The Labour-led government under
Helen Clark from 1999 to 2008 pursued a programme of public broadcasting reforms. New Zealand's wide-ranging adoption of
neoliberal policies in the mid-1980s and 1990s had large sections of the
state sector privatised. As a state owned enterprise, TVNZ enjoyed enormous commercial success (sustaining two-thirds of the overall audience share) and paid the Crown substantial dividends (over $250 million between 1989 and 1999). However, the commercial success had been achieved through an unabashed pursuit of ratings through populist and
tabloid content, and prior to the 1999 election the National-led government was evidently positioning TVNZ for privatisation Labour-led administrations since 1999 explicitly recognised the market failures of a wholly commercial broadcasting sector (e.g. saturation-level advertising, low levels of local content, heavy reliance on cheap imports and a disregard for quality genres and in-depth news and current affairs) and re-emphasised television's cultural and democratic functions in their policy thinking.
The Clark government's highest profile broadcasting reform to date was the restructuring of TVNZ as a
Crown Entity in 2003. This introduced a dual remit whereby the broadcaster had to maintain its commercial performance (continuing dividend payments to the Crown) while simultaneously implementing a new public service Charter.
The TVNZ Charter would require the negotiation and reconciliation of potentially contradictory commercial and public service imperatives. The final version of the TVNZ Charter included a range of public service objectives and expectations.
However, this dual remit precluded any transformation of TVNZ into fully-fledged public service broadcaster, and TVNZ's efforts to balance its pursuit of commercial performance and Charter objectives were soon being criticised. Despite some investment in local content, including new documentaries and discussion programmes, the content on TV One and TV2 remained similar to the pre-charter schedules, with a continuing high proportion of light entertainment and
reality-TV shows.
TVNZ continues to pay dividends to the Crown. However, from 2006 until 2009 TVNZ received $15.11 million each year from Government to assist it with fulfilling Charter obligations. There was much debate about the initial secrecy surrounding funding allocations and the programmes supported. The allocation of $5 million toward coverage of the 2008 Olympics, the rights for which are secured by a competitive tender between broadcasters, was possibly the most controversial. In 2009 the Government gave control of that funding to funding agency
NZ On Air. NZ On Air announced the creation of the contestable "Platinum Fund" in April 2009, setting aside the $15.11 million for high quality drama, documentary and other programme types. Following the election of a National Party-led government under
John Key in 2008, the Charter was abolished in favour of a return to the 1990s model of a full commercial broadcaster.
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