Ghostly reminders of public television continue to rattle chains around the Beehive, but the Government has abandoned funding for TVNZ 7.
TVNZ 7 is due to go in July with its digital capacity and place on Freeview handed over to ad agency Ogilvy for a shopping channel.
A vociferous minority is pressing for an alternative - but they face opposition from both the Government and commercial broadcasters who want New Zealand On Air to fund commercial shows.
OWNERSHIP
Texas private equity company TPG is trying to take over MediaWorks, buying up debt and shutting out controlling shareholders at another private equity company, Ironbridge Capital.
The back-door takeover would reduce the debt that has hung over MediaWorks and restricted capital expenditure and a stronger MediaWorks could balance a TV market dominated by TVNZ and Sky.
It seems likely that if TPG wins, it would maintain TV3 as a full service channel.
But there is no guarantee consumers would win out from MediaWorks changing hands. There might also be the opportunity to sell on individual assets to a trade buyer.
COMPETITION
The joint venture between TVNZ and Sky TV in Igloo prevents competition in the pay television market by preventing the arrival of a new player who could take on Sky. On the one hand the 11-channel digital, terrestrial pay service offers a lower cost option for subscribers, on the other Igloo can be downgraded by Sky if it eats into its full digital service.
Sky and the state broadcaster own the vast majority of television content and combined with Sky's contracts with its wholesale clients also limit the availability of unique content. The role of TVNZ in Igloo means that the state is supporting two dominant companies.
FREEVIEW
Once regarded as a potential free-to-air multi-channel competitor to Sky Television, Freeview has reverted to a role as a default provider for free advertiser-funded television. Tough times in the television advertising market have left few options for new advertiser-funded channels and the die has been set with TVNZ abandoning Freeview to concentrate on pay television and its emerging relationship with Sky.
The question for Freeview is now whether it can access remaining frequencies to increase its capacity after the switchover to digital television, and whether it can develop a profitable business plan that runs in tandem with its current non-profit status.
Such an option would be particularly beneficial for MediaWorks.
