Private television — history of confusion and indecision

Press, 29 February 1984, Page 17

Private television — history of confusion and indecision

By

BRAD TATTERSFIELD

The history of private television in New Zealand has been dogged by indecision, confusion, and failure of the two programmes, “Good Morning” and “11 a.m.,” that have been broadcast through the system. In December last year, Government caucus made a decision favouring a regionally-based, priv-ately-operated third channel, discarding once and for all the option to lease TV2 and various other proposals that have been debated. It seems now, finally, that the Government wants some decisive action after years of indecision. The Broadcasting Tribunal is working at present so that it can recommend a framework for the introduction and operation of the third channel by March. The Government’s previous indecision has been contributed to by having to balance the wishes of a multitude of lobbyists. The three main contenders, Alternative Television Network (ATN), City Television (CTV), and the Northern/ Central/Southern group, have each advocated different approaches to private television. ATN and CTV have supported some form of leasing of TV2, and the combined group has supported a regionally-operated third channel.

The Government has at different times favoured one or the other approach, or modifications of them. The Broadcasting Corporation and Public Service Association are trying to protect the present twochannel system. The P.S.A.. in particular, has insisted that private interests not be allowed to use public broadcasting facilities at anything less than their true value. The attempts of private entrepreneurs to get into television date back to the launching in November, 1972, of ATN, by New Zealand Newspapers, Ltd, INL, and Hauraki Enterprises (Hauraki later pulled out). ATN announced its intention to try to take over one of the existing networks, and insisted that New Zealand could not afford a third commercial channel. The company planned to build studios in the four main centres and to lease BCNZ transmission facilities. Hard on the heels of ATN came an agreement in December, 1980, among several other newspaper companies to form three regional companies, Northern, Central, and Southern television. They planned to apply for warrants to establish regionally operated third channels. Leading them was NTV, headed

by Wilson and Horton, Ltd, publishers of the New Zealand “Herald.” NTV had begun building its studio complex at Auckland in November, and was keen to begin transmission in the Auckland area. The Government was reticent about the idea of a third channel at that stage, and opted instead for the BCNZ’s proposal of tendering unprofitable morning time on TV2. ATN welcomed this move, and NTV announced it would also bid for time, although NTV saw it only as an interim move towards a third channel. Both tendered for a substantial amount of time, but both bids were rejected by the BCNZ. A few months later, in February 1982, Northern was given the goahead to provide a one-hour programme on week-day mornings, between 11 a.m. and noon. In July, transmission of “Good Morning” began, after an eleventhhour agreement with the P.S.A., which had threatened to prevent it going on air. The show was something of a failure in the eyes of critics, although it attracted bigger audiences than the programme shown on TVI previously. However, the audiences were not big enough to make it a commercial success and this prompted NTV to take it off the air. It re-emerged in March last year as “11 a.m.” with a new presenter, Heather Lindsay. This, too, was a commercial failure, and NTV dropped it in July to concentrate on its warrant application for a regional third channel. While Northern was dabbling in morning television, the Government was still weighing up the pros and cons for the various private television options. In July, 1982, Dr Shearer issued his list of 10 options for private television, ranging from tendering time on TV2, or selling TV2, through a private third channel on VHF or UHF, to cable television. A new contender arrived: — City Television which had an arrangement to use existing studios in Auckland and Wellington. CTV initially advocated an independent third channel shared between several operators, although it later shifted to the TV2 leasing option. All three contenders said they intended to bid when Dr Shearer announced in October, 1982, that morning time was again to be tendered on TV2.

They all pulled out of the breakfast television bid soon after, when the BCNZ said that any entrant would have to put up $3 million initial entry fee and pay $l5OO an hour transmission charges. The high cost of private entry into TVNZ clearly meant the third channel idea was back in favour, and NTV began lobbying intensively for this.

In August last year, Southern Television announced that it was going to apply for a South Island television warrant.

The Government clung to the TV2 leasing idea, although it was apparent there was some division in caucus on the issue. In August, the Government ruled against the third channel idea “in the meantime” while the Government caucus studied ways of handing over TV2. The Government caucus’s decision in December rejected TV2 leasing and favouring a regional third channel has left Northern in the best position. With the best existing facilties and a consistent history of support for a third channel, it is well placed to get the go-ahead in March. CTV and ATN, by contrast, will have to reappraise their strategies and assess whether they want, or indeed are able, to participate in a third channel. Many hurdles have yet to be overcome before the New Zealand public sees a third channel on its television screens. Probably the main difficulty is to determine where regional boundaries will be set. Politicians are sensitive to electorate claims that, for a long

time, a third channel will operate only profitable areas such as Auckland, and are therefore keen to set a minimum time in which private operators must achieve nationwide coverage. The Broadcasting Tribunal has been asked to recommend a time scale to achieve 50 per cent, 75 per cent, and 90 per cent nationwide coverage. Initially, regional private operators are certain to face losses in areas other than Auckland, and will want to extend coverage to areas outside the main concentraton of population only if the extensions pay for themselves. Balancing these opposing interests could prove a difficult problem to overcome. Many other technical and financial obstacles remain. Among these is the fundamental question of whether the public will be interested enough in a third channel to pay for UHF converters in sufficient numbers to attract advertisers. Overcoming the remaining hurdles in the race for private television will probably mean the third channel will be a good two years away for most New Zealanders. If the past is anything to go by, even this prediction may be optimistic.