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Saturday, June 10, 2006

THERE GOES OUR NEWS AND IN COMES THE PROPERGANDA AND BULLSHIT

Nine stars spared the axe
From: By Richard Clune
June 11, 2006

THE Nine Network's expensive stars have been quarantined from cost cutting while their news and current affairs shows undergo a makeover modelled on the successful Fox News network in the US.

Behind Nine's announcement of the sacking of 20 per cent of its news and current affairs staff is a two-pronged plan to improve profitability and ratings, The Sunday Telegraph has learned.

Although new Nine CEO Eddie McGuire broke the news to staff, the strategy was hatched by his bosses, PBL chief executive John Alexander and deputy chairman Chris Anderson.

Mr Alexander is a fan of Fox and its formula of strong personality-driven shows, live debates and news crosses.

It is expected Jana Wendt's Sunday program, set to lose most of its reporting staff, will be the first to adopt the new look. Ms Wendt, who is paid around $500,000 a year, is said to be unhappy with the proposed changes.

Today, which like Sunday is losing the ratings war with Seven, is also in line for a revamp although host Jessica Rowe, on $400,000 a year, is safe for the time being. Nine is also planning to adapt cost-saving ideas based on proposals outlined by Mr Anderson two years ago.

Producers have been told they will have to share more resources, and crews will have to work across news and current affairs shows in the new system. There will be more live broadcasts and less packaged television.

In the long term, the PBL board is also believed to be planning the sale of Nine's Willoughby headquarters, freeing up hundreds of millions of dollars.

New digital broadcasting facilities would be built, but in a cheaper location.

The loss of 100 jobs, most of them in news and current affairs, is designed to shave $15 million off Nine's $130 million news and current affairs budget.

Sources said the Packer family had always demanded Nine make profits of at least $200 million a year and the cuts were necessary following the loss of advertising share and the ratings challenge by Seven. Last week's announcement was a blow to many Nine staff who had supported Mr McGuire's appointment as CEO.

They have now split into two camps: those who know they are safe and those who know their jobs are slated to go.

There was dismay that Mr McGuire made the announcement just before jetting off to Germany to host an expensive World Cup Footy Show special and after paying $2.6 million for the Beaconsfield miners' story.

"It isn't a good look; it's shocking timing," one employee said.

Those at the staff meeting to hear Mr McGuire deliver the bad news said he was flat and struggled to sell the new vision for the network. "Everyone knew he was selling us a s*** sandwich and pretending it was strawberry jam," one staffer said. "Up until then, most people thought Eddie was running the place."

News and current affairs chief Mark Llewellyn, who was demoted because of the appointment of Bulletin editor Garry Linnell, is said to have left the meeting before Mr McGuire finished speaking.

A Nine spokeswoman said: "No one likes delivering bad news but, sometimes, hard decisions have to be made."

Gerald Stone, former executive producer of 60 Minutes, said it was a sad day for Nine.

"What it suggests to me is that Nine is simply one of the pack. You can't cut that many people out and expect it to distinguish itself in news and current affairs," he said.

Seven's news and current affairs chief, Peter Meakin, who left Nine in 2003, said the scale of the changes would never have happened under Kerry Packer.

"Jana is going to look pretty lonely on Sunday with these sorts of cuts. It looks to me like they've thrown in the towel."

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