Karl Stefanovic’s epic miscalculation crossed a line for Nine
Karl Stefanovic, 51, was a late mover into media entrepreneurship. Now in the remaining nine holes of his career, his decision to cash in on the brand he had built over 20 years as the Nine Network’s morning show host to launch an independent podcasting venture was a gamble.
In theory, Nine would probably have no problem with Stefanovic spreading her wings and leveraging her brand across multiple platforms to enrich herself.
But when the persona of podcaster Karl (who happily embraces far-right British activist Tommy Robinson) clashes with his persona as a breakfast show host watched by millions in Central Australia, a tearful outcome was a no-brainer.
Stefanovic’s miscalculation is one for the books. It was a big swing, or as someone put it, a “stumbling overreach.”
Nine morning show viewers were left furious as they felt their lovely Karl had cheated on them.
And remember – Morning Show Karl was paid nearly $3 million a year to stay loyal and popular with his early-rising audience and advertisers who targeted (mostly) moms with breakfast cereal commercials and laundry detergent commercials.
Unfortunately, Stefanovic had to choose only one lane instead of moving between two lanes. If his ultimate fortune is the measure, then he probably chose the wrong path. Australia’s podcast market is quite small.
To be fair, Stevanovic has cleverly chosen the direction of media monetization: audience fragmentation and the rise of the podcast.
The podcasts that get traffic and traction are the ones that push populist references; They push back against the status quo and the politics of grievance, which is often a mixed platter of anti-immigration, anti-establishment, anti-feminism and strongly anti-woke sentiment.
In larger markets like the USA or USA, the likes of Joe Rogan make a good living, but the same can’t be said for a market the size of Australia.
There is a limit to the number of people who can subscribe to Karl Stefanovic and Kyle Sandilands, with the latter offering more raw red meat.
Stefanovic is aware of the changing media landscape and realizes that the $2 million to $3 million Nine previously paid him is not future proof. As the decline in free viewership continues over time, big stars are finding it increasingly difficult to pay mega salaries.
Stefanovic’s replacement will not be treated so generously.
Stefanovic’s interview with Robinson clearly crossed the line for Nine, which is not prepared to disrupt advertisers’ lifeblood revenue. On Wednesday, he hosted a series of Nine crisis calls after the network became angry at the way Stefanovic hugged Robinson during the video. By Wednesday afternoon, Nine was knee deep in working out the circumstances of Stefanovic’s departure.
Earlier in the day, the Robinson interview mysteriously disappeared from major online platforms. Crisis mode was in full swing at Nine as they worked out how to plan the divorce from her 20-year veteran.
Highly paid ex-media celebrities shooting themselves in the foot could be a windfall for the likes of Nine or radio network ARN, which paid Kyle Sandilands and Jackie Henderson a combined $200 million over 10 years.
ARN took advantage of a fight between the two radio stars to tear up the expensive contract they had agreed to just a few years earlier.
Nine was greatly concerned that Stefanovic was creating a culture war thanks to his interview with Robinson.
But it also offers the free-to-air network an opportunity to cut costs. So maybe it’s not seen as that bad after all.
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