Southern Cross Austereo (SCA) has announced it will transfer its Canberra broadcast playout operation in 2020 to NPC Media, a joint venture between the Nine and Seven networks.
NPC will provide SCA with playout services for an initial period of seven years.
The decision comes after SCA sold its Canberra site in 2016 with a four-year lease-back, and at the end of the capital expenditure lifecycle for the media company’s current broadcast playout equipment.
The new playout solution allows SCA to collaborate with peers Nine and Seven to create a back-office solution in a facility that will be developed to include full technical back-up.
SCA has program supply agreements with the Nine, Seven and Ten Networks, and broadcasts 105 television signals into regional Australia, covering all states and territories other than Western Australia.
The company’s TV footprint will mean that it will be NPC’s largest customer.
SCA chief operating officer John Kelly said: “With almost identical playout requirements, it makes sense for our businesses to pool resources.
“Given SCA already broadcasts Nine and Seven programs and uses their brands, the move is a logical step to consolidate back-office functions.
“It will not only enable us to reduce operational costs, but also to streamline processes, promote collaboration and increase productivity.”
SCA will lease a new office facility in Canberra to house the employees unaffected by the change. With playout operations transitioning to NPC, some current roles will become redundant.
“We are working closely with affected employees to maintain operations during the transition and to support them in identifying new opportunities as the transition is completed,” Kelly said.