Australia's official television measurement body, OzTAM, has confirmed Foxtel will no longer be included in its datasets, including Virtual Australia (VOZ) for Total TV and Video Player Measurement (VPM), from 31 December 2024.

The news comes just shy of a year after Foxtel CEO, Mark Frain, first touted setting up an alternative TV and streaming currency, dubbed the Video Futures Collective, with SBS, Samsung Ads and US-headquartered Nielsen challenger, VideoAmp as initial partners.

“Following consultation with the industry we have decided to move away from legacy measurements, that have been built and are owned by free to air networks, and partner with a progressive digital first analytics consultancy to provide our valued partners with the transparency that digital measurement affords. Foxtel linear TV will continue to be plagued with the same instabilities in audience reporting, should we remain under the new VOZ measurement system," said Frain of the decision to exit the OzTam alliance. 

Earlier this year, Foxtel brought on former OzTam chief, Doug Peiffer, to lead the charge on the measurement system's creation. It's also planning to use Kantar as a 'single source of truth' and conduit to encouraging brands, agencies and media to plug in their data or take a feed.

“As we announced at last year's Upfront on October 26, we have engaged globally renowned market research firm Kantar Media to unlock the power of big data from over 1 million Foxtel set top boxes in Australia. This will provide richer, more accurate subscription TV data for clients who want a greater understanding of the audiences engaging with their brands," continued Frain.

“Now, more than 50% of our revenue comes from premium digital video, this revenue comes with a responsibility to report back to our clients with the most accurate data we can provide. We understand that the free to air networks must continue to leverage existing services, as there is no alternative to a panel of audio listening devices to understand how many people are still watching television via an aerial connection. We are not being contrary for the sake of it, we are leveraging the data we have available to partner with a global business with experience of delivering a new and authenticated standard of reporting for premium digital video.

“We have been working hard to ensure we are in the best position to begin trading using Kantar as our official currency in 2025. A new measurement solution we have proudly stood up in just 12 months, with more to be announced at our Upfront in three weeks time. Watch this space.”

The decision to breakaway comes despite OzTAM's significant investments in VOZ and other leading technology to measure Total Television, including streaming. And it'll happen just two days after VOZ is set to finally become the official trading currency for trading on national, all-screen Total TV audiences for the first time.

In a statement, OzTAM, in conjunction with Seven, Nine, Paramount 10, ABC, and SBS, said they remain committed to VOZ as a currency, which has been widely supported and celebrated by the industry.

OzTAM CEO, Karen Halligan, expressed disappointment at Foxtel's decision. "Despite OzTAM’s best efforts, including presenting Foxtel with several options, it is unfortunate that Foxtel has decided to leave the primary measurement system in favour of exploring an alternative approach," she said.

"We believe the industry as a whole is taking a step backward by not working together as a total video industry."

Free-to-air TV negotiations will be based on VOZ data, commencing from September. OzTAM said it's currently evaluating big data opportunities and how this could integrate with VOZ in the future.

Halligan also emphasised OzTAM's commitment to delivering best practice cross-screen measurement and the significant business momentum it is experiencing as a result.

"OzTAM has made significant investments in VOZ and other leading technology to measure Total Television including streaming, to support this we have implemented a comprehensive and collaborative industry change management program and we are very pleased it will be the official media currency from 29 December 2024."

However, the implications of Foxtel's decision are far-reaching. Halligan lamented, "It is regrettable that Australia will not have a single, universal and independent body able to oversee and process both free-to-air and subscription TV measurement. Additionally, it is regrettable that agencies will no longer have access to a unified data source for evaluating advertising and content performance, despite the industry’s calls for a united, cohesive and comprehensive currency."

First debuted by OzTam in 2018, the development of the VOZ trading currency has not been without its set backs, with multiple delays over the years having been cause for frustration and confusion amongst media agencies. But with all systems now ready to go, all stakeholders are on board for the December launch date.

Speaking to Mi3 in July about its alternative currency progress, Frain said Kantar has processed two years’ worth of Foxtel’s set-top box return path data, and has ongoing audience data. That has removed zeros from ratings charts and reduced major swings in audiences for key shows – 10-20 per cent week on week for some sports that Frain claimed had been apparent under OzTam’s panel-based methodology.

“Once our house is in order and everything is in one place, the optionality of what that allows us to do – it could be part of a solution that multiple other players come and join,” said Frain, nodding to the Video Futures Collective. “But most importantly, it allows [Foxtel Media] to work with many research companies to allow us just to prove how impactful we are to advertisers.”

For its part, OzTAM emphasised it's progressing several key initiatives, including the launch of VOZ as trading currency, the launch of Australia’s first solution for enhanced, multi-broadcaster – including SBS On Demand - programmatic BVOD trading in VOZ Streaming, and the progression of data partnerships and technology investments.