A new production facilities pact between Television & Media Services and Australia’s Ten network gives TMS subsid Global Television a Melbourne base, tons of equipment and the contract to service “Neighbors” and an upcoming Sydney-originated serial.
“This deal will grow our business significantly immediately and give Global a steady income source over the next 10 years,” said Global’s group G.M., Bruce Fink.
TMS agreed to pay the Ten web a maximum of A$7.25 million ($5.4 million) in new TMS shares in return for the assets of the web’s Studio Center Prods., including outside broadcast vans, a five-year lease on SCP’s Melbourne studios (home of “Neighbors”) and a 10-year production contract.
The number of shares allocated will depend on whether Ten puts “significant additional business” through Global, over and above the guaranteed minimum. Potentially, Ten could emerge with up to 20% of TMS stock.
“Ten’s strategy is to rely increasingly on Australia’s strong independent production community for its local content. This deal fits with that strategy and allows Ten to focus on its core business,” said web CEO Peter Viner.
When the deal is completed, Global will have grown in seven years from a small Sydney operation of 18 people to a post-production and facilities business spanning Melbourne, Sydney and Queensland, with 175 full-time employees. The Melbourne out-post will be renamed Global Studios Melbourne.
Five nights a week, Global’s Sydney studio will house a new drama serial produced for Ten by Southern Star Xanadu, cranking up in April.