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Gizmo said..
You've sort have got it the wrong way around... Channel 9 & Kerry Packer was the one that didn't want multi channelling, most other networks wanted it to compete with Pay TV.
With the advent of digital TV it became possible, they were aware that with multi channels the income would be spread across those channels, what they didn't predict was the rise of the internet and how much advertising revenue was to go there, and thats why TV networks have linked to them ie. Channel 9 +MSN and Network 7 + Yahoo.
Just like any business in an open market TV shopping channels must work... If they didn't something else would be there.
In my nearly 40 years involved in broadcasting the focus has always been about 'the commercials' without those there is no money to make programs. and with the more people that watch the program the more that can be charged for commercial airtime.
Do I think TV will die...... I doubt it but there will aways people wanting to 'sell' their stuff, from sprooking in the shopping mall to TV, Radio or internet the world runs on sell, sell, sell..... Always have / Always will. ....... Die - No , Change - Yes.
In understand why commercials are there, but I still don't understand how a full time 'infomercial' channel makes any money unless they are really cheap ads. I guess the spectrum is already there as you are using the same transponder, so costs are low.
With normal ads, you are suckered into watching a program, so when the ad airs you tend to watch them. With an infomercial channel, do you watch it because you are really really really really bored?
Maybe the 'community' stations can change their format a bit. Go to the internet format and offering new releases on a pay per view format.... I think that would last a nano second before a local media group challenged it

So, Kerry Packer was against multichannels because he had interests in pay tv, and the others wanted it because they had no interest in pay tv. Sounds fair. Except for the fact, they don't have the content. Initially we seemed to have a reasonable spread of programs, but now its re-runs of what was on the main channel a month ago. I guess on a positive side, we get to see some programs now that would have been deemed too crap for free to air tv in the past