The parent company of the Channel 10 TV network is going into voluntary administration. The move means one of Australia's major commercial TV broadcasters is on life support — but it's a move that may end up dragging it into the digital age and provide competition against streaming-only services like Netflix.
The announcement was made in a statement to the ASX. It has apparently been a long time coming, with the network's $60 million share value relatively underpriced for its potentially lucrative TV licence.
According to B&T, Ten has agreements that cost it around $150 million yearly with major US content providers CBS and 20th Century Fox — deals that make it uncompetive in Australia's fast-changing media landscape. The announcement suggests that nearly half could be cut from that overhead long-term.
Ten had previously attempted to secure a $250 million line of funding, but failed after shareholders quashed the deal.
The announcement to the ASX says that, where possible, it'll be business as usual while Ten gets its house in order.
Wondering what's going to happen to your favourite TV shows? Head to Lifehacker for an explainer on how this will affect viewers.