Seven and Nine 1H19 update – increasing share in a declining market

Traditional broadcasters pivot to digital content and cost reduction as FTA revenues forecast to decline at 3.4% CAGR through

Vinay Chhoda · Venture Insights1 February 2019Period: 1HFY194 min read

Last updated 10 June 2026

4.6%↓

Decline in Australian TV ad market revenue (1HFY19)

39.3%→

Nine Entertainment Metro FTA audience share (1H19)

Locked

Companies covered:Seven West MediaNine EntertainmentStanDomainMacquarie MediaPacific Magazines

Abstract

This report analyses the 1HFY19 earnings of Seven West Media and Nine Entertainment, highlighting a challenging environment where core FTA revenues declined 4.6% YoY to $2.1bn. Despite the market contraction, both players increased or maintained audience share. The analysis forecasts a 3.4% CAGR decline in FTA revenues through 2022, emphasizing the strategic shift toward BVOD and SVOD platforms, such as Stan and 9Now, to offset traditional broadcast and print weakness.

Key Takeaways

The Australian TV ad market fell 4.6% YoY to $2.1bn in 1HFY19, with Metro FTA and Pay TV segments declining 4%.
Venture Insights forecasts a 3.4% CAGR decline in FTA revenues through 2022 as audiences shift to digital formats.
Nine's Stan reached 1.5mn paid subscribers (+60% YoY) and is expected to be EBITDA positive in FY20.

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Frequently Asked Questions

The decline is structural, with the Australian TV ad market falling 4.6% to $2.1bn in 1HFY19. We forecast a 3.4% CAGR contraction in FTA revenues through 2022 as audiences migrate permanently to digital formats.

Nine’s Stan has reached 1.5 million paid subscribers, representing 60% year-on-year growth. The platform is expected to be EBITDA positive in FY20, proving that local SVOD models are becoming financially viable.

Seven West Media has increased its cost-out target to $30-40 million to defend against a 1.5% decline in total revenue. Broadcasters are also pivoting to BVOD, where industry revenues are projected to reach $120 million in FY19.

Traditional print remains the most vulnerable segment, with Seven reporting an 11.6% drop in print advertising revenue to $52.8 million. This outpaces the 4% decline seen in the Metro FTA and Pay TV segments.

Seven and Nine 1H19 update – increasing share in a declining market

Abstract

Key Takeaways

Frequently Asked Questions

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