Jobs go in Prime cuts

prime_logo_11Production staff at Prime Television were given notice yesterday.

TV Tonight understands a number of staff at the Canberra facility were given the bad news, as part of a cost cutting measure by the regional network.

Downsizing is believed to be also taking place across other parts of the network, including at GWN in Bunbury.

The sackings will affect mostly local ads, tag and release production, with Prime News and Saturday Club to remain unaffected.

The news was a shock to many given just two months ago staff were asked to take annual leave and work a nine day fortnight to avoid sackings.

5 Comments:

  1. Sorry Kenny you are right – it’s a cash injection.
    Still, one company does not make a huge $80 million investment in another, unless they think it is a good investment.
    Prime is hardly the only company in the world hurting right now.

  2. Russell, I suggest you read Business Day on Fairfax sites:
    – “Stokes comes into the picture as Prime sticks out its hand for cash- Miriam Steffens. March 24, 2009 Paul Ramsays’s Prime Media Group has become the latest media company to tap investors for cash with an equity raising that could lead to Kerry Stokes’s Seven Network becoming a major shareholder.

    The regional television and radio broadcaster is said to be seeking about $70 million to $80 million to ease its debt burden, but the figures had not been finalised. The equity raising could bring a new strategic investor on board, with sources suggesting the cashed-up Seven Network had been approached to take up to 15 per cent.

    Prime Television broadcasts Seven’s programs in regional Australia. Its shares have been halted from trading.

    The chief executive, Warwick Syphers, declined to comment yesterday. Seven did not respond to calls from the Herald.”

    I don’t feeel sorry for Prime. As I said “Who pays for that? Answer: The staff.”.

  3. Kenny I wouldn’t be feeling too sorry for Prime.

    They’re affiliated with the #1 most watched network.
    They have advertising revenue from markets that broadcast to about 6 million people, or 30% of the national population.
    On their 4 or so stations they produce only 2.5 hours of original programming / local news a week.
    When Seven bought shares in them it wasn’t a “cash injection” but an investment, as they obviously see Prime as a money making machine and god investment.

  4. Like I said in another post a few weeks ago, it’s great of the government to inflict all of the extra costs for all these additional channels, HD, etc., etc., but who’s paying for it? Hardly enough advertising revenue to keep one channel going on each network. Seven is already proping Prime up with a huge cash injection. Why not? It all comes back to Seven in program payments for the new Prime channels. But what of the huge infrastructure costs with the hundreds of new transmitters needed by all of the regionals. Who pays for that? Answer: The staff.

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