Adsterreas digital network has agreed to buy radio advertising network and broadcasting rights for $8.4m to bolster its network of local stations in Australia, the company has announced.
The company said the deal would deliver ad revenue and exposure to more than 150,000 Australian listeners.
It would also bring an additional 1,000 hours of radio ad time on a weekly basis to Australia.
The ad network, which is owned by the media company Rupert Murdoch’s News Corp, will continue to offer Australian local radio stations, including local television and radio stations.
Radio Australia, which has a combined circulation of nearly 500,000, is a unit of Adsterreta.
The deal follows the acquisition of local radio broadcaster, AM, by Australian digital broadcaster, The Australian.
The Australian will continue its current operations.
“This is a landmark deal for our local broadcasting businesses, which will deliver significant advertising and audience reach in our markets,” chief executive Paul Gough said in a statement.
“Local radio and television stations have become a vital part of the Australian economy, with over 20,000 people listening to local stations each week, with ad revenue expected to double in the next four years.”
AM radio has been under pressure over its local advertising strategy in recent months.
The ABC has lost a number of stations in the past year, and its regional and local services are under pressure.
The corporation’s local advertising program has struggled to match its international competitors.
The national broadcaster, ABC News, has also had problems in the US.
The broadcaster has struggled with the rising cost of local advertising and it has not managed to increase revenue since the financial crisis, according to a report in The Australian last year.
AM and ABC stations are currently on the ABC’s digital network, News Limited, which also includes a podcast.
The move will bring an extra 1,500 hours of ad time to the network.
“As a global broadcaster, we believe that ad revenues and exposure in Australia are important for all Australians to have access to,” the network’s chief executive, Ben Thompson, said in the statement.
Adsterrains digital network will be owned by Murdochs News Corp and Rupert Murdochs’ News Corp owns the ABC.
ABC Digital News and the ABC Local Radio Network will continue operating under a joint venture with News Corp. Adsters digital network is part of Murdochs network of regional radio stations including AM and the Australian and ABC Local radio networks.
News Corp has also bought a number more local radio properties in the last few years.