How MasterChef became a $100 million industry for Network Ten

• By Amy Harris
• From: The Daily Telegraph
• June 08, 2010 6:16AM

MasterChef judges Gary Mehigan (L), Matt Preston and George Calombaris. Picture: Noel Kessel Source: The Daily Telegraph

• Masterchef earns at least $100 million
• Profit comes from ads, product placement, magazine
• Media buyer says it will be bigger than Big Brother
• Join us over on Facebook | Twitter

BEHOLD the $100 million show. Nudging almost two million viewers per night, Ten's smash hit MasterChef has moved into a new realm of advertising clout, earning it the tag of "the most powerful television show" in Australia.
According to one leading media buyer, the six-night-a-week ratings bonanza - which has become a $100 million industry on the back of ad revenue, product placement and merchandising - will only get bigger.
"I cannot think of a show that has stood out as much as this," Mitchell Communication Group head Harold Mitchell said.
"It is a powerful show. Definitely the biggest show Ten has ever had."
The earnings breakdown of the show, produced by the Shine Group-owned FremantleMedia, paints a staggering picture.

A 30-second ad spot, of which there are 22 per night, costs $70,000 - the most expensive for a nightly program by around $30,000.
There are 100 brands affiliated with the program, including nine major sponsors and 91 partners, who pay an estimated $40 million per season to have their products, everything from pasta shells to refrigerators, seen on the show.

Then there is the top-selling monthly MasterChef magazine, which was sent into a reprint following its May launch.
Dwarfing the pre-release estimated circulation figure of 86,000, the magazine (published by News Magazines under the FremantleMedia banner) sold 180,000 copies in its first month and pulled in just under $1 million in cover price alone.
According to Mr Mitchell, the magazine will also account for roughly $750,000 in ad sales per month, bringing the mag's annual projected gross to just under $20 million.
"We have to anticipate sales will settle down a bit," News Magazines' group sales director Amy Copley said.
"But it doesn't appear so at this stage. Subscriptions are about 11,000 which, one month in, is gob-smacking."
Hosts Matt Preston, Gary Mehigan and George Calombaris have all released books, all of which have enjoyed impressive sales.
The trio can demand up to $5000 for public appearances.
"What you have is a $100 million industry that has essentially grown out of nothing," Mr Mitchell said.
"The last program that did that was probably Big Brother and it was strong for a good seven or eight years.
"But Big Brother didn't have the broad audience appeal of MasterChef."
Network Ten's national sales manager Kylie Rogers said this year had seen an unprecedented level of interest from clients looking to grab a slice of the MasterChef millions.
According to one media analyst, Ten and FremantleMedia are bracing for the show's July finale, which is on track to be the highest-rated program in the history of Australian television.
 Read more at The Daily Telegraph

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Packer, Murdoch to Buy Out Consolidated Media, Australian Says

By Robert Fenner

Jan. 21 (Bloomberg) -- Lachlan Murdoch, son of News Corp. Chairman Rupert, plans to team with James Packer to buy out Consolidated Media Ltd. in a deal worth more than A$2 billion ($1.8 billion), the Australian newspaper said.

Murdoch, who quit his executive role with News in 2005, has raised funds for the deal from outside the company, the newspaper reported, without saying where it got the information. The Australian newspaper is published by News Corp.

Packer, who already owns 38 percent of Sydney-based Consolidated, will increase his stake to 50 percent and Murdoch will own the other half, the Australian said. Investors will vote on the deal later this year, the newspaper said.

Consolidated owns 25 percent stakes in Foxtel, Australia's biggest pay television service, and PBL Media, which owns the nation's largest magazine publisher and second-ranked free-to- air TV broadcaster.

Packer, Australia's richest man, created Consolidated last year when he split Publishing & Broadcasting Ltd. split its media and gaming assets into separate companies.

Consolidated requested a trading halt on its shares earlier today, without providing a reason.

To contact the reporter on this story: Robert Fenner in Sydney rfenner@bloomberg.net
Last Updated: January 20, 2008 22:18 EST