TVNZ subsidiary leads way

By SIMON HENDERY

As politicians fussed and feuded over Television New Zealand's future, a little-known subsidiary of the state broadcaster, TVNZ Satellite Services, has quietly goton with the job of beaming millions of dollars in overseas contracts back to New Zealand.

Satellite Services, which has a staff of only 26, makes its money by organising one-off satellite links for sporting and other events.

Last week, it won a Trade New Zealand export award for its efforts.

The subsidiary's finances are kept a secret, but Trade NZ said the award was recognition that Satellite Services' turnover had almost doubled over the past three years, with 77 per cent of that income coming from export sales.

The company, established in the mid-1980s, says a strong marketing advantage is its connection to a broadcast company, whereas most of its competitors are owned by telecommunications companies.

Marketing director Christine Fenby said: "Our delivery network is built by television broadcast engineers, owned by a television broadcast company and operated by a group of people whose collective knowledge of broadcast television is difficult to match." Ironically, that broadcaster link is under threat as the Government transforms TVNZ from a state-owned enterprise into a crown company on July 1.

A decision has yet to be made about where Satellite Services fits under the new structure whether it will remain under the broadcast wing of the company or shift to the arms-length transmission business with telecommunications subsidiary BCL, another TVNZ cash cow.

Satellite Services counts an impressive list of international broadcasters among its customers, including BSkyB, the BBC, Fox Sports International, ESPN Star Sports, CNBC Asia, and Australia's Nine Network.

Trade New Zealand account manager Dominic Cavanagh said the company had built an international reputation through delivery of high-profile events.

It has been involved in transmissions of the Sydney Olympics, the Australian Summer cricket series, Wimbledon, the America's Cup and English Premier League soccer, and this month's Winter Olympics in Salt Lake City.

"Their revenue growth rate has been very good in the last three years and is on target to increase by a further 11 per cent this year, 72 per cent of which will comprise export sales," Mr Cavanagh said.

" ... The future looks very secure and promising."

* Trade NZ presents 24 export awards annually, and winners become contenders for the exporter of the year, announced in May.

TVNZ Satellite Services

Export Awards