Television Broadcasting in New Zealand - Industry Research Report

Off the air: Consumer preferences for online media and streaming have decreased revenue

Fierce competition from internet-based media platforms poses a growing threat to the Television Broadcasting industry. Free-to-air (FTA) TV networks like Television New Zealand Limited (TVNZ) and subscription TV operators like Sky Network Television Limited have found adjusting to internet-based media's challenges difficult. SVOD services, like US-based Netflix, provide users with a relatively cheap and convenient platform to watch TV programs and movies. SVOD services have a notable advantage over live television, as viewers can conveniently watch content across several platforms. Downstream media buying agencies have recognised these changing media consumption habits and have progressively shifted advertising towards social media, search engines and other forms of online content. Consequently, industry revenue is anticipated to fall at an annualised 3.7% over the five years through 2022-23 to $1.4 billion. This trend includes an expected decrease of 0.2% in 2022-23, as internet-based media platforms' increasing prevalence erodes demand for traditional television broadcasts.

The industry includes firms that broadcast visual content on free-to-air television or on a subscription basis, which is typically through a digital terrestrial broadcast, cable or satellite. The industry excludes revenue derived from SVOD and internet protocol television services that are transmitted online.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.