I suspect ease of potential sale may be a factor - short of finding a private equity to buy the whole company (and given how PE has gone in Australian media that’s possibly unlikely), being able to sell the company in one part (or perhaps large parts) is going to be limited.
Splitting the network would allow for SCA to potentially jettison stations to the competition, who are more than likely going to add them to their own ‘networks’.
SCA will have to do something soon - the market isn’t improving
Where’s the proof of this? What company report claims that market isn’t generating much revenue? Spencer Gulf Telecasters did alright with one channel.
It’s a bit different running three channels though.
You’ve got to pay for three affiliations, and total ad revenue generated isn’t going to be a lot more than with one channel as the market is still the same size. Transmission costs are likely to be higher too.
Looking at it in a slightly greater detail, revenue for its TV assets is down 8.1% ($104.7m to $96.2m), whilst its Audio assets is down 8.4% ($230.2m to $210.9m).
Would be more thrilled if SCA and NEC did the logical thing and merged.
Sell the non conflicting parts of the AM radio business to the Camerons and then Hugh can worry about 2DAY instead of 2GB breakfast whilst Grant Blackley would be useful for the NEC board and perhaps Peter Bush as alternate director.
It’d be a no-brainer to sell off 6PR, 4BH, 2UE and Magic Melbourne, and probably 4BC, but would you sell 2GB (current performer) to keep 2DAY (current stinker), with the hope that 2DAY’s younger potential audience will eventually eclipse 2GB’s geriatric audience? It’d be even harder to make the call in Melbourne, the FMs and 3AW do well.
Perhaps 9 could spin off the metro FM and all regional stations, and keep the TV stations? They could call the company Austereo (edited to add: how much of a stake could 9 have in this company and not breach the number of stations rules?)
SCA certainly need to do something. Someone else suggested they jettison the regional stations and cut back to just the metro and provincial markets. I agree. They don’t really seem to be utilising the network as a talent pipeline. You see people move from one regional to another, but no one ever seems to move up the chain.
Personally, I think they should just have Sydney, Melbourne, Brisbane, Perth and Adelaide. And then keep the provincial/larger regional stations in Newcastle, Canberra, Gold Coast and Hobart. Use those as the training grounds to then feed to the metro stations. Put them back on their own local music logs. That way they can train up a new breed of music directors who can move on to metro stations eventually, instead of one person sitting on the GC programming the music and the rest of the stations having glorified data entry people.
It would also mean they could have a more focused content, sales and marketing plan. Fewer stations to balance out programming wise, but also hitting each major metro and regional market in Australia with all they’ve got. Surely the small regionals they own, aren’t worth their time (and yes, I know how that sounds, but I’m talking from a business standpoint). Streamline and strengthen the network.
SCA Head of Radio Sales Sydney, Carla Vella, has resigned after 4 years in the role, as she has accepted a role as QLD Sales Director for Shopper Media Group.
Southern Cross Austereo today announced two new digital audio advertising initiatives to help brands find and engage audiences.
New mood and activity audience targeting utilises SCA’s and SoundCloud’s first party data and insights to identify listeners’ key habits and interests, targeting them during particular mood-states and activities.
(edited to add: how much of a stake could 9 have in this company and not breach the number of stations rules?)