Sorry, I was reading my own pet peeve about conspiracy theories into your remarks. I've seen all the arguments given before, but honestly, Foxtel just doesn't make very much money for Newscorp.
And given the huge bargaining power Foxtel has to alter content agreements, switching to an NBN-based streaming model just isn't the contractual minefield that it is in the USA (where there are far more cable providers).
I think that most papers came out against Rudd because they were ... against Rudd.