Martin Hall, Senior Lecturer and Programme Leader, Diploma in Advertising, Auckland University of Technology

The birth of the TV medium occurred around 70 years ago in the 1930’s. The BBC was at the forefront of this invention with the world’s first public TV service. In New Zealand we had to wait until the 1950’s before there were experimental transmissions and until 1960 before we saw the launch of a Government owned service by NZBS from Shortland Street, Auckland. This service arrived a bit later in Christchurch and Wellington and it’s not until 1962 that Dunedin is operating. A television license fee is also launched, initially 4 pounds, and the fee continues right through to 2000 albeit at much increased levels. In the first few months, transmission was on just one channel for a few hours each night for two nights a week, by the end of the first year it had extended to five nights a week 6.00-10.00 pm. Advertising started in a limited way in 1961.

Television’s arrival had a major shake up of the media mix in NZ. Ad revenue to newspapers, radio and cinema was affected. The average New Zealander’s media habits were now to include approximately 3 hours of TV viewing per night, a social habit that has not undergone any significant change ever since. Cinema was the most dramatically affected medium, losing something like 70% of box office sales overnight.

The 60’s saw the start of the Coronation St and Country Calendar programmes, which are still with us today. Networking, that is a programme shown at the same time across all regions throughout NZ, was not a feature until 1969; up until that point a programme was shown in Auckland and then sent to the next centre for airing, ultimately being viewed throughout NZ on a staggered basis. It was not until 1973 that colour arrived and was rapidly adopted by viewers and advertisers alike. Another significant developments in the 70’s was the opening of the Warkworth Satellite Station in 1971 hugely speeding up the delivering of programmes and news from around the world.

The NZBC that replaced NZBS in 1962, was itself dissolved in 1975 and replaced by Television One, Television Two and Radio New Zealand. Television Two started transmission in 1975 under the name of South Pacific Television in its search for a separate competitive identity from its state owned brother. These two channels operated separately until 1980 when they were put back together again under the umbrella of TVNZ by the newly formed BCNZ. The BCNZ was disestablished 8 years on when TVNZ and RNZ became State Owned Enterprises (SOE’s). 1989 sees New Zealand on Air launched. NZ On Air is charged with the resposibity of funding local programming that promotes NZ’s culture on TV and radio in a wholly commercial market. These programmes and services were paid-for from the Public Broadcasting fee paid by all owners of a TV set. When the Broadcasting fee came to an end in 2000 funding was made directly by the Government. The 1989 Broadcasting Act that saw the introduction of NZ On Air also saw the formation of the Broadcasting Standards Authority. The Authority’s responsibility is to ensure the maintenance of acceptable programme standards. The 1980’s saw a significant technical development in the form of videotape and its resultant impact on faster production turnarounds benefiting TV commercial production as much as programme and news production. VCR’s also became a standard piece of equipment in most homes. The threatened adverse impact on cinema attendance and TV viewing as a result of the home VCR and rental videos did not eventuate. Indeed, cinema has gone from strength to strength since the advent of multi-plexes and a wider range of product from Hollywood and elsewhere.

1989 was a significant watershed for the competitive environment of NZ television with the opening up of TV frequencies for sale to private enterprise. TV3 debuted this year and found tough opposition from a re-vamped and pro-active TVNZ and soon faced financial difficulties resulting in its eventual take over by CanWest after the Government legislated for 100% foreign ownership of NZ broadcasting contractors. CanWest launched TV4 in 1997 in what was thought to be a clever strategy to compete with TVNZ’s two channels, whilst TV3 built share TV4 struggled to make an impact and has subsequently been re-launched this year as C4 with apparent success.

Sky TV entered the market in 1990, initially on the UHF band, Sky introduced digital satellite in 1998 and now has over 35+ channels with a variety of pay per view channels as well as interactive games, weather and e-mail. Digital/satellite accounts for over 2/3rds of the 500,000+ and subscriptions. Sky has successfully used its live coverage of sport and its movies to leverage its subscription base and to reduce “churn”. It now has close to a monopoly of pay TV in the NZ market after Telstra Saturn’s withdrawal and poses a serious threat to Free to Air channels.

The decade of the nineties also saw the introduction and adoption of the much trumpeted “most life changing” invention since television - the Internet -. There is no doubting it is a hugely significant information, communication, shopping and business source and that it has had some affect on TV Viewing levels. The harsh reality, however, is that TV audiences remain fairly stable overall and many advertisers are still struggling to embrace this new medium. In June 1999 the Good Morning programme (10.00 am weekdays) becomes the first NZ television programme to be regularly cybercast live on the Internet.

Under the National Party rumour was rife that TVNZ would be sold off to private enterprise and TVNZ’s divestment of several of its divisions/investments appeared to be preparing it for that sale. However, National did not get re-elected in 1999. The new millennium signalled the Labour Government’s plans to re-structure TVNZ by splitting it off from its profitable BCL arm (the transmission arm of TVNZ) and turning TVNZ into a CROC (Crown Owned Corporation) from an SOE (State Owned Enterprise). The TVNZ Charter is now enshrined in law with the objective of TVNZ delivering quality programming; programmes that reflect our culture and that have appeal to all elements of the diverse NZ culture. Thus moving TVNZ away from a totally commercial, ratings driven strategy to include a public broadcasting positioning with a profit, albeit lesser, requirement.

Deregulation and fragmentation have long been significant aspects of the NZ television market. The fascination of being involved in television has seen the launch of many stations some of which have not survived as a result of the competitive nature of the small NZ market. Stations such as Horizon, MTV, Max, Telstra Saturn and Aotearoa are a distant memory now from their launches in the 90’s.

The NZ advertising market has confidently bounced back from the difficult days following September 11 in 2001. CanWest, whose interests are also now heavily in radio as well as TV, has decided against selling its NZ operations. The long discussed Government funded Maori TV was set to launch late in 2003. Prime TV is now in a joint venture with Kerry Packer’s Australian Nine Network. Although its ratings are small it is showing promise and its deal to delayed FTA broadcast of The Warriors and other league matches strengthened its position. TVNZ, still by far the most significant broadcaster, has worrying days ahead as it faces competition from many sides, including a stronger TV3. It must also cope with the implementation of the Labour Government led Charter which is bound to include programmes that are not entirely mass market appeal but which focus on NZ’s cultural identity. Friday and Saturday nights on TV1 are now poor performers commercially with their focus on “Charter” programmes.

Despite all the rumoured, wonderful, apparent possibilities open to broadcasters and viewers using digital and interactive technology, it appears that technology internationally is well ahead of consumer need and demand and entry costs will act as a deterrent for the foreseeable future. One piece of equipment, in particular, does seem set to revolutionise the way we view TV and that is the much discussed TiVo. A personal video recorder designed to replace the VCR. This couch potato’s delight will record more than one channel at once, can be set to automatically record your preference in programmes, up to 60 hours of programming, is able to fast forward through commercials and can pause a live show whilst you make yourself a coffee and return to it without missing a second. Clearly no respecter of advertisers and programme schedules this new device has the capability of putting the viewer very much in control of what and when to watch.

In the meantime there is no lessening of the appeal of television to advertisers. Spend on television showed a 3.6% gain in 2002 over 2001, but the figures for 2003 indicate a growth in the 10%-15% region. The Government for one should be happy.

© By Martin Hall, Senior Lecturer and Programme Leader, Diploma in Advertising, Auckland University of Technology