News: UPDATE 1-Merger talks between Australia's Seven West Media and Prime collapse

(Adds comment by Prime Media, background)

Sept 22 (Reuters) - Australia's Seven West Media Ltd (SWM) said on Friday it had received a merger proposal from Prime Media Group Ltd (PRT) but it did not result in an agreement, as changes to media ownership laws look set to spark a major round of consolidation.

The response comes after speculation in Australian media reports of a potential merger of the two companies.

Prime said in a separate statement that while it had held talks with Seven West Media and saw merit in a merger, the companies were not able to agree on a deal.

Earlier this month Australian media players won long-sought reforms to ownership laws that will allow them to boost market share through consolidation and compete harder for digital advertising.

Australia's media landscape has been upturned by the arrival of foreign competitors like Netflix and the loss of revenue to digital advertising, resulting in declining earnings and job losses.

Seven West Media posted an annual loss in August due to a slew of impairments and writedowns in its television and print assets.