And it may consider them... after all, its economic moat is looking a little dry.
Background: Southern Cross Media (SCM) is the parent company of Southern Cross Austereo - aka the home of radio stations like Triple M and the Hit Network.
What happened: It also broadcasts 93 free-to-air TV signals across Australia. Now, it's reportedly been approached by a few investors keen on nabbing these regional TV assets.
What else: Experts reckon SCM might be inclined to sell because the value of its broadcast licence in regional markets is in decline (TYSM streaming services). In other words, its economic moat is drying up.
💡 An economic moat is a clear advantage that a company has over its competitor. Something that helps it protect its market share and profitability.
💡The 'moat' is something that's hard to imitate. So, it could be brand loyalty, patents... Like Coke's special syrup that Pepsi just can't nail. Or Maccas' secret sauce.
💡For Southern Cross, having that regional reach used to be a huge competitive advantage. But with streaming services like 7+, 9Now and 10Play taking off... the moat ain't so moaty.
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