Nine chair David Haslingden has come out swinging that TV remains the most profitable medium for advertisers and that its existing connection with audiences puts it in a much stronger position than online rivals.
Haslingden was speaking at Nine's annual general meeting, where the company's most recent financial results saw EBITDA decline 8% as a result of a weaker free to air advertising market.
However Haslingden said that while it is indisputable that the overall TV industry is evolving as a result of the internet, he pointed to Nine's large audience as the key to its future.
“We need to be as good as internet media companies have been in using technology to help advertisers achieve and measure their goals,” Haslingden said.
“If we do this while retaining our unique ability to forge emotional connections with our audiences at scale, then our future will be far stronger than theirs, regardless of what technology brings.”
Haslingden pointed to the launch of subscription video on demand (SVOD) service, Stan, as a milestone for the company.
Nine claims that from a standing start, Stan is on track to reach half a million gross sign ups by the end of November. Stan will also reach more than 300,000 active subscribers by the end of the year.
It comes as the Australian Communications and Media Authority (ACMA) released a study finding more than three million Australians used an SVOD service in the six months to June, with Netflix dominating usage. It is thought 2.5 million Australians used Netflix in the six months to June.
But Haslingden said that irrespective of the changes of usage, TV remains the best profit generator for advertisers.
“While it is indisputable that the overall TV industry is evolving as a result of the internet, I'd like to reiterate a few other indisputable facts that are less widely reported by other media,” he said.
“That as of today, and for the immediately foreseeable future, if you are a mainstream brand, of all your adverting alternatives, broadcast TV is the best profit generator, the leading effectiveness medium and has the largest reach and scale. And for four years now, Nine has been the leading broadcaster in every demographic other than for people 65 years and older.”
“Our industry will continue to change – with an unlevered balance sheet, and 100% ownership of our digital business, we are in a unique position to capitalise on the opportunities that change will bring.”
Haslingden said that for the industry to continue to grow, deregulation needs to be on the agenda, noting “the logic is unquestionable”. He said the current regulatory framework crates an uneven playing field where online rivals do not have to play by the same rules.
“We are hopeful though, that the current Government will see through the infighting between the industry players, and allow us to operate without artificial barriers and over-burdensome license fees.”
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