Question 1

Is the drop in TV advertising revenue solely due to the pandemic?

Accepted Answer

No, the structural decline was well underway before the crisis, with linear FTA revenue falling 7% in the first half of FY20. COVID-19 acted as an accelerant, driving a much sharper 21.8% decline in the second half of the fiscal year.

Question 2

Can digital streaming growth actually replace lost broadcast income?

Accepted Answer

While the Australian BVOD market grew 33% in FY20, it remains too small to immediately bridge the gap left by linear losses. It will take several years of sustained growth before digital platforms can fully offset the ongoing erosion of the traditional advertising market.

Question 3

How are the major networks maintaining profitability during this shift?

Accepted Answer

Networks are relying on aggressive cost-cutting and diversified digital revenue streams, such as Seven West Media’s A$170 million in gross cost reductions. Nine is further insulated by Stan, which reached A$242 million in revenue and 1.7 million subscribers in FY20.

Question 4

What is the immediate outlook for the media market in the coming year?

Accepted Answer

The economic impact of COVID-19 will continue to weigh on FY21 results as the full effect of shutdowns flows through the industry. Networks must accelerate their transition to addressable TV to capture the 42% of Australian households now using connected TVs.

Nine, Seven results: COVID impact disguises accelerating FTA revenue decline

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