If Seven West Media were to buy Southern Cross Mediaâs television stations, they could presumably place the current Ten affiliated stations under independent management to satisfy any ACCC concerns until the affiliation agreements expire. SCA and Seven would presumably seek to sell the second Qld licence and the joint ventures.
It would be hilarious for Bruce Gordon and Catalano and mates whose Prime Media shares would plummet in value.
It actually surprises me WIN donât have a similar stake in SXL, cover all bases to ensure youâre at the table and canât be pushed to the side.
Though itâs a good way of Seven to shake that tree again - will they really vote down a Prime buyout again if Seven has a viable alternative in Southern Cross.
Catalano says he has plans for Prime as part of a broader regional media group and is by all accounts lobbying for changes to allow for them to materialise, if thatâs successful I wouldnât be surprised if we see him and his backers make a play for a greater stake pretty quickly after.
That may be all well and good but if Seven decides to affiliate with Southern Cross in a few years time, Prime will be in deep trouble
Youâd be daft to think Thorney would be interested in the business just for it to stay as it is. There is definitely a bigger play here.
The sticking point is Northern NSW/Gold Coast. WIN has a 5 year agreement with 10 and NBN is owned by Nine so Seven would have to remain with Prime for at least until WINâs affiliation agreement expires?
So if Seven gains control of Prime7 then no issues, but if they take over SCAâs TV assets then Prime could be showing either Seven or 10âs schedule (depending on where you live). And then thereâs the mess in regional Queensland.
Also will audiences watch Prime News on a 10 affiliate? Seven would surely come in for the kill with big spending power.
From what I have read in the past the affiliation agreements tend to all have clauses that state the metro network has to approve any change of control of the regional network, so presumably there would be a negotiation with Ten regarding NRN if Seven were to buy it.
It will be interesting to see what the bigger play is - whether they like it or not, it appears that the shenanigans over the Seven buyout has done some damage to the point that Seven willing to look at alternate options.
I wouldnt put it past Seven playing the market to put pressure on Prime (whether it be to have another go at a buy-out, or to sign a new affiliation deal on different terms)
Possibly - a change in affiliation for Seven will be messy regardless, not only Northern NSW but also Queensland where Seven already own the regional stations. If Seven attempt to buy out SCAâs TV licences, they may look at a swap?
My understanding is that Seven have a âget outâ clause in their existing contract with Prime if the ownership of Prime was to change significantly.
Meaning if WIN was to buy out Prime and SCA if the Fed Govt abolishes the current one licence per market rule, Seven may pull the plug and go satellite and on-line only in regional areas and over time playing the long game take the rest of the viewing audience with them, who knows? The metro areas and 7QLD would stay as is for Seven viewers. This would be like what Packer threatened with a national satellite TV service before Hawke, Keating and Beazley backed down and let through aggregation which has been a cash cow for all three metro networks since day one.
I struggle to see the benefits of a situation where Seven is available on satellite, while ABC, SBS, Nine and Ten are on terrestrial. What percentage of people wouldnât bother spending upwards of $400 on equipment and installation just for Seven? Iâd say 80%+
Itâs a nice threat on paper, but unless every network is on board and the changeover is funded making it virtually free for the viewer to access it, then itâs just not viable. It would add a big nail to the coffin for regional free to air.
Either way, if this was to happen Seven might just promote 7plus, still a considerable loss considering the internet in some locationsâŚ
Would love to see them try! The affiliation deals make a lot of free money for the metro networks. Their earnings would dive without a regional deal and theyâd be stuffed financially.
WIN will never buy prime or SCA. it canât. The legalisation wonât allow it to happen
Heâs already covered for that:
Seven joins our Olympic team in the fight against COVID-19 urging all Australians to âArm Yourselfâ
The Seven Network and Australian Olympic Committee (AOC) have joined forces to support the Commonwealth Governmentâs âArm Yourselfâ COVID-19 vaccination campaign.
As part of the joint initiative, athletes currently competing at the Olympic Games Tokyo 2020 are featured in a series of messages urging Australians to âArm Yourselfâ against COVID-19 by getting vaccinated as soon as possible.
Seven will broadcast the messages, which were filmed in the Olympic Village in Tokyo, during its broadcast of the Games.
The first messages feature rowing team members Annabelle McIntyre, Rosie Popa, Cam Girdlestone, Jack Cleary, Lucy Stephan, Jessica Morrison, Harriet Hudson, Ria Thompson, Caitlin Cronin and Rowena Meredith, along with 1500m runner Linden Hall and long jumper Brooke Stratton.
Brooke Stratton said: âI got vaccinated against COVID-19 before heading to Tokyo to compete, and I encourage all Australians to do the same to protect themselves, their families and friends. Letâs all arm ourselves in the fight against COVID-19.â
James Warburton, Seven West Media Managing Director and Chief Executive Officer, said: âSeven is pleased to partner with the AOC on this campaign at such a crucial time for Australia. With the entire country unified by the incredible sporting feats and courage of our athletes in Tokyo, there really is no better time for us to make such an important statement.
âThe unprecedented reach of our Olympic Games coverage will help get the message out far and wide across Australia, while we owe a huge thanks to the athletes themselves and our busy production team for making it possible.â
The Chief Executive of the Australian Olympic Committee, Matt Carroll AM, said: âBefore they left Australia for Japan, the Australian Olympic Team were vaccinated against COVID-19. This makes them the perfect ambassadors to support the âArm Yourselfâ campaign.
âWe welcome the opportunity to join forces with the Seven Network to support this vital national vaccination campaign.â
FY21 results announcement date
Seven West Media (ASX: SWM) will be releasing its FY21 results on Monday, 16 August 2021.