New Pay Partnership Not a New Dawn for Local Content

25 November 2011

New Pay Partnership Not a New Dawn for Local Content

The new partnership between TVNZ and SKY Television claims it will provide further pay opportunities for viewing of local programmes which have already been seen on TVNZ, but its implications for new programmes are unclear, says SPADA, the organisation representing New Zealand production companies and producers.

“Based on the evidence so far, our members are very concerned about the implications for the future of our television landscape,” says SPADA CEO Penelope Borland.

“Production companies licence their programmes to broadcasters and the terms of those licences need to be properly negotiated,” says Ms Borland. “In the absence of any regulation in this area, the dominant players TVNZ and SKY can force commercial deals that suit them financially and that will strengthen their businesses at the expense of local producers and NZ On Air. That leaves the New Zealand production industry and viewers with a raw deal.”

TVNZ is wanting to take PAY rights for new programmes from production companies for no compensation. That includes programmes funded primarily by NZ On Air, which is legislated to support the free access of the New Zealand public to local programmes.

These arrangements would not be tolerated in other countries, as there are regulatory regimes in places like Australia, Canada, UK and Europe to ensure that those who produce programmes for free-to-air television are compensated for additional PAY TV rights, because the programmes are commercially valuable to PAY TV operators who make a good return from them.

TVNZ’s Head of Digital Media and Channels Eric Kearly said on Radio New Zealand’s Nine to Noon programme this morning that the main barrier to the new PAY model was the negotiation of rights to content. Mr Kearly said that TVNZ had successfully managed to negotiate them when they were needed, and TVNZ is ready with these rights for the new situation, said Ms Borland.

“It’s pretty clear that there is no negotiation in a scenario where New Zealand’s biggest free-to- air, Government owned television broadcaster in partnership with our only PAY TV provider takes rights to PAY TV for no compensation” said Ms Borland.

“It is time to end the wild west in television broadcasting in New Zealand,” said Ms Borland. “The announcement of this new partnership highlights the case for regulation in the broadcasting environment.”

The Screen Production and Development Association of New Zealand (SPADA) represents the interests of producers and production companies on all issues that affect the business and creative aspects of independent screen production in New Zealand. www.spada.co.nz

ENDS

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