Television Broadcasting in New Zealand

14. Free to air television broadcasting in New Zealand is characterised by two key players, with several smaller broadcasters targeting smaller audiences. There are currently also two providers of pay tv services. Existing broadcasters are briefly surveyed below.

    Television New Zealand

15. Television New Zealand is a state-owned enterprise, with all shares in the company held by two Ministers of the Crown. It currently operates along commercial lines, in direct competition with privately-owned broadcasters. The Government has announced that Television New Zealand is to be restructured into a Crown company with the objective of giving effect to its charter while maintaining its commercial performance. In 2000, TV One held approximately 42% of the national free to air audience share, while TV2 had a share of approximately 28%. Both TV One and TV2 reach nearly 100% of the New Zealand population across two nationwide analogue terrestrial networks.

    CanWest Global Communications

16. CanWest owns TV3 and TV4. In 2000, TV3 and TV4 had national free to air audience shares of approximately 19% and 5% respectively. TV3 reaches approximately 98% of the New Zealand population through a nationwide analogue terrestrial network. TV4 is broadcast across the major metropolitan centres, reaching approximately 75% of the population through an analogue terrestrial network.

    Prime Television New Zealand Ltd

17. 17 Prime TV is a subsidiary of Prime Television Pty Limited, a publicly-listed Australian company. Prime TV is broadcast in nine major cities and provincial centres through an analogue terrestrial network, reaching approximately 70% of the population.

    Sky Network Television Ltd

18. Sky was the first provider of pay tv services in New Zealand. Sky operates both an analogue terrestrial network covering approximately 74% of New Zealand households, and a satellite-based digital network covering the entire country. At 30 June 2001, Sky had a total of approximately 430,000 subscribers to its analogue and digital networks, representing approximately 30% of all households. There are approximately 266,000 subscribers to Sky's digital service.

    Totalisator Agency Board (TAB)

19. The TAB operates a network of UHF stations providing coverage of around 70% of the population, with programming focussed on horse racing. TAB programmes are also broadcast by Sky, in both analogue and digital formats.

    TelstraSaturn

20. Saturn Communications commenced broadcasting in the early 1990's on the Kapiti Coast through a small cable network operation. After investment by major offshore cable operators, the network was expanded to cover most of Wellington. Digital cable rollout is currently being undertaken in both Christchurch and Auckland.

    Maori Braodcasting

21. The Government introduced the Maori Television Service Bill into Parliament in December 2001. The principal function of the service is to promote te reo Maori me nga tikanga Maori (Maori language and culture) through the provision of a high quality, cost effective Maori television service, in both Maori and English. The establishment of the Maori television service is currently being progressed by a trust, elected though an electoral college. The Government has reserved UHF radio spectrum for the promotion of Maori language and culture. This is to be transferred to the Maori television service once the Maori Television Service Bill is enacted.

    Regional Television

22. There are several non-commercial regional broadcasters currently operating around the country. The regional broadcasters tend to operate on non-commercial (gifted) licences, and fund their broadcasting through a mix of advertising, sponsorship and donations. Some other local stations operate on a fully commercial basis, using purchased licences.

    Recent Industry Developments

23. Sky commenced its digital satellite service in December 1998. It now offers 42 digital television channels, including information and pay per view channels, along with several radio channels. Sky uses several types of set top box, each with different functionality. To receive Sky services (with the exception of TV One and TV2, see below), the viewer must lease a set top box from Sky.

24. In early 2000, Television New Zealand sought Government approval for the implementation of a digital data network for free to air/pay tv services using spectrum at 12 GHz. This was subsequently declined by Cabinet.

25. In November 2000, Television New Zealand and TelstraSaturn announced their intention to form a joint venture company to provide digital television services by satellite. These plans have subsequently been deferred.

26. After lengthy negotiations, Television New Zealand and Sky agreed that from 1 December 2001 Television New Zealand programming will be carried on the Sky platform but without encryption (unlike Sky's pay tv programmes which use a conditional access system). Accordingly, TV One and TV2 are available to any purchasers of an appropriate set top box. At present, TV3, TV4, and Prime continue to be encrypted and only accessible in digital format through the Sky set top box on a subscription basis. TV One, TV2, TV3, TV4 and Prime are available in digital format, but without additional pay tv programming, on a low-cost Sky subscription of $17/month.

    Overseas Experience

27. A summary of the steps taken in Australia, Canada and the United Kingdom to manage the transition to digital television is given below. In each of these countries implementation has not been without technical difficulties and unforeseen shifts in overall policies. A more detailed discussion is contained in Appendix 1.

    Australia

28. The Australian Government has actively managed the transition to digital television broadcasting. Digital broadcasting was required to be initiated in the five major metropolitan areas on 1 January 2001, and between 1 January 2001 and 1 January 2004 in all other areas. Simulcasting of analogue signals must be maintained for at least eight years, whereupon the situation will be reviewed. During most of the simulcast period, no new broadcasters will be permitted to enter the market. From 1 January 2003, all networks in the five major metropolitan areas will be required to broadcast at least 20 hours/week of high definition television.

    Canada

29. The Canadian Government has created a voluntary transition model. While no mandatory simulcasting period has been established, broadcasters are expected to maintain analogue transmissions until the end of the transition period. During this transition period, broadcasters are permitted to broadcast up to 14 hours/week of programming that is exclusive to their digital network. As with analogue transmissions, at least 50% of this unduplicated programming must be Canadian content. If possible, it is expected that broadcasters will transmit in high definition mode.

    United Kingdom

30. The United Kingdom has adopted a more market-based approach for the transition to digital broadcasting, although the Government still retains regulatory control in some areas. Analogue transmissions will not be switched off until the overwhelming majority of people have access to digital services. This will be examined between 2006 and 2010. The United Kingdom Government has stated that it does not wish to mandate particular transmission and equipment options, but rather encourage viewers to make their own choices. However, it has expressed concern that a solely market-based conversion to digital risks leaving some households behind, extending the "digital divide". It has also agreed to an expanded programme offering from the BBC using digital technology.