Australis Media Secures Hollywood Studios Deal, Putting Pressure on Telecom and Optus

Strategic Insights -

Australis Media has landed a significant partnership with three Hollywood studios, Paramount Pictures, Sony Pictures (Columbia TriStar), and Universal Pictures/MCA, securing exclusive rights to their content for the next decade. This move is set to revolutionize the Australian pay TV market, as Australis prepares to launch its satellite and microwave service early next year. The partnership will produce two 24-hour movie channels, Encore and a local version of Showtime, which will offer a unique "Australian look and feel."

Key Takeaways:

  • Australis Media has secured a partnership with Paramount Pictures, Sony Pictures (Columbia TriStar), and Universal Pictures/MCA, gaining exclusive rights to their content for five-and-a-half years with a further five-year option.
  • The partnership will produce two 24-hour movie channels: a local version of Showtime and a first-run movie channel, ranked second to HBO on American cable TV.
  • The three studios have produced notable hits such as Raiders of the Lost Ark, Jurassic Park, Schindler's List, The Godfather, and Forrest Gump.
  • Optus Vision, a cable consortium of Optus, Continental cable, Kerry Packer's Publishing & Broadcasting, and Seven Network, has secured major local sports rights and plans to offer services from 1995 on a $3 billion aerial cable system.
  • Telecom has formed a joint venture with Rupert Murdoch's News Corporation, securing the Twentieth Century Fox film and TV studios, and plans to accelerate the installation of its cable system to pass four million homes by 1999.
  • Australis Media's capitalization is estimated at $315 million, based on its current share price.

Statistics:

  • The partnership will have exclusive rights to the output of the three studios for five-and-a-half years with a further five-year option.
  • The first-run movie channel will rank second to HBO on American cable TV.
  • Australis Media's satellite and microwave pay TV service is set to launch early next year.
  • Optus Vision's cable system will pass 3.4 million homes by 1998.
  • Telecom's joint venture with News Corporation plans to pass four million homes by 1999 at a cost of $3.5 billion.
  • Australis Media's shares last fetched 84 cents, with a capitalization of $315 million.

Sources:

  • "Australis wins Hollywood block for $315m" by Ben Potter in the Australian Financial Review on an unknown date.
  • "Optus Vision to install $3 billion cable system" in the Australian Financial Review on an unknown date.
  • "Telecom plans $3.5 billion cable rollout" in the Australian Financial Review on an unknown date.