Desert Qlder
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Nine Entertainment Co boss Hugh Marks has pledged to drive a hard bargain in talks with the NRL over the extension of a key rights deal as he looks to trim more costs from the company's core television business.
The broadcasting and publishing company, which owns The Sydney Morning Herald and The Age, swung to a $575 million loss for the 2020 financial year with revenue sliding 7 per cent
arlier this year, Nine moved swiftly to cut costs to mitigate the impact of COVID-19, including by renegotiating its current NRL deal and suspending bonuses for top executives. "The reason we did [not extend with the NRL] is because we wanted to see what happened over the next couple of years," Mr Marks said.
"Everything needs to pay its way," Mr Marks said. "What we’d hope is that maybe we can lift NRL performance and maybe that will justify the price. But if it doesn’t perform for us, then everything has to pay its way. That’ll be part of the negotiations when they happen."
Subscription streaming service Stan, which this week announced plans for a large increase in investment in original projects and a multi-million dollar content deal with NBC Universal, reported revenue growth of 54 per cent to $242 million. Stan now has about 2.2 million subscribers.
https://www.smh.com.au/business/com...ving-despite-deep-losses-20200827-p55pq7.html
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