Taxpayer stumps up to save local shows

Jane Wrightson says NZ On Air will assist TVNZ and TV3 for 12 months to ensure local content can be produced. Photo / Mark Mitchell

More taxpayer money is being pumped into television so that TVNZ and TV3 do not pull the plug on some of their shows.

Television industry bosses warned yesterday that without a deal with New Zealand On Air, there would have been a big drop in local content.

NZ On Air chief executive Jane Wrightson said: "We have an increase in the subsidy because the two major networks are having trouble with advertising revenue.

"We have agreed to assist them for a 12-month period to ensure that local production is made. If we do not do this there will be a wider cut to production, I believe, because they simply cannot afford to do it.

"I am trying to protect the levels of local content on TV so that they do not drop too dramatically."

Details of the deal are secret.

But it means that taxpayers will pay more to make up for the cut in the networks' contribution for shows.

It is expected to move about $2 million of the cost from the networks to taxpayers.

The initial deal is for one year but it can be extended for another.

The funding agency has heeded warnings from the networks and reduced the money they contribute for expensive genres such as drama, children's drama, documentaries and comedies.

Other genres are not affected.

The broadcaster contribution to other programming has not been affected.

New Zealand On Air contributed $74.3 million to television last year, much of that used for commercial programmes.

But the networks have also been wholly funding their own shows and budgets for these have been squeezed since advertising revenue dried up.

The television programme makers' body, the Screen Production and Development Association (Spada), welcomed the deal between the funder and networks.

Executive director Penelope Borland said it ended widespread fears in a production industry that was already dealing with TVNZ cuts of up to 100 hours of TV.

Both TVNZ and TV3 insisted that the reduction in their contribution was to maintain local content levels and not to boost their profits.

TVNZ spokeswoman Megan Richards said that the networks had committed to spend the savings on other local shows.

"The strategic objective of various governments is to put local content on air but the way it is structured is discouraging broadcasters who are in a tight corner," she said.

Ms Borland said that if not for the deal, independent TV programme makers had faced "a huge hiatus" in the networks' commissioning.

She said programme makers had been worried.

"The last thing we can afford is a hiatus."

Ms Borland said television ratings were high but advertising revenue was still going down.