NBN News

@Radiohead we’ll have to disagree then.

NBN has transmisión costs. Perth has team estate salary costs. NBN has reporte costs. Perth runs 7 days a week and has today.

I would be willing to write a $50,000 check to you right now that running perth news costs significantly more than NBN News. But I guess neither of us will truly know

This sounds like you just cemented the idea that NBN News runs on a smaller budget than Perth or Adelaide. I don’t see how geographic Area contributes to your argument at all. Other than transmission costs - which NBN had regardless if they run news from Newcastle or Sydney. I don’t see how geography plays into the cost of the news

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Please do, that’s very generous of you! :grin:

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I would’ve thought having fewer transmitter sites and probably only one sales office per city is a significant reason why Nine is able to put more money/resources into their metropolitan news services.

Also compared to NBN and other regional news services which need several bureaus in the major regional cities (some which are hundreds of kilometres away from each other) to adequately cover their viewing area, what do Nine’s Sydney, Melbourne, South East Queensland, Perth, Adelaide & Gold Coast news services have? I was under the impression that Nine News’ metropolitan bulletins rely on a single newsroom at the same site as their studio and simply send their reporters/camera crews travelling all over their viewing area (and sometimes beyond) for stories.

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We are going around in circles.

We are not comparing Melbourne or Sydney to NBN. Those markets ate triple the size of NNSW and probably bring in 4 times the revenue.

We were comparing the costs v revenue (ie ROI - return on investment) for NNSW , Adelaide and Perth - which are all similar size markets in terms of revenue and population.

I’m certain, despite NBNs geographic spread and all otter costs considered - that the cost of running Perth and Adelaide news is higher than nbns.

1 senior reporter in Adelaide probably makes more than 3 reporters in Taree.

But again let’s agree to disagree

I would be shocked if Nine Entertainment gives NBN $30 million a year to run news, and Adelaide and Perth $20 million a year to run news.

Are you saying that that is what You think is happening?

@SydneyCityTV

Aren’t you trying to make the point that NBN News probably should be as resourced as any of Nine’s metropolitan bulletins because the ratings and viewing population of the Northern NSW market rivals those of Nine News in Adelaide & Perth?

While the idea sounds very good theroetically, in reality things are probably a bit more complex/complicated.

Last I checked, both NBN & Prime7 only have one reporter in Taree.

When I was a more regular observer of the Taree broadcast media market a few years ago, local news reporters up there only stayed for about 2-3 years at most before moving on. The story was (and probably still is) similar with the local presenters on popular commercial station Max FM 107.3.

Fair enough. I still think it wouldn’t be overly surprising if NBN News is eventually “streamlined” into Nine’s wider regional news operations just as the services for Regional QLD/NT, Southern NSW/ACT & Victoria have been.

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On the issue of geographic spread, as I believe I’ve mentioned before, it’s not necessarily about the cost to run an ad as it is the likelihood a customer will respond to that ad. Local businesses in Australia still heavily rely on foot traffic for revenues and because viewers are spread so far out in the NNSW submarkets, the consumer has to consider the cost to acquire a product or service and the business may need to cost out delivery. Those aggregate costs may be significantly higher than in metro markets and may not be made up in the difference in ad rates unless NBN charges significantly less than, say, NWS - more than 15%.

So, bang for buck, is it worth publicising on NBN or maybe more on radio, where transient listenership may increase the odds that listeners will come to your store?

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As traditionally the highest rating station in NSW (are they still?), I would think NBN would still be reasonably profitable in its own right. As long as they make their dividend targets each year to Nine…

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I read this 3 times and I’m still not sure what you’re trying to say @PointJules

Not Quite. The point Im making is nine will streamline the parts of the business that Don’t offer good ROI (return on investment) mark Hughes just said exactly those words - cricket and US programming do not deliver good ROI

Cricket delivers good ratings but it costs a relative Bomb. Not good ROI not good margins. US programming still costs a lot and delivers below average ratings. Not good margins or ROI. That’s where they will chip

NBN News delivers double the ratings of 9 News Perth and 9 news Adelaide and I’m certain costs less. Good margins and ROI

I don’t see them feeling the need to streamline relatively low profile parts or the business that deliver great ROI and margins

@SydneyCityTV again who knows really it’s just my take

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The aggregate cost (spread between the customer and the business) for any given person to get a product is higher in the bush than in the metro. TV ads may sway fewer people in the bush as a result, so they may not be worthwhile for some businesses to pursue.

If the difference between metro and regional ad rates is only 15%, I’d be surprised at how many local businesses are buying. Those rates have to be lower in many areas.

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What evidence are you basing this theory on?

The average cost to get a product in “the bush” is higher?

80% of NBN’s audience lives in cities are large towns. Not “the bush”

And for the other 20% that do live in rural areas, you’re saying it’s more expensive for these people to open a bank account, buy or a leg of ham or a Toyota carolla than people in a city? I’ve never heard this theory - it’s a weird one

@PointJules what evidence Or data points are you basing this theory on. And what ok earth does this have to do with NBN News :thinking:

Not based on evidence, just a theory. And unless you publish NBN’s rate card, I guess we’re all in the same glass house.

Customers have to travel to and from those shops or services and businesses that deliver need to travel farther. City dwellers pay less in time and money in general (even with the premium city businesses may charge). And, in general, the farther goods need to be trucked from port or factory, the more something will cost. Check out grocery prices in remote areas like Hawaii, Alaska or northern Canada - they’re quite dear.

This should be separate from the fact that I support the continuation of local production for NBN. I think a lot of us presume that Nine wants to cut costs wherever it thinks it can justify doing so and that NBN is simply an easier target than the two weaker capital cities. Maybe I doth presume too much, but I still doubt NBN makes out as well as you think it does. I’m happy to be shown wrong, though!

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That may be so in some shops, but generally chain stores have the same price in all stores within a state, border areas excepted. Currently a 600ml Coke is $3.75 in Coles at Pagewood in suburban Sydney and South Tamworth.

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Never thought I’d see the price of Coca Cola mentioned in the NBN News thread :rofl:

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(At the risk of stating the obvious…) The same price is another example of standardisation being used & worthwhile; a large company avoiding the needless extra cost of different advertising, etc., likewise I’d think Nine would want to eliminate the unnecessary extra expenses (including different branding).

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Most expensive groceries in USA are in Manhattan / the biggest city. But what’s this got to do with NBN News?

@PointJules

Far from true. Hawaii tops the list. A quick Google will show that.

This all leads back to how much NBN might charge for ads - we don’t have numbers here and, as I have continued to theorize, it’s charging more than 15% less than the capital stations. If the cost of doing person-to-person business is greater, traditional advertising might feel the need to compensate for that versus all the options businesses have like social media.

We have strayed too far. I think Paul Lobb is an okay presenter.

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If NBN News does get moved to Sydney, I can’t see weekend news surviving, at least not in its current form as a separately produced 1 hour bulletin.

I think a good alternative is to air a separate local window at 6.55pm on Sat and Sun nights that covers local news, sport and weather and would air in place of the Sydney weather segment.

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If the latter paragraph happens, then SNSW and ACT markets should be treated the same. Also, once production moves to North Sydney, that should be the game over signal for NBN News and nightly regional news bulletins in mainland Australia. And I guess another Sydney-based reporter would present that theoretical update on weekends.

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