ADH explains regional TV move: ‘Everyone watches free-to-air’
Australian Digital Holdings is looking to bring back news and local programming in some areas after snapping up Southern Cross Austereo’s regional TV licenses.
Newly anointed ADH Director of TV Jason Morrison told Mumbrella that while SCA may have been happy to get TV off its books, his company had a plan to reduce costs, grow revenue and renegotiate expensive affiliate fees.
ADH was co-founded by CEO Jack Bulfin in 2021 with the backing of broadcaster Alan Jones. Until now, it has operated as a digital-only competitor to Sky News, announcing its intention to bring the ultra-conservative US Newsmax brand to Australia.
On Thursday news broke that it had acquired regional TV licenses from SCA for Tasmania, Spencer Gulf, Broken Hill, Mt Isa, Darwin and chunks of central Australia.
Morrison said he saw big opportunity in these communities because watching free-to-air TV is still an ingrained habit.
“You spend any time in these areas, you look around, everyone watches free-to-air,” he said.
“As much as everyone wants to write off television and say it’s finished the truth is, it’s not.”
While SCA had cut costs, for example axing news in South Australia’s Spencer Gulf, ADH planned to reinvigorate local programming.
“Some years back, a decision was made by Southern Cross to cancel the news [in Spencer Gulf] for economic purposes. We have a different view about that. We think that there would be a great opportunity to see a restoration of some of these services.”
“Frankly, that is what’s been going on of late. Southern Cross has decided that it’s checking out of television. So it’s not wanting to spend any money in it.”
According to SCA filings to the ASX, ADH bought the licenses for $6.35m, $3.75m of which was cash. The remainder covers fees for on-going services provided by SCA through the handover.
“The price is indicative of the fact that there’s a lot of work to do,” Morrison said.
According to Morrison, the difference between ADH and SCA is that ADH — led by Bulfin, who is in his mid-20s — is accustomed to low-cost digital TV production.
“We’ve looked at ways of doing things at a lower cost. The business we run here already is a lower cost production house.”
The regional licenses come with affiliate deals for TV content from the big broadcasters.
In Tasmania for example, ADH’s newly acquired station — 7 Tasmania — dominates ratings on the back of Seven’s feed, which includes AFL coverage. Morrison would not be drawn on the cost of these affiliate deals.
“I can’t disclose that, but it’s significant … that’s the contract as it stands. We’re looking hard at that.”
Morrison is a broadcast veteran with experience both on air and in newsroom management. He was news director of Seven’s Sydney newsroom for eight years before joining ADH, and previously presented on 2GB and 2UE. He said he is working closely with Bulfin and ADH chair Maurice Newman to build ADH. Newman is a former chair of the ABC.
“Television still draws enormous revenues and it still attracts the biggest audiences in town. Particularly the ones we’re looking at, those are areas where people love their TV stations and count on their TV stations.”
Morrison would not disclose the combined reach of the newly acquired TV licenses.
”Rather than think up fanciful numbers, which this industry has a habit of doing, I’d rather just sort of deal with the realities of it. We have working going, successful television stations that we look to improve on.”
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“Everyone watches FTA”. Nope.
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Oh dear. This isn’t going to end well.
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Uh no!
Sorry, you’ve been misinformed there pal.
Few people watch FTA TV and the ones that do, are not key demographics for advertisers.
Anyway, it’s great for Southern Cross media ?
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If Channel 7 goes far right, it will lose a lot of viewers. Advertisers might think twice about supporting Newsmax.
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I think that he means that in isolated regional areas … yes … they watch FTA news.
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