Southern Cross in talks on extending Ten tie-up

Network Ten journalist Sandra Sully on set. Picture: Britta Campion

In the media world right now, one of the areas of focus is the negotiations between CBS and Southern Cross Media Group over its affiliation agreement with Network Ten.

The CBS-owned Ten had a two-year affiliation deal with Southern Cross that was struck in July 2021.

This was after Southern Cross was dealt a blow by ex partner Nine Entertainment deciding to instead pick up with Bruce Gordon’s WIN television network.

Ten had been making about $38m from the affiliation deal and Southern Cross told the market that the agreement had expired. But the two parties would carry on the current agreement as they continued to negotiate in good faith.

Most see Southern Cross having little choice but to join forces again with Ten, after its former partner, Nine, agreed to sign up with WIN while Seven West bought the assets of regional broadcaster Prime Media.

But the big question is whether regional television and radio broadcaster Southern Cross can now negotiate a cheaper deal.

Ten’s share of the metropolitan advertising market has fallen to about 17 to 19 per cent from about 25 per cent three years ago.

Based on this, CBS’s options are to buy the Southern Cross regional television business or strike a deal at a lower rate.

The understanding is that the deal reached in 2021 saw Ten receive about 30 to 40 cents in the advertising dollar.

The Australian market is tough going for Ten, which CBS bought out of administration.

But it is believed that the US broadcaster is committed to the business because it is a critical plank in the development of its Paramount+ streaming service in the local market.

Southern Cross has explored a sale of its television unit in the past, but opted to retain the broadcaster after offers came in below expectations.