I wonder if Seven will think of moving out if Martin Place?
At some point in the future, I think Seven probably will consider life after Martin Place for their Sydney news/current affairs HQ to save money on security and rent.
Costs could also be cut at Seven if they stopped pursuing two long-standing legal issues.
What can they cut?
News? Already shithouse and underinvested compared to Nine. Sport? Need it to attract audiences, lest they want to become Network Ten. Entertainment? Well what the fuck do they expect to put in primetime? Unfortunate Mishaps with a Butchershop Bandsaw Make You Laugh Out Loud?
I have no idea how Seven are operating so poorly compared to Nine.
EXTENSION OF AFFILIATION AGREEMENT
BETWEEN SEVEN WEST MEDIA AND SOUTHERN CROSS AUSTEREO
Seven West Media Limited (Seven) (ASX:SWM) and Southern Cross Austereo (SCA) (ASX:SXL) have today announced an extension of their regional television affiliation agreement for Tasmania, Darwin, Spencer Gulf, Broken Hill, Central & Eastern Australia and Mt Isa. The agreement will see SCA continue to broadcast Seven’s metropolitan free-to-air television content in its existing zones from 1 July 2018 for three years with an option for each party to extend for a further fourth year.
SCA in those licenced areas will broadcast Seven’s premium Australian and international content including My Kitchen Rules, House Rules, The Good Doctor and Fox product (including Modern Family and The Simpsons), as well as AFL. SCA will continue to produce its daily leading local news bulletin and this is reflected in the affiliation agreement.
SCA will pay Seven an affiliation fee of 50 per cent of its television revenue.
Tim Worner, CEO of Seven, said “This is a great outcome for Seven and SCA. We are confident that, together, we will continue our very successful and long standing relationship and offer a premium viewing experience for audiences and a unique platform for advertisers”.
Welcoming the extension of the agreement, Grant Blackley, CEO of SCA, said “I’m excited SCA is continuing its long term agreement with Seven. Our partnership enables us to deliver a strong line-up of programming, particularly in Tasmania where we enjoy almost 60% of audience share.”
Seven (Southern Cross)
I don’t think is Nine doing better. They actually made a huge loss last year and there was talk of them dropping the Cricket because that makes a huge loss too. Seven is trying to avoid the same problem.
From the Seven half yearly report. Debt is increasing, and Nine is in the same position with increasing debt.
Well, Seven already let the rights to US Masters golf lapse and Nine picked them up. Next to go could be the NFL, Bathurst 12 hour race and Commonwealth Games (next one is in Birmingham in 2022).
Swm is only the media interests (ie not westrac)?
Not an exclusive at all from EFTM, Mumbrella had that story back in November.
This really encourages you to run as lean a service as possible
Seven will exit its Pyrmont headquarters this year to its current site at Media City in Eveleigh.
Also it looks like more staff cuts will be made.
Media (esp TV) companies really can’t exist as publicity traded companies anymore. It’s too hard to make profits.
While there is an expectation from shareholders to maximise return it’s going to be difficult but the obverse of that is if they go private there has to be someone (person or a company) who is willing to take on the risk Of ownership
Divide and acquire seems to be the way forward, shed loss making arms and buy up where possible
The reality is that times are tough and getting tougher for media companies but I don’t think there is a simple way out
The simpler way is contain costs. The days of people earning 1.5 mill plus should be over unless they’re physically on air for like 40 hours a week.
Revenue has already peaked but costs continue to accelerate that is the issue.
cost containment is definitely important - ‘talent’ costs would be but one area though
Nine declared a 5 cent per share dividend for the half year ending 31 December 2017