Free-to-air TV key to online: Seven

Seven West Media chief executive Tim Worner says the TV network is "facing and embracing" the challenge of digital and has sought to position the broadcaster's scale as an edge in reaching new online audiences.

Just over a week after Seven's Melbourne Cup Day launch of live streaming of all its free-to-air programming, Mr Worner warned that the network would suffer falling earnings in a depressed advertising market.

"Market conditions in the current financial year to date have been somewhat subdued with TV market growth relatively flat and advertising trends in publishing facing ongoing pressure," he told shareholders at Seven's annual general meeting today.

Mr Worner said Seven was pursuing a "three pillars" strategy of increasing its content ownership, increasing audiences in online, data and video, and diversifying earnings.

He said Seven's position as a free-to-air broadcaster gave it leverage into online viewing, demonstrated by an Australian record of 400,000 concurrent live-stream viewers for the Melbourne Cup, in addition to 2.9 million free-to-air views.

"There is only one way such a sudden change could be achieved. Through the reach and therefore the power of free-to-air television," he said.

Seven West's shares were 2 per cent higher to 67.7 cents each at 11am.