TEN is looking to renegotiate its cumbersome output deals with 21st Century FOX and CBS, according to media reports.
The network is hoping to scale back or exit its contracts which cost $100m a year, ahead of a looming deadline for a $200 million loan with the Commonwealth Bank.
Output contracts for US shows force the networks to purchase a list of content irrespective of its performance locally, and some have been loss-making in recent times. While the cost of exiting might be high, but cheaper than the long-term contracts, it allows to networks to pick and choose which US content they want.
Seven recently concluded deals with NBC and Disney, while Nine also exited a Warner Bros deal.
But TEN is also the most-reliant of the three networks on US content, producing fewer hours of Australian output in primetime. CBS is also a joint-venture partner in ELEVEN.
Rumours are swirling about possible TEN cutbacks, including to the network’s News division.
The $200m loan in 2013 has Lachlan Murdoch, James Packer and Bruce Gordon as guarantors, but Gina Rinehart declined. TEN has engaged both McKinsey and Kordamentha to help it deal with the increasing pressures it is facing, the Australian Financial Review reports.
TEN will report its half-year results tomorrow.