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Sunday Star - Times; Wellington, New Zealand

By CHAPPLE IRENE

NEW ZEALANDERS can expect at least three more free television channels next year as plans are rolled out for the digital era.

TVNZ wants two more channels by mid-next year and is considering several ideas including news, Kiwiana and arts channels. CanWest MediaWorks, owner of TV3 and C4, is planning one extra channel by next year and one the year after. It will not reveal content, but the changes are likely to target niche markets.

Annual running costs for TVNZ's new digital channels are expected to be about $30 million, but the government is not yet willing to contribute and the broadcaster is under pressure to find the cash in its existing budget.

A spokesman for Broadcasting Minister Steve Maharey said there was no additional funding "at this stage".

Extra cash may be available in the future, but now the onus is on the companies to offer channels that will convince New Zealanders to buy a $200 set-up box and switch to digital.

The government is contributing $25m to the set-up of a free-to- air digital service and is providing $10m worth of free access to digital frequencies during the transition from analogue. Digital - in place through much of the developed world - will mean better pictures, sound and interactive television.

TVNZ government relations manager Richard Griffin said a 24-hour news channel and one which featured New Zealand-made film and television series were two ideas that reflected TVNZ's charter requirements.

He said they had not been confirmed, but it was hoped the new channels would be available early next year.

Digital roll-out is high on the priority list for new TVNZ chief executive Rick Ellis and it is believed to have dominated last month's board meeting.

In an email to staff last week, Ellis said TVNZ was a "valued cultural taonga" and its future was in digital. "Citizens will expect to access our content wherever and whenever they choose - through whatever digital device, connected to whatever platform: broadcast television, broadband internet, cable, mobile, and others yet to come," the email said.

Rumours Ellis would use this month's board meeting to discuss a restructure of his management team were sweeping through TVNZ last month.

Former assistant chief executive Stephen Smith, head of corporate communications Avon Adams and human resources manager Sidney Smith have all left since Ellis arrived. Further changes are expected, but sources say Ellis will continue to observe his big-earning executives before making changes.

Ellis used his email to warn TVNZ staff not to "speak ill of the company to those who seek to injure our reputation - as this is damaging to us and holds us back from our goals".

(c) 2006 Sunday Star - Times; Wellington, New Zealand. Provided by ProQuest Information and Learning. All rights Reserved.