Australian television is in for a massive shake up in the near future following news American media giant CBS has purchased Channel 10.
In a statement to the ASX, Ten Network Holdings said it had entered into “binding transaction documents” for CBS to acquire the struggling broadcaster, for an undisclosed sum.
It comes after Channel 10 was placed in voluntary administration in mid-June.
CBS, a major broadcaster and content producer in the US, has supplied the network with US programs for almost 20 years. Yet the acquisition of Ten allows it to launch foreign service offerings and delivery methods into Australia and shake up the dynamic of Australia’s three commercial broadcasters.
“This acquisition not only presents CBS with considerable broadcasting opportunities in Australia, but also allows for further multi-platform distribution and growth,” CBS Studios International president Armando Nunez said.
Among that multi-platform distribution will be the launch of its digital subscription video-on demand service, called CBS All Access.
This will pit the free-to-air broadcaster against the likes of Netflix and Telstra’s equivalent program Stan, and may also impact on pay-TV provider Foxtel’s market share.