Anonymous
Years ago

Ten profit down 90% since change to ONE HD

http://www.theage.com.au/business/ten-network-profit-plunges-905-per-cent-20111027-1mktj.html

Massive costs for a restructure. In the short term they need to see an increase in revenue that will be sufficient to make up the shortfall from this year compared to last, and to build upon the profit they were already getting.

Seems with results like this the exclusive sports channel route may have been more profitable. Little Murdoch and Packer again stuffing something up.

It seems to me getting Ten is more about turning it's news programs into right wing mouth pieces for the owners (Rinehart's favourite Bolt report) rather than profit.

And meanwhile the NBL misses out at 11pm at night.....

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Politics
Years ago

Right wing? George Negus & The Project hang heavily to the left.

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alexkrad
Years ago

Hasnt Negus got the axe?
Wouldnt know for sure I avoid 10 these days.

Anyway I like how they blame the decrease in profit to restructuring/reformatting the channels to become more profitable. Will see in the next 12 months I guess.

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Anonymous
Years ago

Negus gone and strong word is Bolt will have an hour prime-time show soon.

Project was on before Murdoch and co jumped on board.

In anycase, seems scrapping One as a sports channel hasn't gone too well so far.

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Anon
Years ago

These results are due to the All Sports format and investment in news from previous management.
Write offs from bad sports contracts etc.

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HO
Years ago

To draw the conclusion from this that the decision to drop the sport focus was wrong is tenuous at best.

Nothing in the article talks about the individual parts of ten (one, 11) and their success.

Wishful thinking, but no evidence at all!

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Mick
Years ago

No, ONE HD (when it was all sports) was the lowest rating channel on Australian television.

Fact is, Australians didn't want to watch the kinds of sport shown on ONE HD.

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Anonymous
Years ago

But wait a minute, the loss in profitability is from writing off the sports and news contracts.

So my angle is, that keeping these contracts may have kept profits higher than what they will make next year.

Say for example is they make 150% profit on what they were making in 2010 when ONE was still sport focus, they still does not compensate for the 90% drop this year. Over a three year span they can say they were justified however in that scenario (preusming ONE was to have zero revenue growth over this period).

However if they only get 10% growth on the 2010 number, the timeframe to get back to what their previous stratergy would have delievered is ten years without taking into account adjustments for inflation. In other words, the hit they take this year is too big to claim a victory in following years and the business case for change was incorrect.

Time will tell next year, but for me it's telling that there is no report along the lines off "yes we are 90% down on profit but without the write-offs we would have got increase profitability compared to the previous 12 months."

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Anonymous
Years ago

Remember the end game is profits, not ratings. Ratings is a means to the end.

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Anonymous
Years ago

The Sports channel didn't rate high enough because some of the crap put on there that viewers turned off.

Eg Nascar, Rodeo Racing etc

It was fine when footy, UFC, NBA, NFL were on.

Reply #336424 | Report this post

Mick
Years ago

Yeah but Nascar, Rodeo etc is cheap to buy for ONE.

There simply isn't demand for NBL. That's what everyone doesn't understand.

IMHO the NBL is better off taking it up the ass to get NBL on TV. Even PAYING for it.

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TR
Years ago

The NBL has been taking it up the arse for years, another few more years and it can walk around with a goatse.

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angry@packer
Years ago

serves them right for screwing with the NBL coverage anyway, all they play instead of live games is shit movies or shows from the 90's or 80's

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There's still an NBL
Years ago

IMHO the NBL is better off taking it up the ass to get NBL on TV. Even PAYING for it.

And where does the money come from to pay for it?

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Anonymous
Years ago

Theyve just got to hang in there and make ten see out the contract. the ratings this year are ok, better than fox, so hang at it, build the product and then watch the number of games go up over the next three years.

juts hoping there arent a few more surprises in the contract like the 3 hours being 'near live'.

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HO
Years ago

Anon, again, there is nothing to say that the OneHD changes led to the decrease in profitability.

Last year it was reported that OneHD made a small profit.

It made a small profit on woeful ratings. Second year advertising revenue would have dropped on that model. OneHD's sales strategy for Sales was on major partner deals, where 3-4-5 major's took a lot of the advertising airtime for a major investment in the new model.

As a sales strategy this would have struggled in year 2. I think the chances of their profits being better if OneHD had retained its line-up would have been very slim indeed.

Reply #336475 | Report this post

Hoops

Ten profit down 90% since change to ONE HD

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