Seven (Southern Cross)

In Australia, three commercial stations per market has always been unviable from its inception

Basically always been the number 1 and 2 stations doing relatively OK with a struggling third

No one wants to be number 3

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Seven surely has made a bid for the Tasmanian licence from SCA.

Perhaps SCA thinks it’s too low ball or want them to buy the entire TV network in an all or none deal. Seven would obviously have to sell most stations to satisfy ownership rules and maybe that’s where ACM comes in?

Didn’t that law get abolished years ago and thats how Seven has been able to acquire GWN and Prime?

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Yes Malcolm Turnbull abolished the reach rule in 2017

Seven had to sell redwave media to buy GWN but that’s because of the two out of three rule which is a different thing entirely

Seven can own TV across 100% of Australia they just have to be careful about how much newspaper and radio they own as well

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I think what @rock12 means is if Sevem bought SCA in its entirety they’d have to sell off the 10 affiliated stations which overlap with their Prime7 stations.

But realistically, if Seven bought stations it would only be for Tasmania and possibly the other Seven-affiliated stations as well, a full acquisition of SCA would be ideal for SCA but completely pointless for Seven.

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Seven would obviously rather just let SCA keep the station and sit back collecting 50% (or whatever it is) of the revenue than enter some unprofitable deal where they’re then forced to buy and then resell a bunch of regional stations they don’t currently own and won’t keep (not to mention the fact that their regional stations and no one would seriously consider buying them)

SCA would not even suggest this to seven as it’s a ridiculous proposition to begin with.

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https://www.inside7.com.au/upfront-2023/

In 2022, the acquisition of Prime Media drove the new Seven to reach over 91% of all Australians. Stay tuned as we reveal in the coming weeks how we are growing this even further in 2023.

Interesting. Will Seven buy out SCA7’s assets?

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SCA said a few weeks ago that the TV Division wouldn’t be sold.

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Yes, but:

  1. The deal could be just for 7 Tasmania/7 Darwin/7 Central (not sure about 7 Spencer Gulf due to the 3 channel ownership) The SCA10 stations could either stay with SCA or sold to Paramount etc. SCA could make a deal with Seven to continue using the TNT studios for noodles.

  2. SCA have wanted to get out of TV for a while and Seven would express interest in SCA’s stations to get (almost) national coverage, missing on only a few 100k in remote areas. CDT, TDT and DDT could have national sales done by SCA like with MDT/WDT.

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Probably due to the fact nobody wants to pay what SCA is offering?

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Maybe Seven and SCA have come to an agreement for using the Seven News brand?

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“the new Seven” could mean anything, although given that the radio division was flogged off a few years ago, and their print media is limited to WA…

I could be wrong but doubt that they are coming for SCA’s TV assets. If they did, that would still leave WIN carrying Seven in Eastern SA and Griffith :man_shrugging:

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Doubt it, SCA’s Seven stations make too much money for them!

Well, there were reports earlier this year that Seven could be merging with HT&E (parent company of ARN), so maybe that could be it?

That way, Seven would at least have radio presence in Tasmania, as well as in Regional SA & Darwin.

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Because WIN in SA/Griffth carries three networks, like SCA in Spencer Gulf/Broken Hill. I am not sure if Seven would pick GTS/BKN up due to the three channels unless the ACMA let multiple channels into the area.

GTS/BKN is a solus market, we have the commercial monopoly on FTA TV.

Grant Blackley has repeatedly said they would be open to selling the channel 7 affiliated stations to the seven network for the right price.

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And Grant said only a few weeks ago it wasn’t in the company’s interest to sell and us in the TV Division will remain under SCA for the long term

Would that rule out an SCA television buy up in Tassie, due to ownership rules?

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Yes. However, if SCA do decide to sell their Seven affiliate stations in (at least) Tasmania & Darwin to Seven, then they might do an asset swap with Seven/ARN, in which SCA picks up the radio stations that ARN would had to divest (7HO would remain owned under ARN, as there’s enough voices in the Hobart market to maintain the status quo).