Regional broadcaster Southern Cross Austereo (SCA) has renewed its affiliation agreement with the Ten Network.
The broadcaster, which operates Southern Cross Ten in regional markets in Queensland, New South Wales, Victoria, South Australia and the ACT, will now pay Ten up to 35 per cent of advertising revenue for access to Ten’s program schedule over the next three years.
The previous agreement, which expired in June, obligated SCA to pay 29 per cent of revenue.
The higher rate is despite Ten experiencing record low ratings in the capital city markets — with the network on track to ending the year behind the ABC in ratings for the first time in memory — although Ten will anticipate higher ratings with its upcoming coverage of the Winter Olympic Games, Commonwealth Games and Big Bash League cricket.
The higher fee will also put pressure on Southern Cross Ten to increase local market share using Ten’s product, and to decrease costs elsewhere.
The new deal comes after reports that SCA was in talks with the Nine Network about a possible merger or affiliation which would have seen Nine move away from its traditional affiliate partner WIN. However, the Nine Network and WIN secured a two-year affiliation deal announced in June plus Nine has purchased WIN’s NWS Nine Adelaide and is expected to buy STW Nine Perth.
Source: The Age