MasterChef fails to help the Ten souffle rise twice
Fund manager Roger Montgomery has calculated that Ten Network has virtually trod water for more than 10 years with an average compound growth of just 4.8 per cent and profitability levels that have not been sufficient to cover dividends. Read article.
Roger Montgomery is the Founder and Chairman of Montgomery Investment Management. Roger has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
Chris
:
A single program should not ‘carry’ a network, because ‘what happens when the party stops ?’
Particular American networks have found this out – to their peril – with news anchors, talk show hosts etc. and when they leave.
When popular programs go sour, like the glut of ‘reality’ TV, people get bored and switch off. It is the same principle as a business with one flagship product – the risks behind the economic moat make me worry because a competitor could replicate it, the product can become obsolete or it could be poached from or the IP sold by the business.
Roger Montgomery
:
Thanks Chris,
The Masterchef program is a very valuable franchise, but whether it stays with one network forever is something only time will reveal and something that cannot be forecast.
Eamon
:
Hey, Roger
Do you think all the three channels free to air are all mediocre businesses? As one would think ten is more unique as it has an all sport channel, hence should seperate it from seven and nine.
Furthermore Channel Seven expansion as a conglomerate business; will this make it more or less risky? Personally I felt Seven has use excess capital unwisely, but thats just my opinion.
Eamon
Roger Montgomery
:
Hi Eamon,
They seem to generate mediocre returns and are expensive.