The media has been buzzing with speculation that Nine will move ahead with Southern Cross Media merger plans even though it seems the reach rule might be here to stay, but Nine has refused to be drawn on the issue.
Previously it looked like a merger would only go ahead between the two television broadcasters if the 75% audience reach rule were to be scrapped. That looks like it is increasingly unlikely and some commentators had suggested that would stall if not kill off the deal because a merged entity would have an audience reach significantly exceeding 75%.
But reports have suggested that Nine will push ahead with merger plans anyway by selling off several of Southern Cross Media's regional licences in order to remain within the 75% barrier. A report in the Sydney Morning Herald said the merged company might sell off its licences in Tasmania, the Northern Territory, South Australia and one other regional market.
Asked to comment, a Nine spokesperson said the company had nothing to say at this time.
If the merger was to go ahead, it would raise a couple of major questions for the Australian media industry. First, who would buy the offloaded licences? And second, what would this mean for Network Ten, which currently has an affiliation with Southern Cross Media.
Ten's content affiliation agreement with Southern Cross Media expires mid-year, and merger talks might have the broadcaster looking for another regional partner. The obvious choice would be Win, which has conventionally been affiliated with Nine.
Despite the talks, a Ten spokeperson said it is confident that negotiations for a new affiliation deal with southern Cross will still go ahead, even though they would be effectively quashed by any merger.
The spokesperson said: “It would be inappropriate for us to discuss our negotiations with Southern Cross in public. However, we would expect Southern Cross to resume the negotiations in good faith.”
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.
Have something to say? Send us your comments using the form below or contact the writer at brendancoyne@yaffa.com.au
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.