The government has identified a number of clear priorities for broadcasting and for investment in broadband infrastructure. Ministers are assessing the work done to date on the previous government's reulatory review of digital broadcasting in light of those priorities.
Background
Digitisation and convergence between broadcasting, telecommunications and the internet are bringing profound and rapid changes to New Zealand’s broadcasting environment. These changes present significant opportunities for broadcasting consumers in terms of choice of and access to content.
However, the changes also present potential risks to consumer interests in terms of universality of access to a preferred combination of content, interoperability of technologies, and the availability of less commercially viable local and special interest content in an increasingly competitive environment.
These changes also present risks to public service broadcasting, including local content diversity, and to broadcasters’ access to distribution platforms.
The purpose of the regulatory review of digital broadcasting is to examine the current environment and emerging market and technology developments to ensure the regulatory regime for broadcasting is up-to-date and future-proofed for the converging environment. The review was requested by Cabinet in May 2006 when taking decisions to support the transition to digital television.
Cabinet recognised that digital transition accelerates convergence and changes the business models of, and the competitive relationships amongst broadcasters. For instance, rapidly changing technology and the proliferation of delivery platforms for ‘broadcasting-like’ content (i.e. audio and audio-visual content professional edited and presented, for information and entertainment) raise new issues around the terms and conditions of access for content providers to networks or platforms. (An example is the use by a network of inclusion or ranking on its electronic programme guide as a competitive tool).
In addition, new patterns of consumer behaviour are emerging in response to the changing environment. These changes have the potential to affect the availability and accessibility of locally produced and public service broadcasting content.
The review’s terms of reference, published in May 2007, directed officials to consider the issues raised by digital broadcasting and convergence within three broad areas of competition, standards and copyright, and at three points along the broadcasting ‘value chain’: content, distribution, and networks.
A research report published in January 2008 (Digital Broadcasting: Review of Regulation) examined the changing New Zealand environment and identified a number of threats to an effective broadcasting and telecommunications market. It also outlined how other countries around the world have dealt with, or are attempting to deal with, these threats. The research was accompanied by a discussion paper, which asked questions about the implications of these changes for New Zealand. Public feedback was invited during the period January – April 2008. A related paper was also released for consultation at the same time (Broadcasting and New Digital Media: Future of Content Regulation) which specifically canvassed the application of broadcast content standards in the new digital environment.
A total of 85 public submissions were received.
Based on the outcome of this consultation, the Minister of Broadcasting and the Minister for Communications and Information Technology developed a set of recommendations which went to Cabinet on 22 September and which outlined a workplan to undertake further analysis of identified risks. Detailed options will now be prepared in three key areas of work:
a review of the current institutional arrangements for regulation of broadcasting and telecommunications;
a competition study to consider potential risks to access to premium content and to platforms; * and
development of options for enhanced public service broadcasting including diversity of local content, and content standards.
A number of other specific issues will also be the subject of further work. These include: looking at levels of captioning and other possible enhancements for the hearing- and sight-impaired; media literacy; post-ASO spectrum policy; and investigation of options for the release of content currently ‘locked up’ because rights holders cannot be identified and/or found.
These options, including any proposed changes to current arrangements, will then be subject to a second extensive consultation process.
* The Terms of Reference for the competition study are now available on the Ministry of Economic Development website.