Free-to-Air TV is increasingly becoming a two horse race between Nine and Seven, latest advertising data shows.
In a report by accounting firm, KPMG, Seven and Nine both increased their share of the advertising market at the expense of Ten, as the national television advertising market shrank by over 3% to slightly under $2 billion.
Seven, owned by Seven Group Holdings (ASX: SWM) saw its share rise more than 2% to 40.3%, while Nine’s share rose by more than 3% to $38.1%. Ten – owned by Ten Network Holdings (ASX: TEN) saw its share fall by more than 5% to 21.6%, as viewers increasingly shun its programs.
While some analysts are forecasting an improvement in advertising growth in 2013, the structural shift away from Free-to-Air to other media formats is set to continue.
As the pie gets smaller, the pressure on the weakest link, Ten will increase, as Seven and Nine are likely to ramp up their attempts to take more market share from Ten. With free-to-air viewership struggling to grow, one network’s gain is often another’s loss.
As we’ve mentioned previously, Ten’s television stations run fourth in the ratings race, behind Seven and Nine and even the government owned ABC. A commercial network running behind the ABC is always going to struggle to turn in top quality results.
Bigger economies like France and Germany have just two free-to-air networks, and Australia could be headed down the same path. Fund manager Laurence Freedman suggested late last year that we may only need two commercial free-to-air networks, and the only question is; which two will be left?
With other entertainment avenues such as the internet and Telstra (ASX: TLS) and News Corporation’s (ASX: NWS) Pay-TV service, Foxtel, competing for their leisure time, a declining ad market, and stronger free-to-air competitors, it appears the writing is on the wall for Ten.
Oil, copper, and gold continue to be in high-demand — and their popularity doesn’t look to be slowing. We’ve uncovered three companies poised to benefit from the rising prices of these commodities. Get our brand-new report — “3 High-Risk/High-Reward Resources Stocks” — FREE!
The Motley Fool’s purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. Motley Fool writer/analyst Mike King doesn’t owns shares in any companies mentioned.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of February 15th 2021
- Why PWR Holdings Ltd could see its share price rise from here – July 21, 2017 12:11pm
- Fortescue Metals Group Limited share price sinks on native title decision – July 20, 2017 4:23pm
- 5 overlooked finance shares to add to your watchlist – July 20, 2017 2:33pm