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New Zealand On Air’s Where Are the Audiences? 2018 Report makes for interesting reading.

If you haven’t already seen it, the key findings for the screen industry are:

  • Weekly audiences for traditional broadcast media are stable, and continue to deliver the biggest audiences.
    – But the gap to online video and SVOD is closing.
  • The weekly reach of SVOD has nearly doubled since 2016 – now reaching more than 6 in 10 people.
  • On a daily basis, linear TV has declined – driven by a fall in Sky TV penetration (Free-to-air actually grew 9%.)
  • Daily more people view videos on sites like YouTube and Facebook than read a newspaper.
  • On Demand viewing is stable but there’s a growing use of this as a content source, as opposed to catch up viewing.
  • New Zealanders still spend the most time each day on traditional broadcast media – 2.5 hrs watching linear TV, 1.5 hrs listening to radio, compared to 62 minutes on SVOD.
  • There’s significant behaviour difference between under 40s and over 45s, but the generation gap is closing as older New Zealanders adopt new tech.

So what does this mean for public broadcasting, particularly as it relates to TVNZ and Radio New Zealand?

As Sky subscriptions fall there has been a positive effect on free-to-air TV, particularly the daily reach of TV One. Conversely, the daily reach of TV2 and TV3 is declining dramatically, while Prime remains steady and Maori TV shows slight growth.

TV One is definitely the strongest TV brand and will, therefore, be the biggest revenue earner in the free-to-air space. Their On Demand offering is working, as attested to by the growth it’s achieving. Two though is languishing and looks to be going the way of Four, which is over and out, as does TV3.

TV One is the dominant free-to-air player as a commercial entity, much to the chagrin of Mediaworks CEO Michael Anderson who is doing his best to convince anyone who will listen that TV One should be turned into a public broadcaster. He knows the writing’s on the wall if he doesn’t get the changes he wants. But should One become the public broadcaster? Or would it be better to be flicked while its star is at least glimmering. There again is the elephant-in-the-room question of what to do about a public screen broadcaster.

Radio NZ is holding its own as a radio station. While Radio NZ’s daily reach is dropping, its audience share remains strong and it’s the single most popular radio station. RNZ is also increasing its online video content offering, which has been strengthened by the extra funding for commissioned programming recently announced.

Does TVNZ’s On Demand success hold the answer? As would be expected, SVOD’s weekly reach is up dramatically according to the report, and TVNZ On Demand is showing growth, not just for Catch Up but also as a content source.

If Radio NZ had a digital On Demand platform that offered a significant content source for ‘free-to-air’ programming and built its eyeball numbers to rival or surpass TVNZ’s On Demand, then we’d be in a place where quality programming could access NZ On Air funding without the commercial imperative that controls what does and doesn’t get made currently.

I’m clearly better on the questions than the answers, but I’m certainly not the only one trying to figure out how to take advantage of the global changes sweeping the TV industry that still haven’t really arrived here.

If you’ve got some bright ideas, let me know.

Tui Ruwhiu
Executive Director

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The New Zealand International Film Festival is upon us again. And there’s an even bigger selection of New Zealand films on offer, both feature-length and short, than I’ve encountered before—18 offerings, four of which are made up of programmes of short films. This is a fantastic selection—a high number from DEGNZ member directors and editors.

As Bill Gosden, the festival director pointed out in his speech celebrating the 50th birthday of the festival, it couldn’t have existed without the passion of film lovers who have nurtured it to the point where it has become what NZIFF is today—a truly great International film festival, showcasing the best of New Zealand and international film.

As always I encourage you to get along and watch films to encourage independent filmmaking everywhere.

In other news, Clare Curran is certainly the minister who keeps on giving, unfortunately not so much in the funding realm. The latest in the Radio NZ saga is a measly $4.5 million dollars to RNZ from the $15 million in the May Budget allocation for public media. NZ On Air gets just $4 million, while a new Innovation Fund to be jointly managed by Radio NZ and NZ On Air gets the lion’s share at $6 million.

It must be disturbing for Curran to hear from chair Michael Stiassny of the Ministerial Advisory Group she appointed that not even they support a fully funded RNZ+ television station. What you get—or not—for the price of a cup of coffee.

In a related development, Head of NZ On Air Jane Wrightson responded to an article in Newsroom by Dr Bryce Edwards of Victoria Univeristy, who singled out our current dual funding model of contestable and fully-funded public broadcasting for criticism. In her reply on the same platform Wrightson said that “In the 21st century media landscape it’s highly unlikely that one media provider model will fit all, and so a combination of ring-fenced and contestable funding is a clever response by a small country where media cost structures are always under pressure.”

There are supporters and detractors of the dual funding model approach. Whatever your opinion on the matter, I think we all need to acknowledge the incredible work NZ On Air has done in seeking to adapt to the rapidly changing screen industry while being incredibly underfunded.

Thankfully, we now see broadcasters slowly being willing to take risks with the arrival on air of Taika’s and Jemaine’s Wellington Paranormal, and two new dramas commissioned and screening at a later date: The Bad Seed out of South Pacific Pictures, and Fresh Eggs from Warners NZ. And we are starting to see more locally driven international efforts bear fruit with Screentime’s copro Scandi – NZ noir Straight Forward now in post and destined for TVNZ.

And talk about change, there sure as hell seems to be a lot going on at the Film Commission—a new pou whakahaere in the wonderful and talented Karen Te O Kahurangi Waaka-Tibble, new job opportunities with the departures of Development Executive Karin Williams and Investment Executive Chris Moll, and obviously a change of approach that always comes with a new CEO, this time with the arrival of Annabelle Sheehan who has been with us seven months now. Watch this space for more to come.

Tui Ruwhiu
Executive Director

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Like most everyone else, I’ve been walking around with a smile on my face since Winston Peters decided which side of the seesaw to get on.

I’m not as rabidly dogmatic as many left of centre seem to be in the screen industry, but I do know that the social fabric of New Zealand society has been torn under National, the Arts have suffered, and it deeply disturbs me that we can’t swim in many of our waterways anymore.

I’ve read numerous articles online about what the change of government means for education, transport, trade, the economy, the environment and other sectors, but I haven’t seen anything yet on what it means for the Arts, and more particularly for the screen industry. So like everybody else, I’m going to postulate about some things.

Firstly, the minister for Arts, Culture and Heritage will be Grant Robertson, moving it far up the ladder from where it sat with Maggie Barry. Jacinda is passionate about the Arts and has been Labour’s Arts spokesperson, but won’t have the time this term to deal with it. I believe she’ll give the portfolio to Robertson, another strong Arts supporter, who himself will be busy with Finance. I’ll happily eat my words if Jacinda keeps it, though.

Second: the Hobbit Law. It’s goneburger. Labour outlined in its Fair Pay Agreements (FPAs) the ability for employers or employees/unions to be able to begin negotiations on FPAs once a sufficient percentage within an industry call for one. Under The Hobbit Law, all workers in the screen industry are classified as contractors, cannot collectively bargain and are not subject to the minimum working wage requirement—all the antithesis of what Labour stands for. The Hobbit Law will go and it’s up to the guilds to make sure that happens and that we unify to seek sustainable careers in the screen industry.

Next, copyright for directors. The Copyright Act Review is underway. I put considerable effort into lobbying Jacinda directly about director copyright when she was the Opposition spokesperson for Arts, Culture and Heritage. Director copyright is about sustainable careers, a touchpoint for Labour. Our chances on changing the copyright law are now slightly improved but will still need significant effort on our part. It’s not a big ticket item for government, but hopefully with Robertson we’ll have a more sympathetic ear and will be able to get to the other ministers who will count.

The other aspect of copyright is Google’s desire to see relaxed US Fair Use and Safe Harbours legislation enacted here, replacing our Fair Dealing regime that is more stringent and protects the intellectual property of creators better. They must have choked when Winston Peters said he was going with the Labour Party. Years of upfront and behind-the-scenes lobbying to swing National to their view just hit a major speed bump. But they had moved many beaureaucrats toward their line of thinking as well so we’re not off the hook yet. We still need to fight hard to keep Fair Dealing in the face of Google’s enormous financial muscle.

Then there’s public service TV. Radio New Zealand will be transformed into Radio NZ + as promised, giving us a digital platform that will deliver more quality reporting and investigative journalism, Maori, Pasifika and other diverse community content, as well as education and entertainment for children. How the additional $38 million will be spread between the proposed independent Public Media Funding Commissioner and NZ On Air funding is unclear, but it would seem that anything that falls under the remit of the new commissioner that currently is being funded by NZ On Air will move to the new fund, thereby not increasing NZ On Air’s funding but giving it more money to play with in the commercially contestable realm, which will continue to be its responsibility.

Labour understands that the Arts can also generate revenue, and that the screen industry is a significant employer as well as a hotbed for commercial innovation, particularly at the higher end. Steven Joyce never liked the screen incentives although he was smart enough to know we needed them. They will stay, and everyone will await the outcome of the full Ministry of Business, Innovation and Employment assessment of the screen incentives currently underway. We might see more production funding for the NZFC for NZ films, which didn’t increase under National although they did top up the Screen Production Grant for both NZ and international films. This funding increase would come out of the Ministry of Economic Development portolio, who is supported by MBIE, who essentially controls the Ministry for Culture and Heritage, at least for the moment. David Parker will be the new Minister for Economic Development.

What about a Minister of Broadcasting? I’m sure Amy Adams helped do away with this as the last minister because she viewed broadcasting as a sunset industry. Labour won’t reintroduce one because Broadcasting, which essentially means Free-to-air these days, no longer holds the sway it once did.

We have to give thought to our public broadcaster TVNZ. This is a vexing question. It’s not the public broadcaster it’s meant to be. Labour would probably flog it off if there were a buyer for it, but who would want it? Perhaps a US network like CBS who has just won its battle to acquire Australia’s Network 10 for US$167 million? Or Fox, who lost out to CBS? Or a private equity fund like Ironbridge who stepped in to save Mediaworks? I don’t think there will be a knight in shining armour for TVNZ, though, with Mediaworks sitting there as an abject lesson, essentially held up by its radio business.

I’m guessing that Labour will leave TVNZ to its own commercial devices after stripping it of its public service mandate, and using whatever dividend it generates to help fund public broadcasting. A more interesting question is what will happen to the public broadcasting and current affairs shows funded by NZ On Air currently on the commercial channels, including the Māori programming? I think they’ll be looking for a new partner to + with.

Will Māori get more money to play with in the screen sector? Yes, because of the work that’s been done by NZFC around their Māori strategy, but that was coming anyway. No for Te Māngai Pāho who already received a boost last year, although not for content. I’d personally prefer that Labour made te reo mandatory in schools through their education policy rather than funding TMP to revitalise the language via Māori Television, although Whakaata Māori would need to keep producing Māori language content until we all caught up.

I don’t believe NZFC and NZ On Air will be merged. We have a new NZFC CEO who will be on a three-year contract. And with other changes to come and those that have recently occurred in and around the funding bodies, it doesn’t make sense to pursue such an idea now.

Creative New Zealand is going to get some attention. Grant Robertson as Associate Spokesperson for Arts Culture & Heritage in a Radio NZ interview prior to the election outlined thoughts that will require some restructuring at CNZ to achieve Labour’s ideas around regional Arts development, more practioners at the top table, and how to ensure young and emerging artists get a fair crack at the funding pie.

In the same interview Robertson gave Labour’s perspective on the Arts:

“Arts are the window to the soul of our people and our country.”

Labour is supportive of the Arts. It wants to see more funding go to the Arts. But it will take time for this to happen and their main focus will be elsewhere for awhile. I don’t think any of us will complain too much if they give first attention to homelessness, mental health, the minimum wage and the housing crisis.

Tui Ruwhiu
Executive Director