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Business News - Morgan Bell discusses trends in business

 
Find out which products are getting recognition in Australia and across the globe, how the Government impacts on business, and which trends are leading to financial success - this is an open discussion about money making ventures in the news, all comments and opinions are welcome!

Yahoo!7 to Distribute Nine and Ten Channels

December 7th 2006 10:52
Yahoo!7, already publishing Channel Seven programming on the Internet, will add to it Nine and Ten. It will do so through a near-bankrupt company called ReelTime and will compete with Ten’s own 50 new websites. Stay with me for more.

The news today, 7 December 2006, is that “YAHOO!7 will ambush television shows from the Nine and Ten networks next year by acquiring non-exclusive internet rights to their new season formats and offering them on a pay-per-download basis through its joint venture with online content distributor ReelTime.”

“The tactic was revealed yesterday after Ten unveiled its digital master plan this week to launch 50 websites to support its TV shows in time for the start of the 2007 ratings season.”


“As part of its digital blueprint, Ten flagged an eightfold increase in its online audience, or 1.3 million new unique users, in the next year.”

“Ten’s general manager, digital media, Damian Smith said 80 per cent of Ten’s future online revenues would come from advertising-sponsored content rather than the user-pays model preferred by Yahoo!7.”

““There is a relatively small market for paid content right now,” he said. “It’s just not that significant.””

This news was published in the online version of the Sydney Morning Herald under the title “Yahoo!7 to offer latest TV shows online” and was written by Paul McIntyre. Click here to open that page: smh.com.au.

Yahoo!7 has an already very informative page. It features news, sport, finance, world, entertainment and lifestyle and information on Channel Seven’s programs. Click here to open it: yahoo.com.


On the other hand, Nine Network already has a 5.3 million users website which features similar topics to the above. Click here to open it: ninemsn.com.au.

I am personally convinced that, in due time, the online world will take over any other form of communication, TV included.

In time, we will arrive home and click on a link to watch, not read, the latest TV news. We will be able to choose what we want to see and hear instead of having to watch a row of uninteresting news. And online speeds will be fastest.

That is the direction one could take from recent moves by News Corp. and Publishing and Broadcasting which seem intent on keeping their Internet real estate.

How much does Yahoo! stands to earn from this deal with ReelTime over Channel Nine and Ten? Figures were not made public but financials about ReelTime have been published.

They reveal a company, ReelTime (ASX: RMA), whose share price is 0.096 cents, which has had a loss in each of the last six years and whose current EPS are a negative 0.5 cents.

A look into RMA’s Balance Sheet reveals a Long Term Debt of $160,000 representing 3 per cent of capital, and interest of $5,000 being its Cash Flow per share a negative 0.4.

I wonder what keeps RMA alive.

These figures are based on data available at: money.ninemsn.com.au.

On the other hand, Yahoo!7 will have to compete with Channel Ten’s 50 websites it plans to create next ratings season and that will support its own programming.

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