Axe hovers over shows as TVNZ finances take hit

A review will likely spark interest as to whether TVNZ goes ahead with a new Paul Henry show.

All Television NZ programmes will be up for constant review as the state broadcaster faces tighter budgets and falling advertising revenue.

Figures released yesterday show TVNZ's profit halved to $8.9 million in the six months to December, compared with the $18.3 million of the previous year. Total operating revenue fell 16.6 per cent to $186.9 million.

Revenue from advertising was $152 million, a fall of $22 million or 12.7 per cent on the previous year.

Chief executive Rick Ellis said TVNZ was likely to record a loss by the end of the financial year in June, as most advertising revenue came from the Christmas period.

Spokeswoman Megan Richards said: "Everything is under review in these circumstances. It has to be."

A review will likely spark intense interest from within as to whether the station goes ahead with a new Paul Henry show. It is keen to use the polarising Breakfast show co-host, and producers say TV One needs something for the 5.30pm timeslot to compete with TV3's Home and Away in the run-up to One News.

The station has already axed or suspended a number of flagship shows in an effort to save money, including Dancing with the Stars, Mitre 10 Dream Home and Wheel of Fortune.

It also sold the rights to this year's Commonwealth Games.

New shows MasterChef and The Apprentice are understood to be safe for the time being, as they are rating well so far.

"The first show of The Apprentice out-rated the US version with Donald Trump and pulled a strong audience among 18- to 39-year-olds," Ms Richards said.

While striving to save money, TVNZ is investing heavily in transforming from an analogue broadcaster into a digital television and media company, which is expected to have an impact on jobs.

Website-driven revenue is seen as important for the broadcaster's future.

Online advertising jumped 174 per cent from the previous year.

Industry sources the Herald approached expected that the next round of cuts would be implemented in June and changes to programming would affect local shows.

Independent programme makers said shows made without taxpayer funding would face a tougher battle in the next round of cost-cutting.

One producer, who did not want to be named, said there was a danger the cuts would mean successful shows - those that survived without taxpayer subsidies - would not be renewed.

"And because they have been successful they will not get [taxpayer] funding from New Zealand On Air.

The producer said TVNZ was increasingly demanding a return on programme costs, so New Zealand-made shows were at a clear disadvantage to cheaper overseas shows.

Broadcasting Minister Jonathan Coleman said TVNZ's financial results reflected the "very difficult media environment where advertising has been down across the board".

"The real issue is what plan TVNZ are going to formulate to get themselves profitable in the long term, and they're very keen to grow some diverse revenue streams."

Dr Coleman said the constant reviews of programming were a "reality of the economic times".