Media Wrap: WPP take over an option for STW?; Gyngell share probe continues; Turnbull summons TV bosses

Sarah Homewood
By Sarah Homewood | 20 July 2015

WPP take over an option for STW?

Speaking with The Australian at Cannes, WPP chief executive Martin Sorrell said: “everything is an option” when discussing a takeover bid for marketing communications group STW. Sorrell told The Oz that he wouldn't rule anything out but at the moment the main focus has to be to get the strategy right.

Foxtel under threat from online players

Foxtel could come under fire when it reports its fourth-quarter results next month amid evidence that a sizable number of its customers has abandoned its drama and movie packs, with the rise of popular streaming services Netflix, to be a likely cause. The AFR is reporting that customers are cherry-picking channels and cutting their bills, since it changed its pricing model in November.

Gyngell share probe ongoing

According to The Australia's Media Diary, ASIC’s probe into Nine chief executive David Gyngell’s sale of his shares shortly before the company’s profit downgrade remains ongoing, 33 days after it began. The regulator is continuing to examine how Gyngell did not know a downgrade was a possibility before the share sale given that the network’s advertising slump deepened in June.

Turnbull summons TV bosses

Communications minister Malcolm Turnbull has called a meeting for all the bosses of Australia's commercial free-to-air television networks in order to them to make a case as to why their $153 million annual licence fees should be scrapped, The Australian Financial Review is reporting. Chief executives of Seven West Media, Nine Entertainment Co, Ten Network Holdings, Southern Cross Media, Prime Media and WIN Corporation will all be in attendance to discuss the fact that networks believe licence fees are becoming unsustainable.

Regional TV will live on

Prime Media Group chairman John Hartigan has told The Australian the broadcaster’s regional news services are not in immediate danger of being axed if the government does not introduce controversial reforms that have split the media industry. Previously, Hartigan suggested regional networks would not “survive” however he has now told The Oz that regional networks were not facing financial oblivion.

 

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