TVNZ boss defends $8m spend for Coronation Street

TVNZ boss Ian Fraser is defending the network's multi-million-dollar bid to tie up Coronation Street, calling those who complain about the network's programming content "snobs".

TVNZ has signed up the rights to the top-rating British soap, fighting off an agg-ressive challenge from the Prime network.

It is understood the deal, which includes other Granada programmes such as William and Mary, was worth about $8 million for three years, making it one of the biggest deals in broadcasting history - and raising questions about whether or not it was a wise use of the state broadcaster's money.

National MP Murray McCully said taxpayers had a right to know the details of the deal in order to decide whether it was justified.

"I think it is clear Prime were willing to pay all the programme was worth commercially, and more, to get it - so you can draw the conclusion that TVNZ are paying over the odds for it and that they are doing so out of funding that should have gone to local programming." He said TVNZ was "a law unto themselves".

"If they have used their financial muscle to stop Prime getting a toe-hold then it's an abuse of their position."

But Fraser said the purchase was more than worth it.

"We would be mad to consider losing a property that returns maybe two to three times the cost of what you paid for it. It's a prime piece of property, but not, alas, a Prime piece of property."

He said criticisms that the money should have been put into local programming were "stupid", saying the bid came from the budget set for foreign product and any profit could be channelled back into local programming.

Viewers could look forward to seeing a lot more local drama and comedy on the screen, he said, while defending the volume of reality shows on the network's two channels.

"What it's about is snobbery. There are a heap of snobs out there who look at a programme like the Lionman or Air Force and they decide they will not enjoy, deliberately, what the plebs enjoy. TV is not just for the NCEA scholarship winners."

Independent television producers have agreed with Mr Fraser, saying they have never been busier.

The purchase is also backed by industry experts who say even if the alleged $8m was paid for the soap alone, it would return double that in advertising revenue a year, plus other benefits such as pulling in audiences for surrounding shows.

Cleminger media director Nigel Keats said William and Mary alone would return about $1.5 million in advertising.

"No one wants to pay more than they need to but it does not seem over the top. It's the reality of being in the competitive television market."

Total Media director Martin Gillman said Granada was exercising simple commercial smarts in playing two networks off against each other to crank up the prices.

"It was always going to be TVNZ's. Prime could not raise enough money to justify it."

- Herald on Sunday