Hungry Ten sniffs out NZ media

By KARYN SCHERER

One of New Zealand's largest media players could end up being run from Australia under a plan being actively promoted across the Tasman.

Australia's Ten Network has hinted it would like to swallow TV3, TV4 and the country's second-largest radio network, in a deal which could be worth at least $250 million.

Ten, which is Australia's third-biggest television network, is 57 per cent owned by Canadian media giant CanWest Global Communications. CanWest also owns TV3, TV4 and the More FM radio group in New Zealand, as well as a 72 per cent stake of RadioWorks, formerly known as Radio Pacific.

The hints follow CanWest's purchase this week of Conrad Black's newspaper assets in Canada.

The $C3.5 billion ($NZ5.2 billion) deal is the largest in Canadian media history and will saddle CanWest with significant debt. The sale of its New Zealand assets would help offset the debt.

Ten's chief executive, John McAlpine, said the network was considering several investments, and hoped to land "a couple" before Christmas.

He noted it had little debt, so it was well-placed to expand in the area of "advertiser-driven media." He also noted Ten would be a "natural buyer" for CanWest's New Zealand assets.

The network has strong links with News Corporation's Fox studio, which produces shows such as The Simpsons and The X-Files.

However, it has recently indicated a change in focus, aiming at the 16 to 39-year-old audience, which closely matches TV3 and TV4.

It has also indicated it is considering more local content, instead of deals with Hollywood studios.

TV3's managing director, Graeme Hunter, yesterday confirmed the move had been discussed, but stressed it was not yet being seriously considered.

However, he agreed there was "certain merit" in the idea. As well as being easier to report to Australia, rather than Canada, it would make sense for the two networks to cooperate on programming, joint productions and sales operations.

Mr Hunter said advertisers already queried why Ten Network and the New Zealand channels could not work more closely together.



Meanwhile, RadioWorks also revealed yesterday it is ending its contract with news provider Independent Radio News (IRN) in November.

IRN is owned by CanWest's main radio competitor in New Zealand, The Radio Network (TRN). TRN is in turn partly owned by Herald publisher Wilson & Horton.

RadioWorks intends setting up its own service, which it will use for its own stations, as well as an internet site it is considering developing.

It is believed to have discussed its plans with other news organisations, including TV3.

Mr Hunter confirmed preliminary talks had taken place. However, he stressed that TV3 was keen to see RadioWorks get the service up and running first.

"It's the logical first step before we muddy the waters with any synergies with television."

IRN also has a contract to supply a news feed to TV3, but TRN chief executive Kevin Malone said there was no indication TV3 was also considering ending its contract.