Signs of Life?
As always, the New Zealand On Air ‘Where Are The Audiences?’ research provides interesting insights into our behaviour when it comes to content on screen. And stimulates interest in what else is affecting our sector.
Broadcasters are possibly breathing a small sigh of relief about TV being second most popular after global video sharing platforms (YouTube, Facebook, Instagram, etc.), while TV has the highest reach during traditional peak times (6 – 10:30PM), and the highest engagement with Kiwis consuming over 2-hours a day across all TV formats.
Netflix remains by far the most popular Subscription Video On Demand (SVOD) service reaching 38% of New Zealanders, but both consumption and engagement with SVOD have decreased since last year.
In the US, SVODs are now facing high churn rates of subscribers. The high cost of multiple SVOD services is making people rethink their spending. At the same time, the rapid rise of Free Advertising Supported Television (FAST TV) delivered digitally is making them drop their SVOD services. SVOD companies are now starting to bundle in the way that cable channels used to, to help reduce churn.
Linear TV is one of the components of the FAST TV offering, providing traditional broadcasters with hope of a second life. Learn more about FAST TV here.
While we haven’t seen the rise of FAST TV in NZ yet, the cost of multiple SVOD services amidst our cost of living crisis is undoubtedly causing some Kiwis to cut back.
Our broadcasters, however, are still left with trying to figure out how to deal with the haemorrhaging of advertising revenue to the global video sharing and digital platforms.
The Fair Digital News Media Bill, which in part was designed to assist them, has just gone through a further round of review as it passes through Parliament. And the NZ Herald has just written a piece today about the fight (read bullying) that Google is putting up to the Bill to get its way here as it has done in Canada, and is trying to do elsewhere. Read here.
I imagine TVNZ is taking heart from NZ On Air’s research as it identifies its news as being the most trusted source for New Zealanders by a large margin.
A couple of other interesting points gleaned from the research:
- Older people (40 – 59) are taking over Instagram, just like they did with Facebook
- The kids (15 – 24) seem less interested in online gaming, and more interested in podcasts.
As in previous years, things are looking a little sad for TVNZ 2 (18 – 49), while TVNZ+ (18 – 54) continues to justify its investment. You do have to wonder when TVNZ is going to bite the bullet, turn TVNZ 2 off and move everything over to Plus.
Overall, NZ On Air’s research indicates to me that things have stabilised somewhat. But we still operate at the vagaries of international screen winds, which are going to keep blowing and buffeting us about as always.
Tui Ruwhiu
Executive Director
Last updated on 12 September 2024
