FTA earnings update – could digital save the TV star?

Broadcasters pivot to digital platforms and programmatic solutions to offset a 3.9% CAGR decline in linear adex.

Vinay Chhoda · Venture Insights26 August 2019Period: FY196 min read

Last updated 10 June 2026

A$434mn↑

Forecast Australian BVOD revenues by 2023

3.9%↓

Forecast CAGR decline in linear FTA adex through 2023

Locked

+2more stats

Companies covered:Seven West MediaNine EntertainmentStanFairfaxNetflixTwitterFacebookDomain

Abstract

This report analyses the FY19 earnings of Seven West Media and Nine Entertainment, highlighting a critical transition period for the Australian free-to-air (FTA) market. While core linear advertising revenues face a structural decline of 3.9% CAGR through 2023, rapid growth in Broadcast Video on Demand (BVOD) and digital adjacencies offer a partial offset. The analysis evaluates how programmatic advertising, addressable TV, and strategic mergers are being deployed to counter audience fragmentation and the proliferation of OTT services.

Key Takeaways

Linear FTA advertising is forecast to decline at a 3.9% CAGR through 2023 as audiences migrate to digital platforms.
BVOD revenues are projected to grow at a 36.1% CAGR, reaching A$434mn by 2023 to partially offset linear losses.
Nine Entertainment's Stan reached 1.7mn subscribers in FY19 and achieved its first half of positive EBITDA.

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Frequently Asked Questions

Linear advertising is in structural decline, with revenues forecast to contract at a 3.9% CAGR through 2023. To compensate, broadcasters are pivoting to digital platforms where Broadcast Video on Demand (BVOD) revenues are projected to reach A$434 million by 2023.

Domestic players are achieving significant scale, evidenced by Nine’s Stan reaching 1.7 million paid subscribers and recording its first half of positive EBITDA in FY19. Furthermore, Seven Studios remains a high-margin asset, generating A$59.1 million in EBIT following seven years of consecutive growth.

Broadcasters are aggressively shifting toward programmatic and addressable TV to target a pool of 9 million addressable users. This transition is supported by the rapid adoption of hardware, with Connected TV penetration reaching 46% of Australian households in 2018.

FTA earnings update – could digital save the TV star?

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