TV networks slugging it out over news scraps

Anna Chitty expects TV3's entry will "reinvigorate" the breakfast news market.

Media strategists look forward to more advertising slots, but fear the market may become fragmented.

Advertising agencies have welcomed TV3's decision to launch breakfast and lunchtime news shows, saying the move should be a ratings winner for the channel.

TV3 said last week that it would tackle TVNZ's daytime television news monopoly from "mid-year".

It released its advertising rates for the second quarter this week without any reference to the programming change, an indication that the new schedule will not kick off until July 1 at the earliest.

Media strategists, the advertising agency executives who advise clients how best to spend their ad budgets, say they expect the television market to grow as a result of the looming daytime news war.

"I think TV3 is basically attempting to try and own parts of the schedule that they don't currently," said MediaCom strategist Michael Carney.

"TV3's purposes have changed a bit since they [as part of CanWest MediaWorks] became a public company. They've got to show [market share] gain."

Carney said TV3 was successfully winning share in vital peak-time slots, so was spreading its focus to off-peak times, even though that meant scrapping with TVNZ over a share of about 4 per cent of the total viewing public. "There may only be a few percentage points in it but, at the same time, the more they have audience there the more advertising they're going to generally attract," he said.

FCB media director Anna Chitty said TV3 had the opportunity to "reinvigorate" the breakfast news market in the same way they offered something different from TVNZ at 6pm.

She expected that the channel would bring a more "serious approach" to its morning format rather than following the "magazine style" of TV One's Breakfast.

"It's great news for advertisers because it gives us an opportunity to get in front of an audience [who will be] in a different state of mind and connect with them in different ways."

Kath Watson, managing director of media agency OMD, said there was strong demand from retailers, direct-response companies and regional advertisers for airtime on Breakfast.

"Doubling the available inventory with the introduction of about three hours of additional news a weekday should mean good value as supply may exceed demand, particularly in a softening market."

Watson said TV3 could also profit from a change in format away from its present children's programming line-up in the mornings.

"Over time, the demand for kids advertising has declined - particularly as food companies steer away from influencing kids on 'junk' food - so they probably see more revenue delivered by a news offering, even though it won't be huge."

Carney, however, cautioned that having two competing news offerings could simply fragment the market.

"Unless they [TV3] are going for the naked news approach of the Russian channels, or others around the world, it's just another flavour in the market."

But Chitty said as lifestyles changed and fewer people worked traditional 9-to-5 jobs, the channel was tapping into a growing demand for daytime TV.

"Off-peak zones used to be the distant poor cousin to the 6pm to 10.30pm [slots]," she said.

"I think TV3 has identified the off-peak zone as one that's clearly got potential."