Call to split up Sky TV

Last updated 00:00 21/05/2008

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TVNZ wants the Government to split up its rival Sky TV, claiming sports fans are big losers in a system that allows the pay-TV operator to "hoard" big events and charge subscribers a "sports tax" to watch them.

In a submission to be made public today, TVNZ calls for strict regulations to limit Sky's growing dominance over free-to-air broadcasters, with sports fans now paying more than $14 a week to watch major sports events live.

TVNZ's submission to the Culture and Heritage Ministry, which is reviewing broadcasting regulation, says sport is critical to the national identity and Sky has a virtual monopoly on coverage.

With a Sky TV sports subscription costing $64 a month, or $768 annually, "many New Zealanders are effectively paying a sports tax", the submission says.

The public broadcaster wants marketplace rules introduced "to create a fair and level playing field for all".

It suggests Sky be split into at least two businesses, one to make and buy programmes, the other to manage Sky's satellite transmission network and set-tops boxes.

Sky, which also owns free-to-air broadcaster Prime, declined to comment yesterday on TVNZ's submission.

About 720,000 householders subscribe to Sky, which has the rights to all major rugby test matches, cricket, soccer, racing, golf, basketball, rowing and athletics. More than 80 per cent of all New Zealand-produced sports content is broadcast on Sky, TVNZ says.

It says Sky TV was given the freedom to create a business model not seen overseas and such dominance "could lead to a lack of media diversity in New Zealand".

The submission calls for rules to stop Sky buying exclusive rights to events of "national importance".

Australia adopted "anti-siphoning laws" in 1992, which mean free-to-air television networks must get first rights to such events. Progressive leader Jim Anderton called for legislation in 2001 to protect New Zealand's "icon events".

TVNZ says Sky's tactics included "hoarding" sports content by acquiring free-to-air rights to events it did not show live and in full on Prime.

Sky had also used Prime, which it bought in 2005 for $30 million, to secure both pay-TV and free-to-air sporting deals. Prime had been used to satisfy the International Olympic Committee in its successful bid for the 2010 winter and 2012 summer Olympics.

 TVWorks, owner of TV3 and C4, agreed the public was not well served by a "pay-TV monopoly" and called for legislation requiring Sky to sell Prime.

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Sky's submission said its "very significant" investment in pay-TV was made on the basis of light-handed regulation. A change would threaten further investment by the company.

 STILL FREE

Rugby: IRB World Sevens (TVNZ).

Soccer: selected Fifa World Cup matches (TVNZ).

Netball: selected World Championship matches, trans-Tasman league (TVNZ).

Olympics: 2008 Beijing Olympics (TVNZ) - uncertain beyond.

Motorsport: NZ V8 series, Toyota Racing Series, MX1 Motocross, MotoGP, Indy Racing League, British F3 (TVNZ), V8 Supercar Series, A1GP World Cup of Motorsport (TV3).

Tennis: ASB Classic, Heineken Open (TVNZ).

Golf: PGA Championship (TV3).

- © Fairfax NZ News

79 comments
mitch   #79   05:26 pm Jan 28 2009

hmmm, a few sky employees commenting on this article I take it?

Sky TV is the biggest rip-off - nothing but repeats, more commercials than free-to-air tv, and $10 more for HD..?! stick it sky

James Hutt   #78   05:26 pm Jan 28 2009

Get your feet on the ground,720,000 dont have a choice

Mark Sawyer   #77   05:26 pm Jan 28 2009

It's about time

Mark Sawyer   #76   05:26 pm Jan 28 2009

It's about time something was done, I can't afford Sky so I think this would be a great idea. It would be great to see Soccer and Motorsports on free-to-air, I could live with the ads. Prime are screening a few of the Euro 2008 games live but it would be fantastic to see the EPL and F1 without having to pay for it!!! This government won't do anything about it but the next one will, lets hope this works so we can enjoy more fantastic events

Bruce   #75   05:26 pm Jan 28 2009

About time. Sky has screwed us for too long with it's over price crap programmes. If they did not have the sport and a few documentaries no one would use them. Give back the major games to the people, brake the monolopy and then maybe we will get some decent programmes for our money.

Aaron in Sydney   #74   05:26 pm Jan 28 2009

No TV station should be allowed to buy any sport and not show it live, if they don't show it live then it should be given to another station. The problem with free tv is they put so many ads in the programme and then its not live and frustrating to watch. But Sky is a rip off compared Australian Foxtel and BSKYB in England their services are far,far better than NZ,Sky will tell you it's size of the population but thats crap it just means their profit will be smaller.So pull your socks up Sky and stop ripping off Kiwis, make the service so good that households really WANT to buy it not because they have to!

Cain   #73   05:26 pm Jan 28 2009

This is a poor excuse for a flailing broadcaster to mask the fact they're losing to a privately owned enterprise. Rather than crying to the Government and nationalising or litigating Sky, they should introduce their own Pay-TV service and compete with Sky which could eventually (should the service succeed) present competition to Sky and market competitive prices for the average Joe.

Jesson   #72   05:26 pm Jan 28 2009

In my business I get to visit a lot of homes and everywhere I go the reception for Prime TV is substandard, certainly nowhere near the quality of TV1, the only homes where it is any good are where the people have Sky as well - which begs the question, since Sky own Prime - are they doing this deliberately in the hope people will subscribe to Sky? Certainly it is one of these reasons rugby is rapidly falling from popularity in NZ, if you can't even get a decent picture why bother?.

Ajay   #71   05:26 pm Jan 28 2009

If TVNZ get to show sport, they will fill the space with so many ads that you will end up getting one hour of sport and about two hours of ads.

Imagine going to a movie and every 5 minutes ads apeared. That would be fustrating, but the affect would be even more fustrating if a LIVE sport event was being shown and this occurred.

No, I dont mind paying to watch un-interupted sport.

JD White   #70   05:26 pm Jan 28 2009

Truly pathetic TVNZ, does not the fact that 720,000 households subscribe to Sky, tell you something about the standard and quality of programming you offer. Who the hell wants to watch a movie, or live sport, that is interrupted every 7 minutes by commercials? TVNZ and TV3 both continually saturate there programming with lame game shows, pathetic reality shows about fat people or tired talent shows and any other cheap knock off of equality lame overseas programs. I for one am more than happy to pay $64 a month for the wide selection of quality programs I receive on Sky, rather than the dumbing down of the population with the rubbish the networks push out. You can watch more intelligent documentaries on the History Channel, in one day, than you will find on one of the networks channels in one month. Tells you something about the target audience TVNZ and TV3


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