Digital rivals take stock

By MICHAEL FOREMAN

One of Television New Zealand's competitors was as stunned as the state broadcaster at the Government's block on its investment in digital broadcasting.

TVNZ had been expecting the Government to make the commitment. And it had been prepared to shift some of the cost to viewers by making digital services subscription-based.

"The issue of digital cannot be ignored," TVNZ chairwoman Rosanne Meo said last night.

"The current analogue technology is a sunset technology with the whole broadcasting industry worldwide moving to digital platforms."

Nick Wood, managing director of ihug which already provides 10 channels of digital television, said: "Digital television is central to the long-term survival of TVNZ. Primetime free to air channels are turning to garbage. You only have to look to Australia to see pay television beginning to dominate.

"TVNZ's not down the toilet yet, but the writing's on the wall. It remains to be seen whether this is a permanent decision or just a postponement."

While Mr Wood agreed that ihug and TVNZ's other competitors would benefit by gaining early market share, he was concerned about the effect on overall broadcasting standards.