CBS Corp. (NYSE: CBS) has agreed to acquire Australian television broadcaster, Ten Network who has lost money for 5 consecutive years and is offering to provide immediate funds to save the company from collapsing. CBS is planning to introduce “All Access” in Australia to offer their own programming to subscribers on demand through the internet. They will come up against on demand platforms offered by Ten Network’s two main free to air rivals as well as publicly funded services.
The “All Access” service features a live fee of the TV network and on demand shows. The company is planning on making some original shows for the service and wants to release a new “Star Trek” show on the platform next month.
Ten Network has been struggling under the cost of buying programs from the U.S. as advertising revenue dropped. In June, the company went into voluntary administration valued at $47 million before their stock was suspended from trading that month.
CBS is planning to cut costs at Ten Network by narrowing down newsroom staff and limiting expensive Australian produced shows.