Television Reform Ir Broadcasting Blues Nem Zealand
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Television Reform ir Nem Zealand - l The underlying dilemma is the small j size o f the New Zealand market, which, Broadcasting Blues or Blue Sky? I with a population o f four million, j limits the profitability o f multiple The New Zealand television industry has a charter which requires it to fulfil various | television operators, and means been the subject o f various reforms since cultural objectives. Questions remain about \ funding o f local content and public 1999 dealing with local content, diversity of how the new charter obligations will be funded \ service broadcasting is an ongoing and programming, digital broadcasting, the role over the long term and whether TVNZ will be i difficult issue. of the public broadcaster and funding. Marion successful in balancing a public service role \ Jacka examines these developments, remarking with a commercial imperative. The government broadcasting between two organisations - TVNZ on the distinctive features of the New Zealand has declined to introduce mandatory local and NZ On Air - which would pursue each market and the commitment to social and content quotas and has opted instead for a self- of these objectives independently (Spicer et cultural objectives. regulatory scheme similar to the approach being a I 1996, p. 15). The public funding previously taken to New Zealand music on commercial allocated to BCNZ and collected in the form of Overview radio. a public broadcasting fee was transferred to NZ Many New Zealanders have the While there has been some dissatisfaction with On Air. The role of this agency was to promote broadcasting blues. They want TV and radio the pace of reform from the film and television universal access, 'minority programming', and of a higher calibre (Christchurch Press, 2 production industry and various commentators, programs which reflect New Zealand identity February 2000, p. 8). the government argues that progress is and culture. In place of direct funding of the It is clear to us that the market model reasonable given budgetary constraints and publicly owned broadcaster, support for public is part, but not all of the broadcasting other factors. The underlying dilemma is the service programming was to occur through a equation; that it leaves many needs unmet small size of the New Zealand market, which, system of competitive contracts between public ... The government therefore resolved to with a population of four million, limits the and private broadcasters as part of the overall redress the imbalance by becoming actively profitability of multiple television operators, aim of creating 'a level playing field'.4 involved in broadcasting ... We recognised and means funding of local content and public The role of the publicly owned broadcaster that broadcasting, arts and heritage service broadcasting is an ongoing and difficult was thus changed in 1989 and is key to activities play a key role in defining in an issue. This and other distinctive features of the understanding the broadcasting environment increasingly globalised environment, what New Zealand broadcasting environment, such as and the policy options available to government. it means to be New Zealanders (Hon. Steve the structure of the industry, and nature of the TVNZ, which dominates the market, has over Maharey, Minister of Broadcasting 2003a). regulatory framework, mean that no template the last 13 years operated on a fully commercial from other countries such as Australia can be Broadcasting reform was a key element of the basis.5 As a State Owned Enterprise, funded readily applied and a distinctly New Zealand New Zealand Labour Party's policy platform primarily by advertising, it was expected to approach needs to be developed. in the lead up to the 1999 election. The return a dividend to government, with social platform promised to increase the amount The paper falls into the following sections: objectives taking very much a secondary role. of New Zealand content on television and • an outline of the television broadcasting return the highly commercialised publicly landscape including an overview of digital Current structure owned broadcaster, Television New Zealand developments; The period following deregulation saw Limited (TVNZ), to a public service broadcasting • a discussion of the deficiencies the an increase in television services with the role. It represented a commitment to a more government is seeking to address; commencement of pay TV in 1990, and interventionist approach to broadcasting an expansion in free-to-air broadcasters. • progress with implementation of the reform policy in order to achieve social and cultural In the free-to-air space there are three agenda. objectives, in marked contrast to the policy national channels - TVNZ's TVOne and TV2, direction pursued since 1989 when broadcasting and CanWest'sTV3 - and two limited reach was substantially deregulated. The Labour The television landscape commercial channels TV4 (also owned by policy reflected widespread concern that the Since 1989 New Zealand television has been CanWest) and Prime, each of which reach deregulated environment had not delivered marked by an open competitive market, the around 70-75 per cent of the free-to-air adequately on quality and a New Zealand relative absence of regulation, and considerable audience. In addition there are 17 small regional identity in broadcasting content. dissatisfaction with the low levels of local and community broadcasters operating under Since 1999 the Labour government has set content and the overall quality of television commercial or non-commercial licences, and about the task of implementing its broadcasting services, particularly those provided by TVNZ. funded through a mix of local sponsorship, agenda. At the same time digital TV issues have The deficiencies in New Zealand television donations and limited advertising. come to the fore and, along with the distinctive broadcasting are usually traced back to the Despite the proliferation of services, a few features of the New Zealand broadcasting substantial changes that occurred in New broadcasters predominate: the main free-to- landscape, are adding to the complexity of Zealand in the late eighties at the height of 'the air broadcaster is TVNZ followed by CanWest; the task facing policy makers. New Zealand New Zealand experiment'- the program of wide Sky TV dominates the pay TV sector with provides a case study relevant to the broader ranging deregulation of the economy and of telecommunications company TelstraClear issue of how to support local content and a public institutions instituted ironically by a Labour (wholly owned by Telstra Corporation public broadcasting mandate in a changing government. Up to the late eighties, the publicly (Australia)), offering cable services in a limited broadcasting environment.1 The New Zealand owned Broadcasting Corporation of New Zealand geographical area, and, as set out below, now experience is also of interest in Australia given (BCNZ) was the only provider of television services. reliant on Sky TV for programming. the links tnat exist at many levels between The first major shift towards a deregulated TVNZ operates two national channels, TVOne the broadcasting and audiovisual sectors in environment occurred in 1987 when a licence for and TV2, with a combined audience share in both countries. This paper examines these a commercial service, TV3, was offered. This was 2001 of 66 per cent of the total television developments focusing mainly on the reform followed by the 1989 deregulation which involved audience (including pay TV), and around 70 of TVNZ and local content developments.2 The a major restructure of the public broadcaster per cent of the free-to-air audience. The two major outcomes to date are the establishment (renamed as Television New Zealand) and the channels are complementary with TVOne having of a long sought Maori television channel, removal of barriers to market entry.1 the larger audience share and targeting an older and chances in the role of TVNZ which is At the heart of the reforms was the separation demographic, and TV2 aiming at the under now operating under a new structure and of the commercial and social objectives of 39 audience. TVOne carries more recognisably Communications Update June 2004 - Issue 166 - page 3 public service broadcast content, such as revenue, and losses in 2000-01 of $13.19 to the Ministry for Culture and Heritage (MCH), news and current affairs (which are entirely million. At the end of 2001 Prime announced with MED retaining responsibility for spectrum lacking on 7V2), some British drama, but also a five year agreement with Publishing and allocation and management and other areas a deal of delayed broadcast or non-premium Broadcasting Limited (PBL) under which of broadcasting policy. MCH also monitors and sport events such as Rugby Sevens, and reality the Nine Network in Australia will supply funds NZ On Air and the Broadcasting Standards programs, local and imported, for example The programming to Prime NZ and also handle Authority. The Crown Company Monitoring Great Outdoors and What Not to Wear.T\/2 advertising sales for the station (Marriner 2001). Advisory Unit and the Treasury advise the carries more popular drama and entertainment, In return PBL has been granted an option to 'shareholding' Ministers on the performance including the now well established local stripped acquire 50 per cent of Prime NZ over the next of the public broadcasters in 'maintaining their soap, Shortland Street, New Zealand Idol, five years. The agreement will also see the delivery of goods and services' while the new movies and US comedy and drama such as The station's coverage expanded from 75 per cent of charter responsibilities for TVNZ are monitored Simpsons, Stargateznd The Drew Carey Show. the population to 90 per cent. This development by the MCH. Te Puni Kokiri (Ministry of Maori Affairs) monitors Te Mangai Pa ho and the new Until recently the TVNZ group also operated has led to a shift in Prime NZ's programming Maori Television Service (MCH 2003., p.