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Packer keeps them guessing

What does James Packer have in store for TEN? Everybody has a theory...

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Speculation on what James Packer plans for TEN has media in a spin.

It ranges from possible plans for NRL and international cricket, to buying cheap and selling later at a profit, to getting ready to swing the axe…and there is even comment on how the deal suprised his friend David Gyngell and throws down the gauntlet to Kerry Stokes.

Packer is now close to becoming TEN’s majority stakeholder.

Media buyer Harold Mitchell told Lateline, “If Packer’s going to have an interest as big as that approaching that takeover limit, I suspect he wants some seats on the board for he and some of his people. They know what they’re doing. They’ve had a history of running all media companies and very, very strong in television, so I would think that they would be wanting to focus on what is the job that they’re very good at. The advertising market is doing so well, but they want more than their share.”

Considered most at risk are the ambitions for 2.5 hours of news in 2011. TEN is hiring 100 new employees for the shift. It’s a huge gamble in ratings and investment.

“We are well progressed in pursuing the strategy we announced in August,” a TEN spokesperson said.

Packer is also said to have concerns that the network’s success with MasterChef has not been applied across the network.

Today most media reports are linking Packer’s interest in TEN to the future of sport and broadcasting in Australia.

With the anti-siphoning list about to be redrafted the future for ONE looks brighter.

With Packer on board, TEN could bid to secure the rights to rugby league and international cricket when the deals with Channel Nine expire.

Updated: But there is also speculation Packer may be looking to axe ONE and air SKY News on a third channel.

James Packer, who has held Pay TV interests since selling out of PBL / Nine, is not considered to share the same emotion for television as that of his father. With previous interests in casinos and telcos, he could well be taking opportunity to move on a network while the price is good. His father showed him how to sell the network at a premium rate only to buy it back at a steal later. Profit, not progamming, is the main game.

The good news for television is that it is an endorsement of an industry many view as being beseiged by alternatives.

Source: news.com.au, theage.com.au, smh, ABC

54 Responses

  2. “Packer is also said to have concerns that the network’s success with MasterChef has not been applied across the network.”

    Excellent point! Totally agree with ya James ol chum.
    Here are my suggestions. Take them or leave them:

    – Po to host TEN news at 5
    – ‘Good News Week’ to be hosted by Preston, Garry and George
    – Huey’s Kitchen to move to a primetime slot, 5 nights a week replacing the ‘7pm Project’ and followed immediately by ‘Ready Steady Cook’
    – ‘Bondi Vet’ to be replaced by Bondi Chef
    – Callum to get more airtime. That kid needs a break. Perhaps hosting a ’20 to 1′ spinoff
    – ‘Talkin bout Your Generation’ to be remade as ‘Talkin bout Your Lunch’

    Just more food talk hey Mr Packer? Nyom nyom nyom! Im with ya! Nyom nyom nyom!

  5. Packer’s latest move won’t affect anything on FTA. One HD is safe, and as I understand it 11 is still on track for a 2011 debut. FTA won’t be affected one way or the other despite Packer’s latest move.

  6. His investment in TEN is only to get Seven out of Consolidated. Own enough TEN shares and Kerry Stokes has to divest either his Consolidated holdings or Seven Holdings.
    Stokes wont be able to keep both.

  7. Mr Packer is not stupid, and it would be stupid to shut down ONE.
    Free to air sports will always exist, and 7Mate or Gem could easily decide to change to 24 hour sports if the opening was there.
    Furthermore, One has the potential to grow much more than Fox Sports ever will.
    And would Packer really buy shares into a company that he intends to destroy? That in itself could mean a huge loss in money. Reverting TEN back to the low-cost Simpsons-repeat model would not work in this new TV environment. This low-cost model is basically what GO! and Eleven are for. So where would that leave Ten? These days the main channels need to work much harder than that.

  8. Why is everyone saying James Packer will kill off One HD because of his share interest in Foxsports? He’ll make One HD into a stronger sports channel. His share in Foxsports can forge a great partnership between the two networks which would very beneficial in bidding for rights. The networks could put joint bids in for popular sports and could feed off one another in programming.

  10. James Packer has never had a interest in tv. Sorry bad thats the way i see it. It was his father who had a reall pasion for tv. James is just going to simply disband ONEHD and then TEN will have to sell most of its content including the NBL if that happens and thereis a good chance it will the viewers and the people who are not on multimillion dollar calleries will loose out.

  15. I too think ONE will be safe. Surely JP has the sense to know that digital channels will only increase their ratings share as analogue is switched off over the next few years.

    My concern is the NRL. I don’t want CH10 turned into ‘the footy channel” like the way Nine has been for years.

    Oh and if he could leave 7pm project and Sandra Sully where they are, that’ all i ask.

  16. I’m sure Nick Falloon can’t wait for John Alexander to take a seat at the 10 board table. Not. These people destroyed Nine and it has never really recovered. I’ve thought DG has been getting bored at Nine for a while now and here is his ticket out!

  17. Packer is after One HD. Packer naturally wants to destroy and competition to Fox Sports, a monopoly company.
    Even if he didn’t take One HD off the air, he would make sure One did not take too much sport away from Fox Sports and Foxtel. Millions of Australians fork out $100 a year to pay-TV mostly for sport.
    This is a strategic defensive move to protect his existing assets and make a bucket of $ along the way.

  18. “Speculation on what James Packer plans for TEN has media in a spin” – As Margaret Thatcher would say “Speculation by whom, Mr Negus. Where were you told this and by whom? What are their names?”.

  20. The ONE/Fox Sports scenario is interesting. I refuse to get Fox Sports unless they offer a straight $19.95 a month plan. Which will never happen.
    To ask me to pay for essentially unwanted repeats of 10-15 year old shows and movies I’m (personally) not going to watch, just to qualify for the privilege of paying more for what I DO want is nonsensical. Add in more for HD etc
    On top of this the coverage is poor. Their AFL commentators – Dwayne Russell and Brian Taylor – are hands down the worst going around.
    I’ll consider spending on the product when it warrants it Killing off ONE (which seems an understandable move economically) won’t change that.

  24. Guys, enough with the idle (and mostly ill-informed) speculation, please! Market analysts are unable to agree on Packer’s motivation(s) so you’re unlikely to do better. When there’s a lack of hard data about these things, unsourced (made-up) rumours start circulating.

    It’s highly unlikely that Packer will shut One down. It’s making money and he would have a massive fight on his hands against a large number of stakeholders. Replacing it with Sky News would be crazy – how is that going to make more money? All it would do is weaken its brand on FoxTel and other cable broadcasters.

    I doubt that there’s one single reason behind this move but money will be at the top. Ten’s fortunes will almost certainly turn around with the launch of Eleven. Now is prob a good time to get on board.

  25. Let’s be honest…only james packer will know whats he wants from the network.

    The point i would like to make is in terms of one hd..is he loking at a similar set up as the US. See in the US Espn and Abc are both owned by disney. As such espn gets access to free to air sports by packaging and branding the sports broadcasts that go to air on ABC. Look at the NBA finals for proof of this.

    So possibly mr packer could actual manoplise the market by basically gaining full rights to most sports and splitting them between fox and one and branding them as fox sports productions.

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