Here's a peek at some of today's headlines...
“Irregularities” are confined: GroupM's Steedman
GroupM chairman John Steedman has told the Australian Financial Review that the controversy surrounding one of his media agencies, MediaCom, is an isolated incident and not endemic across the group.
“There have been irregularities in post-buying reporting [of TV airtime] and they have been discovered through regular checks we do across all the businesses,” Steedman said. “It's confined to MediaCom and a select number of clients. Those clients have been informed about the irregularities.”
GroupM has hired an external auditing firm, which the AFR is reporting to be Ernst & Young, to investigate. The company’s internal global audit team is thought to have cleared other GroupM agencies and other MediaCom traders outside of the three clients: Foxtel, KFC and Pizza Hut.
Foxtel prepares for Ten bid
Discovery Communications and Foxtel are preparing to lodge a takeover bid of between 25c and 30c a share for Ten Network Holdings, the AFR is reporting.
The bid, which will not be fully binding, is expected to be larger than the 25c a share offered by Time Warner to Ten's adviser Citi in October, but less than 30c.
The AFR is also reporting that Ten's largest shareholder, Bruce Gordon, is supportive of Foxtel taking a stake in the broadcaster.
Streaming not a disruption to radio's calm waters
Nova Entertainment has brushed off claims that radio is facing disruption from structural challenges, such as music streaming, according to The Australian.
CEO Cathy O'Connor said Nova's operating earnings have surged 28% for the calendar year and that it is budgeting for at least 20% growth next year. “Our numbers speak to the health of the sector,” O'Connor said. “Radio is in a very strong place and I think strategically it is demonstrating its place in the new landscape.”
Efficiency study paves way for fresh ABC attacks
An efficiency study on the ABC and the SBS is thought to be setting the agenda for a Senate Estimates hearing in Canberra this morning, with The Australian reporting that the ABC's Mark Scott is likely to face the brunt of the grilling.
The Lewis Review found that approximately $290 million a year was paid by the ABC for radio and television transmission and distribution. Communications Minister Malcom Turnbull noted that the transmission savings will mean there is no need for the ABC to reduce spending on front of house or programming.
It is also thought that the broadcaster will be subjected to two senate inquiries. Independent senator Nick Xenophon is expected to introduce a private members bill mandating local news coverage and Greens senator Scott Ludlam is to ask the ABC to front a hearing into the budget cuts later this month.
Digital centralised in ABC restructure
The Australian is also reporting that the ABC is expected to accelerate its digital restructure in response to the $254 million in funding cuts, which will centralise the services currently spread between its “innovation” division and other departments.
The broadcaster's restructure will focus on the development of a new Digital Network division, to be carried out by ABC Innovation director Angela Clark, as well as the 79 full-time Innovation employees and 55 staff in digital development and design. While new specialist positions are likely to be created, digital content creators will stay in divisions such as News, TV and Radio.
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