TELEVISION BROADCASTING – AUSTRALIA

TV licence fee cuts could fall short of networks’ hopes

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Original article by Dominic White
The Australian Financial Review – Page: 29 : 4-Apr-16

The Australian Government has not made a final decision on whether to include a reduction in TV broadcasting licence fees in the May 2016 Budget. The fees are currently set at 4.5 per cent of broadcasters’ revenue, and TV networks want them to be scrapped or reduced to just one per cent of revenue. Credit Suisse’s Fraser McLeish expects a progressive reduction in fees to about 2.5 per cent over several years. Communications Minister Mitch Fifield recently agreed that the licence fees are high compared with the networks’ overseas peers.

CORPORATES
CREDIT SUISSE (AUSTRALIA) LIMITED, AUSTRALIA. DEPT OF COMMUNICATIONS AND THE ARTS, GOOGLE INCORPORATED, NETFLIX INCORPORATED, MELBOURNE PRESS CLUB, AUSTRALIAN LABOR PARTY, AUSTRALIAN SUBSCRIPTION TELEVISION AND RADIO ASSOCIATION (ASTRA) INCORPORATED, SEVEN WEST MEDIA LIMITED – ASX SWM

Marks’ roadshow moves suggest Nine contemplating a merger with Southern Cross

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Original article by Jake Mitchell
The Australian – Page: 23 : 4-Apr-16

A merger between Nine Entertainment Company and regional broadcaster Southern Cross Media Group is widely tipped if cross-media ownership reforms proceed. Nine CEO Hugh Marks indicated in March 2016 that the group had no plans to resume merger discussions. However, he is believed to have told investors that synergies from a merger with Southern Cross could be worth about $A90m annually.

CORPORATES
NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, SOUTHERN CROSS MEDIA GROUP LIMITED – ASX SXL, TEN NETWORK HOLDINGS LIMITED – ASX TEN, WIN CORPORATION PTY LTD, NBN TELEVISION, RGM ARTISTS PTY LTD, AUSTRALIA. DEPT OF COMMUNICATIONS AND THE ARTS, CREDIT SUISSE (AUSTRALIA) LIMITED

Ten in the picture as new WIN partner

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Original article by Jake Mitchell
The Australian – Page: 21 : 30-Mar-16

WIN Corporation CEO Andrew Lancaster is believed to have held talks with executives from Ten Network regarding an affiliation agreement. The regional broadcaster had negotiated a six-month extension to its content supply deal with Nine Entertainment Company at the end of 2015. The timing of the 2016 federal election and the subsequent fate of proposed cross-media ownership reforms are likely to force regional TV networks to secure new affiliation deals.

CORPORATES
WIN CORPORATION PTY LTD, TEN NETWORK HOLDINGS LIMITED – ASX TEN, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, SOUTHERN CROSS MEDIA GROUP LIMITED – ASX SXL

Seven warns of ‘piecemeal’ threat

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Original article by Darren Davidson
The Australian – Page: 21 : 24-Mar-16

Seven West Media’s submission to a Senate inquiry into proposed changes to cross-media ownership laws argues that the reforms should be broader. The Australian Government proposes to abolish the "reach rule" and the "two-out-three rule", but Seven says other media ownership rules should also be reviewed. Seven has also called for the TV drama tax offset to be increased and Australia’s TV broadcasting licence fees to be reviewed.

CORPORATES
SEVEN WEST MEDIA LIMITED – ASX SWM, TEN NETWORK HOLDINGS LIMITED – ASX TEN, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, PRICEWATERHOUSECOOPERS AUSTRALIA (INTERNATIONAL) PTY LTD

Macquarie severs ties with Southern Cross

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Original article by Dominic White, Sarah Thompson
The Australian Financial Review – Page: 31 : 21-Mar-16

Macquarie Group has sold its entire shareholding in regional TV broadcaster Southern Cross Media Group. Nine Entertainment Company recently paid $A1.15 per share for 9.9 per cent of Macquarie’s 26.1 per cent stake in Southern Cross Media. Sources have indicated that Macquarie has since offloaded all of its remaining shares to institutional investors at $A1.08 per share.

CORPORATES
MACQUARIE GROUP LIMITED – ASX MQG, SOUTHERN CROSS MEDIA GROUP LIMITED – ASX SXL, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, WIN CORPORATION PTY LTD, SEVEN WEST MEDIA LIMITED – ASX SWM, ALLAN GRAY AUSTRALIA PTY LTD

Television ad market slumps as Nine, regional broadcasters’ shares slide

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Original article by Jake Mitchell
The Australian – Page: 21 : 16-Mar-16

Standard Media Index data shows that free-to-air TV advertising revenue in Australia’s capital cities fell by 4.6 per cent to $A182.6m in February 2016. The Seven Network’s share of ad revenue rose from 39 per cent to 40.4 per cent, while the Nine Network’s share fell from 39.9 per cent to 35.5 per cent and the Ten Network’s share rose from 21.1 per cent to 24.3 per cent. Meanwhile, regional TV networks’ ad revenue was down 11.3 per cent, but there was 2.3 per cent growth in ad revenue for the subscription TV industry.

CORPORATES
SMI MEDIA INCORPORATED, SEVEN NETWORK LIMITED, SEVEN WEST MEDIA LIMITED – ASX SWM, NINE NETWORK AUSTRALIA LIMITED, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, TEN NETWORK HOLDINGS LIMITED – ASX TEN, PRIME MEDIA GROUP LIMITED – ASX PRT, SOUTHERN CROSS MEDIA GROUP LIMITED – ASX SXL, WIN CORPORATION PTY LTD, NATIONAL RUGBY LEAGUE

Seven CEO slams TV, film tax benefit gap

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Original article by Max Mason
The Australian Financial Review – Page: 20 : 15-Mar-16

The Australian Government’s tax offset for TV producers is just 20 per cent at present, compared with 40 per cent for producers of feature films. The free-to-air and pay-TV industry has urged the Government to match the tax offset for the film industry, with Seven West Media CEO Tim Worner arguing that many TV shows that are currently on hold would be in production if there was a level playing field. Ten Network CEO Paul Anderson adds that the tax offset’s current cap of 65 per cent should be abolished.

CORPORATES
SEVEN WEST MEDIA LIMITED – ASX SWM, TEN NETWORK HOLDINGS LIMITED – ASX TEN, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, SCREEN PRODUCERS AUSTRALIA, AUSTRALIAN SUBSCRIPTION TELEVISION AND RADIO ASSOCIATION (ASTRA) INCORPORATED, AUSTRALIA. DEPT OF COMMUNICATIONS AND THE ARTS

Free and pay TV row over licence fees

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Original article by Max Mason, Dominic White
The Australian Financial Review – Page: 30 : 14-Mar-16

Australia’s free-to-air commercial TV networks argue that a reduction in broadcasting licence fees would result in increased local content. The networks’ CEOs also say it would make them more competitive against overseas streaming video providers, which are not subject to the same regulatory regime. Broadcasting licence fees were reduced by 50 per cent in 2013, but Screen Producers Australia CEO Matthew Deaner says FTA networks should have to make a firm commitment to investing in local content in return for further licence fee cuts.

CORPORATES
SCREEN PRODUCERS AUSTRALIA, SEVEN WEST MEDIA LIMITED – ASX SWM, TEN NETWORK HOLDINGS LIMITED – ASX TEN, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, NETFLIX INCORPORATED, FACEBOOK INCORPORATED, YOUTUBE INCORPORATED, AUSTRALIA. DEPT OF COMMUNICATIONS AND THE ARTS, AUSTRALIAN LABOR PARTY, AUSTRALIAN SUBSCRIPTION TELEVISION AND RADIO ASSOCIATION (ASTRA) INCORPORATED, AUSTRALIAN FOOTBALL LEAGUE, NATIONAL RUGBY LEAGUE, AUSTRALIAN BROADCASTING CORPORATION, SPECIAL BROADCASTING SERVICE (SBS)

Ten rebuffs Southern Cross offer to sell assets

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Original article by Dominic White
The Australian Financial Review – Page: 30 : 14-Mar-16

Regional broadcaster Southern Cross Media Group has offered to sell its TV assets to Ten Network during negotiations for a new affiliation agreement. However, Ten chairman David Gordon has ruled out any such deal, saying the metropolitan broadcaster is not interested in buying Southern Cross’s TV stations. Regional broadcasters are facing growing competition from the streaming services offered by metropolitan networks and offshore players such as Netflix.

CORPORATES
TEN NETWORK HOLDINGS LIMITED – ASX TEN, SOUTHERN CROSS MEDIA GROUP LIMITED – ASX SXL, NETFLIX INCORPORATED, TRIPLE M CORPORATION PTY LTD, HIT NETWORK, FREEHILLS PTY LTD, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, WIN CORPORATION PTY LTD, DEUTSCHE BANK AG, APN NEWS AND MEDIA LIMITED – ASX APN, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS

Let TV stations trade spectrum: minister

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Original article by Jake Mitchell
The Australian – Page: 21 : 11-Mar-16

Federal Communications Minister Mitch Fifield addressed the RadComms conference on 10 March 2016, where he outlined a proposal for TV broadcasters to share, lease or trade any spectrum that is surplus to their requirements. However, the proposal has been criticised by Australian Subscription Television & Radio Association CEO Andrew Main, who says free-to-air networks should not be "gifted" spare public spectrum and then profit from leasing it to other companies.

CORPORATES
AUSTRALIA. DEPT OF COMMUNICATIONS AND THE ARTS, AUSTRALIAN SUBSCRIPTION TELEVISION AND RADIO ASSOCIATION (ASTRA) INCORPORATED, FREE TV AUSTRALIA LIMITED, AUSTRALIAN COMMUNICATIONS AND MEDIA AUTHORITY