Cox Communications announces Australian programming joint venture; venture includes Australian Broadcasting Corp., John Fairfax Holdings, Turner International, Viacom in development of all-news and entertainment channels

Business Wire, Feb 23, 1995

ATLANTA--(BUSINESS WIRE)--Feb. 23, 1995--Cox Communications Inc. (NYSE:COX), the Australian Broadcasting Corp. (ABC) and John Fairfax Holdings Ltd. Thursday announced a joint venture to develop and deliver two new satellite-delivered channels in Australia.

The joint venture, called Australian Information Media Pty Ltd. (AIM), will be 51 percent owned by the ABC through its holding company, Ambridge Pty Ltd., which was recently awarded the "C" satellite pay-TV license by the federal government. The remaining 49 percent of AIM will be held in equal shares by Fairfax and Cox.

The two channels will include Australia's only 24-hour news channel and an entertainment channel, and is expected to begin broadcasting later in 1995. The service will be distributed to subscribers across Australia on all major subscription-TV delivery systems, including satellite, cable and MDS.

Ajit Dalvi, senior vice president, Marketing and Programming for Cox Communications, commented: "Cox has substantial experience in contributing to the creation of successful programming services, both in the United States and abroad. Our first international programming venture, in 1992, was UK Gold, which is now the third highest-rated satellite channel in the United Kingdom.

"We've been studying the Australian market for more than 10 years, and have found that a substantial segment of the population wants more programming choices. Because Australian consumers seem willing to pay more for quality programming, on a per-subscriber basis, we think the channels will be considerably more valuable than comparable U.S. channels.

"We're excited about our participation in AIM because we believe Australians want Australian programming," Dalvi continued. "And the AIM news and entertainment channels will have more Australian content than any of the announced pay-TV channels. We're also enthusiastic about being partnered with Australia's two premier media organizations in AIM, and with Viacom and Turner, two of the world's best programmers and marketers, in each of the channels."

The News Channel (TNC), a 24-hour Australian and international news service, will bring together the combined editorial resources of the ABC, Fairfax and Turner International. Turner will provide content from its premier news services, CNN International and Headline News Network, and will acquire an equity stake in the channel.

The second channel will provide children's programming during the day, and a combination of high quality documentary, drama and general entertainment in the evening. Daytime programming will be provided by Viacom's Nickelodeon channel. Evening programming will feature ABC and international productions. Viacom will hold an equity stake in the channel.

ABC Chairman Mark Armstrong said: "The ABC has worked carefully over the past few years to ensure that its participation in pay-TV fulfilled a number of objectives. These objectives were to expand broadcasting activities based on developed program and editorial strengths, secure partnership with compatible, strong and experienced industry players, and to ensure appropriate protection for the ABC's other services.

"The ABC's participation in AIM is governed by the requirements of its Board and the Federal Government, which will ensure that its existing free-to-air broadcast services remain separate and independent, while allowing the ABC's recognized strengths in news, current affairs, children's, documentary, arts and entertainment programming to be featured in the pay-TV arena."

Kim Williams, who has headed up the establishment of AIM, said, "This alliance represents a formidable grouping of major media organizations that have highly complementary editorial and operating activities and extensive broadcasting and publishing experience."

Michael Hoy, editorial director and deputy chief executive of John Fairfax Holdings, said: "Our investment in AIM reflects further progress in the implementation of Fairfax's strategy to expand its media interests in line with our skills and financial resources. Fairfax will provide high quality information and entertainment, using its vast editorial resources and, at the same time, enjoy a number of benefits from its alliance with major media organizations."

Geraldine Laybourne, president of Nickelodeon, said: "We're thrilled to partner with the ABC, Fairfax and Cox. Australia is a particularly attractive market for Nickelodeon because the attitudes and sensibilities of Australian kids is in tune with the innovative approach of Nickelodeon. We believe Australia will love Nickelodeon and we know Nickelodeon will love Australia."

Tom Johnson, president of CNN, said: "CNN is pleased to be in this strategic alliance with the ABC. As such, we will be providing access to a number of CNN products, including Newsource, portions of CNN's coverage of live breaking events and domestic U.S. reports from CNN Headline News. Viewers of The News Channel will benefit from CNN's experience in 24-hour global news and the ABC's domestic broadcasting strength."