ADH denies threat to Seven’s cricket, AFL rights
Conservative media startup Australian Digital Holdings has denied it is threatening Seven’s AFL and cricket rights in affiliate content negotiations.
ADH last month said it would buy TV licenses across a swathe of regional Australia from Southern Cross Austereo (SCA). Many of the stations covered — which range from Tasmania to Darwin — carry Seven content paid for in affiliate licensing deals. The content includes AFL and cricket coverage, and is crucial to viewership in the regions.
The content deals, extended by SCA last year, are due to expire mid-year and are currently being re-negotiated by ADH and Seven.
For Seven, the small ADH deal is a theoretical risk to its big sports rights, because it must ensure matches are available to watch Australia-wide. This risk was highlighted in an Australian Financial Review article.
But ADH rejected the suggestion it was using the risk for leverage.
“We have no idea where this story is coming from,” said ADH director of TV Jason Morrison.
“We’ve had numerous meetings and discussions with [Seven West Media CEO] Jeff Howard, and they have been nothing but positive. There’s been no bad blood, no issues.”
Seven also did not seem concerned by the possibility of the deals lapsing, saying in a statement that “there have been preliminary conversations between Seven and ADH and we are confident that a new agreement will be reached.”
ADH has agreed to pay SCA $6.35m in total for the licenses: $3.75m in cash, the balance in fees for on-going services. The acquisition is expected to close by early April.
In Tasmania, AFL coverage is central to the success of 7 Tasmania – also known by its callsign TNT – which has dominated ratings for decades.
In an earlier interview with Mumbrella, broadcasting veteran Morrison implied ADH would be negotiating with Seven to reduce costs, saying they are “looking hard” at the deals.
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