The challenge for Australian TV Networks

Justin Braitling, Chief Investment Officer of Watermark Funds, says the entrance of new global media companies has placed enormous pressure on the revenues of local FTA networks. It is a trend he says has been playing out throughout the world and will seriously threaten their ability to grow profits in the years ahead. "The major change is the distribution of viewers. You are seeing more platforms emerge and viewers are fragmenting. They're no longer just going home and watching Free to Air, they're online and on social media." Braitling says the result is a leakage of advertising spend away from FTA networks to these emerging global platforms. In this short video we ask Justin how he thinks they can adapt and from an investing perspective if there is the prospect of a turn around for local media players.