Shares (ASX:NEC) are up nearly 3% today after all of this while Southern Cross (ASX:SXL) are down more than 10%.
NEC just used SCA to get away from WIN & get a good affiliation deal, & now they’re cashing in, as the deals done, dusted & no longer needed, I’d put it down to something as simple as that.
SCA were/are in dire straights as far as debts are concerned, they needed funds & fast, an affiliation with Nine give them higher ratings & more revenue, Nine saw that & took advantage.
Nine got more out of an SCA affiliation than what WIN was willing to give & now they’ve made about $30 million out of selling out of SCA.
This is off topic for here, but from what I know/have heard, SCA are mismanaged something horrid & it’s all smoke & mirrors about how good a company it is & to work for.
I’ve said it before around here, that SCA won’t exist as we know it in the next couple of years, they were on the cliff edge, Nine’s just pushed them off, & rebranding all the radio stations to Hit/Triple M will finish them off.
If media laws change Nine can/will get the TV assets at a bargain basement price.
Nine won’t suffer at all with this, SCA will.
WIN was/is in too strong a position for Nine to take control at a future date should rules change, if the Nine/WIN affiliation continued they would be in an even stronger position, & I think WIN could’ve taken over Nine, rather than Nine taking over WIN? Nine headed that off & saved themselves, SCA was the scapegoat.
Is this all opinion or are you talking form a place of inside knowledge?
Mostly opinion, with a bit of inside knowledge.
Noticed this, for anyone who is interested.
[quote]23 November Section Meeting – Nine Playout Centre
by Paul Maroni • 11/10/2016
Nine Network Australia (NNA) is delighted to welcome SMPTE Australia Section members and guests to a technical overview and tour of the National Playout Centre (NPC) for Nine Network.
NPC opened in 2012 and originally served 18 channels across the country. The multichannel content playout solution allowed the broadcaster to streamline technical operations by centralizing playout within a single, highly efficient and modern broadcast facility.
The initial file-based playout solution has had to rapidly scale to meet new opportunities over the years as the NPC provides for new markets, additional channels and the expansion into streaming and catch-up services on the 9Now digital platform. NPC currently plays out 35 channels servicing Australia with free-to-air terrestrial broadcasting.
Michael Greenwood, General Manager and Murray Robinson, Engineering Manager – Nine National Playout Centre – will give an overview presentation of the scalable content playout solution implemented, technical challenges and learnings encountered, followed by tour of the facility.
Places are limited and preference will be given to SMPTE members, so register now to secure your place for this Section Meeting.
National Playout Centre – Frenchs Forest
Wednesday 23 November 2016 at 6.15pm
NINE ANNOUNCES DEAL GIVING IT ACCESS TO OFFLINE GROCERY-BUYING SEGMENTS
Nine has announced a new major strategic agreement with Australia’s leading dataexchange company, Data Republic, to gain access to key grocery-buying segments across its network.
The move significantly improves its digital audience targeting across Nine’s digital assets by allowing access to in-store transactional data from Australia’s largest independent grocers’ loyalty program.
The grocery and loyalty data source features five years of itemised basket data from an independent grocer network of over 1,600 stores across Australia.
Subsets from this rich transactional dataset have been used to develop aggregate grocery segments which will allow advertisers to improve customer targeting across the Nine Digital network of more than 15.3 million authenticated user IDs.
“This deal is an important one for Nine as it give us a deeper level of consumer insight than we have ever had while still protecting the identities of the consumers,” said Mr Alex Parsons, Nine’s Chief Digital and Marketing Officer. “By being able to marry up users’ offline habits with our existing database we will be able to allow advertisers to better target their campaigns and achieve better results.”
Data Republic is a technology platform and marketplace where organisations can list, exchange and collaborate on data projects in a secure environment. The private-by-design ecosystem ensures that no personally identifiable information is exchanged and allows participating companies to securely govern data exchanges with external parties.
NINE ANNOUNCES PROGRAMMATIC TELEVISION PLATFORM 9GALAXY
Nine will make the buying of television easier and is set to provide both marketers and their agencies with far greater certainty around the delivery of audiences through its new programmatic platform, 9Galaxy.
Michael Stephenson, Chief Sales Officer of Nine, used the company’s Upfront & Personal event at The Star in Sydney today to announce that the broadcaster is partnering with both the Australian-based Landsberry & James and global technology platform Landmark, who will supply individual components of its programmatic advertising platform 9Galaxy, which will go live in February 2017.
“9Galaxy will change the way our clients and our agency partners buy television,” said Mr Stephenson. “It will completely automate the transaction of airtime between buyer and seller, delivering greater efficiencies and more effective advertising as a result of a new range of new investment models.
“We already trade 80 per cent of our digital inventory programmatically. I expect that over 50 per cent of our television inventory will be traded programmatically by June.”
Nine also confirmed that as part of the 9Galaxy offering it has invested in the creation of new audience forecasting technology to more accurately forecast future ratings delivery, giving greater assurances to advertisers.
“We have data scientists building new tools within the platform, so we can introduce new investment models that will allow us to guarantee the delivery of dynamic ratings bought using 9Galaxy,” Mr Stephenson said.
“This means there is no risk and no real time inflation when you invest with Nine.”
Mr Stephenson also announced that following the launch of 9Galaxy in February, Nine will be focused on building out the programmatic offering across all platforms before the end of 2017.
“We will be able to deliver audiences programmatically across linear television, online catch up, AVOD and live streaming across every device later in 2017. This will allow us to serve advertising directly to your customers based on their online behaviours, using our first-party data.”
The declaration came at the event where Nine confirmed its live streaming and on-demand viewing platform 9Now has hit a market-leading total of 2.2 million subscribers in just 10 months, and continues to see strong growth on the back of shows like Married at First Sight, Doctor Doctor and The Block.
Nine also confirmed it had gone live with a new Adobe Audience Manager data management platform (DMP) that would allow it to provide consumers with personalised content on platforms like 9Now and also enable advertisers to better target audiences.
The 9Galaxy announcement comes on the same day Nine announced a new major strategic agreement with Australia’s leading data exchange company, Data Republic, to gain access to key grocery-buying segments across its digital network.
“This is the future of transactional advertising,” Mr Stephenson said. “Marketers expect, and here at Nine we are intent on delivering, a great advertising experience using world-class technology, in premium quality environments, all fully supported by rich data. It is this combination that will ensure we continue to achieve real results for our clients.”
Nine Entertainment faces a sizeable shareholder revolt over executive pay, with billionaire media mogul Bruce Gordon expected to vote against the network’s remuneration report.
High-profile retail proxy adviser Australian Shareholders’ Association will join the backlash at tomorrow’s annual general meeting, questioning chairman Peter Costello’s industry-high salary.
Mr Gordon’s regional TV broadcaster WIN Corporation and his private investment vehicle Birketu own 14.9 per cent of Nine, which could be enough to deliver a strike against the remuneration report given a 25 per cent “no vote” is required to do so and not all shareholders will vote. A second strike can lead to a board spill.
Nine Entertainment directors Elizabeth Gaines and Holly Kramer have both tendered their resignations, with effect from 3 February. This leaves Chairman Peter Costello, former Nine chief executive David Gyngell, current chief executive Hugh Marks and former Sky Plc executive Catherine West. Gaines’ exit follows her appointment to the role of chief financial officer of Fortescue Metals, while Kramer has retired to allow her to restructure her board portfolio, which (according to News Corp) includes seats on the boards of Australia Post, Woolworths and AMP.
Something occured to me…
Nine started losing the ratings in 2007, which was also the first year without the AFL rights.
Just a coincidence? I mean Seven have enjoyed dominance for 10 years since.
Or should Nine really fight hard to regain them in 2020 or whenever the next negotiations are?
If that was the case, Nine would’ve fought hard to regain the rights when they were renegotiated in 2011 and 2016.
Seven have won total people for ten years now, though Nine has repeatedly stated that they don’t view total people as being particularly relevant, preferring to focus on leadership in the advertiser-friendly demographics.
AFL certainly helped Seven, but it was just one piece of the puzzle alongside their resurgence in breakdast and news, as well as a general refresh and overhaul of their schedule, which included a fair amount of local programming.
There’s a first time for everything!
I had assumed that it was because Seven just had too much money & bidded way higher than Nine and Ten?
I guess an assumption could also be made that both Nine and Ten knew how hard Seven would fight to retain the rights.
Remember many were saying throughout 2015 how they thought Ten would fight hard / bid for either the AFL again or NRL… But that never eventuated unfortunately.
An assumption could also be made that Nine knew Seven wouldn’t be interested in bidding much / fighting hard for NRL and hence Nine siezed an oppertunity?
While times and the TV landscape have obviously changed dramatically in the last 20-30 years or so, here’s a few things to keep in mind:
Seven had the rights to the AFL back in the 1990s, yet Nine was the #1 rating network in Melbourne back then. In Sydney, Nine was the #1 rating network back in the Late '80s/Early '90s despite Ten having the rights to what was then the NSW Rugby League until the end of the 1991 season when Nine picked up the broadcasting rights.
While I no doubt that sporting rights are a contributing factor to the ratings success of networks, at the same time I wouldn’t say that sport is the only reason why a network is #1 in the ratings. It’s also important to have popular primetime programing and a strong news service.
And another good example is the 6pm news in Sydney and Melbourne.
Nine News has won both those markets for the past 6 and 5 yeara respectively (margins were even bigger from 2012 - 2014).
Yet Seven remained the #1 network in 5 city metro & Melbourne during that time.
Whilst Packed To The Rafters, All Saints and in recent years My Kitchen Rules has been the dominant non-sport / non-news programming for Seven.
Lost and Desperate Housewives didn’t hurt
Nine were dominant in the 90s without AFL, so I reckon a coincidence.
Correlation does not imply causation
Seven were able to build a strong programming slate (both overseas and local)
Wouldn’t 2002 - 2006 have been Nine’s best years then?
Having both the AFL (shared with Ten) & NRL rights.
As well as other popular programming and sports.
Although 6pm News was starting to slide in Sydney
I’m not sure to be honest.
Yes, Seven did start to get on top of Nine as far as news goes .
Seven may well have fared better in other programming since not having to spend big $$$ for AFL or NRL rights (and conversely Nine would have had less to spend) may well have levelled the playing field somewhat.