The contractual resolution to protracted joint programming issues appears to have been Nine’s response to WIN recently announcing it had signed regional SA to the Seven Network.
Nine will continue to supply programming for regional stations in the WIN network and STW in Perth. Adelaide remains unchanged and regional SA,r Mildura and Griffith are unaffected by the deal.
WIN has had a long fight with Nine over supply arrangements and pulled shows like Mornings with Kerri-Anne to flex its muscle. So far KAK is only up for consideration after the new deal is settled.
According to The Australian, WIN appears to have agreed to a 33% revenue deal rising to 35% in five years. This higher than the alleged 29% figure it was seeking, and up on the current 32.5%. So Nine seems to have had a WIN there!
Nine Network Australia and the WIN Corporation today announced that agreement had been reached on licensing fees for the regional stations in the WIN network and STW in Perth . There is no change to the arrangements for NWS in Adelaide .
Ian Law, Chief Executive Officer of PBL Media said: “The new agreement is a good compromise reflecting the higher costs of our content and our need to invest in the Network at the same time ensuring WIN has capacity to invest and grow its business.
“Our focus now is to build the position of both the Nine Network Australia and the regional and metropolitan stations in the WIN Network. It is a positive outcome for our viewers and advertisers. The overarching principle of the new 5 year agreement is that stations in the Nine Network Australia and WIN will broadcast the same content and schedules, with minor variations for time zones.
“We are in the middle of a rebuilding phase of the Nine Network Australia and it was important for us to conclude the arrangements to allow us to work with the management and staff of WIN to build our audiences and also grow our collective revenues and profits.”
Bruce Gordon, Deputy Chairman of WIN Corporation, said he was delighted with the outcome and the fact that arrangements had been settled. He said on the basis of the new arrangements the WIN Network could focus on developing its business on a sustainable basis.
“We believe the outcome on licence fees is a reasonable compromise and will allow us the margin to invest in our content and the Network in a broader sense.
“ Perth has moved from a share of costs under the previous owners to a share of revenue and we think this is good for us. We also think it will be good for NNA. We intend to invest heavily in the business to grow our audience in Perth and WA, and we believe that we can grow the revenue. We are already planning a number of changes in the local news and current affairs content to take us forward.
“The outcome for the regional stations in the WIN Network is also reasonable and we are confident that we can work with Nine Network Australia to find operational synergies. The new arrangements do not at this stage apply to the regional stations in SA, Mildura and Griffith.”
Mr Gordon said he and Nine would review the situation with Mornings with Kerri-Anne once the new arrangements were settled. The regional sales operations of WIN and NBN would continue to present a total integrated marketing solution.
“Our focus now is to work with Nine to make the two networks, Nine Network Australia , and WIN, a powerful and united force.”
Additional Source: The Australian.