nz on air annual report 05/06 > Contents Chairman’s Overview 2 Chief Executive’s Report 4 Research 4 Television 5 Radio 6 NZ Music 8 Ma-ori Broadcasting 10 Archives 11 Transmission 12 Staff Changes 12 Financial Statements 13 Statement of Responsibilities 13 Statement of Accounting Policies 13 Statement of Financial Performance 16 Statement of Movements in Equity 17 Statement of Financial Position 18 Statement of Cash Flows 19 Statement of Commitments 20 Statement of Contingent Liabilities 21 Statement of Resources 21 Notes to the Financial Statements 22 Statement of Objectives and Service Performance 32 Audit Report 53 Historical Television Statistics 54 Television Programmes 55 Radio Programmes 60 NZ Music Projects 61 Directory 65 NZ ON AIR ANNUAL REPORT 2005/06 NZ On Air Board 1 / 2 / 3 4 / 5 / 6 1 / Judy Callingham Deputy Chair 2 / James Coleman 3 / Gaylene Preston 4 / Edie Moke 5 / Paul Smith 6 / Don Hunn Chairman 1 The 2005/2006 year brought a number of challenges for NZ On Air, but I am pleased to report that it was a successful one. Chairman’s Overview Once again, events underlined the and we continue to see the standard importance of an agency like NZ On Air, of local content growing. which has a mission to support the We have also spent a great deal of our development, production and broadcast time thinking about and developing of local content for television and radio, plans for the digital broadcasting in a mixed broadcasting economy environment that is just around the where commercial imperatives mean corner. The Minister of Broadcasting’s that such content might not otherwise announcement in June of the launch be produced or seen by New Zealand of digital “Freeview” means that, by the audiences during prime time. end of 2007, New Zealanders will join The strategic focus of NZ On Air many others in the world in having a remains the same as it has been since greater range of viewing and listening the publication of the fi ve-year strategic choices, with better quality pictures plan in 2003, but in a changing and sound. environment, we have had to continue NZ On Air needs to be ready to face to develop that focus to ensure we this new world and ensure the quality remain current and ready to respond local content we fund is accessible to to developments as they occur. as many New Zealanders as possible, Don Hunn During the year, we appeared before wherever they choose to listen and Chairman NZ On Air Parliament’s Commerce Select watch. We also need to give Committee to discuss our Annual programme and music makers the Report for 2004/2005. I told the opportunity to be innovative and take Committee that NZ On Air was proud risks in the work they do in a digital to be associated with the strong environment that offers them greater expressions of New Zealand culture scope than they have today. and identity that characterise the As the Government continues to work programmes and broadcasts we had through the initiatives outlined in the supported through the year. Screen broadcasting Programme of Action it awards presented in that year attested published early last year, NZ On Air will to the quality of the programmes we work alongside stakeholders to ensure had funded. That has continued to our role in the broadcasting landscape be the case in the year just past. is clear and distinct. Government confi rmed its support of Our research continues to show that NZ On Air’s work, with additional New Zealanders enjoy and want more funding during the year to enable us to locally produced programmes, and maintain, where possible, the level of they appreciate and want New Zealand programming we have been able to music on the radio. We are pleased to support, in the face of climbing costs. be instrumental in providing what That funding has been put to good use, audiences are looking for, and we are 2 NZ ON AIR ANNUAL REPORT 2005/06 committed to helping to develop the quality of the that NZ On Air has placed a greater emphasis than ever programmes and music being made. on supporting and growing quality in broadcasting. In the coming year, this emphasis will continue, and it is Financial Situation our intention to develop quality measures and rewards to recognise the funding recipients who have used NZ On Air 2005/2006 was also a successful year from a fi nancial funding to produce outstanding results. perspective. Just over $106.5 million was available for We will continue to work to establish secure, innovative broadcast funding. The results of that funding are impressive: and well-appreciated locally produced television, radio and • 971 hours of television on TV ONE, TV2, TV3, C4 and Prime music. As we have said before, we believe innovation and for the fi rst time risk taking are key, and we will continue to encourage • funding for news and current affairs programmes on regional producers to “push the envelope”. channels throughout New Zealand for the fi rst time Research and consultation will be the foundation for the • more than 16,000 hours of public radio services through development of strategies that will result in broadcast outcomes Radio New Zealand, and even more through community that New Zealanders are looking for and will appreciate. and access stations NZ On Air will welcome the advent of the digital broadcasting • more than 300 hours of radio programming by age in New Zealand with interest and excitement, and we will independent producers work to ensure that the shared broadcasting experiences available to New Zealanders are relevant, innovative and of a • thousands of hours of radio and television archiving high standard, and that they are pervasive across the range • 163 music videos of media that people are able to access. We are especially • 40 New Recording Artists hopeful that the range of options offered by digitalisation will enable wider exposure of high-quality publicly funded • 20 albums television programmes. • the launch of the Phase Five international New Zealand In closing this overview, I want to thank the NZ On Air Board music promotional strategy. and staff for an interesting and successful year. I would also Public equity reserves, built up through a combination of like to thank NZ On Air’s former Chief Executive, Jo Tyndall, sales revenue, interest income, residual public broadcasting who resigned recently, for her outstanding work, both in fee collection and programme writebacks supplemented the her capacity as head of the agency and also as the Director, revenue we received from the Crown, and during the year, Digital Broadcasting Strategy at the Ministry for Culture we used some of those reserves to maintain support for & Heritage. programming at levels close to those we have achieved in recent years. As I sign off on this report, I am mindful that it will be my last, as my term as Chairman ends at the end of 2006. I am proud of what this agency has achieved during the Outlook fi ve years I have been associated with it, and would like to record my appreciation to all of those with whom I have Last year in the Annual Report, I signalled NZ On Air’s worked, both in the industry and in the organisation, for their inability to continue to maintain and grow local production part in making this possible. I wish you all well for the future in the face of increasing costs, without substantial increases and am confi dent the expressions of our diverse cultural in funding. We have been fortunate to receive increased identity through public broadcasting will continue to enhance funding, which, with careful management of the funds the life of the nation. available, has meant we have almost kept pace with recent years. The pressure remains, however, and this has meant Don Hunn Chairman NZ On Air 3 It has been a busy year, and the speed of its passing has, at times, left me breathless. Our Chairman has already indicated that the year has been a success for NZ On Air, and this report illustrates what gives us the confi dence to say that. Chief Executive’s Report Research NZ On Air, under Section 37(a) of the TV2 23.1%, TV3 21% and Prime 8.7%. Broadcasting Act 1989, is required to These results are against targets of consult widely on broadcasting issues 55% for TV ONE, 23% for TV2, 20% and the attitudes of New Zealanders for TV3 and 5.5% for Prime. to the programmes on television and NZ On Air also commissioned a range radio in this country. This consultation of projects designed to gauge the takes a variety of forms, from the needs of special interest audiences, comprehensive annual Public including the gay community, and Asian Information and Opinion Monitor to and Ma-ori audiences. The results of focus groups and online surveys. these projects were being assessed at The agency’s research programme is the time this report was being written carefully developed and managed, and and will provide background information the research results are critical to the to assist us in deciding whether or not formulation of NZ On Air’s policies. policy for special interest audiences They also contribute to wider policy remains current. development and provide key insights We also commissioned a report to look for the future. Bernard Duncan at the principles and practices of Acting Chief Executive Once again this year, the Public European broadcasters and funding Information and Opinion Monitor agencies to contribute to NZ On Air’s confi rmed New Zealanders’ enjoyment review of its equity investment and of locally produced programming with recoupment policies.