Australia’s free-to-air television sector is facing mounting pressure, with fresh earnings downgrades, executive upheaval and job cuts underscoring the structural decline of traditional broadcast media.

Network Ten has recently laid off sales and marketing staff, highlighting the deteriorating advertising environment. Rival networks Seven West Media and Nine Entertainment have also reported sharp earnings declines, reinforcing concerns about the long-term viability of free-to-air television in an increasingly streaming-dominated market.

Seven West Media reported a 2.7 per cent fall in revenue to $792.2 million for the half year, while earnings dropped 28.7 per cent to $66.9 million. Net profit plunged 42.2 per cent to $21.9 million. The figures reflect continued weakness in the advertising market and intensifying competition from digital platforms.

Southern Cross Austereo, now operating under new management following its merger with Seven’s regional assets, reported a 17 per cent slump in profits and a 14.5 per cent decline in earnings to $106.9 million for the six months to December 31. Profits fell 6.5 per cent to $34.7 million on pro forma revenues of $1.01 billion, down 1.5 per cent. Chief executive Jeff Howard retired unexpectedly after less than two months in the role.

During an investor call, chair Rob Murray-Mackay-Cruise said the board recognised the significance of the leadership changes but described them as necessary to accelerate post-merger strategy. The company is now targeting $30 million in cost savings.

Nine Entertainment also reported challenging conditions, announcing flat group earnings of $99 million for the first half. Streaming and broadcast revenue fell 6 per cent to $790.9 million, down from $839.5 million in the prior corresponding period. Nine Network revenue declined 14 per cent to $400.7 million, reflecting what the company described as weaker economic conditions and a 9.8 per cent drop in the metro free-to-air advertising market for the six months to December 31, 2025.

Digital performance offered limited relief. Nine’s 9Now platform recorded revenue of $100.7 million, down 16 per cent from $120.2 million a year earlier.

In contrast, subscription streaming services continue to outperform traditional broadcasters. Stan, owned by Nine, reported a 15 per cent increase in revenue to $282.7 million, supported by more than 2.4 million paying subscribers. Average revenue per user rose 6 per cent following price increases and the acquisition of English Premier League and FA Cup rights.

Sport remains one of the few bright spots for free-to-air networks. Seven reported a 51 per cent lift in viewers for the AFL Grand Final, while its Ashes cricket coverage reached 3.8 million Australians — 54 per cent higher than the most recent Test series against England.

However, much of the growth in sports viewing is occurring on subscription platforms. Foxtel reported strong demand for its Kayo streaming service, which, along with Stan Sport, continues to dominate live sports streaming in Australia.

With advertising revenue under pressure, leadership instability emerging and audiences fragmenting across digital platforms, Australia’s free-to-air television sector appears increasingly reliant on marquee sports rights to retain relevance. Analysts say the structural shift toward subscription streaming and on-demand viewing is accelerating, raising fresh questions about the long-term sustainability of traditional broadcast models.