Why Nine Radio has terminated its syndication deal with Crocmedia
Just hours after Crocmedia parent Pacific Star Network resumed trading on the ASX, the sportscaster lost a valuable deal to distribute premium content from its rival.
Nine Radio has ended its syndication deal with Crocmedia, effective immediately, citing the need for greater control over the “distribution and commercialisation” of its content.
The deal in question dates back to the Macquarie Media days, and gave Crocmedia rights to distribute content produced by the talk network and to sell advertising within that content.
In an email to staff on Friday night, Nine Radio boss Tome Malone said he’d reached an amicable exit with Crocmedia who will continue to produce Sportsday for 3AW.
“This is causing us to examine everything we do, as we prepare our business to survive through the crisis, and emerge on the other side – stronger and more efficient,” said Malone.
“With uncertainty in the revenue market, we have been looking closely at our cost base in particular, with a view to minimising any impact on jobs or salaries.”
The syndication deal covered top-ratings shows including Alan Jones and Ray Hadley, with Nine now talking to those stations to takeover the agreements.
Crocmedia were also supplying some sports content to Macquarie, but after Mac Sports radio got the boot, there will little need for what was on offer.
“Ultimately we have a strong business, and decisions like this will help us deal with the many challenges ahead as we prepare for the post-COVID world,” said Malone.
He also said Crocmedia will continue to be a partner in the competitive game of sports rights.