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New TEN boss says network “can be saved.”

"We are the underdog. But I love being the underdog," says new TEN boss.

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2013-02-23_0107 The new boss of Channel TEN, Hamish McLennan, may not have much in the way of television experience, but he is regarded as a strong leader.

In an interview with the Australian Financial Review, he said he believed TEN could be fixed.

“The reality is that a few hits over time can deliver large audiences. And the reality is that networks like TEN can still deliver to large audiences, which is what brand marketers and the media buying community need,” he said.

“I certainly don’t want to understate the task. We are the underdog. But I love being the underdog.”

McLennan was a surprise announcement in the top job yesterday following the sacking of James Warburton after just over 12 months. Warburton’s firing was just one day short of the two year anniversary of the dismissal of Grant Blackley.

But TEN’s statement has not clarified if Warburton has exited the company entirely with some speculation there could be a contractual dispute.

Earlier on Friday, TEN reported that it had received an $80 million cash advance from the Commonwealth Bank to replace an existing $350 million facility that was due to expire in February 2014. It also completed the sale of advertising business Eye Corp, but the deal ended up costing the network $4.9m.

Asked to nominate his main goals, McLennan said investing in programming, marketing and promotion were top of his list. He also said he needed rebuild TEN’s relationships with media buyers and brand marketers.

McLennan has resigned from his position as a senior executive position at News Corp to take up the TEN role. He been serving as a special adviser to Rupert Murdoch. He is the second exec from Murdoch-run News empire to become a television CEO in recent times, following Richard Freudenstein’s appointment to Foxtel from News Ltd.

His new contract stipulates a 12 months’ notice of termination except in the case of “serious misconduct.” He can also terminate on 12 months’ written notice.

McLennan’s father had been a producer at TEN, bringing Michael Parkinson to Australia for shows produced in the former North Ryde studios.

“If you look at the history of Channel TEN, it was always the nimble, low cost, high margin network. And that to me is as relevant now as it has even been. I think we can deliver great returns for our shareholders”.

Those are words likely to be repeated back to him if struggling shares do not lift.

He also told The Australian, “I’ve had to take over businesses in the past that have fallen on hard times, such as (advertising group) Y&R, and it’s all about putting the creative product first and putting the very best people into the business and getting on with it,” he said. “TEN has some fantastic people and great DNA, and I know lots of people will join the network and want to be part of the turnaround.”

“These are not quick fixes,” he said. “But in my opinion, it’s the best opportunity in media in Australia at the moment.”

Russel Howcroft, currently the executive general manager of TEN, will act as CEO until McLennan takes over the role on March 18.

24 Responses

  1. I am completely confused, when Hamish McLennan says he thinks that Ten can be ‘fixed’?

    Because following the appearance of some Mega Rich investors, appointment of a “Murdoch Chair Person”, also being hit with a ‘Bolt of Rightwing” out of the blue.

    Then a News Limited controlled ‘Meet the Press’.

    Now with a News Corporation CEO.

    Would say that possibly “The Fix” is almost complete?

  2. i read somewhere over the weekend of the theory that the TEN brand would retire when all analogue is switched off and become FOX FTA… that may seem a long way off…but is it? News Corp people seem to becoming intrenched into the TEN bunker… stranger things have happened…

  4. Ohhh it’s Hamish McLennan, not Hamish MacDonald. I thought MacDonald had again been “given the keys to the building while the adults are in bed”.

    Another Hamish touted to save the day huh? Well Hamish 1 certainly hasn’t – even though much better news talent were let go, so good luck Hamish 2.

  7. TEN you have managed to dissapoint me with removing The Office’s Final Season with no announcment on a new timeslot. I thought TEN couldn’t disappoint me but they did. And now I feel what other people feel about TEN. Not happy TEN.

  8. Not without your viewers it can’t……… most of which have gone somewhere else for quality television shows that have been timeslot sabotaged by FTA networks and inflicting your audience with derivative reality dross like The Shire just confirmed their suspscions. The brand has been almost irreversibly damaged.

    No viewers = no advertisers = no business

  9. I think one of the secrets to good PR and a successful business is to not talk about all the business and money making crap in the public forum. Tell potential viewers what you have to offer them. No viewer wants to hear about your advertising relationships as though you are all about the dollar. Yes I appreciate you need to be viable but surely that’s the by-product of focusing on us the viewers.

  11. If we stop for a moment – and respecting the need for shareholder returns which LM and JW have destroyed let’s consider a few facts:

    1. Many hard working and talented Executives have been sacked,taken retrenchment packages or early retirement due to uninformed decisions by two people,

    2. The Industry and Ten has lost many Leaders and Mentors – what does the new and ambitious group look for and up to ?

    3. The natural state of arrogance drives both Seven and Nine as they maximise a weak Ten which destroys investment and creativity in market,

    4. Production budgets are lost, eliminated or reduced affecting the flow of the media Eco-system.

    Lachlan can run back to Dad, James can sit on an island and the other 200 poor souls can rebuild while the industry ponders it’s disrupted future.

    Let’s think of a few others ahead of yourself.

    Signed,

    Humanity

  13. I think we are going to end up like the UK, with two big networks and the other FTA’s being much further back and competing with the multi channels for market share. Its’ not unsual in the UK for ITV 2 or BBC 3 to beat Channels 4 or 5, which are FTA.

  14. Well David, this has certainly kept you busy during a Fri night/Sat morning. You write quite well on half a bottle of good wine!

    Interesting to note that Hamish McLennan was once CEO of George Patterson Y&R as that’s the position that Russell Howcroft left to move to Ten, where for a short while he will be CEO before Hamish takes over. It’s all very chummy.

  15. “Fast tracking” myth has nothing to do with it. “nth repeats of Modern Family were out rating the new fast-tracked episodes at one point”.
    Last night TEN beat SBS1 by only 2.7%. The Living Room was shoved around so no one watched it at 9:20 (or whenever it really was on).
    “McLennan said investing in programming, marketing and promotion were top of his list. ”
    Well, really, whoda thought of that?

  16. Of course the simplest explanation for that fact that every show that Ten fast-tracked delivered lower overnight ratings is that fast-tracking was yet another thing Channel 10 tried that failed.

    Ten’s biggest show is Elementary which is showing 4 months after it aired in the US. nth repeats of Modern Family were out rating the new fast-tracked episodes at one point.

    Showing what your target audience wants to watch, when they want to watch it, seems to be the winning strategy.

    And how important is a brand these days?
    Some of the audience may leave the TV on a network by default. But for me, Ten just the name of the pipe the other side of my rabbit ears that sends Elementary to my HDR.

  17. Note to Hamish …. No more reliance on reality television and start thinking of the older audience instead of focusing on the youth demographic which really dont give a toss about your bad programming decisions …………

  19. Glad he thinks Ten can be saved, because I really can’t see how.

    They’re the network that’s led the way on fast-tracking, some shows better than others, but they had already burnt those viewers so it’s irrelevant they’re fast-tracking because those viewers aren’t coming back. I’m one of them. I stopped watching NCIS, Hawaii Five-0, Modern Family, New Girl, The Good Wife on Ten because of the late starts, the schedule swaps, the lack of fast-tracking. Now that some of them are being fast-tracked isn’t enough for me because i just don’t trust Ten anymore to do the right thing.

  22. “He also said he needed rebuild TEN’s relationships with media buyers and brand marketers.”

    And what about building the relationship with the viewers? Without the viewer, you are flogging a head horse!

  24. Well he is not going to take over the new job and say ‘the place is stuffed I am gonna close it down’.

    I think some of his words will come back to haunt him. I know of no ‘community of media buyers’

    OK crazy lefties, stop banging on about Andrew Bolt, his show is a minor peripheral piece of nonesense watched by a miniscule proportion of the population. Keep it/lose it will have no impact on ch10/foxfta ratings, so just get over it

    This bloke is already contradicting hi,self….nimble, low cost high margin network….that wants ‘the best people in the business….and “and I know lots of people will join the network and want to be part of the turnaround.”…………..mmmm so a lot of people who are the best at a low cost……can’t see that happening anytime soon

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