Seven to fight Nine over lucrative television shows

Seven West Media will try to steal popular television programs such as Ninja Warrior and Love Island Australia from rival free-to-air networks, intensifying a battle over increasingly expensive content that guarantees large audiences.

The Kerry Stokes-controlled company announced on Sunday it had commissioned The Voice from ITV Studios Australia in an attempt to lock in content schedule for next year that wasn't reliant on international production. Seven's deal puts an end to an eight-year run of the show on rival network Nine (owner of this masthead), which had flagged last week that the show was becoming too expensive to produce.

The Voice has been running on Nine for the last eight years, but will appear on Seven from next year.

Sources said Seven is also trying to secure Ninja Warrior, which is produced by Endemol Shine, and Love Island Australia, which is run by ITV Studios. Both shows have been on Nine Network for two years, but cost large amounts of money to produce.

The acquisition comes days after Nine boss Hugh Marks flagged his concern with expensive show formats like The Voice on an investors call. However several sources have indicated that not everyone in Nine's offices wanted to axe the television program from the schedule. Seven's deal with ITV Studios was completed after Mr Marks' comments.

Seven chief executive and managing director James Warburton told The Sydney Morning Herald and The Age that securing The Voice provided "certainty" as he flagged Seven's interest in other existing television formats.

"It's a big win and provides certainty for Seven," Mr Warburton said. "We continue to look for proven formats as we rebuild our content with a focus on linear and broadcast video on demand and the 25-54 demographic."

Television networks and subscription streaming services have been forced to make major changes to program schedules because of border closures and social distancing restrictions from the coronavirus pandemic. But sharp advertising declines linked to the crisis have also forced some networks to look more closely at the content - reality programming and sport - that they pay for.

A Nine spokesman said the company would continue to focus on its financial performance. Nine did not have an option included in its contract, which meant that Seven was able to secure the show without Nine entering an exclusive negotiated period.

"Unfortunately due to the age of the show and declining demographic profile, The Voice had become by far the poorest financial performer on our slate," he said. "We wish Seven well in their quest to revive yet another Nine show."

The Voice is an expensive format but has delivered consistent ratings for Nine over the years, often reaching more than one million viewers. However, the finale hit an all-time low when it aired in July, reached 911,000 metro viewers for the episode. The previous year it attracted 995,000, according to ratings from television measurement provider OzTAM. Mr Warburton had wanted to air the show on Network Ten when he was chief executive.

ITV Studios Australia boss David Mott said it was the beginning of a new era for the television show.

"Seven did not hesitate in securing the rights when this opportunity came up and we cannot wait to get cracking on the series for 2021… and to welcome Sonia back to the biggest entertainment stage on Australian television," he said.

Seven has revived a number of former Nine programs in the last year including Big Brother and Farmer Wants a Wife. Nine's version of The Voice is estimated to have cost about $40 million a year, but the revived format will be shorter at Seven, moving straight from the "blind auditions" to semi-finals. It is expected to cost between $15-$20 million. The show will be hosted by Sonia Kruger, but it unclear whether the current judges Kelly Rowland, Delta Goodrem and Boy George will appear on Seven. Seven's contract with ITV Studios includes an option.

The Voice will add to next year's program schedule which includes Holy Moley, Farmer Wants a Wife and Big Brother. Long-standing cooking show My Kitchen Rules will not run and Seven will look at the performance of Plate of Origin before commissioning another season. Seven has been looking to outsource more of its programming to production companies as it tries to sell its studio division. Banijay, which owns Endemol, had been in talks to buy Seven Studios, the division which creates Home and Away and Better Homes & Gardens.

Seven is separately threatening to terminate its broadcast deal with Cricket Australia for its lack of clarity on its schedule and offering. The current crisis has allowed Seven, Nine and Foxtel to renegotiate the amount they pay to sports codes to air competitions.