NZ Herald
  • Home
  • Latest news
  • Herald NOW
  • Video
  • New Zealand
  • Sport
  • World
  • Business
  • Entertainment
  • Podcasts
  • Quizzes
  • Opinion
  • Lifestyle
  • Travel
  • Viva
  • Weather

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • New Zealand
    • All New Zealand
    • Crime
    • Politics
    • Education
    • Open Justice
    • Scam Update
  • Herald NOW
  • On The Up
  • World
    • All World
    • Australia
    • Asia
    • UK
    • United States
    • Middle East
    • Europe
    • Pacific
  • Business
    • All Business
    • MarketsSharesCurrencyCommoditiesStock TakesCrypto
    • Markets with Madison
    • Media Insider
    • Business analysis
    • Personal financeKiwiSaverInterest ratesTaxInvestment
    • EconomyInflationGDPOfficial cash rateEmployment
    • Small business
    • Business reportsMood of the BoardroomProject AucklandSustainable business and financeCapital markets reportAgribusiness reportInfrastructure reportDynamic business
    • Deloitte Top 200 Awards
    • CompaniesAged CareAgribusinessAirlinesBanking and financeConstructionEnergyFreight and logisticsHealthcareManufacturingMedia and MarketingRetailTelecommunicationsTourism
  • Opinion
    • All Opinion
    • Analysis
    • Editorials
    • Business analysis
    • Premium opinion
    • Letters to the editor
  • Politics
  • Sport
    • All Sport
    • OlympicsParalympics
    • RugbySuper RugbyNPCAll BlacksBlack FernsRugby sevensSchool rugby
    • CricketBlack CapsWhite Ferns
    • Racing
    • NetballSilver Ferns
    • LeagueWarriorsNRL
    • FootballWellington PhoenixAuckland FCAll WhitesFootball FernsEnglish Premier League
    • GolfNZ Open
    • MotorsportFormula 1
    • Boxing
    • UFC
    • BasketballNBABreakersTall BlacksTall Ferns
    • Tennis
    • Cycling
    • Athletics
    • SailingAmerica's CupSailGP
    • Rowing
  • Lifestyle
    • All Lifestyle
    • Viva - Food, fashion & beauty
    • Society Insider
    • Royals
    • Sex & relationships
    • Food & drinkRecipesRecipe collectionsRestaurant reviewsRestaurant bookings
    • Health & wellbeing
    • Fashion & beauty
    • Pets & animals
    • The Selection - Shop the trendsShop fashionShop beautyShop entertainmentShop giftsShop home & living
    • Milford's Investing Place
  • Entertainment
    • All Entertainment
    • TV
    • MoviesMovie reviews
    • MusicMusic reviews
    • BooksBook reviews
    • Culture
    • ReviewsBook reviewsMovie reviewsMusic reviewsRestaurant reviews
  • Travel
    • All Travel
    • News
    • New ZealandNorthlandAucklandWellingtonCanterburyOtago / QueenstownNelson-TasmanBest NZ beaches
    • International travelAustraliaPacific IslandsEuropeUKUSAAfricaAsia
    • Rail holidays
    • Cruise holidays
    • Ski holidays
    • Luxury travel
    • Adventure travel
  • Kāhu Māori news
  • Environment
    • All Environment
    • Our Green Future
  • Talanoa Pacific news
  • Property
    • All Property
    • Property Insider
    • Interest rates tracker
    • Residential property listings
    • Commercial property listings
  • Health
  • Technology
    • All Technology
    • AI
    • Social media
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
    • Opinion
    • Audio & podcasts
  • Weather forecasts
    • All Weather forecasts
    • Kaitaia
    • Whangārei
    • Dargaville
    • Auckland
    • Thames
    • Tauranga
    • Hamilton
    • Whakatāne
    • Rotorua
    • Tokoroa
    • Te Kuiti
    • Taumaranui
    • Taupō
    • Gisborne
    • New Plymouth
    • Napier
    • Hastings
    • Dannevirke
    • Whanganui
    • Palmerston North
    • Levin
    • Paraparaumu
    • Masterton
    • Wellington
    • Motueka
    • Nelson
    • Blenheim
    • Westport
    • Reefton
    • Kaikōura
    • Greymouth
    • Hokitika
    • Christchurch
    • Ashburton
    • Timaru
    • Wānaka
    • Oamaru
    • Queenstown
    • Dunedin
    • Gore
    • Invercargill
  • Meet the journalists
  • Promotions & competitions
  • OneRoof property listings
  • Driven car news

Puzzles & Quizzes

  • Puzzles
    • All Puzzles
    • Sudoku
    • Code Cracker
    • Crosswords
    • Cryptic crossword
    • Wordsearch
  • Quizzes
    • All Quizzes
    • Morning quiz
    • Afternoon quiz
    • Sports quiz

Regions

  • Northland
    • All Northland
    • Far North
    • Kaitaia
    • Kerikeri
    • Kaikohe
    • Bay of Islands
    • Whangarei
    • Dargaville
    • Kaipara
    • Mangawhai
  • Auckland
  • Waikato
    • All Waikato
    • Hamilton
    • Coromandel & Hauraki
    • Matamata & Piako
    • Cambridge
    • Te Awamutu
    • Tokoroa & South Waikato
    • Taupō & Tūrangi
  • Bay of Plenty
    • All Bay of Plenty
    • Katikati
    • Tauranga
    • Mount Maunganui
    • Pāpāmoa
    • Te Puke
    • Whakatāne
  • Rotorua
  • Hawke's Bay
    • All Hawke's Bay
    • Napier
    • Hastings
    • Havelock North
    • Central Hawke's Bay
    • Wairoa
  • Taranaki
    • All Taranaki
    • Stratford
    • New Plymouth
    • Hāwera
  • Manawatū - Whanganui
    • All Manawatū - Whanganui
    • Whanganui
    • Palmerston North
    • Manawatū
    • Tararua
    • Horowhenua
  • Wellington
    • All Wellington
    • Kapiti
    • Wairarapa
    • Upper Hutt
    • Lower Hutt
  • Nelson & Tasman
    • All Nelson & Tasman
    • Motueka
    • Nelson
    • Tasman
  • Marlborough
  • West Coast
  • Canterbury
    • All Canterbury
    • Kaikōura
    • Christchurch
    • Ashburton
    • Timaru
  • Otago
    • All Otago
    • Oamaru
    • Dunedin
    • Balclutha
    • Alexandra
    • Queenstown
    • Wanaka
  • Southland
    • All Southland
    • Invercargill
    • Gore
    • Stewart Island
  • Gisborne

Media

  • Video
    • All Video
    • NZ news video
    • Herald NOW
    • Business news video
    • Politics news video
    • Sport video
    • World news video
    • Lifestyle video
    • Entertainment video
    • Travel video
    • Markets with Madison
    • Kea Kids news
  • Podcasts
    • All Podcasts
    • The Front Page
    • On the Tiles
    • Ask me Anything
    • The Little Things
  • Cartoons
  • Photo galleries
  • Today's Paper - E-editions
  • Photo sales
  • Classifieds

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Home / Business / Companies / Media and marketing

John Drinnan: Sky's power gone like magic

John Drinnan
By John Drinnan
Columnist·NZ Herald·
10 Oct, 2013 04:30 PM6 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

The Commerce Commission's vanishing trick could sit comfortably in a Bewitched script.

The Commerce Commission's vanishing trick could sit comfortably in a Bewitched script.

John Drinnan
Opinion by John Drinnan
John Drinnan is the Media writer for the New Zealand Herald.
Learn more
Accusations that pay-TV firm has the strength to shut out competition made to vanish by Commerce Commission

The Commerce Commission has magicked away accusations that Sky Television has the power to shut out competition.

Someone at the commission has wiggled their nose and - shazam! - Sky's dominance of content has vanished, now we're in the brave new world of Ultra-Fast Broadband (UFB).

The commission this week said it would not take legal action against Sky for "historic" breaches of competition rules, which restricted internet service providers' ability to buy content elsewhere, but said it would be keeping an eye on the pay-TV operator.

The commission appears bewitched by the idea that breaches of Commerce Act competition rules are in the past, and that new pay-TV players can start a viable service on UFB by going outside Sky content deals.

Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.

It will be interesting to see evidence of that.

Over the years Sky has undertaken some heavy lobbying of politicians and has maintained a charmed position as an unregulated virtual monopoly.

For years politicians waved off demands for regulation, or at least investigation, and Sky has grown bigger and more dominant.

Now the commission has declined to take legal action on past breaches because it believes the market has changed, and there are signs that some players are breaking through Sky's hold on content.

The Coliseum deal with Telecom for internet broadcast of the English Premier League showed that programming deals can be done, but with its hold on the big three - rugby union, league and cricket - Sky still calls the shots.

And if the market has now changed, it may have changed much more, and more quickly if the politicians had done their jobs.

Discover more

Opinion

John Drinnan: Govt on Maori TV and Coffey for 7 Sharp?

12 Sep 09:15 PM
Opinion

Drinnan: BlackHeart days long gone

19 Sep 05:30 PM
Media and marketing

John Drinnan: Soap brightens TV2 ratings

26 Sep 05:30 PM
Opinion

John Drinnan: RNZ to spread its wings

03 Oct 08:30 PM

ComCom chairman Mark Berry acknowledges that Sky's actions hindering competition helped it maintain its position in the market.

Sky chief executive John Fellet has never accepted that Sky has an unfair place in the market. Nor has he accepted industry demands for regulation.

Advertisement
Advertise with NZME.

If Sky had done anything wrong, he reasoned, the commission would be coming after it.

Berry appeared unsurprised by the lack of any mea culpa. He has spoken with Fellet at length, spelling out the terms of the warning, and insists that warning has teeth. If Sky refused to allow a content client from obtaining material elsewhere, the commission could swiftly initiate legal action.

The reason the commission did not pursue a legal case, said Berry, was because Sky's breaches were not sufficiently detrimental to warrant it.

"We fashioned it so we ended up with the outcome of a better market. It is on notice if they do grant one we are likely to take action on a forward-looking basis."

But after the first investigation into New Zealand's uniquely unregulated pay TV sector, it is hard to escape this conclusion: there were breaches, these affected the market, but the commission optimistically believes that despite Sky's dominance, the New Zealand market for pay-TV is free.

VODAFONE AND SKY

Advertisement
Advertise with NZME.

One unusual aspect of the ComCom inquiry was that it was repeatedly delayed and extended. The Herald was told in July it would be released in two weeks' time; it finally happened three months later. Berry said: "We found ourselves pausing because of developments and the state of flux in the industry - the market dynamics were changing.

"By updating ourselves we are well positioned to take any proceedings."

But it is also tempting to see the delays in the context of tensions between the commission and the Government, after National intervened in the commission's finding reducing copper wire charges, instead working to increase the price to support Chorus and the uptake of UFB.

There is no evidence that the Government intervened in the pay-TV issue, and Berry would insist that the warning about court action is a deterrent. But outside Sky, the view is that it has been let off the hook.

Certainly, pay-TV is entering a period of rapid change.

Last Friday - while the paint was still drying on the Commerce Commission findings - Vodafone unveiled a new platform for UFB, called Vodafone TV, built around Telstra's "T Box" and marketed as having more advanced features than Sky TV's's MySky.

Advertisement
Advertise with NZME.

Last year Vodafone bought TelstraClear - the New Zealand arm of Australian telecommunications giant Telstra - which runs cable TV services out of Wellington, Kapiti and Christchurch, programmed through Sky.

Ironically, former TelstraClear chief executive Allan Freeth was one of the few open critics of Sky's restrictive programming contracts. In the Herald he demanded greater oversight because Sky restricted Telstra from buying content elsewhere.

But Vodafone will not be antagonising Sky and its control on content.

Unveiling the new platform last Friday, Vodafone said it was not restricted from seeking content from outside Sky, but does not intend to.

Practically, Vodafone will not expend resources on the skills required to obtain content and seems to be happy to be largely a rebroadcaster of Sky.

Vodafone chief executive Russell Stanners is understood to have a strong rapport with Fellet.

Advertisement
Advertise with NZME.

ULTRA TV There are no signs yet what role Telecom will have in the new era of UFB television, and whether it will be more independent in seeking content outside of Sky's control.

This week Telecom announced its umbrella "Ultra" campaign, focused on upgrades of smartphone deals alongside access to 4G and Wi-Fi, and incorporating new entertainment content through UFB.

Chief marketing officer Jason Paris said Telecom was focused on mobility and the Auckland market, but had incorporated UFB into the new "Ultra" branding.

A new division - Telecom Digital Ventures - is looking at options but he doubted this would be linked with set-top boxes such as Vodafone TV.

"Our view is that set-top boxes are going to be bypassed and customers are going to be managing their content in the cloud, especially with the penetration of internet-ready televisions."

Entertainment was a big part of the package, Paris said, but it was about many more services than that. He said he and Telecom chief executive Simon Moutter maintained a good relationship with Sky.

Advertisement
Advertise with NZME.

INJUNCTION LIFTED

The Maori Television current affairs programme Native Affairs is pushing ahead with the third part of an investigation into the Te Kohanga Reo National Trust.

The trust board applied for an urgent injunction in the High Court at Wellington on September 23 but withdrew it on Wednesday.

The Native Affairs items questioned the trust's priorities and its maintaining a healthy bank balance while individual language nests were suffering. The third and final item will be screened on Monday.

Meanwhile, an announcement is expected soon that Maori TV general manager of finance and administration Alan Withrington will take over as acting chief executive, due to the troubled process of appointing a head for the broadcaster.

Details of the amended and renewed attempts to find a new chief executive are expected next week, and a key issue will be whether the two finalists - Richard Jefferies and Paora Maxwell - will be included in the new selection process.

Advertisement
Advertise with NZME.

Many staff signed a petition against the board appointing Maxwell, and the board abandoned the process, saying it was unable to decide, but not before high-profile Maori entrepreneur Ian Taylor resigned over his unhappiness with the appointment process.

Save

    Share this article

Latest from Media and marketing

Premium
Opinion

Opinion: Public media not actually about audience ratings

11 Jun 06:00 PM
Premium
Media and marketing

‘Fastest to $20m revenue’ - Tracksuit's rapid growth, $42m raise

11 Jun 05:00 PM
New Zealand

Jim Grenon, Steven Joyce speak at NZME shareholders meeting

It was just a stopover – 18 months later, they call it home

sponsored
Advertisement
Advertise with NZME.

Latest from Media and marketing

Premium
Opinion: Public media not actually about audience ratings

Opinion: Public media not actually about audience ratings

11 Jun 06:00 PM

OPINION: RNZ's value isn't in popularity but in public accountability.

Premium
‘Fastest to $20m revenue’ - Tracksuit's rapid growth, $42m raise

‘Fastest to $20m revenue’ - Tracksuit's rapid growth, $42m raise

11 Jun 05:00 PM
Jim Grenon, Steven Joyce speak at NZME shareholders meeting

Jim Grenon, Steven Joyce speak at NZME shareholders meeting

Premium
Google NZ sends $1b offshore as it increases profit, threat of digital sales tax melts away

Google NZ sends $1b offshore as it increases profit, threat of digital sales tax melts away

21 May 10:46 PM
The woman behind NZ’s first PAK’nSAVE
sponsored

The woman behind NZ’s first PAK’nSAVE

NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • NZ Herald e-editions
  • Daily puzzles & quizzes
  • Manage your digital subscription
  • Manage your print subscription
  • Subscribe to the NZ Herald newspaper
  • Subscribe to Herald Premium
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven Car Guide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP