Question 1

How are traditional broadcasters managing the shift from broadcast to digital?

Accepted Answer

Major networks are successfully migrating audiences to digital platforms, with Nine’s 9Now revenue growing 41% to $151 million. Seven West Media demonstrated the most aggressive digital pivot, reporting a 129% surge in digital EBITDA to $139 million.

Question 2

Is streaming growth enough to offset the decline in traditional pay TV?

Accepted Answer

Foxtel’s streaming subscriber base grew 68% to reach 2.2 million, more than compensating for the 10% decline in residential pay TV subscribers. Total residential pay TV users now sit at 1.61 million as the market shifts toward IP-delivered content.

Question 3

What is the financial health of the radio and digital audio sector?

Accepted Answer

While the radio industry saw a 9% revenue recovery in FY22, the transition to digital audio remains a cost-heavy investment. SCA’s digital audio revenue rose 35% to $21 million, yet the segment still recorded a negative $38 million EBITDA.

Question 4

Should we expect the advertising recovery to continue into next year?

Accepted Answer

No, the current growth cycle is peaking. Despite television advertising revenues growing 11% in the year to June 2022, ad expenditures are forecast to contract in calendar 2023 as GDP growth slows.

Media roundup of July 2022

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