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TVNZ makes digital bet

New Zealand’s TVNZ plans to ramp up investment in digital media after it helped the broadcaster to record a 25% rise in annual profits.

The company plans to use cash recouped after selling its stakes in TiVo operator Hybrid Television Services (HTS) and digital TV service Igloo, as well as monies gained from property sales, to invest in technology infrastructure to fast track online growth.

TVNZ posted a net profit after tax of NZ$18.1m (US$15.2m) on the 12 months to June 30 and CEO Kevin Kenrick said digital media had been “the standout performance for the year.”

Streams from TVNZ’s VoD service Ondemand were up 78% for the year and now average more than one million views per week, Kenrick said, helping to boost online advertising revenues by 30%.

He added that online revenue was currently “a modest component of total revenue, but is a major driver of future growth” and said the broadcaster was investing to “significantly enhance” its online offering. TVNZ sold its minority shareholdings in HTS and Igloo back to Hybrid and Sky TV respectively.

The results also revealed that reality series New Zealand’s Got Talent was its most watched show of the year and Kenrick said the company’s focus was now on creating and sourcing compelling content and expanding online distribution.

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