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Go back fifteen years and it was pretty easy to figure out what success was for screen content. For the small screen it was the Nielsen ratings. For the big screen it was the box office. The show that knocked it out of the ratings park or the film that pulled significant box office clearly indicated it had found a lot of eyeballs. These measures only account though in essence for popularity.

What about the Māori news or information programme on a Sunday morning that Māori loved? Or the arthouse feature that had its world premiere at the A-list festival in Berlin and then did well at the A and B-list festival circuit but only did $250k at the NZ box office. This content reached its intended audiences, but they were niche not broad.

We all recognised this, though. Figure out your audience, broad or niche, and target your content at them. Even for niche audiences, you could still learn whether or not you were successful.

Nowadays, however, in a fragmented market, it’s not so easy to identify what success really is.

A series intended for Free-to-Air that doesn’t rate could find a much bigger audience when it’s moved to On-Demand. A film that does average box office in New Zealand could end up selling or being licensed to a global streamer and potentially be seen by millions more people than was ever thought possible.

The old indicators still work, but it’s simplistic to use them as the only measures of success, especially when popularity is the only yardstick being championed.

The digital world of content distribution has changed the paradigm and complicated how to measure real success, especially when those who control the means of distribution. Netflix, for example, rarely reveal what the very accurate data they alone have access to indicates about audience specifics.

To define a new measurement for screen content success, New Zealand company Parrot Analytics developed a 360 measurement system to take into account multiple points of digital activity around the world. This system is used by, amongst others, TVNZ, CBS, Disney, Sky, and WarnerMedia. Without the data from the content platforms available, this would seem a very valuable service. Perhaps something NZ On Air might want to consider to support their funding decisions if they don’t already utilise it.

But film sits in a very difficult position amongst this digital measurement system. The shared theatrical experience is considered first and foremost for film, unless you are making a telefeature. Filmmakers want their films to go on the big screen before they find their way to the small. Look at the ructions Warner Bros. created when they decided to send their entire 2021 slate straight to HBO Max at the same time as the theatrical release.

Even with the NZFC playing in the series drama space, NZ film is very much its raison d’etre. But the audience for New Zealand film just isn’t there like it used to be. The writing was on the wall before COVID arrived.

NZ film has had a tropical vacation in theatres while Hollywood has been on hold due to COVID, but winter is coming with the onslaught of backed up blockbusters about to hit us.

Amongst all the other changes needed at NZFC right now, defining success for NZ film is another thing that needs to go on the agenda. A paradigm shift in thinking is required because we can’t rely solely on box office numbers any more. Even more so because film is both art and business. There has to be room for both.

 

Tui Ruwhiu
Executive Director

DEGNZ member Rachale Davies’ new eight-part docuseries, The Collective, is now available to watch online on RNZ. Created and produced by Rachale, the series follows six young musicians as they embark on a powerful journey of self-discovery.

The eight episodes revolve around the young musicians taking part in a youth music programme designed to give them real-world skills and help them make positive life changes through the power of music.

Speaking to RNZ, Davies stated how amazing the experience was working with the crew to document the “stories of these six talented rangatahi and I think viewers will find their stories compelling”.

Up-and-comer Hunter Crouchley served as the DOP for The Collective, which is also available to watch on TVNZ’s Re: website.

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Last week Broadcasting Minister Kris Faafoi announced the names of a panel to finalise the business case for the merger of TVNZ and Radio NZ. It’s members are:

  • Chair—former NZ First party deputy leader Tracey Martin.
  • Broadcasting Standards Authority chair Glen Scanlon – a former head of news at RNZ.
  • Former MediaWorks chief executive Michael Anderson.
  • TV producer, former reporter  and member of Prime Minister’s Business Advisory Council Bailey Mackey.
  • Broadcasting and technology consultant William Earl.
  • Dr Trisha Dunleavy, Victoria University of Wellington media academic.
  • Producer Sandra Kailahi, former journalist at TVNZ’s Tagata Pasifika, Te Karere and Fair Go.
  • John Quirk, former chair and director of state-owner transmission company Kordia.

This panel has till mid-year to come up with its plan, to go to Cabinet before the end of the year. Its expected to allow for a mixed model of funding, with monies to flow to the merged entity from both Government and advertising.

Free-to-air broadcasting has seen a considerable decline in advertising revenue to the point where two years ago revenue versus expenditure at TVNZ was even. Consequently, TVNZ announced that there were not going to be paying a dividend to the Government. The decline had come primarily at the hand of online advertising, with Google, Facebook and other digital advertising channels benefitting at the expense of free-to-air.

Over the last couple of years, however, TVNZ’s revenue situation has improved, thanks to an improved share of TV market revenue , growth in digital advertising and a move to more locally produced content and a streamer-forced move away from acquired international content.

TVNZ had astutely recognised the value of a digital video platform and ploughed significant investment and resources into its Advertising Video on Demand service TVNZ OnDemand. In 2014 when NZ On Air started its ‘Where Are the Audiences’ research, TV2’s share of the 5+ audience was 27% while OnDemand’s was 7%. In 2020, OnDemand’s share was 21% while TV2’s was 14%.

Radio New Zealand meanwhile has gone from strength to strength. In 2020, a nationwide survey found that RNZ National has become the first New Zealand radio station to record more than 700,000 different listeners each week. CEO Paul Thompson attributed this to the public wanting a trusted source of news. Understandable in the era of fake news. RNZ has also seen growth in its digital channels.

The key concern for many is the merging of the non-advertising public broadcaster Radio NZ with the highly commercial public broadcaster TVNZ. The boards of the organisations reflect the non-commercial and commercial remits of the broadcasting entities.

If the panel wanted to stick to the adage of “If it ain’t broke, don’t fix it”, they’d leave TVNZ OnDemand and Radio NZ alone, most likely turn TV One into a true public free-to-air broadcaster, and dump TV2. But would the advertising revenue from OnDemand be sufficient?

Even with AVOD revenues in a number of countries expected to quadruple in the next five years, it’s doubtful OnDemand would make a big enough contribution to the bottom line with NZ’s small market.

The U.S.’s public broadcaster, National Public Media (NPM) provides a viable revenue-generation option. NPM, which includes National Public Radio (NPR), TV via Public Broadcasting Service (PBS) and their digital platforms runs a very specific kind of sponsorship and advertising model that is a proven revenue generator alongside a highly trusted public broadcaster brand. You can learn more about it here. Together with advertising-free content on TV One turned into Ad-supported content when moved to OnDemand, there probably would be sufficient revenues and maybe even some profit from the rejigged organisation.

Installing a completely new board for the new entity, putting RNZ CEO Paul Thompson in charge and making Kevin Kendrick responsible for the commercial arm—just like panel member Bill Earl was in charge of TVNZ Enterprises all those years ago—would play to their strengths as well. Kendrick would undoubtedly find other ways to generate revenue if he were willing to stay in essentially a demoted position.

I’ll be interested to see if my back-of-the-napkin business plan is close or wildly off the mark in July.

 

Tui Ruwhiu
Executive Director

Lockdown border laws may keep us restricted to Aotearoa but Lap of Luxury, directed by Bryn Evans (DEGNZ) and offline edited by Steven Chow (DEGNZ) and Anthea Ede Smith, transports us to the world’s most glamorous places. Thanks to Evans, Chow and the production team behind the series, kiwis can indulge in the deluxe landscapes and architecture plotted around the globe.

New episodes released every Tuesday.

Watch now

DEGNZ member Ben Wildish is the Kaiwawahi Korero (editor) on the series. The series follows kiwi icon, Stan Walker through 2020 as he juggles the role of musician, activist, son, brother and friend. With whanau on both sides of the Tasman, the show offers an unfiltered look into the lives of Stan and his whanau.

New episodes are released every Monday.

Watch now.