- Southern Cross Media (SXL) shares have recoiled as Nine Entertainment (NEC) advises it will not renew its regional television deal beyond expiry in June
- Nine has instead appointed rival Australian media player WIN Corporation to oversee the distribution of 9, 9Go, 9Gem and 9Life into regional Australia
- Nine indicated the company’s relationship with Southern Cross had been strong over the years but WIN Network’s ability to extend the reach of Nine’s content under one agreement appears to have sealed the deal
- Looking ahead, Southern Cross will pursue its existing relationship with Network Ten to secure a new arrangement
- Southern Cross Media shares are off 11.3 per cent, trading at $1.96, while Nine Entertainment is up a slight 0.50 per cent to trade at $3.05 per share
Southern Cross Media (SXL) shares have recoiled as Nine Entertainment (NEC) advises it will not renew its regional television deal beyond expiry in June
The company had broadcast Nine’s metropolitan free-to-air television content into regional Queensland, Southern New South Wales and regional Victoria since 2016.
In the same breath, Nine announced it would appoint WIN Corporation to broadcast, channels 9, 9Go, 9Gem and 9Life into markets including Tasmania, regional Western Australia, Victoria, Queensland and Southern NSW.
This new agreement is set to commence July 1, 2021.
SXL’s national and local sales representation for Nine’s NBN television station for Northern New South Wales will also be cut on June 30 this year, and replaced by WIN for an undisclosed period.
Nine indicated the company’s relationship with Southern Cross had been strong over the years but WIN Network’s ability to extend the reach of Nine’s content under one agreement appears to have sealed the deal.
“The opportunities presented by the WIN Network to both extend the reach of Nine’s premium content into more regional markets under one agreement, mean this is the right time for us to return to WIN,” Nine’s Chief Executive Officer Hugh Mark commented.
Prior to this, SXL had been in affiliation with Network Ten for some 20 years and is now tipped to pursue the fellow Australian media company to establish a new deal in regional Queensland, Southern NSW and regional Victoria from July this year.
At 12:13 pm AEDT, Southern Cross Media shares are off 11.3 per cent, trading at $1.96, while Nine Entertainment is up a slight 0.50 per cent to trade at $3.05 per share.