Regional ads likely to be shown on Sky

TVNZ expects talks with Sky TV about the possibility of adding regional advertising to Sky's digital network to be finalised within weeks.

The talks were started after concern from advertisers.

Viewers who watch TV1 and TV2 through their Sky decoders see only national and Auckland ads.

That worries businesses that have bought regional ads with TVNZ because Sky's expanding digital subscriber base is diluting their audience. Nationally, Sky now has about 300,000 digital customers.

TVNZ spokesman Glen Sowry said the network was aware of regional advertisers' concerns and was looking at its options.

"One of the things we are considering is the option of introducing regional breakouts on the digital service using our own satellite capacity, through the Sky box," he said.

TVNZ's regional advertising rates had not changed since Sky introduced free-to air channels to its digital network.

Sky director of communications Tony O'Brien said regional breakouts could become an option for advertisers on the company's digital service in the future.

"But on our UHF network it is not cost-effective for Sky to add regional advertising breakouts."

The issue has particular relevance for the Wellington region where Sky has completed the transfer of about 25,000 Saturn subscribers to its digital network in a deal with TelstraClear. It's estimated about 30 per cent of homes in the Wellington region now receive Sky's digital feed.

In Wellington's Newtown area, Newbolds store co-owner Nigel Girdlestone said the issue was not lost on local businesses.

"We are well aware of it. It's made us look at where we advertise, local TV, radio, newspapers. Newspapers are perfect for regional advertising, getting leaflets out, local specials, and radio gives you a better burst locally [than a national TV ad]," he said.

- NZPA