Are digital gains actually enough to cover the losses in traditional TV advertising?

Digital growth is now reaching an inflexion point where it successfully offsets legacy declines. While traditional television advertising spend fell by 10%, Nine’s underlying subscription revenue grew by 13% and its digital businesses are projected to account for 60% of total revenue by FY27.

What does the merger between Southern Cross Media and Seven mean for the market?

The merger creates a massive $2 billion revenue entity designed to provide the 'Total Media' scale necessary to compete with global platforms. This consolidated group now commands a record 44.1% share of the Total Television market and is targeting $30 million in annual cost synergies.

Is there still a growth case for streaming and digital audio services?

Growth remains robust, particularly in specialized segments like Stan Sport, which saw a 40% increase in subscribers. Digital audio is also proving its viability, with the LiSTNR platform contributing $2.8 million to EBITDA and attracting 70,000 new users in a single month.

Media

Digital Platforms

Premium

Nine/SXL Results Highlight Digital Prospects

Nine targets 60% digital revenue by FY27 while SXL merges with Seven to build a $2 billion 'Total Media' powerhouse.

David Kennedy · Venture Insights27 February 2026Period: H1 FY268 min read

10%↓

Decline in traditional Australian television advertising market spend

$192.2 M↑

Nine Entertainment H1 FY26 Group EBITDA on a continuing basis

Locked

+2more stats

Companies covered:

Abstract

The Australian media sector is undergoing a significant structural shift as legacy broadcasters pivot toward digital-first models to combat the decline of linear advertising. This report analyzes Nine Entertainment's strategy of digital specialization and portfolio optimization, including its acquisition of QMS Media, alongside Southern Cross Media's landmark merger with Seven West Media. By evaluating financial performance across subscription, audio, and television divisions, the analysis highlights how scale and digital acceleration are being used to defend against global platform competition.

Key Takeaways

Nine Entertainment is successfully navigating an 'inflexion point' where digital growth offsets legacy asset erosion.
Stan remains a standout performer with 15% revenue growth and a 40% increase in Stan Sport subscribers.
Nine's 'Nine2028' strategy aims for digital businesses to account for 60% of total revenue by FY27.

Nine/SXL Results Highlight Digital Prospects

Abstract

Key Takeaways

What's Inside

The Advertising Market Context and Outlook

Nine Entertainment Corporation

Southern Cross Media Group

Frequently Asked Questions

Abstract

Key Takeaways

What's Inside

The Advertising Market Context and Outlook

Nine Entertainment Corporation

Southern Cross Media Group

Frequently Asked Questions

Unlock the full report

Free

Lite

Team