FTA television and the pay TV sector are revising their business models to adapt to the growing trend among consumers to view online content rather than linear TV. The trend has become acute during the last two years as telecom infrastructure has improved, allowing a greater proportion of consumers to take advantage of content from YouTube and other video sites, as well as catch-up services. The broadcasting and digital media industries are having to keep up with these changes in the market place.
Pay TV penetration in New Zealand was around 50% by late 2013. The introduction of the cut-price monthly subscription model, Igloo, in late 2012 may increase household penetration but the real threat is that this model will cannibalise the existing user base as customers churn to cheaper monthly rates. As the UFB consumer base eventually increases other competitive threats by other media models will see uptake of other media based subscription services, lowering the viability of the current model.
Switching off the analogue TV network is in progress with the first region completed in September 2012 with all other regions set to be completed by December 2013. Accordingly, with a free up of spectrum, there will be the possibility of a major economic effect to the country in the order of $1 billion or more within a 5-10 year time frame.
This report provides a comprehensive overview of the FTA, Pay TV and Digital TV markets in New Zealand including statistics and forecasts. IPTV, Digital Media and Mobile TV are covered in a separate report: New Zealand - Digital Economy & Digital Media.
Pay TV; subscriber churn; community TV; STV; spectrum; digital TV; digital switchover completed; broadcasting; VoD; TVNZ financial data for FY2013, market developments to December 2013.
Companied covered in this report include:
Sky, Telecom, Vodafone, Prime Television, MediaWorks, TVNZ, TiVo, Kordia, TVWorks, New Zealand Racing Board, Quickflix, Radio New Zealand, Freeview, Igloo, Maori TV