting partnerships emphasis on supporting: young beyond our entertainment and people and their education, information service, as you will the arts and creativity, and see in our 2012 Community Review. environmental sustainability. 2012 was a challenging year for My Foxtel colleagues and I hope Australian media companies. you fi nd this review of our collective Consumers have ever increasing eff orts this past year inspiring as options to choose from. Media well as informative.

Community Review 2012 | 1 The most comprehensive broadcast of the LONDON 2012 Olympic Games was on Foxtel

The Big Picture

In 2012, we continued our Jobs – we directly employ commitment to diverse community approximately 2,500 people Our core community partnerships and contributed to across Australia. Subscription focus areas Australia’s culture, society, and television (STV) as a whole industry economy in a variety of ways: supports approximately 6,500 jobs. Choice – across the nation, we Innovation – we are the leading deliver the most and the best local innovator in Australian television in and international content across content and technology. Constant every genre. Our emphasis is on innovation allows us to deliver original, live, and first-run content. our service in better ways. Ways that are simple to use and easy to Viewers – we have 2.3 million Supporting Young access on multiple digital devices. subscribing households and Australians entertain 7.2 million Australians Investment – STV invested more each year. than $600 million in Australian programming last financial year. Foxtel supports the economy by investing in people, creativity, technology and infrastructure. Community – we focused our community investment Encouraging Creativity in these areas: and the Arts • Supporting Young Australians • Encouraging Creativity and the Arts • Going Greener We are also committed to reconciliation with Indigenous Australians through initiatives within the above areas. Going Greener

2 | Community Review 2012 Community Review 2012 | 3 Our journey in 2012

1 February – new 3 May – a new 5 July – Australia’s 6 August – NRL 8 October – Starlight 9 October – a better 10 November – the 11 November – Foxtel channels: we gave national company: most comprehensive agreement: worth Great Adventure movies off ering: launch of Foxtel Lap: we helped raise our customers more we merged with Austar, Olympics coverage ever: $1 billion over 5 years this Challenge: just 8 of our the acquisition of Premium Go: initially available over over $400,000 to support and better, with two creating a national we delivered our agreement sees FOX Sydney based team Movie Partnership enables iPad, Foxtel Go gives our kids medical research at brand new channels subscription television customers the LONDON SPORTS and Nine share members raised over us to bring a better movie residential customers the Murdoch Childrens A&E and FX. company which has 2012 Olympic Games on broadcast rights, $17,000 to brighten the and premium drama access to almost 60 live Research Institute. added channels and 8 dedicated High continuing the NRL hospital experience for package to our customers, streamed channels and February – 2 better services for our Defi nition and Standard for our customers. seriously ill kids. including a landmark new hours of catch up content produced and regional customers, Defi nition channels, plus HBO content agreement. to view almost anywhere broadcast Who We August – National with more to come. an iPad app featuring all 8 7 Since then, we have also in Australia – this product Are In Sport: timed Hoodie Day: channels streamed live as signed agreements with is being made available to coincide with the June – Jake we supported a key 4 well as catch up content. all major Hollywood to other mobile devices anniversary of the Sturmer wins mentoring program for movie studios. in 2013. Federal Government’s the Foxtel-sponsored Indigenous students National Apology to the Walkley Young by producing a TV 10 Stolen Generations. This Australian Journalist commercial and donating 11 series featured inspiring of the Year: we assisted over $100,000 worth of Indigenous stories. Jake with a study trip to supporting airtime across visit newsrooms in the our channels. US and UK. 5 7 4

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Last year, we broadcast the most innovative and comprehensive Olympics coverage Australia has ever seen.

4 | Community Review 2012 Community Review 2012 | 5 National Hoodie Day National Hoodie Day raises awareness Geography Competition and funds for the Australian Indigenous Mentoring Experience (AIME) for high The Australian Geography Competition is school students. AIME connects an initiative of the Australian Geography Indigenous high school students with Teachers’ Association and the Royal university student mentors in a dynamic Geographic Society of Queensland, proudly education program that has proven to sponsored by National Geographic Channel. dramatically improve the chances of It is a chance for secondary students to Supporting Indigenous kids fi nishing school. represent Australia in two international We produced a video for National Hoodie geography contests. The eight state and Day 2012, with famous faces from our territory fi nalists compete in a game show channels showing their support for the style competition, which is fi lmed in Foxtel’s cause and asking people to ‘imagine studios and broadcast on the National Young Australia Geographic Channel. The winner goes what’s possible when Indigenous kids fi nish their education’. on to represent Australia at the National Geographic World Championship which Together with our partners, we have made During August, we spread the video was held in St Petersburg in 2012. a deep and long-term commitment to help message of Indigenous success across the nation, with support from Congratulations to 2012 winner young Australians to live better lives with equal , NITV, Channel [V], Max, Jamie Abel, 14, Shore School NSW. and Weather. Together, we opportunities. In 2012, we supported young donated over $100,000 of airtime to people through a variety of long-running this cause. www.aimementoring.com initiatives that we are proud to continue.

The 2012 National Geography Competition, fi lmed in Foxtel’s studios

FOX SPORTS Presenter, Alana Smith, supports AIME Dating in the Dark host, Laura Dundovic, supports AIME Our Director of Broadband Strategy and NBN Engagement, David Duncan, supports AIME

6 | Community Review 2012 Community Review 2012 | 7 © 2012 ASTRA by Belinda Rowland Young journalist Jake Sturmer MCRI Ambassador

Foxtel Scholarship for 2012 ASTRA Walkley Young The Foxtel in Exceptional New Talent Graduate Program Australian Journalist Foxtel Lap Childrens at AFTRS Now in its second year, the Awards Now in its eighth year, the 2012 Foxtel Hospitals Subscription Television and Radio Lap toured the country with events in Our support of students at the In 2012 we were again the major For more than 10 years, Association (ASTRA) Graduate Program , Sydney, and Perth. Australian Film Television and Radio sponsor for these key awards for young we have provided a free provides short term work contracts for School (AFTRS) continued in 2012. journalists, the fifth year in a row. • Over 2,200 participants Foxtel service to childrens graduates of the Foundation Diploma hospitals, childrens wards, In late 2012, Brendon McDonnall and at the AFTRS. The program offers paid, Congratulations to TV journalist Jake • 134,000 x 100m laps and Starlight Express Ben Matthews were announced as structured, short-term employment Sturmer, recognised for his story • $400,000 raised for kids medical Rooms around the nation. winners of the Foxtel Scholarship for opportunities to recent graduates. for ABC TV. Jake won a three-week This program means that research, and turned into… Exceptional New Talent. Brendon and tour of BBC newsrooms in London children can access great The Program provides participants with Ben shared the $30,000 prize to further and CNN in Atlanta. • $2.4 million that Murdoch Childrens entertainment when they exposure to subscription TV and offers their careers. Research Institute (MCRI) leveraged need it most. the opportunity for new grads to gain “It’s encouraging to see journalists from our fundraising through Previous winner, Kacie Anning, skills, build relationships and develop demonstrate so much skill at such an government grants and funding. articulated the value of the scholarship their career goals. early stage of their careers.” Laurie to her fledgling career: “The Foxtel Oakes, chairman of the Walkley MCRI is Australia’s pre-eminent child Ourselves and a number of our channel Scholarship enabled me to take the Advisory Board. health research organisation and is partners hosted graduates: financial ‘panic’ out of my first few months a world leader in infant, child and and allowed me to juggle paid industry adolescent health research. work with unpaid placements and my own projects...[it was also] instrumental in securing introductions to the likes of John Edwards, Kim Vecera, Penny Chapman and Jo Porter, who were very generous with their time and advice.”

8 | Community Review 2012 Community Review 2012 | 9 Full page image: 2012 Stage for Life participants, Raine Paul (left) and Cassandra Palmer-Field, spent a week behind the scenes in Sydney Left page image: Image by ID Photographics courtesy of Screen Australia Inset image: John Bell shows Raine and Cassandra the ropes

Encouraging Creativity and the Arts

Stage for Life Media RING The Stage for Life program is went behind the scenes at Foxtel’s an exclusive work experience Sydney Television Studios. opportunity for two students from Bell Shakespeare General regional Australia. It provides young Manager, Bronwyn Edinger, said: people interested in a career in the “This shared initiative between arts with an introduction to theatre Foxtel and Bell Shakespeare production and management. exhibits how sponsorship in the In 2012, Raine Paul from Elizabeth arts can be more signifi cant and College in , , and rewarding than a simple branding Cassandra Palmer-Field from exercise. Bell Shakespeare and Pioneer State High School in Shoal Foxtel both work to improve the Point, Queensland, were selected quality of lives of Australians Founded by Foxtel in 2008, the from over 100 applicants. who live in regional and rural Media RING (Reconciliation Industry centres and this project is a fi rst Network Group) aims to increase Travelling to Sydney for a week- class illustration.” job opportunities for Indigenous long program in the lead up Australians in the media. to the opening night of Bell Raine Paul, said: “It’s a wonderfully Shakespeare’s The School generous program and extremely The group includes some 42 For Wives; they learned about benefi cial to those with few broadcasters, government media stage management, production, opportunities to experience agencies (both state and federal), marketing, event planning and live theatre. Over the course of Aboriginal and Torres Strait Islander media calls. the week I gained invaluable organisations, trade associations knowledge and experience which and guilds, media buyers and They also attended opening night has reinforced my desire to pursue and new media groups at the and a career in the theatre.” Australia wide. In August 2012, Media RING launched its $1.1 million We have also signed on as Indigenous Employment Strategy supported by the Federal the National Schools Partner Government and which is with Bell Shakespeare for 2013, which will help administered by Screen Australia. provide access for schools around the country to In December 2012, we were a fi nalist in the Human Rights Awards live theatre performances and teaching resources. for our work with the Media RING.

10 | Community Review 2012 Community Review 2012 | 11 Who We Are In Sport crew L-R: sound recordist David Tranter, host Aaron Pedersen, director Allan Collins, cinematographer Murray Lui

Supporting Indigenous Creativity and Success To mark the anniversary of the The first series of Who We Are In 2012, we continued Australian Government’s Apology was broadcast across 25 of our to Australia’s First Nations Peoples channels in 2010, and won a string these long running and the Stolen Generations; of awards, including 10 Awards the Bio. channel premiered the at the New York Festival’s 2011 projects to support second part of the award-winning World’s Best Television & Films, creative industries: local production Who We Are and a coveted Grand Award. in February 2012. It highlighted • Equity Foundation’s Lifetime The series also won the inspiring stories of Indigenous Achievement Award 2011 ASTRA Award for Most sports men and women. – Major Sponsor Outstanding Documentary. Who We Are in Sport featured • Foxtel Screenwriters’ Address Working hand in hand with , Mark Ella, Phil and the Foxtel Fellowship, in Bearcage Productions enabled us Krakouer, Nova Peris, Kyah Simon conjunction with the Australian to bring these inspiring Indigenous and Des Abbott. Writers Foundation stories to our viewers whilst also – Major Sponsor supporting Indigenous jobs in the creative industry. • Foxtel Australian Documentary Prize at the Sydney Film Festival – Major Sponsor • Sydney Opera House – Media Partner • Melbourne Festival – Principal Partner • Robin Anderson Student Film Award – Major Sponsor

Jack Thompson (left) and behind the scenes of local production The People Speak.

12 | Community Review 2012 Community Review 2012 | 13 Our team members in the Great Adventure Challenge 2012, Daniella Toha and Luke Howlin S t a ff Participation

We have a long nurtured culture of giving. Our staff members, in addition to our corporate contributions, help the communities in which we all live.

Giving at work: Workplace giving Our workplace giving program allows staff to donate from their pre-tax $ salary to one of our ten community partners. Giving in this way helps our 250,000+ partners plan ahead and reduce their fundraising costs. So more of the money goes straight to a good cause. Donated by our staff through workplace giving since 2008 As a new initiative in 2012, we decided to match all staff donations through the workplace giving program up to $100,000 every year. $ Since 2008, our workplace giving program and our emergency relief 100,000 appeals have raised over $250,000 for our community partners. We match our staff donations up to Our community partners this amount every year $ 17,000 Our team of eight placed fourth in the Starlight Great Adventure Challenge and they raised this incredible amount to help grant life changing wishes to seriously ill kids.

Our team members in the Great Adventure Challenge 2012, Leanne Woods and Ben Crampton Community Review 2012 | 15 Wild Faces of the Andes 2M+ The number of tonnes of carbon our updated projections estimate we will avoid by 2020 (this is a signifi cant increase from previous Australian Government estimates of 1 million). 296,700 The number of tonnes of carbon we have avoided since 2009, via set top box innovation. Going Greener

We have introduced a range of initiatives that are helping us operate an environmentally sustainable business for the future. This includes proactively managing the energy effi ciency of our set top boxes to reduce their emissions and minimise our environmental footprint. 792,201

The Content Factory Small things add up... Fewer tapes, less transport, • All our printers default to double less storage. sided printing This project represents a shift • We educate and encourage our staff 514,407 from handling physical videotapes to switch off computers every night towards fi le-based content • We replaced air-cooled chillers with management. As we change, our more effi cient water-based chillers use of road transport and air freight to help cool our broadcast centre is being replaced by global digital fi le delivery mechanisms. File • We donate airtime to formats allow us to prepare content environmental Community quickly whilst shrinking the amount Service Announcements of physical program copies we have • We take into account 137,478 to generate and store. environmental credentials This fl ows on to our other business when conducting tenders 2010 2011 2012 processes which can become • We upgraded our Melbourne data simpler and more streamlined, with We have more environmentally centre to reduce its power usage more tasks being performed in friendly set top boxes* in the fi eld online environments rather than via • All offi ce refurbishments include the than ever before. old-fashioned paperwork methods. addition of motion sensor lighting *(subject to STV’s Voluntary Code of Conduct)

16 | Community Review 2012 Community Review 2012 | 17 2012 local production Territory Cops

Key Australian programs broadcast in 2012 • Tangle S3 (showcase) • Kings Cross ER: • Conspiracy 365 (FMC) St. Vincent’s Hospital (CI) • Who We Are In Sport (Bio.) • Territory Cops (CI) • The People Speak • Tony Robinson’s Time Walks (The History Channel) (The History Channel) • Project Runway S4 (Arena) • Location Location Location Australia (LifeStyle) • Cricket Superstar () • Selling Houses Australia • Rove LA S2 (FOX8) (LifeStyle) • Balls of Steel S2 • I Survived... Stories of (The Comedy Channel) Australians (Bio.)

Great Australian Content And announced

for 2013, new Our investment, alongside our STV programming being sold overseas. $666.7M local productions partners, lifted Australian content Exports during the survey period investment to new heights in included STV productions of • Wentworth, a remake of Australian 2012. The total investment in local Tim Winton’s Cloudstreet, Grand $578.4M $541.4M classic Prisoner, to air on new channel content by subscription television Designs Australia, Camp Orange, SoHo in the fi rst half of 2013 across all programming genres was Kings Cross ER, Killing Time, • River Cottage Australia, based in $667 million in the 2012 fi nancial Australia’s Great Flood. regional NSW (LifeStyle FOOD) year, a 13% increase on 2011. Our export markets included; • The eighth season of the phenomenally Deloitte Access Economics Canada, Belgium, Denmark, successful Australia’s Next Top Model estimated the overall direct Eastern Europe, Holland, South with new host Jennifer Hawkins (FOX8) contribution made by subscription Africa, Spain, and throughout Asia. • Factual entertainment show TV to the Australian economy at The survey results were Aussie Pickers (A&E) $1.4 billion in 2011–12 and at least presented in Canberra to $7 billion overall since the start of • New series Coast Australia, an members of both Houses of CY2009 CY2010 FY2012 STV in 1995. Australian version of the BAFTA Parliament including Senator the award-winning British series Coast The survey also highlighted the Hon. Stephen Conroy, Minister STV investment in local content (The History Channel) contribution of STV to Australia’s for Broadband, Communications Source: ASTRA Investment Survey 2010, 2011 & 2012 – • Return to Devil’s Playground (showcase) exports, with increasing amounts of and the Digital Economy. reporting in 2010 & 2011 was calendar year.

18 | Community Review 2012 Community Review 2012 | 19 in The People Speak

Foxtel for schools Many programs on our platform are aligned with the Australian school curriculum, including History, Geography, Science, English, the Arts and Technology. We offer schools a free monthly newsletter to let them know when relevant educational content is coming up on a selection of channels. Many channels also provide free The History Channel tailored teaching materials for in the classroom teachers and students. Guided by the History Teachers Channels with free online Association of Australia, The History teaching resources include: Channel’s ‘Classroom’ initiative provides the tools to assist in teaching history in schools, whilst making it interesting, engaging and easy to understand. Programming is selected to complement the curriculum and played in a special education timeslot. Free teachers guides accompany each program. Resources are available online at thehistorychannel.com.au/classroom

20 | Community Review 2012 Community Review 2012 | 21 Driving Innovation And Access

We continued to lead innovation in Australian television Safe viewing for your kids The Foxtel LONDON 2012 App with PIN protection in 2012, through content and technology. The app featured medal tallies, Our innovative Parental Control system allows you to As well as increased local content across all genres, control the television viewing of your family. plus TV Guide and remote record ourselves and our channel partners built upon You can block channels, set viewing restrictions by capabilities for iQ and MyStar HD classifi cation category, set purchase restrictions and customers. unique innovations like the A-PAC public change your PIN. aff airs channel with SKY NEWS. Our residential sports subscribers enjoyed our Another way to ensure safe viewing for your kids is with ground-breaking coverage of the LONDON 2012 our Minimote – a remote that comes in orange, pink, or Olympic Games. Eight dedicated channels provided blue, with kid-friendly channels programmed in. access to their favourite sporting events on the go with our tablet app. Closed Captioning Keep abreast of Closed captions provide additional text based public aff airs on A-PAC The number of information about programs and help one-in-six times this app was Australians who are deaf or hearing impaired. A-PAC, channel 648 on Foxtel, is Australia’s only Public 165,000 downloaded Aff airs channel. It is a free service for all Australians iQ customers can also search and remote record created by the , who also closed captioned programming from the online owns the SKY NEWS Channels. A-PAC is fully funded The number of hours of catch up content TV Guide and compatible mobile handsets. by Foxtel on a not-for-profi t basis. 700 (including all Gold Medal events) The channel’s mission is to be an unbiased platform for public policy discussion and debate and to encourage The number of channels participation and understanding of democracy across streamed live over the tablet 255,000 Australian society. 8 The number of hours of closed captioned programs we broadcast on our primary channels A-PAC covers the Australian Parliament – in 2012 (excluding High Defi nition and timeshift). including the Senate, House of Representatives and committees from both Houses – plus State Parliaments. A-PAC is The number of primary channels most often live and delivered completely which broadcast closed captioned without editorial fi lter to a national content. Our brand new 71 audience on TV and online. channel also had all live AFL games captioned throughout the entire 2012 season – A-PAC, again without editorial fi lter, great for AFL fans! broadcasts speeches and forums from important institutions, such as the National Press Club, the Lowy Institute, the Sydney Institute, and live Gallipolli and services.

Community Review 2012 | 23