Network Ten company’s shares continue to hit a succession of new all-time lows in the past week, this has led to fears that the company may collapse.
Next Thursday the network will release half-yearly results, which could very-well determine their future. Investors are predicting Ten is going to announce a loss.
Dr Kayt Davies, Senior Journalism lecturer says, the struggle of one company doesn’t mean the end of commercial television, or anything that drastic.
“There’s always going to be someone who’s losing business. I think that before getting worried, like ‘does this mean the end of journalism, the end of television,’ let’s not get all apocalyptic about this,” Dr Kayt said.
“There’s been a number of reports in recent years about the future of television, the future of free-to-air and commercial television, and there’s been a lot of predictions around the fact that people are now accessing information in a wide variety of ways in a wide variety of places. Consumers are wanting more transferability on their screens, they want to be able to watch something, comment on it and share it.”
Dr Davies says, “Where there’s new growth, there’s always going to be death of some of the old. Media is ephemeral, that’s one of the words that defines media, it will always fill the gap, it will always provide what people want.”
Glenn Dyer from Crikey News says the determining factor is whether or not the network can pay back the $200 million loan they have from the CBA. If they default on this loan, the bank will go to their financial backers, James Packer, Gina Rinehart, Lachlan Murdoch and Bruce Gordon.
If Ten does go bust, other networks like seven and nine would most-likely be happy, because their $600 million in annual revenue could become available to them.
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