Will Sky News Content Help Revive Network Ten?
Being a very cost-efficient content producer, it will not be surprising if Sky News Australia enters into a mutually beneficial news programming supply arrangement with Network Ten, once some form of recapitalisation occurs at the currently beleaguered free-to-air commercial metropolitan television broadcaster.
Such a content supply agreement reportedly had been under discussion between the two media groups prior to the Ten Network’s appointment of a voluntary administrator in mid-June 2017 and there appears to be potential for each organisation to realise considerable financial benefits from such an association.
In fiscal year 2015 (FY 2015), when Australia’s three commercial metropolitan television networks spent an average $120 million each on local news and current affairs programming, Sky News Australia was able to produce its quartet of 24-hour subscription television news channels for less than $42 million.
Thus, it would not seem unreasonable to believe that tens of millions of dollars of benefits might flow to each organisation if Network Ten were to out-source a large portion of its local news production requirements to Sky in the near future.
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