6.3.8 Other issues

Timing of Transition

It is clear that the move to an all-digital environment will mean a radical shift for regional broadcasters. Regional broadcasters cannot expect that their current business models will translate automatically to a digital world.

Not all transmission options are open to all regional broadcasters: Terrestrial transmission is available to some; others will need to assess the viability of satellite use. The option of collaborating with a national content aggregator may also be available. Even if regional stations were able to continue analogue broadcasts after DSO, their viewing audiences would dissipate as viewers move to digital services.

Regional broadcasters will need to examine their business models in the light of digital transmission costs and likely sources of income generation. Regional broadcasters will each need to determine the optimum time to move to digital transmission. This will require an assessment of the value of the remaining analogue audience as viewers transition to digital, versus the costs of analogue/digital simulcast until DSO. Leaving the move to digital too late risks losing audience; moving too early means bearing the costs of simulcast for longer than necessary.

Question 36

How will you make an assessment of the optimal time to commence digital simulcast of you analogue service?

Licence Renewal

All analogue licences for regional television expire in March 2010. The Ministry for Culture and Heritage will make offers for renewal on a transitional basis to non-commercial licence holders, who meet specified criteria, until DSO. Commercial licences have varied terms for termination or renewal contracts at DSO. The Ministry of Economic Development has made offers to commercial licence holders which require settlement in September 2009.

The criteria for the renewal of non-commercial licenses will be guided by the government’s Regional and Community Broadcasting Policy Framework (see Appendix 2). This reflects government’s expectation that regional broadcasters will promote local content, support diversity and accessibility, and future-proof their services.

Government policies do not contemplate any extension of regional broadcasting using analogue technology after the DSO date has passed. Even if this was considered, the viewing audience necessary would likely not be significant, and would dissipate further over time. The Ministry therefore does not support such an outcome.

Government Assistance

Government financial support will be limited particularly in the current economic environment. The establishment and ongoing costs of digital transmission may be higher than current analogue costs and regional broadcasters will need to need to ensure the business model they choose is sustainable.

Any new government support would be taken in response to an over-arching policy rationale rather than case-by-case, and in all probability would be time limited. Any government support would also need to be commensurate with the value regional broadcasters provide to New Zealand audiences. Regional television reaches a niche (and often comparatively small) audience and its impact relates to its regional identity and community input.

Regional broadcasters provide regional and local content which is a distinctive contribution to national identity and complements the programming of national broadcasters.

Regional broadcasters need to meet the challenge of how best to deliver this content in a digital environment. In a digital world, more so than in the analogue environment, there are opportunities and an increasing need for regional broadcasters and other content providers to co-operate to achieve the most effective delivery of regional content. Your views are sought on how the broadcasters can achieve workable solutions to continue to reach audiences.

Question 37

How does the regional television service contribute to the communities in your area?

How might this contribution or role of the broadcaster change post-DSO?

Question 38

How do regional broadcasters currently generate income or other support for their operations?

In your view, which business models are likely to be successful post-DSO?

Question 39

If limited government support were available to assist regional broadcasters with the transition to digital transmission, what would be the priority?

Why?