KEY POINTS:
Television New Zealand has pulled out of the race for more Hollywood shows as it faces a growing scrutiny about its use of taxpayer grants to fund New Zealand commercial shows.
MediaWorks, owners of TV3 and C4, have secured rights for new programming and movies from the Fox film and television studios when its deal runs out next year.
The broadcaster faced competition for the rights from Television New Zealand, raising the cost of the new programming.
MediaWorks Television boss Rick Friesen said that securing the output deal was a big boost for the company.
On top of existing content it means the broadcaster will be able to screen new Fox shows and 20th Century Fox movies when its current deal with Fox runs out next year.
TVNZ public relations director Peter Parussini said he did not know the details of Fox's decision to go with MediaWorks.
"But in the end they beat us," said Parussini.
Friesen said the rights deal had been important to the success of the company.
He said he had been surprised at TVNZ's decision to bid for the Fox rights, given the company already had extensive Hollywood programming.
"If you are going to bid for these rights you need to be prepared to win them and know where you are going to get the money to pay for them," he said.
Broadcasting Minister Trevor Mallard yesterday confirmed a Business Herald report that the Government was handing New Zealand On Air control of $15.1 million in taxpayer grants for programmes for TVNZ to meet charter obligations.
Mallard's office confirmed a Cabinet paper was being filed for the change and said it was due to dissatisfaction with TVNZ and its interpretation on use of charter funding.
National has long been a critic of the charter and its use of taxpayer funding to enjoy a commercial advantage over a private sector broadcaster.
TVNZ is under growing pressure to make its use of public money more transparent.
While attention so far has focused on the use of charter money for commercial shows, industry sources say that the $78 million funding for new TVNZ Freeview digital channels - TVNZ 6 and TVNZ 7 - is also largely unscrutinised by the Ministry for Culture and Heritage.
The debate over TVNZ oversight has come at a bad time for the network which - along with MediaWorks - has been pressing for greater controls of Sky TV.
