Ten's link to News under fire
James Warburton was sacked late on Friday after little more than a year in the role of Ten chief executive, after deep job cuts to the news division and weak ratings leading to a $13 million loss for the year.
The Ten chairman, Lachlan Murdoch, is understood to have flown to New York 10 days ago to meet Mr McLennan to discuss taking on the chief executive role.
Laurence Freedman, one of a group of investors who rescued Ten from receivership in the 1990s, said it appeared the network's board "has agreed that ex-News Corp people will have a large say in the running of Channel Ten". "From an appearances point of view, there is a strong apparent influence on Channel Ten," he said.
Lachlan Murdoch owns a 9 per cent stake in Ten. He is also a director of News Corp.
Since joining News Corp in 2011, Mr McLennan has effectively worked closely as a special adviser to Rupert Murdoch, running the media firm's office of chairman. Before that he was the global chairman and chief executive of advertising agency Young & Rubicam.
Mr McLennan is also the chairman of the News Corp-controlled online real estate interest REA Group, a position he will retain.
While Mr McLennan declined a request for an interview on Sunday, he downplayed the links between News Corp following the appointment. "I am resigning from News Corp and will become an employee of Ten. They are completely different businesses," he told Fairfax Media.
The shake-up at Ten followed a string of programming flops and persistent poor ratings for the network, which counts billionaires James Packer, Bruce Gordon and Gina Rinehart as investors.
Even the former ratings juggernaut MasterChef is now trailing Seven's My Kitchen Rules.
Ten's reliance on some big US shows has failed to provide momentum.
An influential media buyer, Harold Mitchell, said Ten needed to go back to its roots and aim for a younger market.
"In its heyday, it [Ten] totally concentrated on a particular market, which was generally the under-40s," he said. "It tended to lose its way when it broadened and it tried to appeal to an older market, and therefore it lost its appeal."
Frequently Asked Questions about this Article…
The Ten Network came under scrutiny after News Corp executive Hamish McLennan was appointed to run the broadcaster. Critics pointed to links between Ten's board and ex-News Corp people, and the fact Lachlan Murdoch — a News Corp director who owns a 9% stake in Ten — was involved in discussions about the appointment.
Hamish McLennan is a senior News Corp executive and former global chairman and CEO of advertising agency Young & Rubicam. He was appointed to take charge of Ten, will resign from News Corp to become an employee of Ten, and will retain his chairmanship of REA Group, which is controlled by News Corp.
The change followed a period of programming flops, persistently weak ratings and deep job cuts in Ten's news division. Ten reported a $13 million loss for the year, and CEO James Warburton was sacked after a little more than a year in the role.
Ten reported a $13 million loss for the year. The article links that loss to weak ratings, costly programming that underperformed, and significant cuts in the news division.
Ten has suffered from a string of programming flops and over-reliance on some big US shows that failed to generate momentum. Even former hit MasterChef was trailing Seven's My Kitchen Rules, highlighting the network's ratings challenges.
The article notes several high-profile investors in Ten, including James Packer, Bruce Gordon and Gina Rinehart. Lachlan Murdoch also holds a 9% stake in the network.
Yes. McLennan told Fairfax Media that he is resigning from News Corp and will become an employee of Ten, saying the businesses are completely different. Despite that, commentators and some former investors have said the board appears to be giving ex-News Corp people significant influence.
Media buyer Harold Mitchell suggested Ten should return to its roots and focus on a younger demographic — particularly the under-40s — rather than broadening its appeal to older viewers, which he said diluted the network's identity and audience.
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