The launch of new digital channels

Developing New TV Brand Identities

Steve Weaver- Nine Network

Launched in 1956, Nine

experienced a 50-year reign as

Australia’s #1 network

Nine stood for tradition, history

and heritage but also fun and

entertainment

Stable ownership under Packer

family

• Nick Falloon fired as

PBLM CEO

• Nine CEO – David Leckie departs

• Ian Johnson appointed CEO

• David Gyngell appointed Deputy CEO

• David Gyngell appointed CEO

• $$ Big Ratings / Revenue

• Seven scores with Disney

output deal

• Nine CEO, David Gyngell resigns

due to management interference

• Kerry Packer passes away

• Sam Chisholm appointed CEO &

key executives depart

• Nine’s Warn Bros. output

deal dries up

• Nine loses AFL rights

• Eddie McGuire appointed CEO

• James Packer looks to sell media

assets

• CVC acquires 50% for $4.5B

• Staff cut backs and cost costing

measures enforced

• Ian Law appointed

CEO of PBL

• CVC acquires further 25%

• Worst period for ratings and

revenue

• David Gyngell reappointed CEO

in October 2007

• Focus realigned on demos not

total people

Massive Brand; Massive Re-engineering

poorest results in years

impending multichannels

a sizable investment was

made into researching

growth path for both fallen

parent and new channels

Impact?

I know Underbelly is on Sunday,

Two and a Half Men on Monday,

new Simpsons on Tuesday then

mum gets the tv for that show…

(16-39yo, Melbourne, 2009)

There’s so many channels

now it’s hard to remember,

especially the new ones…

(16-39yo, Sydney, 2010)

I know the sort of

shows that’ll be on

Go!… (16-39yo, Parramatta, 2010)

7Two’s got the old

crap, the classics and

that… (16-39yo, Parramatta, 2010)

One’s got the sport… (Parramatta, 2010)

Share of Viewing- The Impact of ch100

20.0%

22.0%

24.0%

26.0%

28.0%

30.0%

32.0%

34.0%

Network 7 Network 9 Network TENPPL with PAYTV PPL with FTA ONLY

• Cant rely on EPG

alone

• Must drive viewers via

brand equity

• Equity able now to be

created via both depth

and breadth of

broadcast

– Leverage multiple

platforms to enhance

experience

I like that the free-to-air digital multi-

channels are specialising in

different genres

13%

53%

29%

4%

66

% A

gre

e

What did we need to do?

1. Nine- reposition its key values and linking

its heritage

2. Build an attitudinal brand positioning for

GO! and GEM

‘Old’

Dictatorial,

condescending tone

Traditional =

Arrogant

Boring

Out of touch

‘Iconic’

Modernised tone

Traditional =

Familiar

Experienced

Quality

Heritage

PAST FUTURE

Home is structural strength Nine has strength, heritage, integrity

Humbly asking to be part of the viewer’s home

There’s no place like home No better place to be, no better place to watch

Implicit power & resurgence Acknowledges journey and renewed approach

Fresh

Young

Dynamic

Foxtel style

schedule and

tone”

Trans-generational

Not Young but Young-at-Heart

GO!’s Success rubs off on Nine

It’s pretty cool that Channel 9 launched Go!

(16-24yo Melbourne)

Treat

Yourself

Emotion:

Cheeky, Young at heart

Need:

Easy, unthinking viewing

Demo:

Younger (16-39)

Essence:

Alive

Expression:

Good to GO!

Emotion:

Nurturing

Need:

Absorbing, thinking tv

Demo:

Grocery Buyer/ Older Female

Essence:

Reward

Need:

Treat Yourself

Distinct in

every aspect

HD channel delivering quality first-run & premium catch-up – Comedy

– Drama

– Sport

– Lifestyle

– Reality

– Movies

Audience extension of Nine and GO! – complete market offering – 35+ with a female skew

“Treat yourself”

Pie

The Missing Piece to the Demographic Pie

2011 and beyond

Nine = 951k % of Portfolio = 100%

Source: OzTAM Data. Weeks 7-48, 2008 (excl. Easter & Olympic days). Weeks 7-32, 2009 (excl. Easter). Live data. 5 City Metro.

Nine CH9 = 46

Median Age

Portfolio = 951k A

ge

AUD (000s)

2008/9- Single Channel

Nine

GO!

GEM

CH9 = 47

Median Age

Nine = 842k % of Portfolio = 78%

GO! = 176k

% of Portfolio = 16%

GEM = 65k % of Portfolio = 6%

Portfolio = 1.080 mil.

GO! = 38

GEM = 47

Source: OzTAM Data. Primetime (18:00-24:00). Consolidated data. 5 City Metro.

Ag

e

AUD (000s)

2011- Three Channels

How Will Broadcasters Meet Viewer Expectations?

Summary

Brand Strength Remains Key For Navigation

operates as an EPG

Brand Strength Remains Key For Extension

x-platform ad environment

These three clear brand identities have created the

most finely tuned multi-channel strategy of all

commercial networks