Nine Entertainment CEO Mike Sneesby expects growth in streaming service Stan to slow
Nine Entertainment boss Mike Sneesby has conceded there will be challenging times ahead for its streaming service Stan.
Nine Entertainment chief executive Mike Sneesby has conceded its streaming service Stan faces challenging times ahead and it’s likely to see “a flattening off post Covid” to its subscriber numbers.
Speaking at the annual Macquarie conference on Wednesday, Mr Sneesby said the TV ad market remained strong but streaming would likely experience slower growth, noting that this follows on from the recent fall of 200,000 Netflix subscribers in the first quarter of this year.
“A flattening off post Covid is certainly something that we’ve had a great run up and certainly something that we are expecting,” he said. “I expect to see us continue to grow, probably a bit more subdued than the earlier growth phases of the business.”
Nine’s Stan streaming service has 2.5 million subscribers and Mr Sneesby noted that he was “a little bit surprised around the magnitude of the reaction to Netflix”. Nine’s streaming service, 9Now, has 12.2 million verified users – this has fallen behind 7plus which has 12.5 million users.
Mr Sneesby said the company expected to see the TV ad market remain strong and Nine had forecasted total television earnings to grow by more than 20 per cent in the current financial year.
Nine’s radio network – which includes Sydney’s 2GB, Melbourne’s 3AW, Brisbane’s 4BC and Perth’s 6PR stations – is expected to see its earnings higher in the second half of this financial year compared to the first half.
“The radio business for us is one of those businesses that has really just started that journey into the digital space with less than $1m of digital revenues, but a fantastic opportunity is ahead of us in digital streaming and the way that we commercialise audiences in that space,” Mr Sneesby said. The company’s total TV business – including free-to-air, 9Now and Stan – had seen a 32 per cent growth in digital revenue, he added.
Nine’s publishing arm expected earnings to be up $55m compared to the previous financial year.
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