On Wed, Jun 14, 2017 at 1:49 AM, Mark Jeffries <[email protected]>
wrote:

>
> And let it be noted that Australia has never really taken to cable or
> satellite--but has taken to streamers (9 million Netflix subscribers, 2.4
> million subscribers to the Fox-owned cable/satellite service Foxtel, which
> enjoys a near-monopoly on the cord).  Which means that only a fool can be
> sure that Ten will be able to climb out of its quagmire intact and
> successful.  And could it happen in the U.S.?  It could...
>

Of course it could happen here. There is nothing that makes a TV network
immortal and we are going through a long term digital disruption of the
business. We know everybody isn't rolling in money because of the
brinkmanship that occurs every time a retransmission contract comes up for
renewal with a cable company. But I don't think it would happen the same
way.

Each network is owned by a media conglomerate along with a number of cable
channels. And the megaphone the network provides is added value to the
media company. So a network is consistently losing money - okay, cut the
budget. Either the situation corrects itself or a spiral ensues as the
cut-rate shows bring in less revenue. If it's a spiral, affiliates get away
ASAP and the media company can't keep it under wraps. Now they have to
decide: spin off the TV network as a stand alone business or spin off the
whole TV operation, cable channels and all. At that point a media company
like Verizon or Amazon can pick it up for cheap and put some money into
building it up again. Or a private equity firm can buy it and probably
wring all the value out of it. Then we would see bankruptcy proceedings. It
just would not have anything to do with the programs that are on the air or
the other networks.

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