TVNZ's latest thinking on paid content

TVNZ chief executive Kevin Kenrick. Photo / Supplied

TVNZ chief executive Kevin Kenrick has publically mulled paid online content.

ITV in the UK - which allows viewers to pay a small amount for an ad-free video streaming experience - is one of the models he's looking to.

Another was Disney-owned Hulu, which is available in the US in ad-supported (US$5.99) and ad-free US$11.99 versions.

And the concept has been in the news again this week, with Discovery announcing the global launch of its Discovery+ streaming service, which will cost US$4.99 a month with ads, or US$6.99 ad-free.

So will TVNZ's latest repositioning of its TVNZ OnDemand service include an option to pay to avoid ads - which can become quite familiar as a block of three commercials, each 30 seconds long, plays each time you fast forward or rewind its streamed content.

"No, our focus is firmly on free to air, ad-supported content," TVNZ general manager of corporate relations Kirsty Way said today.

"The competition out there for subscriptions is rather fierce, from some pretty big players.

One change the broadcaster will be making is to pull TVNZ On Demand from Freeview On Demand, effective June next year.

Viewers practically need a wall covered in flowcharts to keep up with their options these days, but in this case Freeview (now 45 per cent owned by TVNZ, 32 per cent by Discovery - the new owner of MediaWorks TV), 18 per cent by Maori TV and 5 per cent by RNZ) was created for the switch from analogue to digital broadcast TV.

That mission accomplished, turned to creating Freeview On Demand, which aggregates content from all the NZ free-to-air broadcasters various streaming services. For its users, it's been a useful one-stop-shop, allowing them to search all their local on-demand options at once.

To access it, you need a Smart TV or Freeview set-top box that supports the Freeview On Demand app, or Freeview's $140 Smart Vu dongle, which turns a regular TV into a Smart TV (that is, one that can run apps).

Today, TVNZ On Demand content can be accessed via Freeview on Demand on a Smart TV, or the TV on Demand App that's available for Apple and Android gadgets, plus Smart TVs and other platforms.

Why has the state broadcaster decided to pull the plug on Freeview on Demand?

"TVNZ has decided to invest in one digital platform for going forward - TVNZ OnDemand," Way says.

"This way our users will have a consistent brand experience and can utilise standard OnDemand features and navigation – it also means TVNZ's investment is focused on one product.

"Today people use a variety of different apps to watch content, so for viewers to move between Freeview and OnDemand and other content sites is in line with normal consumer behaviour."

It might annoy some Freeview on Demand users, but TVNZ's move is very much in keeping with broadcaster and content makers' strategy as we head into the second decade of streaming.

Studios and broadcasters who used to pool their content with aggregators have been in a rush to launch their own apps. This year has seen the launch of high-profile, standalone streaming apps from the likes of Disney, HBO and Showtime. The New Year will see the global launch of Discovery+ (causing complications for Sky).

TVNZ says it averaged 4.4 million streams per week via TVNZ On Demand in 2020.