The Seven and Nine networks executives are plotting to smack media buyers with huge price hikes after both networks forked out huge investments in new sports broadcast rights deals.
Both Channel Nine and Channel Seven have recently signed massive sports deals. News Corp, Telstra and Seven West Media signed a monster $2.5 billion six-year deal for AFL rights. On the other side of the sports field, Channel Nine secured the rights to the NRL until 2022 with a reported $925 million deal.
According to The Australian both Channel Nine (NRL) and Channel Seven (AFL) are set to introduce a price rise of about 30 per cent, taking the average cost of a 30 second ad during AFL or NRL match up to $39,000, from $30,000.
For an ad during the AFL and NRL grand final, once the new sport deals begin in 2017 and 2018, advertisers can expect to fork out an estimated $130,000 and $175,500 respectively.
Sales bosses from Seven and Nine declined to comment on the price hike, but both said the commercial model needed to change to accommodate the terms of the new deals.