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As a result, One began broadcasting in standard definition only. They made positions at the station redundant and said that production may become centralised. By the beginning of the s the network was in a precarious financial position and there were predictions that it would fail. Previously, newspaper owners could not own television stations in the same city. Structurally, the Australian television industry was closely modelled on the two-tiered system that had been in place in Australian radio since the late s.
Neighbours and The Simpsons were high-profile programs migrating from Ten to the new channel.
Meanwhile, owners Northern Star Holdings were having financial and regulatory problems. Shareholders in Ten Network Holdings lost their investment. In the early s, the Australian Government began canvassing the idea of licensing a third commercial television station in each capital city. Prior to the acquisition, Discovery backed out from bidding partnership with Foxtel.
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