Why is SCA exiting the television market entirely?

The structural shift toward BVOD services, which now represent 12% of total free-to-air viewing, has disadvantaged regional broadcasters who lack their own streaming platforms. By divesting these assets, SCA can focus on its audio segment, which saw a 9% revenue increase in the first four months of 2025.

What are the financial terms of these license sales?

Seven West Media is acquiring regional licenses in Tasmania and Darwin for $3.75 million in cash. Additionally, Network Ten will pay SCA between $15 million and $20 million over a five-year period for its affiliates in Queensland, southern NSW, and Victoria.

How will this move impact SCA’s balance sheet and shareholders?

The divestment is designed to reduce net debt leverage to below 1.5x by June 30, 2025. This deleveraging strategy has already contributed to a 20% increase in SCA’s share price since its October 2024 low and is expected to support a resumption of dividends.

What does this consolidation mean for the Australian media landscape?

The transactions effectively end the 'equalisation' policy era by moving toward a centralised metropolitan-led model. Market confidence in this consolidation is high, evidenced by Seven West Media’s stock price surging 18% following the announcement of the acquisition.

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SCA exits regional TV, the end of a media policy era

SCA completes its strategic pivot to audio by divesting regional TV assets to Seven and Ten, ending the equalisation era.

David Kennedy · Venture Insights26 June 2025Period: FY256 min read

$3.75 million→

Cash consideration for Seven West Media's acquisition of SCA regional licenses

$15-20m↑

Total payments to SCA over five years for Network Ten regional licenses

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Abstract

On 30 June, Southern Cross Austereo (SCA) will complete its sale of its Seven Network affiliates to Seven West Media. This follows a sale of its Ten Network affiliates to the Ten Network in the aggregated markets of Queensland, southern New South Wales, and Victoria, agreed in December 2024. With these sales, SCA has exited the television market. Regional broadcasting in Australia was the product of the Hawke Government’s ‘equalisation’ policy. This policy saw affiliates of all three metropolitan networks set up in the major “aggregated” markets in regional Australia, bringing diversity and competition. But the rise of BVOD services, which are exclusively owned by the metropolitan broadcasters, took away regional TV’s growth engine. The policy response was to change the cross-media rules in 2017 to allow metropolitan networks to acquire regional licences. With this transaction, that process is all but complete, laying a platform for future regional viability.

Key Takeaways

Southern Cross Austereo (SCA) has officially exited the television market following the sale of its Seven and Ten network affiliates.
Seven West Media (SWM) acquired SCA's regional licenses in Tasmania, Darwin, and other remote areas for $3.75 million in cash.
Network Ten (Paramount) previously agreed to acquire SCA's licenses in Queensland, southern NSW, and Victoria for $15-20 million.

What's Inside

SCA completes sale of its TV licences

Why does this matter?

1 figure& data tables inside

Charts, tables, and data visualisations

Figure 1. SCA regional coverage by affiliate network, 2021

Abstract

Key Takeaways

What's Inside

SCA completes sale of its TV licences

Why does this matter?

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