Monday 22 October 2012

Channel 9 cricket contract set to expire



Nine may have been thrown a last-minute lifeline last night but the biggest loser from the events of the past few days could in fact prove to be Cricket Australia.
  
The network paid $315 million over seven years for the rights to all home Tests, one-dayers and Twenty20 internationals in 2006.

That contract expires at the end of this summer.

"With less money to spend under new owners, that does open the door for Seven or Ten to outbid Nine," Fat Prophets media analyst Greg Fraser said. "I think with Kerry Stokes having a bit of a war chest, more than $500 million at last count after his recent equity raising, he could certainly lob in a bid for those rights."

Seeing a sporting code that has always commanded pride of place on Nine's summer programming mantle either fall to rival Seven or be broken up across several broadcasters is the worst-case scenario for Nine. A CA spokesman said the body was dealing exclusively with Nine at the moment, with the fine print yet to be discussed.
Also in the firing line could be the channel's top-rated programs.

While programs including The Big Bang Theory, Two And Half Men and The Mentalist are not expected to face any immediate chops, media analyst Peter Cox said the deal could affect them in the future. "Nine's $500 million production deal with Warner Brothers is going to expire in 2014 and Gyngell has hinted he won't guarantee it going forward," Mr Cox said.

"If audiences aren't going to turn up and watch these programs, any news owners won't want to waste their money shoring up those programs if they can't get the advertising dollars to justify it."

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