Ten Network Holdings has appointed Lachlan Murdoch as chairman and given its newly installed chief executive James Warburton a board seat.
Mr Murdoch takes over from Brian Long and becomes Ten's third chairman in about 15 months as the free-to-air television network struggles with a subdued advertising market and grapples with costs.
Ten said Mr Warburton would join the board as managing director.
The move on Friday follows Mr Murdoch's appointment as interim chief executive for 11 months.
Fat Prophets senior analyst Greg Fraser said Mr Murdoch's rise to the chairmanship would have come sooner had he not filled in as interim chief executive after Grant Blackley was sacked in February 2011.
"That was probably his intention all along," Mr Fraser said on Friday.
"Nobody should have been surprised at today's announcement."
Mr Murdoch's stint as interim chief executive was extended after court action from Mr Warburton's former employer Seven delayed the talented television executive's start at Ten.
"As chairman, Brian instigated improvements in Ten's board governance processes," Mr Murdoch said in a statement.
"These processes will continue to ensure good governance and transparency in management.
"I look forward to working with the board and our new CEO to re-shape Ten and to improve its performance for the benefit of all shareholders," Mr Murdoch said.
Mr Long replaced Nick Falloon, was ousted as executive chairman after Mr Murdoch purchased 18 per cent of Ten and sold half his stake to good friend and fellow media mogul James Packer.
Ten closed one cent higher at 90 cents on Friday.
IG Markets institutional dealer Chris Weston said the subdued share price reaction highlighted Ten's recent struggles in the television advertising market.
"There are still a lot of structural issues at Ten that need addressing," Mr Weston said.
"The market will probably stay relatively defensive until they actually come out with a clear strategy for the company."
Figures from FreeTV Australia published this week showed Ten captured 27.03 per cent of the capital city television advertising market in the six months to December 31, 2011, well behind Seven's 38.1 per cent and 34.87 per cent at Nine.
Also, the result was down from the 28.85 per cent Ten achieved in the six months to June 30, 2011.
"Advertising at the moment in this market is a very tough gig," Mr Weston said.
"You're not looking for decent advertising growth in 2012."
Mr Long, who became chairman in December 2010, is Ten's new deputy chairman and lead independent director.
