MASS MEDIA – AUSTRALIA

Telstra chief hopeful that pay TV market will reach 70 per cent

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Original article by Max Mason, Dominic White
The Australian Financial Review – Page: 30 : 16-Feb-15

Just 30 per cent of Australian households currently have access to subscription-based TV. Telstra CEO David Thodey is optimistic about the outlook for the sector, forecasting that the launch of video streaming services will lift market penetration to around 70 per cent. Thodey expects US-based Netflix, which will formally enter the Australian market in March 2015, will eventually introduce advertisements. He also refutes suggestions that Telstra will scrap its T-Box device

CORPORATES
TELSTRA CORPORATION LIMITED – ASX TLS, NETFLIX INCORPORATED, FOXTEL MANAGEMENT PTY LTD, SEVEN WEST MEDIA LIMITED – ASX SWM, FETCHTV PTY LTD, STAN, PRESTO ENTERTAINMENT PTY LTD, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, FAIRFAX MEDIA LIMITED – ASX FXJ

Stokes’ Seven may face $1 billion writedown

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Original article by Dominic White
The Australian Financial Review – Page: 29 : 16-Feb-15

Analysts expect Seven West Media to post a 2014-15 interim net profit of about $A207m. However, there is speculation that the media group could write down the carrying value of its assets by at least $A1bn when its half-year results are released on 18 February 2015. Seven’s net assets were valued at $A2.9bn in June 2014, but a sharp fall in its share price in the last 12 months has reduced its market capitalisation to $A1.43bn

CORPORATES
SEVEN WEST MEDIA LIMITED – ASX SWM, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, TEN NETWORK HOLDINGS LIMITED – ASX TEN, NINE NETWORK AUSTRALIA LIMITED, CITIGROUP PTY LTD, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Rupert and the wolves at News Corp

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Original article by Neil Chenoweth
The Australian Financial Review – Page: 10 : 13-Feb-15

News Corporation’s succession plan does not consider the possibility of co-chairman Rupert Murdoch being incapacitated. The plan states that, on his death, four directors representing each of his adult children will assume responsibility for the company. Murdoch’s incapacity is not mentioned. The company could be an attractive takeover target, due to assets such as its stakes in REA Group and Foxtel

CORPORATES
NEWS CORPORATION – ASX NWS, REA GROUP LIMITED – ASX REA, FOXTEL MANAGEMENT PTY LTD, 21ST CENTURY FOX INCORPORATED, SOUTHEASTERN ASSET MANAGEMENT INCORPORATED

Foxtel, Discovery plot Ten strategy

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Original article by Dominic White, Jake Mitchell
The Australian Financial Review – Page: 29 : 9-Feb-15

Ten Network’s 14.9 per cent shareholder, Bruce Gordon, opposes a $A590m takeover bid by Foxtel and Discovery Communications. However, the bidders may consider a revised takeover strategy whereby they would acquire Ten’s main assets while Ten itself remains listed on the sharemarket. While Ten’s directors would have to approve any such deal, the bidders would only need the support of 51 per cent of Ten’s voting shareholders

CORPORATES
TEN NETWORK HOLDINGS LIMITED – ASX TEN, FOXTEL MANAGEMENT PTY LTD, DISCOVERY COMMUNICATIONS INCORPORATED, LAZARD ASSET MANAGEMENT LIMITED, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, TELSTRA CORPORATION LIMITED – ASX TLS, CROWN RESORTS LIMITED – ASX CWN, FAIRFAX MEDIA LIMITED – ASX FXJ

Fairfax’s 15.7pc tax rate draws Senate spotlight

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Original article by Darren Davidson
The Australian – Page: 19 : 5-Feb-15

Claims by the Tax Justice Network that major Australian corporations are using strategies such as profit shifting to minimise their tax burden have sparked a Senate Economics Committee investigation. In a submission prepared by senior research fellow Sinclair Davidson of the right-wing ­Institute of Public Affairs, newspaper publisher Fairfax Media is accused of enjoying an effective tax rate of a mere 15.78% rather than the statutory 30% in 2013-14. Fairfax had in 2014 published articles on alleged tax avoidance by rival News Corp Australia

CORPORATES
FAIRFAX MEDIA LIMITED – ASX FXJ, NEWS CORPORATION – ASX NWS, NEWS CORP AUSTRALIA PTY LTD, TAX JUSTICE NETWORK, INSTITUTE OF PUBLIC AFFAIRS LIMITED, AUSTRALIA. SENATE STANDING COMMITTEE ON ECONOMICS, RMIT UNIVERSITY, ROYAL MELBOURNE INSTITUTE OF TECHNOLOGY

News Corp’s $417m tax bill confounds critics

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Original article by Darren Davidson
The Australian – Page: 22 : 4-Feb-15

Australia’s Senate Economics Committee is looking into claims by unions and other organisations that major corporations engage in profit shifting to minimise their tax burden. In its submission to the inquiry, News Corp Australia says its payments of income and withholding tax between 2009-10 and 2013-14 totalled $A417.3m. The media group also notes that its combined goods and services, fringe benefits and payroll taxes for those years were worth a further $A900m

CORPORATES
NEWS CORPORATION – ASX NWS, NEWS CORP AUSTRALIA PTY LTD, AUSTRALIAN TAXATION OFFICE, AUSTRALIA. SENATE STANDING COMMITTEE ON ECONOMICS, FOXTEL MANAGEMENT PTY LTD, FOX SPORTS AUSTRALIA PTY LTD, REA GROUP LIMITED – ASX REA, FEDERAL COURT OF AUSTRALIA, TAX JUSTICE NETWORK, UNITED VOICE, HARPERCOLLINS PUBLISHERS PTY LTD

Ten’s jungle success fires up fightback

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Original article by Darren Davidson
The Australian – Page: 19 : 3-Feb-15

Preliminary data from audience ratings provider OzTAM indicate that new reality TV show "I’m a ­Celebrity… Get Me Out of Here!" has been very successful for Ten Network. It managed a total viewers figure of 1.1999 million on 1 February 2015, despite coverage of the Australian Open Tennis tournament’s finals by rival Seven West Media at the same time. Ten CEO Hamish McLennan says the free-to-air TV group should be given a greater share of the advertising spend by media buyers. Ten is also looking at takeover offers, but 14.99% shareholder Bruce Gordon remains a hurdle

CORPORATES
TEN NETWORK HOLDINGS LIMITED – ASX TEN, SEVEN WEST MEDIA LIMITED – ASX SWM, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, WIN CORPORATION PTY LTD, DISCOVERY COMMUNICATIONS INCORPORATED, FOXTEL MANAGEMENT PTY LTD, TIME WARNER INCORPORATED

Murdoch exits streaming as Rdio revamps

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Original article by Dominic White
The Australian Financial Review – Page: 37 : 2-Feb-15

Nova Entertainment, the radio stations group behind the Nova and Smooth FM networks owned by Lachlan Murdoch, in 2012 entered into a joint venture with US-based Rdio. The latter will now mount an increased effort to boost its local market share, after Nova divested its 50% stake in their Rdio Australia vehicle in late 2014. A number of similar online music streaming services have been closed recently, due to the dominance of Spotify and Pandora

CORPORATES
RDIO INCORPORATED, NOVA ENTERTAINMENT PTY LTD, SPOTIFY LIMITED, PANDORA MEDIA INCORPORATED, SOUTHERN CROSS MEDIA GROUP LIMITED – ASX SXL, AUSTEREO GROUP LIMITED, SONY MUSIC ENTERTAINMENT (AUSTRALIA) LIMITED, UNIVERSAL MUSIC AUSTRALIA PTY LTD, DEEZER, LIVE NATION AUSTRALASIA PTY LTD, THE GOLDMAN SACHS GROUP INCORPORATED

Seven edges out Nine in TV ads

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Original article by Darren Davidson
The Australian – Page: 19 : 28-Jan-15

New data from KPMG show that the overall Australian metropolitan free-to-air TV advertising market suffered a 3.04% decline in the first six months of 2014-15, to $A1.5bn. This contrasts with growth a year earlier of 5.01% to $A1.6bn. However that period was marked by the federal election campaign, and Seven West Media chief revenue officer Kurt Burnette argues the slump now is merely cyclical rather than structural. His group lifted its share by 0.66% to 40.4%. Nine Entertainment also gained, while Ten Network saw its share fall from 21.52% to 20.4%

CORPORATES
SEVEN WEST MEDIA LIMITED – ASX SWM, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, TEN NETWORK HOLDINGS LIMITED – ASX TEN, SMI MEDIA INCORPORATED, KPMG AUSTRALIA PTY LTD, FREE TV AUSTRALIA LIMITED, CIMB SECURITIES INTERNATIONAL (AUSTRALIA) PTY LTD, YOUTUBE INCORPORATED, NETFLIX INCORPORATED

Ten’s fate hinges on celebrities in the wild

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Original article by Darren Davidson
The Australian – Page: 19 : 23-Jan-15

Beverley McGarvey, chief programming officer at Ten Network, is confident a local version in Australia of "I’m a Celebrity… Get Me Out of Here!" will generate good audience ratings for the listed free-to-air TV group. The format is being imported from ITV in the UK, where it continues to perform strongly after 14 seasons. McGarvey also claims not to be distracted by the current takeover battle for Ten, as major investor Bruce Gordon opposed an offer by Foxtel and Discovery Communications despite it being backed by fellow shareholders Lachlan Murdoch and James Packer

CORPORATES
TEN NETWORK HOLDINGS LIMITED – ASX TEN, FOXTEL MANAGEMENT PTY LTD, DISCOVERY COMMUNICATIONS INCORPORATED, WIN CORPORATION PTY LTD, TIME WARNER INCORPORATED, WARNER BROS, ITV NETWORK LIMITED, ITV PLC