NZ market analysis
- Published: 16 October 2007 11:45
- Last Updated: 16 October 2007 11:47
Detailed analysis of how the various television channels are performing in the New Zealand broadcast market.
New Zealand is a small market with just 1.5 million TV homes. But it has always been a strong supporter of British programming – with BBC titles present in vast numbers.
That said, there are signs that US programming is making inroads – with the drama Lost and the police procedural CSI doing particularly well in 2006.
In terms of ad revenues, 2006 was a bad year – with the TV sector experiencing a 3.8% drop to U$640m (£330m). A pick-up in the fourth quarter of 2006 could not disguise a poor performance in the middle of the year. Because New Zealand is so small, pay-TV platform Sky has significant clout – reaching 42% of TV homes (around 667,000 subscribers).
Sky’s position was bolstered when it was given the go-ahead last year to acquire terrestrial channel Prime. That has ramped up the competition for both audiences and acquisitions. The biggest challenge to Sky is the imminent launch of a DTT service called FreeView – modelled on the UK platform of the same name.
During 2007/08, TVNZ and TV3 will launch two free digital channels each – hoping they will benefit from similar uptake to the UK platform. Initially, there will be 18 DTT channels.
TVNZ
New Zealand is dominated by two-channel public broadcaster TVNZ, which takes a 55% share of audience across TV1 and TV2. TV1 targets the entire population and takes around 30% share. TV2 skews younger and takes around 33% of 18 to 39-year olds.
TVNZ was set up in 1962 along the lines of the BBC and, perhaps partly because of this, is still a voracious buyer of BBC content.
Early this year, it signed a major content deal that will see a large slate of drama, natural history and factual titles air on both channels this year. Lead titles include Torchwood, Primeval and natural history series Galapagos, with Simon Schama’s The Power of Art, Ancient Rome: Rise and Fall of an Empire and The Innocence Project also included in the deal.
Separately, TVNZ became the first international broadcaster to pick up BBCWW/Ragdoll’s new preschool series In the Night Garden while BBCWW’s Sydney office has brokered deals on behalf of indie producers Tiger Aspect and Hartswood Films. TVNZ is funded by a mix of licence fee and advertising funding – a situation which draws some criticism from commercial rivals because of its clout in the market.
TV3 AND C4
CanWest MediaWorks took full ownership of TV3 in 1997. It struggled for many years – probably because it was attempting to go after TVNZ head on rather than trying to establish its own clearly defined niche.
It seems to have done that now – performing well among younger urban audiences. October and November 2006 were its strongest ever months in primetime in terms of audience share. News does well – hitting 35% share against TV1’s 28%.
There are also high hopes for the live and exclusive screening of the Rugby World Cup later this year. In 2006, US cop drama CSI was TV3’s strongest foreign show and the network is generally more reliant on US content than TVNZ (through deals with the likes of Fox, Universal and CBS).
Other top titles have included 24, House, Prison Break and America’s Next Top Model. Occasionally, TV3 looks to UK content for its youth/music channel C4 – which reaches 82% of the market and broadcasts for eight hours a day.
It has aired Little Britain, CD:UK and, controversially, the BBC’s Popetown. That said, it has recently started to resemble a New Zealand-version of MTV – acquiring MTV shows like Jackass and Laguna Beach. C4 audience share is 4.5% of 15 to 29-year-olds.
PRIME
There is no question that the market has been made more competitive following the acquisition of Prime by pay-TV platform Sky.
Historically a perennial struggler, Prime is now scoring 5% to 6% average share of its target demo – which is 25 to 39 year-olds (slightly skewing towards men).
Hit shows such as Top Gear can get as high as 10% share. Prime is now more aggressive in the acquisitions market – and has recently added BBC Worldwide-distributed drama Robin Hood to its upcoming slate.
Best performing shows airing on the network include Mythbusters, Top Gear, Doctor Who, Extras, The L Word, Las Vegas, Weeds and the UK version of Who Wants to be a Millionaire?.
Analysis
For a small market, New Zealand packs an acquisitions punch. Aside from the battle for rights that takes place between the free-to-air networks, there’s healthy demand for shows on the channels that populate Sky’s pay-TV platform.
Sky itself needs movie and sports rights for its premium channels. But it also acquires content for Sky One, its slightly male-skewing entertainment channel targeting 15 to 39-year-olds.
Typical requirements include US sitcoms, drama and reality specials. Key raters include CSI, WWE Wrestling and live rugby. Sky also has a stake in UK.TV – a channel populated with UK classics, off-network shows and first-run UK exclusives, including The Bill, Holby City, Nighty Night and a local version of Weakest Link.
Of growing importance is the Living Channel, a lifestyle network which has John McCready/JT Taylor and Touchdown Productions as its core investors. Its success, relying heavily on shows such as Antiques Roadshow and House Doctor, led to the launch of Food TV – a big user of Brit celebrity chefs.
Living/Food picked up 300 hours of cookery, lifestyle and factual programming at BBC Worldwide’s Showcase this year. “2006 saw both our channels reach new audience highs,” says McCready. “BBC lifestyle programming was an important factor in that growth.”
