SCA negotiations with Ten overshadowed by structural tensions

Structural shifts toward BVOD and declining linear ratings force a reassessment of regional TV affiliate agreements.

David Kennedy · Venture Insights13 October 2023Period: October 20233 min read

Last updated 8 June 2026

18%↓

Network Ten share of viewing (2023)

22%↑

Estimated FTA TV viewing happening online (FY28)

Locked

Companies covered:Southern Cross MediaNetwork TenSeven NetworkNine EntertainmentWINNetflixYouTubeViacomCBSParamount+

Abstract

This report analyses the ongoing negotiations between Southern Cross Media (SCA) and Network Ten following the expiry of their affiliate agreement in July 2023. It examines how a 7% decline in Ten's viewing share and the rise of Broadcaster Video on Demand (BVOD) are creating downward pressure on affiliate fees. The brief also explores the strategic rationale for a potential acquisition of SCA's TV assets by Ten's parent, Paramount Global, to support its SVOD ambitions in regional Australia.

Key Takeaways

SCA is negotiating to renew its Network Ten affiliate deal which expired in July 2023.
Network Ten's viewing share has plummeted from 25% to 18% in just two years, justifying lower affiliate fees.
Ten's national BVOD service is actively draining advertising revenue from regional Australia.

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Frequently Asked Questions

Network Ten's viewing share has collapsed from 25% to 18% in just two years, significantly reducing the value of the affiliate agreement. SCA is leveraging this 7% decline to demand lower fees following the contract's expiry in July 2023.

Online free-to-air viewing is projected to more than double from 10% today to 22% by FY28. This transition allows national broadcasters to use Broadcaster Video on Demand (BVOD) to bypass regional affiliates and capture local advertising revenue directly.

Paramount Global may acquire SCA’s TV assets to secure a national footprint and accelerate Paramount+ SVOD growth in regional Australia. This consolidation is now legally feasible following the Federal Government's removal of the 70% reach rule.

SCA negotiations with Ten overshadowed by structural tensions

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