Viewer rise gives Ten chance to lift charges

Ten Network was the only one of Australia's three commercial television broadcasters to increase its prime-time audience this year, giving it more bargaining power to raise advertising charges next year.

Ten boosted its share of viewers between 6pm and midnight to 23.8 per cent from 23.2 per cent last year.

It was helped by the talent quest Australian Idol, the year's most-popular show.

Seven Network's share fell to 24.9 from 25.6 per cent.

Nine Network retained the top position, but its 29.9 per cent share was down 1.2 percentage points.

"Ten's the big winner of the year, no question," said Steve Allen, director of Sydney media agency Fusion Strategy.

"Australian Idol produced huge viewers - all the numbers are going its way."

Ten's performance may allow it to increase next year's advertising charges 12 per cent when negotiations start this week, says Finola Burke, media analyst at Credit Suisse First Boston.

Ten spokesman Jim Carroll said: "Given our ratings performance this year and that we're up in all key demographics, our expectation is of a reasonable increase in rates."

The A$3.2 billion ($3.45 billion) TV advertising market is growing amid the highest consumer confidence in 10 years.

Burke said Ten's improved performance made it best-positioned to secure rate rises.

Nine was aiming for an 8 per cent increase and Seven might leave charges unchanged to retain advertisers.

The results are reflected in the companies' stock prices. Ten's shares have risen 57 per cent this year. Shares of Publishing & Broadcasting, which owns Nine, are up 25 per cent.

Seven stock is up 3 per cent, compared with a 19 per cent gain in the benchmark S&P/ASX 200 index.

Ten is controlled by Canada's CanWest, which also controls TV3 in New Zealand.

Allen said Nine captured 39 per cent of the television advertising market this year.

Ten won 31 per cent and Seven 30 per cent.

"Seven hasn't got a lot to negotiate with," Allen said. "The higher the increase, the less likely Seven will be able to retain its share. That's exactly why Seven is having a no-increase policy."

Network spokesman Simon Francis declined to comment on advertising negotiations, saying only that Seven would market itself on its performance this year and its programmes for next year. "

Seven's ratings slid even though it broadcast the Athens Olympic Games, Australia's most successful overseas Olympics.

But it has the year's most-watched new programme, Dancing With the Stars, in which celebrities including politician Pauline Hanson and model Gabrielle Richens teamed with professional dancers and viewers vote for their favourite couple. The show attracted more than 1.8 million viewers a week.

Ten's success came with the second instalment of Australian Idol, Big Brother 4 and the finals of the Australian Football League.

The Idol final, won by 16-year-old Sydneysider Casey Donovan, was the year's most-watched show, attracting 3.34 million viewers.

- BLOOMBERG