There has been a lot of Media doom and gloom lately over what...

There has been a lot of Media doom and gloom lately over what many are calling the death spiral of FTA Networks.

One interesting case recently was a mandate change by the Future Fund and the selling of their substantial holding of Prime Media Group (PRT). As many would also know, the CEO for the Future Fund is Peter Costello who in February also took over the role of Chairman for Nine Entertainment.

He was quoted as saying "I am delighted to take over the role of Chairman. This is an exciting time of change in the media sector and NEC is now strongly positioned to take advantage of these developments."*

Not only was he 'excited' to take over the role but he also made an on market trade for 220,000 shares of NEC at a value of $244,400.*

My point here being that at the same time as the Future Fund was selling out of FTA networks due to a mandate change, the ex Federal Treasurer was buying up in NEC.**

*NEC Announcements dated 25 Feb and 11 Apr 2016
**http://www.theaustralian.com.au/bus...d/news-story/c12a43def4dc719ab52ab11a047e53d3

Another point that seems to be kept mute is the Monopoly that the FTA Networks have in regard to the broadcasting of sport thanks to the Anit-siphoning laws here in Australia.*

The Media Reform Bill is currently before the Senate but anti –siphoning laws are not part of the package.**

*https://en.wikipedia.org/wiki/Anti-siphoning_laws_in_Australia
**https://www.communications.gov.au/what-we-do/television/media/updating-australias-media-laws

So that’s the good, what about the bad and ugly?

Below is a link to findings by Roy Morgan that does a good job of summarising the key demographic groups and their changes in non- commercial TV viewing.

http://www.roymorgan.com/findings/6...-viewing-audiences-december-2015-201601290251

As can be seen by this report this is the number one problem for FTA networks and the main reason for the decline in the share price – people are watching a lot less commercial TV than they have in the past. That said, it is still of interest to note that the report also states that, 'commercial TV reaches 85.1% of us—more than any other medium. On an average weekday we watch a combined 39 million hours of commercial TV.