CAPTION: TVNZ On Demand is growing but most of its revenue comes from TV One and TV2.
TVNZ took a bigger share of the TV audience for the year to June 30 and increased its share of TV ad revenue from 60.3 to 61.2 per cent during the year to June 30.
Chief executive Kevin Kendrick points to TVNZ programming success. But in my opinion, it was partly due to a year of dysfunction at TV3 and its failed focus on realty TV over the latter part of 2015. It is understood Sky TV’s TV market share was also up slightly.
Beyond that TVNZ has the same problem as many other media firms. People are spending more time on their platforms like TV One, Tv2 and TVNZ on Demand. But advertisers are being drawn to other media are not matching their spending to the growth of TVNZ audience.
The company met targets and delivered comparatively low profits of $12.7 million, compared to $28 million last year. It is paying $13.4 million dividend to the government, more than it made in profit.
So on a small scale, the government milked the company on a very small scale to top up its coffers. This is the first time TVNZ has paid a full dividend in three years.
Under a deal linked for Sky City to build the new conference centre in return fo being allowed more poke machines, the accepted three year sabbatical for TVNZ from paying dividends. This was to account for the costs to renovate the TVNZ studios after selling land to Sky City Entertainment.
TVNZ , Sky City and the government insist that the TVNZ sale of land was voluntary and was not demanded by the government. But it forced the company to revamp studios. The government took less money in dividends.
Overall revenue declined $23.9 million (6.8 per cent) due to year on year declines in market demand for TV advertising. Ad revenue was down around $10 million in a tough market. Costs were down in part due to cuts in staff. The 2015 results announcement is amidst speculation about closer links between TVNZ and Spark. and during a major shakedown in New Zealand media.