The contract between TVNZ and Sky TV which sees TV ONE and TV2 broadcast on the pay-tv network is due to expire in 2011 - so what does this mean for the fate of New Zealand's two most watched channels? TVNZ spokeswoman Megan Richards said last year that the state broadcaster had made no commitments beyond 2011, but there have been rumours circulating recently that the channels will be pulled from the Sky platform in order to make Freeview more attractive to potential customers. The government has announced that the date for the switch off of the analogue TV service will be announced either when 75% of the country receives digital television or in 2012 - whichever comes first. This means that by about 2015 viewers will need either Sky TV or Freeview in order to continue to watch television - including the free-to-air channels.
The recent war between TVNZ and Sky over the rights to airing sports games has seen the rift between the two companies increase even further. Sky's digital service currently reaches 47% of the New Zealand audience, while Freeview reaches only 6%. Many see Sky's continued success based largely on their sports coverage. If TVNZ are not successful in gaining the rights to popluar sports games for Freeview, their next best move may be to restrict access to TV ONE and TV2 - the two channels that consistently gain the best ratings in the country.
Sky TV currently gets to screen TV ONE and TV2 for free, so some have also suggested that rather than pulling them completely, TVNZ will renegotiate the contract to see Sky paying a fee if it wants to continue with the channels as part of it's digital service. This move may be best for TVNZ, because until Freeview's viewership numbers increase dramatically, removal of TV ONE and TV2 from the Sky platform could end up as a ratings suicide.
