TV networks are demanding fee relief as a $40 million hole opens up in the wagering market, according to sources within the industry. The Australian Financial Review reports that the major TV networks are feeling the financial strain as the impact of the COVID-19 pandemic continues to ripple through the economy.
With the closure of sports venues and cancellation of major sporting events, the betting industry has taken a major hit. This has resulted in a significant drop in revenue for TV networks who rely heavily on advertising dollars from sports betting companies.
According to industry insiders, the TV networks are now seeking relief from the fees they pay to broadcast live sports events. These fees are typically a major source of revenue for the networks, but with the ongoing uncertainty surrounding the resumption of sports competitions, they are finding it difficult to justify paying the full amount.
The $40 million hole in the wagering market is expected to have a significant impact on the financial health of the TV networks. In response, they are calling on the government to provide assistance in the form of fee relief or other financial support.
Industry experts warn that if the TV networks do not receive assistance, they may be forced to make drastic cuts to their programming and staff in order to stay afloat. This could have far-reaching implications for the Australian media landscape, with the potential for job losses and reduced coverage of live sports events.
The Australian Communications and Media Authority (ACMA) has indicated that they are monitoring the situation closely and are in discussions with the TV networks about potential measures to support them through this challenging period. It remains to be seen what form this support will take, but sources within the industry are hopeful that a solution can be found to help bridge the $40 million gap in the wagering market.
