Cloudy: In all the years we had a license fee I never paid it. Always believed that was what advertising was for. If that had been removed then it would have been a different story.
The advertising profits goes to the owner of the TV channel, it doesn't go to NZ on air. So it pays their staff wages, buying overseas content, broadcasting costs and pays a dividend to the government in the case of TVNZ. The license fee goes directly to NZ on air, and only pays for NZ content. So it is not directly related to advertising that a particualr channel may get.
One of the things that does annoyy me, is that ,much of the content that our licensing fee did pay for back in the 80's and 90's is actually being used on a pay TV channel, heartland TV, and is not avaliable unless you pay skytv. It should be avalaible for free.