Introduction Role Mission Objectives Performance Procedures Financials Directory NZ On Air local content Statement of Intent v2005-06 Read Me File NZ On Air has a vision for the kind of organisation it wishes to be: one that will play a strong and collaborative role in the delivery of public interest programming in the 21st century, by supporting innovative content catering to diverse audience needs wherever they might be watching or listening. NZ On Air local content Statement of Intent v2005-06 Acceptance of the Statement of Intent In accordance with Section 41 of the Public Finance Act 1989, I agree to lay this Statement of Intent of the Broadcasting Commission (NZ On Air) for the 3 years ending 30 June 2008 before the House of Representatives. Hon Steve Maharey Minister of Broadcasting NZ On Air Statement of Intent v2005-06 Statement of Intent local content NZ On Air Contents Chairman’s Introduction 2 Statutory Role of NZ On Air 9 Mission Statement, Strategy and Outcomes 10 Objectives for the next three years to 30 June 2008 12 Statement of Objectives and Performance Targets for 2005/2006 14 Statement of Management Procedures 29 Statement of Financial Performance for the twelve months ending 30 June 2005, 2006, 2007, 2008 32 Statement of Financial Position as at 30 June 2005 33 Statement of Cash Flows for the twelve months ending 30 June 2005 34 Statement of Accounting Policies 35 Directory 37 Introduction Role Mission Objectives Performance Procedures Financials Directory Statement of Intent Chairman’s Introduction v2005-06 NZ On Air The Programme of Action concludes with a proposal to review NZ On Air’s functions. We welcome this. Having been set up in 1989, NZ On Air is a product of that time. local content Within the constraints of our mandate, we have achieved as much as we can. But, in sixteen years, broadcasting Statement of Intent v2005-06 has changed significantly. Furthermore, radical change is Chairman’s Introduction on the horizon, with the arrival of digital technology. Overview The phenomenon of audience fragmentation, with the In accordance with the Public Finance Act 1989, the Public proliferation of channels we are already seeing in this Finance Amendment Act 2004, and the Broadcasting Act country, is only the first step along the digital journey. Of 1989, I am pleased to present the Statement of Intent of more significance will be the impact of convergence, as the Broadcasting Commission (NZ On Air) for the three internet and wireless-based technologies move ahead and years ending 30 June 2008. The Statement of Intent challenge the dominance of the small screen, and of free- sets out the outputs and outcomes that NZ On Air will to-air television and radio as we know them. secure for its customers – the Government and the New NZ On Air is intent on preparing for this new future. We Zealand public – as agreed between the Minister of published a strategic plan in mid-2003, focusing on the Broadcasting and the Commission. This statement also significant changes to the structure of broadcasting, and advises NZ On Air’s service providers – the broadcasters, funding for broadcasting, that had taken place during programme producers, archivists, transmission suppliers the 1990s and – more particularly – since 2000. At that and suppliers of operational goods and services – of the point, a review of broadcasting had been announced, but services NZ On Air will endeavour to purchase during the the direction and outcome of what became the Programme year to 30 June 2006. of Action was not known. Nevertheless, it was NZ On Air’s stated view that the changes that had taken place around us meant we could not continue exactly as we had before, and thought needed to be given to an updated role for the agency. Early this year, therefore, the Board of NZ On Air spent some time considering what our role could and should be, INTRODUCTION in the 21st century broadcasting environment, and consistent with the Programme of Action. In July 2004, when NZ On Air’s last Statement of Intent was published, the Minister of Broadcasting’s Programme of We agreed that there are two key factors that will influence Action for public broadcasting was still under consideration. our future: the first is the impact of digital broadcasting, Since then, it has been finalised and was released in early as it affects distribution systems, programme content, February 2005. The Programme of Action sets out an and audience behaviour. The second is the level of approach to building a strong and sustainable public funding that is available for us to fulfil a public interest broadcasting environment. In doing so, it takes into account broadcasting mandate. New Zealand’s “mixed economy” of both public and Last year, NZ On Air commissioned a major research project commercial broadcasting. on developments in digital television and their implications Its vision – New Zealand Broadcasting: a shared space, for New Zealand. The report, written by Paul Norris and informing and enriching a changing society – is one to Brian Pauling, was published in May this year. It concludes which we subscribe. that, within the next ten years, New Zealanders are likely to be able to access information and entertainment across NZ On Air is a core component in the delivery of public broad- a number of platforms, including free-to-air broadcast casting, ensuring locally-produced public interest programming services using digital satellite (and/or possibly terrestrial is available to New Zealand audiences across a range of platforms), a range of digital pay services delivered by radio and television outlets. The “shared space” is, from satellite, and so-called “triple-play” services (voice, video our perspective, achieved by providing quality local content and internet) using IP and ADSL over telephone copper to diverse audiences where they are watching or listening. wires. It is even possible that much traditional television This Statement of Intent has therefore been prepared against broadcasting will migrate to the internet, as multi-casting the backdrop of the vision and principles articulated in the of web signals now looks to be technologically feasible. Programme of Action. The four principles of Universality, Diversity, Independence and Quality are ones we have lived by for the sixteen years of our existence. They will continue to drive our work, with some (such as “quality”) being given added emphasis and a new twist in the future. 2 NZ On Air Don Hunn MAIN THEMES FOR 2005/2006 NZ On Air will continue to implement the Five-Year Plan published in 2003. Refinements to the plan will, first, reflect Chairman, NZ On Air the outcome of the Programme of Action, and second, prepare the ground for the future of broadcasting as we 00:00:00 see it in New Zealand. To illustrate this future, the stated core objectives of our published strategic plan are: • Industry outreach and strategic partnerships: As convergence brings internet and telephony into the broadcasting arena, the scope of our strategic partnerships will need to grow. The challenge for NZ On Air in this future environment will • Research and symposia: Likely digital developments be to find ways of disseminating local content in a number will influence the research projects prioritised for the of forms across as many platforms as possible. Digital year ahead. broadcasting creates new opportunities for reversioning, repeating and adding value to content. • Innovation and diversity: The future of broadcasting, with growing audience choice in terms of channels The questions this report raises, and the suggestions it and platforms, will require increasing emphasis on makes for NZ On Air to take advantage of the digital future cutting-edge, innovative and high-quality content to have provided important guidance in the preparation of this make an impact. Statement of Intent. While digital broadcasting may well be some years off, there is no doubt it is on its way. As an • Securing adequate funding to deliver agreed public organisation administering significant public funding, we broadcasting outcomes: The level of funding required need to prepare for that future today. to reach and make an impact with audiences will be affected by the proliferation of channels, the growth of new platforms, and changes to revenue streams. Regional television is also relevant in this context. While digital broadcasting is already a reality, traditional television and radio remain strong in New Zealand, with advertising revenue at record high levels and all commercial players reporting improved financial performance in the last year. 2004 saw CanWest float on the local sharemarket, Sky Television post a significant profit, Prime Television make a determined foray into New Zealand’s free-to-air market, and TV4 successfully re-brand itself as a music channel. The Màori Television Service marked its first full year of transmission in March 2005, with positive critical feedback and growing audience support. TVNZ, for its part, completed its second year as a chartered public broadcaster. With direct funding from Government to assist with its implemen- tation, the network stepped up local commissioning to a new level as it moved towards its aspirational target of 50% local content across both TV One and TV2. Within this environment, NZ On Air is seeking to ensure the range of locally made programmes, songs and broadcasts is expanded, and is visible or audible where New Zealand audiences are watching or listening. This has, in the last year, extended to a small number of programmes on Prime Television. 3 Introduction Role Mission Objectives Performance Procedures Financials Directory Last year, NZ On Air undertook several research and In May 2004, we established a permanent presence in consultation initiatives, consistent with our obligations Auckland, with the appointment of Kathryn Quirk.