New Zealand On Air is cutting the government-appointed board out of decision-making and giving staff the power to allocate grants under $1 million for TV and $300,000 for radio.
Chairwoman Miriam Dean's action marks a major loosening of control of taxpayer funding at a time when the TV industry is becoming reliant on NZ On Air for its survival.
NZ On Air allocates around $80 million to TV each year - much of it on big ticket items such as dramas.
The majority of projects are factual programming such as documentaries, which are given less than $1 million each.
In most cases these will no longer be considered by the board.