Seven poaches Ten supplier 
                By communications correspondent DEBORAH BREWSTER 

                    MAY 23: Seven Network Ltd has poached one of the key programming
                    suppliers to rival Ten Network, the Hollywood film and TV powerhouse
                Universal Studios.

                The loss of Universal weakens Ten's future programming line-up at a crucial time
                for the network, as it prepares for its long-awaited share market float.

                It is understood the deal, believed to have been signed in the past month, does not
                take effect for three years.

                But at that time Ten will be left with long-term rights to only one big Hollywood
                studio, Columbia Tri-Star.

                A few years ago Ten lost – also to Seven – rights to the film and TV shows of
                Twentieth Century Fox, owned by The News Corporation Ltd.

                Ten yesterday named its head of sales, John McAlpine, as its new chief executive
                officer, replacing Peter Viner. The appointment takes effect from July 1.

                As foreshadowed, Mr Viner will return to his native Canada after serving five
                years at Ten. He led its turnaround from an industry basket-case to one of the
                country's most profitable media groups.

                The Seven-Universal deal points to the growing vulnerability of independent
                operators such as Ten when it comes to locking in key programming. Free-to-air
                and pay-TV networks are increasingly forming alliances and cross-shareholdings
                to use as leverage in negotiating content deals.

                Universal, which is 80 per cent owned by the Bronfman family's Seagram drinks
                group, is one of the seven heavyweight US studios.

                Its recent film hits include the Jim Carrey vehicle Liar Liar, the highest-grossing
                film so far this year, and the Jurassic Park sequel The Lost World.

                Universal also has a TV production arm responsible for shows such as Hercules,
                Xena: Warrior Princess, Northern Exposure, Unsolved Mysteries, American
                Gothic and Murder She Wrote, which have been solid ratings performers for Ten.
                The studio has more than a dozen TV pilots in production for 1998.

                However, Ten is expected to retain rights to these existing programs, as industry
                practice is to purchase rights for the life of the series. This was the case, for
                example, with Fox – although Ten lost the studio to Seven, it retains rights to hit
                Fox shows such as The Simpsons.

                Seven spokesmen yesterday refused to comment on the programming
                arrangements. Ten executives were not available for comment.

                Seven last year bought half of Metro-Goldwyn-Mayer, and last month
                participated in a deal which saw MGM buy the Orion studio.

                Its position as a big studio shareholder seems to have given it leverage in luring
                Universal. The deal is the latest of several reshuffles of studio output deals in
                Australia as free and pay networks jostle to lock in exclusive content.

                Nine Network lured the Lorimar production house (maker of the hit Lois and
                Clark) away from Seven in mid-1995, a move which was instrumental in Seven
                deciding it needed to invest in a movie studio to guarantee programming.

                Nine has a stake in the New Regency studio, and has rights to Warner Bros
                productions.