Ten Network shares have dropped after the broadcaster warned it is facing a full year earnings loss of up to $30 million due to weak ad revenue and rising costs.
Chief executive Paul Anderson said the television industry is "under severe duress", as weak ad markets and rising content and other costs will push the third-ranked commercial station to an earnings loss of up to $5 mllion for the six months to February 28.
If market conditions continue to decline and there is no relief from changes to federal government licencing fees, Ten warned it is facing a full year earnings loss of $20 million to $30 million.
Mr Anderson said the network is conducting "a rigorous cost reduction project" and would review the carrying value of television licences ahead of its half year results.
He said the current media regulatory framework is "unsustainable".
"This industry is obviously under severe duress and yet commercial free-to-air television broadcasters continue to be penalised by the world's most expensive broadcast licence fees."
"Without the investment of the commercial free-to-air broadcasters, local production will dry up, jobs will be lost and local news will be a thing of the past."
Ten's surprise update comes a day after Seven West Media shares plunged as that network warned full year underlying earnings would be down by 20 per cent due to soft ad markets.
Mr Anderson said Australian media companies were competing for viewers and advertisers against "globally dominant internet companies" that are exempt from local regulations.
Ten shares dropped 2.5 cents to 87.5 cents.
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