Heartland deal signals new TV scene

TVNZ is joining the pay TV crowd with the Heartland channel. Photo / Paul Estcourt

Television New Zealand's exclusive deal for the "Heartland" channel on pay TV signals a wider and significant change in the media landscape.

The key free-to-air broadcaster is bypassing the digital free-to-air network Freeview.

TVNZ spokeswoman Megan Richards said the schedule for the new Sky-only channel would be released in May.

It is expected to include documentaries and reality shows that have already been shown on TVNZ.

Details not yet released will likely include the Heartland series about small-town New Zealand.

Richards said TVNZ would be negotiating with individual independent programme-makers to secure pay television rights.

That is a relief for Penelope Borland, the executive director of the independent programme-makers body Spada.

Producers were not consulted before Friday's announcement and had been unable to get clarification.

Under the TVNZ Amendment Bill, the state broadcaster will have free access to pay TV rights programming made before 1989.

Borland said when TVNZ was commissioning local programmes during the past two or three years, it had been insisting on pay TV rights.

TVNZ had told programme-makers it had no plans for a pay channel but said it wanted to ensure they did not go to someone else with a pay channel on Sky.

Heartland has advertising but also receives money from Sky.

The terms of the deal for Heartland on the basic Sky package are secret.

A TV industry source said TVNZ might expect 10c to 12c a Sky subscriber per month.

TVNZ said it was not viable to show Heartland on Freeview funded by advertising revenue.

Sky insisted that it could not be on both.

But in the war for dominance of the television sector, it is another win for Sky over free-to-air television.

The state broadcaster is using taxpayer-funded content and pay and giving one more reason for consumers to choose Sky over Freeview.

Two years ago TVNZ warned about the unfettered power of Sky TV and pressed the Government to regulate Sky.

Freeview chairman Rick Friesen insisted that the exclusive deal with Sky did not undermine Freeview growth.

General manager Sam Irvine said: "We have already seen recently that Sky's growth is slowing.

"The aim of Freeview is to offer a better choice than analogue television to speed up the switch-off of analogue signals."

Some people would never buy pay TV, he said.

The other major partner to Freeview, MediaWorks, is contractually obliged to deliver a second digital channel to Freeview in June.

But Jason Paris, a key player in TVNZ's digital strategy, has defected to MediaWorks where he will revive its digital strategy.

MediaWorks chairman Brent Harman is a former chief operating officer of Flex tech which played a big role in creating channels for the UK television industry.

Seeing double

* TVNZ will use repeats for Heartland exclusively on Sky.

* The state TV move into pay television means taxpayers will end up paying twice to see funded content.

* The move is part of speculation that TVNZ is being prepared for sale if National wins a second term.

* The Government is also deciding funding for TVNZ 6 and TVNZ 7 after grants run out next year.

* TVNZ is expected to soon announce plans to save $40 million by cuts to programming and staff before June 30.