Government decisions announced today pave the way for free-to-air digital television to begin transmission during 2007, says Broadcasting Minister Steve Maharey.
Plans for the new service have been developed by Freeview, a consortium of New Zealand's free to air broadcasters, including Television New Zealand, CanWest, Maori TV, Trackside and Radio New Zealand.
New Zealanders will be able to access FreeView digital TV through a set-top box, with programmes broadcast through a combination of terrestrial (land-based) and satellite services (requiring a satellite dish). Terrestrial will provide around 75 percent of coverage once the first phase of the service is fully rolled out.
Satellite transmission is expected to begin next year, with progressive rollout of terrestrial services to follow, and an eventual switch-off of analogue services anticipated in six to ten years.
Steve Maharey says the move to digital television is essential to securing the future viability of free-to-air broadcasting in New Zealand. "The Labour-led government wants to ensure all New Zealanders are able to enjoy the benefits of digital television, and that public broadcasting remains a strong part of the free-to-air mix.
"Now that we have established a way forward, the government is keen to see the industry roll out digital as rapidly as possible.
"Digital TV will mean better pictures and sound, more content to choose from, crystal clear reception, and the scarcely tapped potential of interactive TV. Programmes available on analogue will be broadcast on digital, along with the progressive introduction of new content and services as broadcasters develop them.
"Switching to digital will also benefit our economy and ensure New Zealand is not left behind in the worldwide shift to this technology."
Steve Maharey said the findings of an independent study reinforced the need to move ahead now with the shift to digital. "As well as highlighting the considerable benefits to New Zealand, including a net financial benefit of around $230 million, the study reinforces the risks of delaying the switch to digital. The issue now is not whether to go digital, but whether we are getting there soon enough.
Steve Maharey said the government is prepared to provide up to $25 million over five years to assist with establishment of Freeview, with the bulk of costs to be met by broadcasters.
Broadcasters will also have free access to digital frequencies during the transition to digital, estimated to be worth up to $10 million. Freeview will operate on a non-profit basis during this period, with open access for new services.
Contact: Daniel Lambert Press Secretary, (04) 471 9154 or (021) 270 9115
Further details www.mch.govt.nz or www.beehive.govt.nz/maharey
The FreeView Group of free-to-air broadcasters said today that the Government's announcement on digital broadcasting was the first step in a continuing partnership between government and the television industry.
A spokesman for the group said that both public and commercial broadcasters, and viewers, would benefit from the move. The industry decision to recommend a hybrid technical solution, using both terrestrial and satellite transmission systems, was the best approach to securing national coverage to replace the ageing analogue system.
"The Government has recognised, after a period of detailed and very positive consultation, that broadcasters need support to make the change," the spokesman said.
The spokesman stressed that it would be several years before existing analogue services could be switched off, and viewers would have plenty of time to adapt. The progressive development of new and competing services from the members of the FreeView Group and other broadcasters would encourage the changeover.
New broadcasters could also emerge. "Moving to digital opens up competition in the free-to-air broadcasting market, and at a time when audiences and broadcasters' revenues are fragmenting," said FreeView. "It would seem to make more sense for broadcasters to keep digital at arms length for as long as possible."
"That's not the shared industry position," the spokesman continued. "We welcome more diversity, and everyone demands improved picture quality." The broadcasters are likely to manage viewer fragmentation by developing their own competing services.
Some technical and commercial decisions still need to be resolved, but work was well advanced. No decision on the starting date for digital transmission could be expected for several more months. The decision would be accompanied by detailed advice and information to consumers.
"The Broadcasters and Government agree that approaching digital this way means a lower cost to each of them. No one broadcaster can do this on their own," explained FreeView. "A planned and unified approach is essential for us to play our part in the national economic transformation that comes with digital."
For further information contact
William Earl william.earl@tvnz.co.nz, 021 363349Diana Schnauer diana.schnauer@tvnz.co.nz 021 555 335
The FreeView Group comprises CanWest, Maori Television Service, TVNZ, Radio New Zealand and the New Zealand Racing Board. The NZRB will decide the scope of their participation in July. The FreeView Group is discussing the inclusion of Prime with SKY on the free-to-air digital service.
THL Group's chief executive Geoff Hunt is delighted that the government has given the green light to a free-to-air digital future for New Zealand.
THL is the parent company of Broadcast Communications Ltd (BCL).
The proposal, put forward by the FreeView Group (made up of Television New Zealand, Maori Television Service, Radio New Zealand, the New Zealand Racing Board (TAB) and CanWest), was ratified by the Government today, and means that, at launch, viewers in the main centres (around 75% of the population) will have access to high-definition picture and sound quality, as well as content-rich programming via a terrestrial network.
A satellite service will also enable access to the broadcasters' services for those living outside the terrestrial coverage areas.*
The free-to-air digital terrestrial television equipment will be incorporated into BCL's existing analogue television infrastructure nationwide. Design by the BCL engineering team is already well-advanced.
"We have been working collaboratively with key government agencies and the FreeView Group for over a year to get this far. This decision means that we are now in a position to formalise commercial negotiations with the broadcasters to commence construction on the transmission sites," says Geoff Hunt.
Digital terrestrial television (DTT) will provide the lowest-cost digital television option for end-users, who will be able re-use their existing television sets and UHF antenna, with the addition of a digital set-top box.
"For a small up-front investment, viewers will soon have access to free-to-air, quality programming, interactive TV guides, wide-screen format and multi-camera viewing," says Hunt.
"As a company, we are pleased with the government's decision to go ahead with DTT, but we are also excited about the technological and lifestyle leap this represents for New Zealand," he says.
About THL Group
THL Group is one of the region's leading providers of customised broadcast, telecommunications and IT networks and network services.
Until the end of 2003, BCL and THL Australia (formerly TVNZ Australia) were part of TVNZ's transmission division. The Television New Zealand Act 2003, passed in February 2003, provided for Television New Zealand to be split into a crown entity (TVNZ), conducting a television business and a new state-owned enterprise (THL), operating a transmission business.
In July 2005 the THL Group acquired AAPCS as a subsidiary of THL Australia from Australian Associated Press. The acquisition of AAPCS has served to expand the THL Group further into the telecommunications and IT space across both Australia and New Zealand.
For more information please contact:Emma Wilkinson
Group Communications Manager, THL Group Ltd
DDI: +64 9 916 6476 / Mob: +64 27 516 6476
Email: emma.wilkinson@thlgroup.com
