Sky TV is trying to reach a younger audience and sign more subscribers with a local version of MTV.
MTV New Zealand - to be introduced on August 18 - will run to a local schedule with some New Zealand presenters and content.
A localised version of children's channel Nickelodeon,
also part of the MTV Network, will relaunch from August 1 and a NZ-produced Documentary Channel will be added to the basic digital package in November.
Sky TV was losing 18 to 24-year-old viewers through the fragmenting media market and rise of pastimes such as the internet and gaming.
"We found we were perhaps lacking in a broad, basic service that would fit the 18 to 25-year-old age group and MTV filled that," said Sky communications and publicity manager Elaine Koller.
She said channels such as Food TV had already broadened appeal: "We are hoping ... MTV will do the same."
MTV Networks New Zealand general manager Chris Keely said the open broadcasting environment and Sky TV's year-by-year growth made it an attractive market.
Keely would not detail the financial model of MTV NZ and said it differed country by country. He said MTV made money from subscriptions and from advertising.
The network would work with Sky to launch more of its channels such as the Comedy Channel and VH1.
MTV content screening here on channels such as CanWest's C4 was an advantage because viewers were familiar with it.
Keely said some MTV content, like Punk'd and Pimp My Ride, would still be available to be licensed to free-to-air broadcasters after it had screened on MTV networks first.
Station manager Andrew Szusterman said C4 screened 4 hours of MTV content a week and would consider new deals once its contract ended next year.
He said C4 was received in more households than Sky TV.
"We don't underestimate MTV by any means ... Are we worried about them? No, we are not overly worried but we are cautious."
Shares in Sky TV closed down 3c at $5.58. Canwest closed up 1c at $1.42.
