Australia’s largest media companies have started the new financial year on a sour note, with job losses and internal restructures fuelled by a protracted downturn in the advertising market.

The ad dollars greasing the wheels of the major players – Nine Entertainment (owner of this masthead), Seven West Media and News Corp – have seemingly dried up. This drought, combined with Facebook owner Meta’s decision to pull the plug on its commercial arrangements – forged under the news media bargaining code – has sent the industry scrambling for savings.

From left: Nine CEO Mike Sneesby; Beverley McGarvey, Paramount Executive Vice President; Greg Hywood, Free TV Australia chair; and former Seven West Media CEO James Warburton during a hearing in Canberra in February.Credit: Alex Ellinghausen

With Seven and Nine joining News Corp in downsizing their workforces by 150 and 200 employees respectively, more jobs could be on the line unless things pick up in a hurry.

While there are hopes that the latest tax cuts and the Paris Olympics could stimulate demand, there is a bigger structural shift under way, which arguably puts traditional media companies at a disadvantage. Even if the downturn is arrested, there’s no guarantee the dollars will return.

Television advertising is facing an........

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