In the wake of a huge drop in predicting earnings last week, there are media reports that Seven’s newsrooms are facing cost cuts.
The Australian reports savings of about 10% were ordered by management even before last week’s profit downgrade.
Cuts are likely to impact on helicopters, charter flights and freelance vision, which can sometimes cost $2000 a day. “We can’t predict when there is going to be an earthquake in Christchurch, or a cyclone, floods or bushfires, and all these disasters cost a lot of money,” a source told the newspaper.
Such cuts would come at a time when Nine has been winning the news war in Sydney and Melbourne.
But Seven remains in front of Nine nationally due to its unassailable position in Adelaide and Perth, both of which have Nine affiliates under the management of WIN Television.
Seven West Media’s announcement of an expected profit drop surprised many and prompted a swathe of downgrades by analysts.
Seven has an advertising share of about 40 per cent, compared to Nine’s nearly 32 per cent and TEN at 28 per cent.