Southern Cross Media is in dicsussions with Network 10 about its regional broadcasting affiliation deal.
CEO John Kelly, addressing shareholders at his first AGM, said the company was focussion on its audio business as regional television markets were a drag on the company’s profitability.
“Advertising markets for broadcast television are declining in parallel and, in our case, this decline has been exacerbated by comparatively softer ratings performance by Network 10 programming and our regional television competitors having more unified sales processes,” he said.
“Our television sales teams did well to achieve a parity sales-to-ratings power ratio in our Network 10 markets in the most recent financial year.
“We are in active discussions with Network 10 to extend our affiliation beyond December 31, and to streamline our collective offering to media agencies and national advertisers with a view to stabilising returns to SCA and our shareholders.”
Broadcaster ARN and private equity investor Anchorage Capital recently made a takeover bid for radio and television company Southern Cross Media with plans for radio and television assets of ARN and SCA to be separated into independent ownership by each.
10 chief operating and commercial officer, Jarrod Villani this week said it worked well for 10 to broadcast into regional areas without owning the signals themselves.
“At this stage, it’s not an asset that we think that we need to own,” he said.
But he also did not rule it out.
“We’ll see what happens,” he said.