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Woolworths and Channel 9 are winners with The Voice

With a reported 2.3 million viewers tuning in to the final episode of “The Voice” on Monday, executives at the privately owned Channel 9 will no doubt be pleased at having won audience share that evening. However in perhaps a telling sign, the audience was massively down on the 2012 finale of “The Voice”, which drew in 3.3 million. That might make next season’s negotiations with advertisers a tough one.

Woolworths (ASX: WOW) was also on The Voice bandwagon by offering fans a free download of the final four contestants’ rendition of John Farnham’s famous song ‘You’re the Voice’. At last count, over 44,500 fans had downloaded the song, which Woolworths is kindly paying for. From Woolies point of view, the enticement of the free download allows the company to then invite fans to head to the main online Woolworths’ website. With more and more services being available on Woolworths’ website, such as car insurance and mobile phone plans, the company is trying to encourage more traffic to its site.

The continued increase in time consumers are spending online rather than in front of their televisions continues to play havoc for not just Channel 9 but all the networks — Seven West Media (ASX: SVW), Ten Network (ASX: TEN) and Prime Media Group (ASX: PRT) included.

Foolish takeaway

The structural shifts to ‘old world media’ are very real and very difficult for management to adjust to. Investors need to be careful to avoid value traps in the sector.

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Motley Fool contributor Tim McArthur does not own shares in any of the companies mentioned in this article.

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