Aussies tipped to take Sky deal

By KARYN SCHERER

An Australian company linked to the brother of former TVNZ boss Neil Roberts is thought to be close to signing a multimillion-dollar deal with Sky TV.

On Site Broadcasting is this week expected to be named as the new provider of outside broadcast services for Sky TV - a move likely to cost several TVNZ employees their jobs.

Sky told TVNZ in May it was unlikely to continue its contract with its outside broadcasting service, Moving Pictures, next year.

The move is a blow to TVNZ, and comes as the state-owned broadcaster is grappling with the possibility of a $60 million budget blowout over the next three years.

The move has also further poisoned TVNZ's relationship with its pay TV rival.

This has already been soured by Sky's decision to partner with TV3 for key sporting events, and TVNZ's refusal to join Sky's digital service.

TVNZ's accounts do not reveal how much is earned by Moving Pictures, although the contract with Sky is believed to be worth some $9 million a year.

The unit employs around 30 staff, including casual employees. It covers most local sporting events for Sky, including rugby union, rugby league and cricket.

TVNZ spokesman Glen Sowry said the broadcaster had not yet been told by Sky that it had signed a new deal, although staff were warned of the situation several weeks ago.

Sky is believed to have been concerned TVNZ's equipment was out of date and would be expensive to replace.

But Mr Sowry said TVNZ's managers had been told by Sky its bid was "comprehensive, competitive and fair," and it was puzzled by the move.

Its bid had included a commitment to making "extensive investments" in digital outside broadcast technology if it were successful.

"As far as we were concerned we had absolutely signalled our commitment to ensuring that we made whatever investment was necessary in the digital environment."

He said a review of the unit's staffing would be considered as part of the overall review of TVNZ's operations.

Companies Office records show a local subsidiary of Australian company On Site Broadcasting was registered last week.

Its directors include the late Neil Roberts' brother, Murray Roberts, who works for Auckland film and television post-production house Images Post.

The other three directors are Australians Richard Becker, Timothy Keen and Grant Stuart.

Mr Stuart runs On Site Broadcasting in Australia and Mr Becker heads Becker Group, one of Australia's largest independent film and television production houses.

Mr Roberts declined to comment yesterday.