Sky Television's monopoly on digital broadcasting in New Zealand has finally been broken with the launch of a new service, Freeview .
The $75 million government-backed project means the entire country can now watch free-to-air television using digital signals provided by satellite.
Wednesday's launch of Freeview promises an even greater choice
of channels and programmes for consumers. Freeview will initially
broadcast TV One, TV2, TV3, C4, Maori Television, Radio New Zealand
National and Radio New Zealand Concert. More channels will be
added.
But the new digital era comes at a cost, and viewers will have to
decide whether it's worth it.
It's being hailed as the most significant broadcasting event since the launch of colour television 30 years ago.
Broadcasting Minister Steve Maharey says it's financially important to make the shift. "We know that if we do this, within the next six to ten years then the financial gain for the country is around $230 million," he says.
What it costs
Freeview means that people who have struggled with poor analogue signals can now get a crystal clear digital picture.
But setting up could set you back around $600 if you need a professionally installed set-top box and satellite dish.
"I might just have to miss out on meals out and takeaways for a few months," says David Wilson, a potential Freeview customer.
The basic requirement is a set-top box, and the Freeview consortium has certified two pre-tuned models which retail for almost $300 each.
But the broadcasting minister offered some free advice at Wednesday's launch. "You can buy alternative ones for 167 dollars already. We know that once this all starts to roll the costs of these things will start to drop as they always do," Maharey says.
Chinese-made set-top boxes cost $160 and Satlink managing director Peter Escher's whole do-it-yourself package is half the official cost. Escher says the package comprises a very simple dish for a caravan or a mobile home, and a satellite meter.
"And you just line up the dish with a sat meter and away you go." The receiver, dish and meter costs about $240 , he says.
But people with a Sky dish can use that for Freeview.
"You can use existing dishes whether it be Sky or another service provider that you might have used in the past. So those dishes are usable," says Jason Newlove, Dick Smith store manager.
Channels and content
Freeview's ultimate success will hinge on new channels and content.
TV ONE has promised a lifestyle channel later this year plus a news
and information channel, but other broadcasters remain
secretive.
"We'll advise our competitor at the last possible moment," says Brent Impey, CanWest chief executive.
Analysts say Freeview needs quality programmes to capture public imagination.
Media analyst Wilson Owen says content is king in television. "And all we're getting on Freeview is the existing free-to-air channels. Until there's some premium content on there it won't be a threat to Sky," he says.
However sky still faces a loss of revenue. Thousands of viewers who pay Sky $18 a month to watch free-to-air television could switch to Freeview. But Freeview expects only 20,000 viewers in its first year, compared with Sky's 690,000 subscribers.
Escher says Sky has its own market. "It's sort of untouchable, I think Sky. And Freeview appeals to people that just don't want Sky - just want simple, simple free-to-air TV."
And while people in remote areas might rush at the chance to see clearly now, city dwellers may wait until next year's launch of digital terrestrial television, which uses a UHF aerial and needs a different set-top box.
National sceptical
Prior to the launch, National's broadcasting spokesman Dr Jonathan Coleman said the government was told at the start of the process that for digital TV to thrive, two key components were needed - quality content to make sure people will actually watch it, and some certainty about when the analogue signal will be turned off.
Coleman said in refusing to give any detail on either front, Maharey is dodging his responsibilities.
But Maharey says the success of free to air digital TV is in the hands of New Zealand's broadcasters. He says they have got 13 extra channels that can be taken advantage of and it is up to them to maximise the network's potential.
Maharey says the government won't be able to set a date to turn off the analogue network until the digital service has been up and running for a while.
