June 22nd, 2009 5:26 pm

Nine and Warner Bros. ink Australia’s largest TV deal ever

With content through 2015 to the total sum of half a billion dollars, the new deal with funnel content for Nine’s main channel plus their upcoming youth oriented channel.

Despite earlier reports that the Seven Network were hoping the nab the Nine Network’s output deal with Warner Bros. for an estimated $52 million a year, Nine have come through with a offer the U.S.-based studio just couldn’t refuse.

The offer in question comes to a grand total of $500 million (or $100 million per year), almost double the offer from Seven.

Under the new pact, Warner Bros. will continue supplying content to Nine through 2015 from major producers such as Jerry Bruckheimer, John Wells, J.J. Abrams, Josh Schwartz, Kevin Williamson and Chuck Lorre, plus the studio’s entire feature slate, including the remainder of the “Harry Potter” series, the sequel to the Aussie animated comedy “Happy Feet” and upcoming blockbusters “Green Lantern” and “Where the Wild Things Are”, just to name a few.

Warner Bros. International TV president Jeffrey Schlesinger, who flew to Sydney last week to finalise the deal, said ”It was a very competitive situation in what is a very series-driven market”.

Nine’s CEO David Gyngell expressed relief over having closed the deal.

“We’ll have new digital channels in the coming years, and we need the best product available to attract viewers. The new deal grants us exclusivities and revenue-sharing in new-media windows. Plus, as was clear at the LA Screenings last month, Warners has the best slate.”

Nine plan to launch their third digital channel soon, and it’s believed that Warner Bros. strong youth oriented programmes are expected to form the backbone of the new channel.

New shows, like ‘The Vampire Diaries’ from ‘Dawson’s Creek’ creator Kevin Williams, and current popular series including ‘Entourage’, ‘Sex and the City’ and ‘Gossip Girl’ all received the nod from the network.

The younger target demographic for the new channel has also allowed Nine to secure big advertisers including Pizza Hit and Coca Cola, who previously reserved airtime for other younger skewed channels.

Meanwhile, a spokesman for the Seven Network, who’ve yet to announce details for their third digital channel, said yesterday, “We’ve determined our approach. Next decision will be timing on launch.”

Amidst the buzz from the media, the $500 million price tag for the Warner Bros. deal is raising a few eyebrows amongst the industry an shareholders alike, with Nine and parent company CVC Asia Pacific already under heavy financial turmoil. Sources believe questions will be raised as to the affordability of the deal.

Source: The Hollywood Reporter, The Australian