Television stations such as TVNZ will now be allowed to run advertisements during Sunday morning shows. Pictured is a shot from Q+A, hosted by Jack Tame. Photo / TVNZ
After a tortured path through Parliament, a new, 73-word bill has lifted the ban on Sunday morning television advertising.
TV and radio stations are also now allowed to broadcast ads on Christmas Day, Good Friday and Easter Sunday under the law change, which was confirmed after a conscience vote in Parliament today.
TV broadcasters will also be permitted to screen ads on Anzac Day morning, just as radio stations have been allowed to.
The changes mean TVNZ will be able to broadcast ads during Sunday morning shows such as Q+A, Waka Huia and Marae, and Three can screen ads during the likes of The Hui.
And while the Government highlights the new law as a signal of its support for an embattled media industry, it’s unlikely to be a game-changer for broadcasters’ revenue lines.
It’s estimated they might enjoy an extra $6 million in total revenue each year – about $4m in television revenue and $2m in radio income. NZ First has pointed out that those numbers represent an increase of less than 1% revenue for each of those specific channels.
TV stations have been prevented from running Sunday morning ads at the same time as social media and digital platforms such as YouTube are chocka with paid ads.
“The lifting of Sunday advertising restrictions still needs royal ascent before coming into action, so we don’t have a firm date of when advertising will feature on Sunday mornings across our channels,” a TVNZ spokeswoman said.
“But we’re making plans, and we think lifting the ban is positive for the sector.
“The revenue upside for broadcasters will be minimal, but it’s about creating a more even playing field. Local broadcasters shouldn’t have to operate under restrictions that don’t apply to global streamers in the same market.
“For us, there’s an opportunity around sports rights. If an event like a Rugby World Cup airs on a Saturday night in Europe, we have not been able to commercialise the Sunday morning broadcast in New Zealand. This gives us a better chance to place more meaningful bids for certain events.”
A Sky/Three spokeswoman said the firm was grateful for the changes.
“It was an outdated and unfair rule that we’ve been frustrated with for some time, given online streaming platforms can show advertisements 24/7 and it was only the local TV broadcasters who had restrictions around Sunday morning advertising. We weren’t asking for special favours; just a more level playing field when it comes to media regulation.
“November is a cracker month for Sunday morning sport, with four All Blacks tests kicking off in Chicago, Edinburgh, London and Cardiff – so our advertising sales team will be pleased to be talking with our advertising clients about using the pre- and post-match and halftime breaks that have previously not been able to be sold."
Media and Communications Minister Paul Goldsmith said: “We need to level the playing field by ensuring local media companies are not disadvantaged by restricted advertising times which don’t apply to digital streaming platforms.
“These restrictions have become increasingly redundant as a growing share of audiences turn to streaming services for their news and entertainment. New Zealand on Air data shows YouTube was the most popular platform in the country last year, reaching 43% of the population daily.
“New Zealand’s media sector has been calling for this change for a long time and this Government has done it.”
The bill was delayed in its passage through Parliament last week, with the third reading and then a planned conscience vote delayed until today.
It was passed by a 93-29 vote in favour.
Labour broadcasting spokesman Reuben Davidson told Parliament last week that the Government had more effective legislation it could introduce, including the Fair Digital News Bargaining Bill, which would force platforms such as Facebook and Google to pay for the journalism that helps drive their business models.
“But instead, we’ve got a 73-word bill,” Davidson said. “If you typed it out, you could fit it on a postage stamp and it’s probably worth about the same to the industry, because no one believes it’s worth $6 million; it’s more broken promises from a Government that keeps making things worse.
“We’re supporting the bill, but, minister, we are so disappointed for the industry.”
Before the conscience vote was taken, National, Labour and Act supported the bill, but NZ First, the Greens and Te Pāti Māori were opposed.
NZ First’s Jenny Marcroft told Parliament last week: “There’s no doubt the New Zealand media faces many difficulties that have been agonised over in great detail and at great length.
“Those issues are of a higher order than the discussion of whether or not to deregulate advertising in New Zealand on these few special days. If we relax advertising standards at this point, it will be seen as a further dumbing-down of our media space that we still do have control over.
“NZ First stands on a conservative platform of keeping the best and avoiding unintended consequences of deregulation. Those boundaries that we draw around our working lives and our very special celebration days are important to all of us and we’d be the poorer without them. We oppose this bill.”
Editor-at-Large Shayne Currie is one of New Zealand’s most experienced senior journalists and media leaders. He has held executive and senior editorial roles at NZME including Managing Editor, NZ Herald Editor and Herald on Sunday Editor and has a small shareholding in NZME.