While Nine's subscriber numbers for its publications and streaming grew by around 8%, its ad revenue got slammed harder than its cancelled TV show, Rush.
👉 Background: Nine Entertainment is the media giant that owns Channel Nine, The Australian Financial Review, Sydney Morning Herald, The Age, and the streaming service Stan. It predominantly earns its revenue in two ways: through subscriptions and ads.
👉 What happened: While Nine's subscriber numbers for its publications and streaming grew by around 8%, its ad revenue got slammed harder than its cancelled TV show, Rush. In fact, ad revenue was down 17% compared to the same time last year.
👉 What else: With such a downturn in the ad market, it's easy to see why Nine is trumpeting its subscription businesses as a sign of success.
💡The writing is on the wall for media companies: adapt to a subscription model or risk disappearance.
💡Many of these media businesses previously relied solely on their ads to generate revenue. However, ad revenue fluctuates with market conditions. Therefore, media companies need to focus on a revenue stream that is more steady and reliable - helloooo subscriptions.
💡With Nine's subscription and licensing revenue becoming more than 30% of the group's revenue—excluding Domain, subscriptions are becoming a key part of Nine's investor relations story.
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