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Channel 10's demise reflects an industry 'splintering' under the digital age

By Malcolm Sutton
Updated about 5 hours ago
PHOTO: Network Ten went into voluntary administration after failing to secure a guarantee for a $250 million loan. (ABC News: Malcolm Sutton)

Network Ten's descent into voluntary administration on Wednesday reflects a "splintering" of the entertainment industry, stakeholders say, as the digital age challenges everything from sports coverage to advertising and the future of free-to-air (FTA) television.
Key points:

• Network Ten undone by transient youth demographic
• Sport coverage to be challenged by TV streaming
• Advertising industry changing with the times

Multi Media Buying and Planning Services managing director Meg Gossert said Channel 10 had been struggling for a long time and their biggest mistake was targeting the wrong audience.
"They seem to target the younger demographic, but the younger demographic's not where the money is," she said.

"Channel Seven and Channel Nine actively seek an older demographic, where the bulk of the population is.
"And that younger demographic that 10 targets is not money. It's not loyal either. It's very transient."
She said television audiences had "splintered" across a multitude of outlets, including online streaming, pay TV, dedicated websites, social media and YouTube, with TV ratings declining as a result.
"Programs that used to pull a reasonable figure, reaching Target Audience Rating Points of 20 or whatever, they're lucky to make double figures these days," Ms Gossert said.
Deakin University's Doctor Toija Cinque said Australians in 2008 watched an average of about 14 hours of FTA television.

In 2014, figures from OzTAM showed it had substantially reduced to an average "2.46 hours in metropolitan areas and three hours in regional areas".
"That's not including television streaming. Netflix certainly hit the mark in 2014, but at the end of 2015 they weren't maintaining the market share," Dr Cinque said.

"And if we're looking at future audiences, the bracket from 1 to 13 years old, they are arguably looking for user-generated content streamed online that is not through paid services, such as YouTube."
YouTube personalities such as Stampy, a Minecraft Let's Play narrator, have more than 8 million subscribers.

"He'll put up a podcast and kids will go immediately to his subscription and watch him, or PewDiePie for example. He's got more than 55 million subscribers," Dr Cinque said.