This is Prime's big-earner tonight

By PETER GRIFFIN

Australian-owned Prime TV could begin to reverse more than $66 million of losses after signing veteran broadcaster Paul Holmes as its new star.

Many in the advertising industry believe Prime's audience gains have hit the wall.

But they also think Holmes, in his customary half-hour evening slot from next year, could break through that wall.

Ross Goldsack, the chief executive of advertising agency Young and Rubicam, said: "What Prime needed was something big like this to get noticed and be taken more seriously."

Paul Maher, the head of media buyer Starcom, said a prime-time current events show anchored by Holmes would be a "huge event".

"It will get a lot of new viewers into Prime," he said.

"They'll also drive advertisers in at a much higher rate than the rest of their schedule."

Prime is available to nearly 600,000 UHF and Sky satellite households, and has been increasing its share of the TV audience in the 25 to 54 age group.

But that share is still less than 5 per cent.

Nielsen Media Research figures show that between 7pm and 7.30pm, Prime averaged 38,000 viewers in the 5-plus age group for last month, compared with 563,000 for TV One, 454,000 for TV2 and 251,000 for TV3.

The station started in 1998, and has since lost $66.2 million.


It has not said when it expects to break even.

A handful of strong-rating TV shows on Prime and a revamp of its viewing schedule have pleased advertisers.

The channel's revenue grew 70 per cent in the year to June.

Industry sources say the new current events show will cost several million to get off the ground.

Prime chief executive Chris Taylor said money would be put into building a news-gathering team that would also bolster the news programme fronted by Suzy Aiken at 5.30pm.

"These resources will include local production staff which, as promised, will allow us to develop and improve our news at 5.30."

A defection of Holmes viewers to Prime would leave TVNZ having to match Paul Holmes' star power if it wants to maintain its advertising rates.

But CanWest, the owner of TV3 and C4, could also be affected.

CanWest chief executive Brent Impey said the network would review its prime-time programming in light of Holmes' move.

"Everything's up for review. When you have a substantial change in the market like this you have to sit down and review your strategy."

TV3 runs The Simpsons in the 7pm slot and has never tried to go up against Holmes with a rival current affairs show.

Maher said CanWest could be the real loser in Holmes' shift, as TVNZ would be likely to replace the show with similarly strong programming.

"This could hurt CanWest and they'll lose some audience in that half-hour that they've never really known what to do with," he said.

Maher expected that demand from advertisers would be sufficient to keep the prime-time slots buoyant on all channels..

"When you see the sort of returns the free-to-air broadcasters enjoy, it suggests there's the potential for new offerings in the market."