Major cuts to TV licence fees unlikely
The chances of a significant cut in TV broadcast licence fees appears to be weakening, Fairfax media reports. Broadcasters have called on the government to abolish the fees altogether, but failing that would accept the fees be be cut to 1% of revenue from the 4.5% level of today.
However, Fairfax's "Canberra sources" predict a more gradual, phased approach to reducing fees when the next budget is announced. Licence fees currently cost the commercial free-to-air broadcasters $173 million a year.
Nine merger with SCA gains momentum
Nine Entertainment CEO Hugh Marks has been on a roadshow across Asia to brief investors about the synergies that could be gained from a $2.2 billion merger between Nine and Southern Cross Media Group, The Australian reports.
Nine has already seized a 9.9% share of Southern Cross and it is believed Nine's boss has told investors there was potential for $90 million year in revenue and cost synergies.
The majority of this windfall would come from switching Southern Cross' retransmission signal to Nine from Ten. A share point in the TV market is estimated to be worth $5 million and Nine's content could deliver up to 14 share points more than Ten due to higher ratings - worth $70 million. The rest would be made up through cost savings.
Nine rumoured to have approached Farifax
Nine Entertainment Co advisers approached Fairfax Media in January to explore a $3.3 billion merger of the two media companies could look like, Fairfax media reports.
The preliminary approach is understood to have been made at a senior level by the investment bank UBS in the event media ownership laws are relaxed as is likely to happen this year.
Fairfax accepted the meeting request as a courtesy as both parties are part-owners of SVOD player Stan, it is understood. Fairfax CEO Greg Hywood maintains the publisher has no interest in Nine.
Nine and Ten to battle for BBL
Rumours that Nine could be set to battle Ten for the next rights to the Big Bash League continue to circulate, the Sydney Morning Herald reports.
The BBL is the top rating summer sport in Australia and broadcasting rights are predicted to nearly triple to $60 million per season when they are next put to tender. Ten has two more BBL seasons before their rights run out at the end of the 2017 competition.
Nine CEO Hugh Marks told Fairfax they would "seriously consider" bidding for the competition, which would dovetail nicely with Nine's international cricket coverage, including the recent Twenty20 World Cup that was won by the West Indies early this morning.
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