TVNZ7 – RADIO NEW ZEALAND MERGER TOUGH ASK
John Drinnan – The Business Herald – August 20, 2010

Proposals to merge Radio New Zealand with TVNZ7 face an uphill battle. But it could be the last chance to fix New Zealand's ailing free-to-air TV service.
The Government is about to release a discussion paper about the future of TVNZ6 and TVNZ7 after $79 million in taxpayer grants run out at the end of next year.

TVNZ6 has shown some impressive content - arts show The Gravy is a standout - but has never been adequately marketed and few would be upset if it were made commercial.
But TVNZ7 is special. Free from the inflated egos and hype of schedules built around ad breaks, it has brought New Zealand close to a true public service channel.

The merger of TVNZ7 and RNZ is just one of three options.
There is always the popular "do nothing" - TVNZ would turn TVNZ7 into a commercial broadcaster.
And then there might be continuing taxpayer funding direct to TVNZ.
Broadcasting Minister Jonathan Coleman is said to be not averse to the merger. It cleans up the so-called dual remit. TVNZ has to make money and - in theory - deliver public service values. But quantifiable results like revenue and dividends will always trump nebulous ideas such as public service and quality.

Minority audiences such as those over 60 are not valued by advertisers so have no choice but to go to Sky TV. Coleman is said to be looking at all the options and will initiate some changes next year.But there are a lot of commercial forces against a combined new public broadcasting institution.

And - beyond the Save Radio New Zealand campaign - there has seldom been a tangible demand for public service broadcasting. Even then it is often from demographics who are not attractive to advertisers. Within National some loathe the idea of public broadcasting. It's all a bit, well, socialist. Communications Minister Steven Joyce made his money in private radio and does not like public broadcasting.Finance Minister Bill English is not ideologically driven.

But he will not want to spend more money and says if there are any new institutions - such as a combined RNZ and TVNZ - they would have to be paid out of the present pool.Where would the money come from? The obvious place is from New Zealand On Air and the Premium fund used by commercial TV networks to subsidise expensive dramas.

But the commercial TV industry is built on subsidies. MediaWorks' TV3 will fight losing subsidies to fund a new non-commercial broadcasting institution. TVNZ provides the infrastructure that makes TVNZ7 viable. But its mishandling of charter funding leaves big questions whether it can be trusted long term to run a public service channel - and where TVNZ7 would fit if and when TVNZ is privatised.

Radio New Zealand is already in the gun with the Government and faces change no matter what happens in the digital TV argument. Its board of governors is being filled with National appointees.It is wary of a merger because of the dangers to its independence and integrity.

Union politics come into it. Radio New Zealand is unionised while TVNZ is not.

It is true that TVNZ7 has only come into its own this year. For the first couple of years it had few features and even then it focused on special interest groups favoured by TVNZ - media and the advertising industries.Useful specials and debates - such as the infamously promoted "Plain English" economic debate - were rare until TVNZ wanted to make an impression with the Government that the channel has some worthwhile functions.

At least now if the Government throws it away, we viewers will know what we are missing.

Footnote:

Drinnan (pic right) is a Herald business writer and one of our leading media commentators His Media column in the Friday Business Herald is a must read for The Bookman..