The ailing Ten network is now in voluntary administration. But this does not spell the end of Australia's third-ranked broadcaster.
Contrary to social media speculation, Ten is not about to shut down. If you tune in tonight, you'll still see Family Feud, The Project and MasterChef.
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Advice at #FixNetworkTen
Joking that the power had gone off at Network Ten, Pete Helliar comments on the financial woes of the company, while fix-up advice comes from Twitter.
Very little will change. For now. Long-term, however, Ten's future is uncertain.
In a video address to staff, Ten CEO Paul Anderson said its administrators, KordaMentha, will enact a three-point plan.
First, they will ensure business continues as usual. Then they'll assess the network's finances and operations. Finally, they will "re-construct" Ten, to recapitalise or sell the company. Anderson estimates this process will take one month.
Beyond this, viewers might see big changes.
Ten will take fewer shows from American studios CBS and Fox, after its costly output deals are re-negotiated. Popular series such as Modern Family and NCIS: Los Angeles are likely to remain. They will, however, ditch lower-rating programs purchased under the old agreements.
Collectively, Ten's shares are worth around $60 million. Sources tell Fairfax Media it spends $120 to $150 million a year on CBS and Fox content. If Ten is to survive, it has no choice but to slash these costs.
As for MasterChef, Survivor and The Bachelor? All are expensive to produce. But Ten can't simply axe them. In Australia, free-to-air primary commercial networks must air at least 55 per cent Australian programming between 6am and midnight.
More likely is that administrators will trim the costs of major shows. That could result in fewer international guests on MasterChef. Fewer staff travelling to Samoa, where Survivor is filmed. Fewer helicopter dates on The Bachelor.
Sources believe that Ten's biggest stars – some rumoured to earn $600,000 – might be forced to take a haircut. The risk is that they walk. But while Ten can't afford the huge salaries of yore, it doesn't want to lose Waleed Aly or Carrie Bickmore, either.
In the firing line is Ten's news division. Staff fear their local weeknight bulletins will be replaced by a national news hour, produced by Rupert Murdoch's Sky News. Sydney newsreader Sandra Sully is tipped to host the new service, which may retain the Eyewitness News branding.
It's possible this bulletin will feature local news "windows". Even so, viewers will see a drop in state-specific stories.
Any cuts to news will affect Studio 10 and especially The Project. Every day, it uses Eyewitness News footage. Sometimes, it even borrows its equipment.
Cricket? Ten has drawn large audiences to its Big Bash summer broadcasts. But inherent in this success is a problem: Ten may have priced itself out of future negotiations.
In 2013, Ten locked in a five-year deal, estimated at $20 million per year. Just two months ago, the price was forecast to hit $60 million when the next broadcast contract begins in 2018.
Naturally, Ten's financial predicament reduces the chance of a bumper deal, making it easier for a rival to steal the rights. Already, Nine is circling. "We want Test matches, we want one-dayers, we want [international] Twenty20s and we want the Big Bash," Nine's head of sport, Tom Malone, said last year. "We want everything."
In his staff address, Anderson said Ten must "answer questions" from its talent and production agencies. He also said there are no redundancies planned. (This doesn't preclude redundancies later on, of course.)
Ten was forced into administration after failing to secure the financial backing of billionaire shareholders Bruce Gordon and Lachlan Murdoch. James Packer, another key shareholder, has been trying to sell his stake since last year.
The full impact on viewers will only become clear after Ten emerges from this crisis. What will happen if a foreign entity takes over? Or if Gordon and Murdoch convert their debt to equity, thereby becoming Ten's owners?
Communications minister Mitch Fifield has announced a shake-up of Australia's media ownership laws, which should benefit Ten.
Currently, broadcasters cannot service more than 75 per cent of Australia's population. Nor can a single person or company control more than two media platforms – commercial radio, TV or newspapers – in one market.
If these laws are scrapped (and that's a big if) News Corp is the most likely winner. It already owns half of pay TV provider Foxtel. This creates scope to share more costs and programs with Ten.
But there are no guarantees. Ten's staff – and viewers – remain in limbo.
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