Media: Broadcasters eye last chance to stop Sky

When it comes to content Steven Joyce seems to defer to Mad magazine's Alfred E. Neuman. Photo / Steven McNicholl

The Government and Sky Television are both dismissing the need for regulation of video content. But broadcasters see a Commerce Commission review later this year as the last chance to arrest Sky's dominance of content, as ultra-fast broadband opens the door to internet TV.

In a 2008 government review of broadcasting regulation, both TVNZ and TV3 claimed absence of regulation for content gave Sky a big advantage.

Sky was able to compete against them for free-to-air rights and online, alongside a pay monopoly, the broadcasters said.

The new National Government rejected their warnings and scrapped the review on broadcasting regulation.

In the aftermath, TVNZ developed a closer relationship with Sky behind the scenes. Aware it has little support in this Government, TVNZ has been pressing the telecommunications industry to raise alarm bells. But issues are more intense for MediaWorks, given its heavy debt burden and demand from private equity owners to boost profits.

In an interview this week MediaWorks Television chief executive Jason Paris repeated broadcasters' claims that if Sky beat TVNZ and MediaWorks to Hollywood output deals, first run Hollywood hit shows would eventually go the same way as sport.

In two years time that will be more than just theory. MediaWorks faces intense pressure to hold on to the Fox programming deal that is the cornerstone for TV3 and will play a bigger part in the new channel, Four.

Paris played that down but a few years back Sky's bidding for the Disney rights added $50 million to TVNZ's programming bill.

Paris said the launch of the Government's ultra-fast broadband project - paving the ways for internet TV services - raised the stakes for the future of TV.

In particular he says there is a big question about the ability of free-to-air broadcasters like MediaWorks to diversify into pay television ventures on the net.

TVNZ chief executive Rick Ellis was more cautious. He said that supporting demand-side initiatives may also require a regulatory environment to encourage and promote new content and service providers, competition and consumer choice.

TERMS OF REFERENCE

Paris insists the issue is not dead. The Commerce Commission confirmed this week it was looking at whether the study is likely to cover issues such as availability of content for delivery by telcos, data caps, data pricing and net neutrality.

The commission plans to publish an issues paper in March for consultation.

An industry source said a review would start around May. A key factor in the terms of reference would be whether telcos providing broadcasting services would face the same regulatory obligations they do for their telecommunications businesses.

TANDEM RIGHTS

Sky TV chief executive John Fellet seemed bemused when I rang for comment about Paris' remarks, saying that when Sky was mentioned nowadays the word regulation was not far behind. Unsurprisingly, Sky believes there is no need for regulation.

Fellet says that TVNZ and TV3 both have plenty of online content and competition would be assured with internet service providers interested in obtaining content for video services when ultra-fast broadband is up and running.

Telecommunications Minister Steven Joyce said: "There has been a lot of interest from content providers in using the UFB network. We are confident there will be very strong content options to help drive demand. The UFB network will of course increase the range of options for content distribution and is therefore likely to be pro-competitive for all content providers.

"Therefore we have no current concerns in this area, and no plans to regulate further," he said.

'WHAT, ME WORRY?'

Joyce works in a telecommunications environment which is regulated to deal with market distortions. But when it comes to content he seems to defer to Mad magazine's Alfred E. Neuman and his slogan: "What, me worry?" Telecommunications analyst Rosalie Nelson of IDG said it would be good to have a review that looks at the issues about content.

A factor would be terms for access. She was not advocating regulation of content, but said the light approach taken in New Zealand was very different to other countries. There was a marked contrast between the approach taken to Telecom and the hands-off approach to content, which was perplexing.

KEY AND VEITCH

Prime Minister John Key is a brilliant politician. But in his media relations he is starting to look like Leonard Zelig, the character from the Woody Allen mockumentary who winds up falling to the standards of the people he is mixing with.

There was the incident on TV One's Breakfast when he did not baulk when shock jock Paul Henry questioned whether Governor-General Anand Satyanand was a real New Zealander.

Key cut back on some of his soft media interviews, but kept up his regular gig with Radio Sport and Tony Veitch - a broadcaster convicted for a serious assault on a female - with jolly japes about the women the PM fancied.

It's all part of brand Kiwi Bloke. In fairness. Key's comments look worse in print than they sounded on air. But what is the downside when there is subsequent publicity and it reaches the wider audience?

Key is a confident man and - refreshingly - he is not being managed. But the Veitch interview is a sign he is over-reaching with his media strategy.

CADDICK TIPPED

The chief executive of the Record Industry of New Zealand Campbell Smith has stepped down from the role. Unconfirmed reports are that he will be replaced by Chris Caddick, the former managing director of EMI New Zealand, whose recent report to NZ On Air on taxpayer funding for music has led to a revamp at the funding body.

Smith - who is the partner of Boh Runga - has a reputation for being a gruff and aloof figurehead for the record industry.

Industry folk loved him but his style grated with some and he was a part of the music industry's arrogant attitude that was seen as part of the problem that led to a fiasco over Section 92a of the Copyright Act. Smith has been the promoter for the Big Day Out.

HOLMES TO BSA

The Broadcasting Standards Authority is looking at two complaints over Paul Holmes' interview with Helen Kelly on Q&A over the Hobbit dispute.

Both were unhappy with TVNZ's decision to reject complaints about the Labour weekend interview in which Holmes criticised Kelly and promoted the production industry's side of the dispute.

BEAUMONT EXITS

Longtime MediaWorks marketing boss Roger Beaumont has resigned from the broadcaster in the run-up to the weekend relaunch of C4 into Four. Beaumont has been a key part of the profile for TV3 and says he will be working as a consultant, with MediaWorks among clients.

ACTION

The Government has changed the rules for Actors' Equity and craft bodies having a say about whether productions can hire overseas talent.

Rules allowed the craft bodies for film, TV and advertising shoots to object when overseas talent was bought to New Zealand on the basis that the work could be done by a New Zealander.

The arrangement drew controversy last year when Equity objected to US actor Vincent Gallo being used for a Publicis Mojo Steinlager advertisement.

And DDB Advertising executive creative director Toby Talbot said there had also been issues when Actors Equity objected to casting for the Drill Sergeant in the Sky Rugby World Cup ad.

Equity objections had been overruled by Immigration Minister Jonathan Coleman, and screen industry sources said the rule change was because objections had become so commonplace. Talbot insists he understands the unions' wish to protect jobs. But from a creative point of view, the issue was that there was such a small pool of actors in New Zealand and he had to get viewers to suspend disbelief - so they didn't say "look it's that guy from Shortland Street".

Coleman's office could not detail the new consulting arrangements before print time.