Nine Entertainment smashed expectations with its profit and revenue, but that doesn't protect it from Aussie streaming service struggles.
👉Background: Nine Entertainment is the Aussie media company and it’s a whole lot more than just Channel Nine. It also owns the Sydney Morning Herald, The Age, The Australian Financial Review and a chunky amount of Domain Group.
👉 What happened: Overall, Nine's doing pretty nicely. The company's $315 million profit is up 35% and revenue is up 15% to $2.7 billion. The broadcast and publishing arms of the business experienced record growth.
👉 What else: Buuuuut there's one area of the business that hasn't quite hit its financial straps yet: Stan, the Aussie streaming service.
💡Streaming services globally are struggling with oversaturation and subscription fatigue… and nobody’s immune. Running a streaming service can be expensive, from marketing and licencing to creating new content.
💡So you need a lot of subscribers to recoup those costs. Stan has over 2.4 million subscribers and raked in $381 million in revenue. But when you look at its actual EBITDA… it's only around $28 million.
💡But it's not just Stan - the whole streaming industry is being hit. So there may be more of a streaming shakeup still to come.
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