Seven West Media has signalled it will delve into the world of IPTV in the second quarter of next year, with CEO of broadcast TV Tim Worner describing Channel Seven as the "pumping heart" of the group.
Share prices skyrocketed yesterday afternoon and analysts have been full of praise for the group following its investor day, where they signalled $100m of savings were being made to remodel the group for the future.
The aim was to make the group "leaner" and more agile, said chief financial officer Rohan Lund, although details on where these cost savings are being achieved is sketchy.
Despite tis presenters from all facets of the company, Including Worner, Pacific Magazines CEO Nick Chan and West Australian Media boss Chris Wharton were keen to push the strength of the brands Cross audiences.
Worner pointed to the "inexorable rise of the individual" as a rationale for the move towards IPTV, saying the NbN was making it more achievable for people, signalling a "shift in thinking" for the powerhouse group.
He said IPTV will open up new models of collaboration across the audiences of SWM, with the group already looking at commerce platforms and allowing viewers to choose targeted ad breaks, personalising the viewing experience.
The catch up Plus7 service will also be launched onto mobile devices in the third quarter of this year.
Increased programming output is also on the cards, as the network looks to become "less reliant on having to squeeze more out of our precious programs".
Chan flagged an expansion of the PAC Mags stable internationally, saying they would look for "new revenues beyond Australia", Lund signalled closer collaboration between the various arms of SWM, breaking down silos but resisting the temptation to merge various brands into one.
Yesterday's announcement of the HealthEngine collaboration with Telstra is the first in a series of new verticals the group will reach into, with a focus on digital delivery.
However, he said they would be "sensible" when looking at investment opportunities, adding they "will not become an investment house".
Media equity analysts today praised Seven West for the robust financials it announced yesterday.