Business of Media
How Australia contributes over $100m to BBC Commercial turnover
BBC Commercial, the arm of the corporation that oversees the hit show, grew its turnover by 24 per cent to £1.72 billion in the year to March. It had been, the management declared, a “stellar” year, reports Robert Watts in The Sunday Times.
Profits were up a glittering 57 per cent to £226 million, allowing a £144 million dividend to shimmy off to the coffers of the BBC — double the payment from the previous year.
But it doesn’t just make shows for the BBC. Of the 104 new commissions it won last year, 26 were from “third parties” including YouTube, Netflix, Channel 5, Amazon and Sky.
Aside from program making, BBC Commercial brings in hundreds of millions of pounds a year from allowing overseas broadcasters either to show a BBC program or make their own versions. Dancing with the Stars, the international version of Strictly Come Dancing, is now airing in 60 locations around the world.
Less than half (£828 million) of BBC Commercial’s £1.72 billion turnover stems from the UK, with America accounting for £378 million, Australia £86 million and the rest of the world £426 million.
Foxtel cuts debt as record AFL deal nears
Foxtel has restructured its debt and managed to knock off more than $US170 million from its total borrowing position by using existing banking facilities as it prepares a monster bid to retain broadcast rights to the AFL, reports Nine Publishing’s Max Mason.
Foxtel also has a combined $539 million undrawn from a 2019 credit facility and 2017 working capital facility, compared with $334 million available a year ago.
It sliced borrowings in a 2019 facility from $US232 million to $US68 million in the 12 months to June 30. The 2017 working capital facility had no debt drawn down as of June 30. It has fully drawn down its 2019 term loan facility at $US171 million.
The numbers were revealed as part of financial statements filed by News Corp last week, in addition to its full-year results a week earlier.
Global ad market faces ‘car crash’ next year amid cost of living crisis
The $850bn (£720bn) global advertising market is facing the prospect of a “car crash” next year as the cost of living crisis forcing households to drastically cut back on spending triggers companies to consider slashing their marketing budgets, reports The Guardian’s Mark Sweney.
The advertising industry remains bullish about its prospects – the football World Cup is forecast to keep growth at a gloom-defying 8.4% this year, while 6.4% remains pencilled in for 2023 – despite mounting concerns that the economy it feeds off is heading for recession.
“Conventional wisdom would suggest that next year will be a car crash,” said one senior UK media industry executive. “Consumers are being squeezed harder than at any time since the 1970s. Many things will become secondary to essential spending, all of which creates a nasty cocktail for the ad industry.”
Disney’s price hikes usher in era of the not-so-cheap ad tier
After initially touting its advertising-supported offering as a lower-cost option to bring in subscribers, Disney+ is now concentrated on maximizing profitability, reports The Hollywood Reporter’s Caitlin Huston.
When Disney+’s ad tier launches, in December, it will cost U.S. customers $7.99 a month, the current price of the service’s ad-free tier. The price of the no-ads version will be hiked to $10.99. The increased focus on the bottom line raises questions about how Netflix will price its upcoming ad-based tier and how major rivals could respond with their own price increases.
The Bob Chapek-run Hollywood giant revealed the new pricing Aug. 10, just as Disney reported strong third-quarter earnings. The company showed solid momentum and spending at its domestic parks, as well as growing subscriber numbers, overtaking Netflix for the first time with 221 million total subscriptions across its bundle. Both factors show resilience among consumers, according to Disney executives, even in light of inflationary concerns. That, combined with the media giant’s investment in content, helped clear the way for a higher price point for the ad-supported tier. Plus, analysts say the platform has been underpriced from the beginning, both in terms of its content and compared to competitors.
‘It’s a modern-day Facebook’ – how BeReal became Gen Z’s favourite app
“Instagram, please stop trying to be TikTok.” App users including Kim Kardashian and Kylie Jenner shared this plea last month when Instagram trialled changes that flooded users’ feeds with short-form videos called “reels” and content uploaded by strangers. They were reacting to Instagram’s attempt to wrest Gen Z eyeballs away from TikTok by mimicking some of the app’s signature features, reports The Guardian’s Laurie Clarke.
Early social media platforms such as MySpace and Facebook were built on the quaint notion of “friends”, mirroring your real-life social networks online. But the ruthless dynamics of the attention economy mean that the platforms most popular with young people today, Instagram and TikTok, double as global arenas to launch influencer careers. Content – not connection – is king, and algorithmically optimised virality is the metric that determines what you see.
BeReal was launched in 2019 by the French entrepreneurs Alexis Barreyat and Kévin Perreau. The app prompts users to take a simultaneous front and back camera picture every day at a specific time, within a two-minute window. Users can take it later, too, but can’t see their friends’ content until they’ve posted themselves. This is supposed to ensure that users snap a picture of whatever they’re doing at the time – no matter how unglamorous – paired with a selfie – no matter how unkempt – to promote a way of relating more authentically to friends online.
Television
‘Tent pole’ TV not what it was, says Channel Seven boss
Seven West Media’s boss has sought to play down the importance of event TV and so-called “tent pole” programs as the battle over AFL rights continues and Channel Seven’s marquee My Kitchen Rules struggles in the ratings, reports Nine Publishing’s Mark DiStefano.
Seven chief executive James Warburton told The Australian Financial Review the network was less concerned about having the top show in a particular slot than giving advertisers options to go after particular audiences – whether that was live or on a catch-up service.
“It’s economics over ego,” Warburton said. “The days of saying you must have a piece of content, or you must have a sport, or however you want to describe it, [they’re over].”
“Tent pole” shows refer to the highly rated programs that bring in so many viewers and advertisers that they prop-up the rest of a network’s schedule. Broadcast executives pinned their hopes on My Kitchen Rules having that effect at Seven after the show was put on ice during the pandemic.
Producers tweaked the show’s format, spending big to lure global cooking sensation Nigella Lawson to co-host the relaunch of the program.
Gogglebox’s emotional tribute to series favourite Di Kershaw
When Gogglebox Australia returns for its 16th season this week, there will be a big piece of it missing, reports news.com.au.
Di Kershaw and her husband Mick will not be featuring in this upcoming season following the popular TV personality’s death in July. Kershaw died after a short fight against throat cancer. She was 76.
Gogglebox will pay an emotional tribute to its former founding cast member with a dedication at the start of the episode while a three-minute montage of her and Mick’s time over 15 seasons will be included at the end.
Sports Media
Push for key interstate AFL games to go behind Foxtel paywall
More AFL games outside Victoria would be shown live exclusively on Foxtel and on a delay of up to two hours on Channel Seven under a proposal being reviewed by the league’s governing body as talks over a $1 billion-plus media rights deal enter the home stretch, reports Nine Publishing’s Zoe Samios and Jake Niall.
Media sources who spoke on the condition of anonymity because talks are confidential said the AFL was considering delaying two free-to-air matches each week by up to two hours in interstate markets to give Foxtel more exclusivity for its streaming service Kayo Sports.
However, Seven is fiercely opposing the suggestion on the grounds it would hurt fans and significantly reduce the value of its own rights.
This season, six matches aired on Seven on delay in Western Australia and South Australia, but all matches in Queensland, NSW and Victoria are broadcast live on Seven. Under plans being considered by the AFL, more matches would air on free-to-air each week (four) – but two of these games would be delayed by up to two hours in markets outside Victoria.