TV3 owner won't pay $50,000 to join digital group

The date for changing over to digital-only TV broadcasts will be announced when the digital television uptake has reached 75 per cent, or by 2012, whichever is first.

TV3 owner MediaWorks is refusing to join other broadcasters in a new group involved with the switchover to digital television, saying it is withholding cash on a point of principle, not to save money.

MediaWorks spokesman Roger Beaumont said the company was not paying the $50,000 cost to be a voting member of the Digital Switchover Steering Group.

"The Government has been bleating about the digital dividend [the money it will get from being able to resell frequencies used by analogue TV].

"They are getting the fiscal benefit. It seems logical that it is an infrastructure issue and the Crown should be funding the group," said Beaumont.

The Government is paying half of the money for the steering group.

The group is expected to take a key role in the battle between pay TV and free-to-air to ensure a share of the frequency allowing digital TV.

Beaumont said he was not concerned about being out of the loop over the digital future for TV.

Instead of joining TVNZ, Sky and Kordia and government departments, MediaWorks will be relying on the free-to-air industry body, the Television Broadcasters' Council, which will have observer status.

Digital Switchover Steering Group executive director Anna Verboeket said MediaWorks had made a business decision not to take part.

"But the door is still open."

The steering group was formed last week when the number of New Zealand homes able to pick up digital TV signals through Sky Television and the free-to-air digital Freeview platforms passed 60 per cent.

The date for the change-over - when existing analogue signals are stopped - will be announced when the digital television uptake has reached 75 per cent, or by 2012, whichever is first.

A lot of government policy on the digital switchover will be based around Ministry of Economic Development advice from a discussion paper to be completed at the end of the year.

But the steering group will be a forum for the ongoing battle between interest groups in a scramble for radio frequencies.

These include the future of UHF TV frequencies which can be used to carry up to four or five digital channels on a terrestrial platform, broadcast on towers from rooftops rather than satellites.

The digital spectrum may be adjusted to provide more frequencies to carry digital channels. But, as it stands, about half the available frequencies will be controlled by Sky TV when it discontinues its UHF analogue pay TV service next March.