Eric Kearley from TVNZ comments that:
"Over 50% of viewing on Sky is to Free to air channels. It would be commercially impossible for Sky to exist without including these free to air channels in their packages and then charging hefty subscription fees for the whole package.
Through doing so Sky generates revenues only slightly smaller than the whole free to air industry. Other channels in these packages - foreign ones - get paid millions for allowing Sky to bundle their channels with others and charge.
But Sky does not generally pay domestic channels, and definitely not free to air ones."
Well thanks for the insight Eric. So, Sky does not pay for free-to-air channels. Who's fault is that? As a tax payer and therefore a part owner of TVNZ I find it incorrigible that TVNZ have effectively given away part of my investment to Sky who then charge me a monthly fee to view it. Sounds like quite a stupid arrangement that Sky benefits from greatly. But then why do we have Sky? Well for me the simple reason is reception. I live in Wellington and seriously even with external VHF/UHF antennas the reception is shit. I had to get Sky to get rid of the static. Now that I have Sky I am used to paying a monthly fee for my viewing pleasure.
Eric is effectively saying that without the free content from TVNZ Sky would not exist. If that is true then who is at fault? TVNZ have effectively helped Sky to become what they are today. But then if I was an advertiser I am sure that TVNZ would be touting the Sky viewer figures to me so in some way TVNZ must be profiting from the Sky relationship.
I can now see why Rupert Murdoch is a billionaire. He is a smart man, I think Helen should give him a call and offer him 50% of TVNZ for $1.
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Comment by Mark Wilcox, on 4-Sep-2007 20:58
TVNZ have no reason to put TVNZ 6 and 7 on Sky because they are commercial free...
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