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an Papenhuyzen of the Storm in action during the round 27 NRL match between Brisbane Broncos and Melbourne Storm at Suncorp Stadium on September 4. Picture: Bradley Kanaris/Getty Images
Seven could be poised to make an audacious play to wrestle the National Rugby League broadcast rights from rival Nine, with speculation that its proposed merger with Southern Cross Austereo could revive a secret plan to partner with US heavyweight NBCUniversal in a joint streaming venture.
Industry sources revealed Seven West Media spent months locked in negotiations with the global news and entertainment media giant three years ago about a prospective partnership that would see the nation’s then most-watched commercial network take carriage of NBCUniversal’s Peacock streaming service in Australia.
One executive familiar with the situation told The Australian the “high-end discussions” ultimately collapsed after NBCUniversal set strict limits on the level of influence SWM chairman Kerry Stokes would be able to exert over the proposed partnership if the deal were to go ahead.
“NBCUniversal said that to make it work, Stokes would have to reduce his holding in Seven West Media to 20 per cent and that the company would need to replace him with an independent chairman,” the Seven source said.
“That was a deal-breaker for NBCUniversal and a deal-breaker for Stokes and Seven too – and it effectively knocked the whole thing on the head.”
There are now whispers the concept could be revived if SWM’s proposed acquisition by Southern Cross – which owns the Triple M, Hit and 2DayFM radio networks as well as digital audio app LiSTNR – is successful. There is even speculation that NBCUniversal could make a play for the combined entity.
Ezra Mam made a successful return from injury in the Broncos’ preliminary final win over the Panthers. Seven’s merger with radio outfit Southern Cross could see it make a play to win the NRL broadcast rights from rival Nine. Picture: Getty Images
Ezra Mam made a successful return from injury in the Broncos’ preliminary final win over the Panthers. Seven’s merger with radio outfit Southern Cross could see it make a play to win the NRL broadcast rights from rival Nine. Picture: Getty Images
The merger, which would see Seven shareholders receive 0.1552 Southern Cross shares for every Seven West Media share, would see the combined entity conform with both of NBCUniversal’s previous caveats.
Under the merger proposal, the Stokes family’s ownership in Seven would be slashed from 40 per cent to 20 per cent, and the family patriarch would step down as chairman after 17 years at the helm, while his businessman son, Ryan, remained on the board.
Together, the two legacy media organisations will be valued at about $440m.
“That was what SWM was worth alone back when we were having discussions with NBCUniversal,” one Seven insider. “So I wouldn’t be surprised at all if both companies were bought up by the NBCU.”
The absence of a digital streaming partner in Seven’s arsenal has long been cited as one of its greatest weaknesses, and a massive chink in its armour when it came to war-gaming its future sports strategies.
Seven West Media chairman Kerry Stokes.
Seven West Media chairman Kerry Stokes.
“The problem is, Seven already has the free-to-air AFL rights and it really doesn’t have anywhere it can put the NRL that would make sense,” one insider said.
“They could put them on a digital channel, but doesn’t really compare to what Nine can offer, and it’s way too late in the game for Seven to try to build its own streaming service – they simply can’t afford to make the original content that would be required to get it off the (ground) now that the market has been flooded.
“Reviving the NBCUniversal deal would see them have control of a strong domestic product through the Peacock service but also be able to pitch the idea of taking the NRL to the world – and more importantly the US market – through Peacock.”
Another Seven executive confirmed the media merger could revive the network’s interest in making a play for at least some of the NRL’s most-watched games, including the finals series and the State of Origin, which topped the ratings each year, telling The Australian there were “plenty of ways (the games) could be divvied up”.
Even though the concept of taking carriage of the Peacock service collapsed in 2022, SWM has retained strong ties with NBCU and announced an international content-sharing deal from January 2023.
Former Seven chief James Warburton.
Former Seven chief James Warburton.
Under the multi-year agreement, Seven has been able to air select NBCU movies, scripted network and cable television dramas and comedies on its channels, as well as its digital catch-up service, 7Plus, and also launched a “new linear free-to-air and live-streamed channel”, 7Bravo, to carry the new content.
The network said programs to be broadcast on 7Bravo under the arrangement included Below Deck Down Under, Below Deck Adventure, The Real Housewives Ultimate Girls Trip, The Real Housewives of Dubai, The Real Housewives of Miami, Love Without Borders, Southern Hospitality and Real Girlfriends in Paris, among others.
Seven’s then chief executive, James Warburton, touted the move as a “game-changer” for the network at the time.
“NBCUniversal is a global content powerhouse and the creator of some of the best-known and most-loved entertainment brands in the world, across television and film. We can’t wait to bring them and much more to Seven and 7plus,” he said.
