“It’s been a really difficult week and a really challenging week,” stated Amanda Laing, Nine Entertainment’s new broadcast and streaming chief, as she addressed the media. Her comments come after a turbulent period marked by significant layoffs, including on-air presenters, as the company restructures its operations to align with a new strategic vision.
Laing elaborated on the strategy behind the recent changes, emphasizing the importance of understanding the new operating model. “Nobody wants to say goodbye to friends and colleagues, but I hope that people can understand the strategy and how the operating model serves the strategy,” she said.
Restructuring Amid Revenue Shifts
The announcement follows a week in which up to 50 staff members were let go from Nine’s Broadcasting and Streaming divisions. While some departures resulted from non-renewed contracts, the move underscores a broader shift in Nine’s revenue landscape. Currently, Nine’s Stan streaming service accounts for approximately 28% of the group’s revenue, a significant increase from 11% five years ago. Conversely, television’s share has decreased from 51% to just over 37% in the same period.
The earnings figures further highlight this transition. Last year, Stan’s earnings surged by 31%, while television revenues declined by 23%. These changes reflect broader industry trends as audiences increasingly migrate to digital platforms.
“We are looking at the remuneration across the entire business, from, yes, people on-air to people involved in production, to people in IT, to engineers, technology, all of these things to make sure we’ve got the right cost base and the right investment in the right areas,” Laing explained.
Strategic Integration of Broadcast and Streaming
Laing briefed employees today on the merger of Nine’s broadcast and streaming operations, a move that also included announcing job cuts and new management appointments. The integration is part of a strategy to enhance flexibility in content distribution, allowing Nine to optimize audience reach and revenue potential across platforms.
Staff from Stan and Nine’s television arm have already been consolidated onto a single floor at Nine’s North Sydney headquarters. This physical integration is symbolic of the broader strategic merger, which aims to blur the lines between traditional broadcasting and digital streaming.
Content Transition and Audience Engagement
Laing highlighted the benefits of this merger, particularly in terms of content mobility. “The merger now gives us more flexibility in moving content, including sport and entertainment, between Stan and Nine to where the best audience and revenue options are,” she noted. This approach allows content to flow seamlessly between traditional broadcast, broadcast video on demand, digital platforms, and streaming services.
Recent initiatives have demonstrated the potential of this strategy. For instance, Nine successfully drove 3,000 new Stan subscriptions by airing the first season of the popular series Bump on free-to-air television, while the second season remained exclusive to Stan.
“Great content will find an audience – and particularly Australian content,” Laing emphasized, underscoring the importance of local programming in Nine’s content strategy.
Looking Forward: The Future of Nine Entertainment
The restructuring at Nine Entertainment reflects a broader industry trend towards digital integration and audience-focused content distribution. As the company navigates these changes, the focus remains on leveraging its diverse platforms to maximize reach and revenue.
While the transition has been challenging, the strategic realignment positions Nine to better compete in an increasingly digital media landscape. Moving forward, the company’s ability to adapt and innovate will be crucial in maintaining its relevance and success.
As Nine continues to refine its strategy, stakeholders and audiences alike will be watching closely to see how the company balances its traditional broadcasting roots with the demands of the modern streaming era.
