SCA negotiations with Ten overshadowed by structural tensions

TLDR version: Southern Cross Media is in negotiations to renew its affiliate relationship with Network Ten. Media reports have suggested that SCA may be seeking a discount as Ten ratings have fallen since the last deal was signed. But in addition, Ten is draining ad revenue from regional Australia through its national BVOD service, and this problem will only grow. We think that SCA should also be looking for a BVOD discount. Finally, there is still the possibility of Ten taking the plunge and finally acquiring SCA’s TV assets.

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