On Friday, Nine Entertainment Co. and WIN Corporation announced the signing of a new regional television affiliation agreement. The minimum 7-year agreement will result in WIN broadcasting Nine’s metropolitan free-to-air television content from channels 9, 9Go, 9Gem and 9Life into markets including Tasmania, regional Western Australia, Victoria, Queensland and Southern NSW, providing access to Nine’s television content across all of metropolitan and regional Australia.
Under the new agreement, which will commence on 1 July 2021, WIN will pay an affiliation fee of around 50% of its regional advertising revenue to Nine and provide airtime to Nine to allow the promotion of Nine’s assets across WIN’s television and radio network.
As a result, Southern Cross Media Group was informed by Nine Entertainment Co that it will not extend the current regional television affiliation agreement beyond its current expiry on 30 June 2021. SCA has broadcast Nine’s metropolitan free-to-air television content into the three aggregated markets of regional Queensland, Southern NSW and regional Victoria since 2016.
Chief Executive Officer of Nine Hugh Marks said "While our relationship with Southern Cross has been strong over the last five years, the opportunities presented by the WIN Network to both extend the reach of Nine’s premium content into more regional markets under one agreement, and to work cooperatively with them on a national and local news operation, mean this is the right time for us to return to WIN. The terms of this new affiliation agreement should be positive to Nine’s EBITDA from FY22 through the broader reach of Nine’s channels and by enabling incremental efficiencies across both sales and news."
SCA’s television business continues to include program supply agreements with Seven West Media covering the Tasmania, Darwin, Central and Spencer Gulf markets until 30 June 2022 under which 20% of SCA’s total television advertising revenue is generated. SCA also broadcasts Nine and Ten programmings in Spencer Gulf, and the company is anticipating discussions with Network Ten to establish a new affiliation in regional Queensland, Southern NSW and regional Victoria from 1 July 2021.