TVNZ saw its advertising and overall revenue take a dip in the year to June 2015, but also cut costs to improve on last year’s numbers. As the overall advertising spend on TV has dropped over the last year, TVNZ has managed to take a larger share of that spend (albeit a smaller dollar amount). The government scores an $8.3 million dividend from TVNZ once the accountants have done their fancy footwork with the headline number of $28.1 million.
The impressive profit growth of $10 million gets pegged back a bit when one remembers the bath that TVNZ took when exiting Igloo last year.
The good news for the broadcaster was largely in two areas. Firstly, it’s performed better against main rival MediaWorks, especially in primetime viewer numbers. MediaWorks has done a fair bit of TVNZ’s work for it in 2015 by cannibalising its own NCA offering, which resulted in a campaign to boycott TV3 in the aftermath of the review which led to John Campbell’s departure.
Secondly, TVNZ’s Ondemand service delivered 97 million streams during the year, up a strong 27% on the previous year. It’s encouraging growth, although there are regular complaints about the stream – or lack of it – on social media.
Social and other online media are increasingly the competitors for broadcasters. While TVNZ is growing its Ondemand subscriber numbers, its growth in online advertising income (21%) hasn’t matched the 27% growth in streams. The overall number of online competitors hasn’t changed a lot in the last year, but the arrival of Netflix is beginning to shake up the market.