WEBVTT - Can Nine’s CEO survive?

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<v Speaker 1>You can listen to the Front on your smart speaker

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<v Speaker 1>every morning to hear the latest episode. Just say play

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<v Speaker 1>the news from the Australian. From the Australian, here's what's

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<v Speaker 1>on the Front. I'm Claire Harvey. It's Thursday, August twenty nine.

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<v Speaker 1>Core inflation is stuck at three point eight percent, although

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<v Speaker 1>there's been a fall in the headline figure to three

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<v Speaker 1>point five percent, indicating we're stuck with high mortgage rates

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<v Speaker 1>for at least another six months. A University of Sydney

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<v Speaker 1>professor has been found to have breached the UNI's code

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<v Speaker 1>of conduct by telling first year students Hamas terrorists' use

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<v Speaker 1>of rape and sexual violence was fake news and a hoax.

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<v Speaker 1>The university says will be disciplinary action, but she won't

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<v Speaker 1>lose her job. You can read that story in detail

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<v Speaker 1>right now at The Australian dot com dot AU. A

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<v Speaker 1>year of disasters, from a pushy chairman to an Olympic

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<v Speaker 1>torch disaster culminate in a twenty two percent profit slump

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<v Speaker 1>at nine Entertainment. So can the CEO keep his job?

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<v Speaker 1>That's today's story. It's been quite the year at Channel nine.

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<v Speaker 2>This is a network that is in absolute crisis.

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<v Speaker 3>The phone has not stopped.

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<v Speaker 1>Ringing allegations of misbehavior when who's got blowing the cover off?

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<v Speaker 1>Multiple claims of sexual harassment and bullying the loss of

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<v Speaker 1>a chairman after Peter Costello pushed The Australian's reporter Lea

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<v Speaker 1>Mendez to the ground.

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<v Speaker 3>Great, thank you.

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<v Speaker 1>If you've just assaulted me, you've just pushed me. It's

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<v Speaker 1>all on camera, mister Castillo.

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<v Speaker 4>Mister Costello, did you assault a journalist at Cambra Airport.

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<v Speaker 5>There's already speculation that this could put your chairmanship at risk.

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<v Speaker 1>What is your responsor that rubbish? The journalist said you

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<v Speaker 1>assaulted me and you loved and walked away good evening.

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<v Speaker 3>Former Federal Treasurer Peter Costello has resigned as chair of

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<v Speaker 3>Nine Entertainment days after appearing to shove a journalists to

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<v Speaker 3>the ground at Canberra Airport.

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<v Speaker 1>An unfortunate incident with the Olympic torch and CEO Mike

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<v Speaker 1>Sneezeby's cringe worthy running with Channel seven's journal Ray Cooker.

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<v Speaker 5>Really, you're trying to have a chat pretty straightforward though.

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<v Speaker 5>Should you have carried the torch yesterday? Is it inappropriate

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<v Speaker 5>this day in a bout hotel when you've just sacked

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<v Speaker 5>staff some stage guys, what about today because your staff

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<v Speaker 5>are going on strike today, why don't you to stop

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<v Speaker 5>and have a chat to us now?

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<v Speaker 1>So I'm meeting my family and you're.

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<v Speaker 5>A BOSSI of a media business here for work or

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<v Speaker 5>are you here on a holiday with your family?

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<v Speaker 1>A strike that threatened to blow up coverage of the

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<v Speaker 1>Paris Games.

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<v Speaker 4>Nine newspaper journalists have walked off the job on the

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<v Speaker 4>eve of the Paris Olympics opening ceremony, I mean ongoing

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<v Speaker 4>disputes over pay rises among them twenty reporters who have

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<v Speaker 4>been flowing to Paris to cover the Olympics.

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<v Speaker 1>And now a twenty two percent profit slump well as

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<v Speaker 1>a highlight.

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<v Speaker 6>It's been a very tough environment across media in the

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<v Speaker 6>advertising market. As a CEO and as a leadership team,

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<v Speaker 6>we take complete accountability for the outcomes of the business.

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<v Speaker 3>It's been a tumultuous year to say the least.

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<v Speaker 1>So Fillsworth is a media reporter at The Australian. She

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<v Speaker 1>spoke to CEO Mike Sneezebe after he released nine's annual results,

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<v Speaker 1>a twenty two percent fall in annual profit after tax

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<v Speaker 1>to two hundred and sixteen point four million dollars and

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<v Speaker 1>revenue down in the company, and he's broadcasting arm by

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<v Speaker 1>ten percent. The company's print division held up better, with

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<v Speaker 1>a revenue drop of three percent from mastheads including The

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<v Speaker 1>Sydney Morning Herald, The Age and The Australian Financial Review.

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<v Speaker 1>Nine's share price is also down around a dollar thirty

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<v Speaker 1>five by the end of Wednesday, compared with three dollars

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<v Speaker 1>two years ago.

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<v Speaker 2>It's very clear Mike Sneezebee is not going anywhere now

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<v Speaker 2>if that decision is up to him, he's staying put.

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<v Speaker 2>And yes he's got a lot of work to do.

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<v Speaker 2>They still don't have the results from the external review

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<v Speaker 2>into allegations of misconduct they've just made recently two hundred

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<v Speaker 2>people redundant across the business. The whole way people consume

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<v Speaker 2>TV has been totally flipped on its head. Appointment viewing TV,

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<v Speaker 2>where you sit down at seven point thirty on a

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<v Speaker 2>Tuesday evening to watch your particular show is long gone.

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<v Speaker 2>People are streaming content, they're watching it when it suits them,

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<v Speaker 2>They're doing catch up television. So this has really presented

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<v Speaker 2>many challenges for freeedoware networks who rely on that advertising dollar.

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<v Speaker 2>They have had to branch out and try and make

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<v Speaker 2>this work in the streaming world because there's so many

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<v Speaker 2>competitors out there, choice out there, big streamers, global streamers

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<v Speaker 2>such as Netflix, who are stealing the eyeballs away from

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<v Speaker 2>freeedoware TV.

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<v Speaker 1>Mike's needs be told Sophie he was feeling optimistic.

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<v Speaker 6>If I summarize the result today, obviously the market, the

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<v Speaker 6>advertising market in particular pre toware market has been tough

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<v Speaker 6>in AFI twenty four.

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<v Speaker 7>Over the long term, we think.

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<v Speaker 6>Our publishing business, with the strength of selves growth that

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<v Speaker 6>we've had in our frood growth across that base, we'd

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<v Speaker 6>expect to see the opportunity for publishing to be a

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<v Speaker 6>positive earnings growth business. I feel very strongly that this business,

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<v Speaker 6>the leadership team and everywhere across nine is performing exceptionally well,

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<v Speaker 6>and of course I take accountability for the entire performance

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<v Speaker 6>of this company.

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<v Speaker 1>Bart He's had to take a cut to his bonus

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<v Speaker 1>and will only take home a total package of two

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<v Speaker 1>point one million dollars, down from nearly two point seven

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<v Speaker 1>million the previous year.

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<v Speaker 2>Well, obviously the executives has not reached the targets that

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<v Speaker 2>they needed to reach.

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<v Speaker 3>To get their full bonuses.

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<v Speaker 2>It would have been a bad look if they did

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<v Speaker 2>get their full bonuses. But I think Mike Sneezbey has

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<v Speaker 2>made a few decisions that has left many people within

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<v Speaker 2>nine very annoyed. When he made hundreds of staff redundant.

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<v Speaker 2>He announced this short time after that he was on

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<v Speaker 2>a plane to Greece for a family wedding that did

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<v Speaker 2>not go down well. It then emerged that he was

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<v Speaker 2>running with the Olympic torch in the run up to

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<v Speaker 2>the Paris Olympics, where nine had the broadcasting rights.

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<v Speaker 3>People were saying within.

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<v Speaker 2>Nine and definitely out of nine, this is.

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<v Speaker 3>A bad look.

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<v Speaker 2>This is a man who is running a media company

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<v Speaker 2>with a long list of problems and he's not reading

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<v Speaker 2>the room. It was a tone deaf decision for him

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<v Speaker 2>to continue running with that torch where he was basking

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<v Speaker 2>in glory. Meanwhile back home, hundreds of staff are being

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<v Speaker 2>made redundant.

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<v Speaker 1>Here's a little of Sophie's interview.

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<v Speaker 3>Going back to the Olympics.

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<v Speaker 2>Do you regret running with the Olympic torch given all

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<v Speaker 2>the concerns that were raised, particularly when the staff walkouts occurred,

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<v Speaker 2>about you taking part in the torch relay.

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<v Speaker 6>As I'm sure you'll understand.

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<v Speaker 8>Our engagements with the IOIC began some two and a

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<v Speaker 8>half years before doing the Games opened in Paris, a

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<v Speaker 8>long road of engaging with the IOIC, in negotiating to

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<v Speaker 8>commercial outcomes, a year and a half of thousands of

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<v Speaker 8>scarf across nine working to get ready for the Olympic Games,

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<v Speaker 8>and my commitment to run with the torch at the

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<v Speaker 8>invitation of the IOC was made.

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<v Speaker 7>A long long time before the torch relay occurred. It's

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<v Speaker 7>absolutely appropriate for the CEO of a major broadcast partner

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<v Speaker 7>who's embarking on a ten year journey with a partner

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<v Speaker 7>like the IOC to participate in a way that I participated.

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<v Speaker 7>I certainly wasn't going to at short notice cancel my

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<v Speaker 7>commitment with the IOC. Again, my being at the Olympic

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<v Speaker 7>Games was a short trip, postly carrying of the torch

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<v Speaker 7>and the opening ceremony. I stayed a couple of days

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<v Speaker 7>additionally and returned back to Australia and sure that I

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<v Speaker 7>was focused on running the business and working with the

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<v Speaker 7>team who.

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<v Speaker 8>Are based back here.

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<v Speaker 1>He was pretty defiant. He kind of indicated that the

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<v Speaker 1>IOC would have been very disappointed. If he'd not run

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<v Speaker 1>with the torch. But doesn't really hold water, does it.

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<v Speaker 3>You know?

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<v Speaker 2>Following this weeks later, there was staff who had t

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<v Speaker 2>shirts printed with him running with the torch, mocking him

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<v Speaker 2>as a result of him making that decision when they're

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<v Speaker 2>fighting for pay rises. He's on multimillion dollar contract and

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<v Speaker 2>he's decided to run with the torch over in Paris.

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<v Speaker 2>It seemed to many that he was completely out of

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<v Speaker 2>touch with reality back.

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<v Speaker 1>Home, coming up, why some of nine's biggest stars have

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<v Speaker 1>been bumped from the pointy end of the plane. Don't forget.

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<v Speaker 1>Subscribers to The Australian get access to expert analysis around

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<v Speaker 1>the clock. Join us at the Australian dot com dot au.

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<v Speaker 1>It's a lot cheaper than a business class flight. We'll

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<v Speaker 1>be back after this break. Around the world, commercial TV

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<v Speaker 1>networks are struggling big time. Here's our media editor James

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<v Speaker 1>Madden talking about seven West Media's results released earlier this month.

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<v Speaker 9>Net profit before taxes is down sixty nine percent. Group

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<v Speaker 9>revenue overall has slipped five percent. There's not much silver

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<v Speaker 9>in any of the linings at seven New CEO Jeff Howard,

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<v Speaker 9>who's been in the job since April, so just over

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<v Speaker 9>four months. Was definitely sought to put a positive spin

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<v Speaker 9>on these numbers, which by any measure are shocking.

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<v Speaker 1>In New Zealand, the only commercial TV news provider, TV three,

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<v Speaker 1>shot its suite of news and current affairs shows earlier

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<v Speaker 1>this year and replaced them with a six pm news

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<v Speaker 1>bulletin outsourced to a different newsroom.

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<v Speaker 3>It's a sad day for democracy and journalism in New Zealand.

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<v Speaker 5>That's just some of the reaction to today's announcement that

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<v Speaker 5>news Hub, one of the biggest newsrooms in the country,

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<v Speaker 5>is set to shut down.

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<v Speaker 1>It's prompting questions that would have been unthinkable a decade ago,

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<v Speaker 1>like can commercial TV news survive. One of the other

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<v Speaker 1>big changes that's being made at Channel seven now is

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<v Speaker 1>a dramatic reduction in wages through the redundancies being given

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<v Speaker 1>to senior and long serving staff. I've noticed in your

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<v Speaker 1>media diary that you write with James Madden in The

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<v Speaker 1>Australian Sophie that there are obvious signs that nine superstars

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<v Speaker 1>are having their belts tightened. You know, not so many

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<v Speaker 1>first class flights anymore. Do you think we're going to

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<v Speaker 1>see a clean out of their highest earning talent.

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<v Speaker 3>Well, both networks.

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<v Speaker 2>There seems to be some talent there that is still

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<v Speaker 2>on very high incomes. Those days of these stars receiving

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<v Speaker 2>big salaries each year are coming to an end. The

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<v Speaker 2>TV stations can simply not justify it and are looking

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<v Speaker 2>at ways to cut costs everywhere they can. They still

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<v Speaker 2>have some big names on their books contracts still to.

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<v Speaker 3>Be seen out.

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<v Speaker 2>So what seene to be happening is when a lot

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<v Speaker 2>of these contracts with big stars, including newsreaders, are coming

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<v Speaker 2>to an end, they simply chop up the contract, offer

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<v Speaker 2>them something far less, or send them on their way

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<v Speaker 2>and get someone younger and cheaper. And this is a

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<v Speaker 2>trend that's happening across commercial freeedom are TV because there's

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<v Speaker 2>few jobs, a lot of people who want those jobs,

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<v Speaker 2>and they can offer less now than those decades ago

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<v Speaker 2>when the big stars were getting eyewatering salaries.

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<v Speaker 1>Sophie Elsworth is a media writer with The Australian. The

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<v Speaker 1>newly minted Northern Territory government is facing its first big challenge.

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<v Speaker 1>It's been revealed police were too late to save a

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<v Speaker 1>woman allegedly killed in a domestic violence incident. You can

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<v Speaker 1>read that exclusive story, as well as all our journalism

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<v Speaker 1>right now at the Australian dot com dot au