Separate regulation of broadcasters, telcos \'antiquated\', says MediaWorks boss

The current regulation model that treats broadcasters and telecommunications companies as separate industries is "antiquated" and desires a more level playing to stoke competition, in accordance with the boss of MediaWorks.

Managing director Sussan Turner told a broadband conference in Auckland that New Zealand needs a regulated wholesale marketplace for content. The aggregation of screening rights by rivals Television New Zealand and Sky Network Television, who recently entered right into a three way partnership is stifling opportunities for rival broadcasters, she said.

With the possibility of a brand new delivery platform that opens up distribution of programming, regulation must come under one umbrella, she said.

"Separate regulation of broadcasters and telcos is antiquated and bounds growth, innovation and competition," Turner said. "It's MediaWorks' contention that telco companies and free-to-air broadcasters don't have much with no wholesale marketplace for content."

Earlier today, new Communications and knowledge Technology Minister Amy Adams backed faraway from introducing new regulation, saying the arena must calm down before the govt. will consider cutting across market forces.

Adams was sceptical of a joint broadcasting and telecommunications regulator.

Turner took a pot-shot at TVNZ, saying the state-owned broadcaster has previously hoarded broadcasting rights purely to stop TV3 from accessing programmes, and that some form of light regulation is required.

"We are not whiners, we adore the free market economy," Turner said.

MediaWorks, which operates TV3 and radio stations including The Rock and More FM, will roll out new content over a broadband model in response to demand for services and the broadcasting rights it can secure, she said.

Turner immediately followed Sky TV chief executive John Fellett, who talked down the necessity for regulation, saying the hot infrastructure will end in a fracturing of platforms and a shift towards more on-demand programming. Those are two areas the pay-TV operator would be targeting, he said.

Fellett said Sky TV doesn't have subscription-on-demand rights, that is what an organization like Netflix operates with, and that it is just a question of time before that sort of service arrives in New Zealand.

Fellett and Turner were part a panel discussion on drivers of consumer demand at a broadband conference organize by the Commerce Commission. The development is a part of the antitrust regulator's demand-side study into UFB uptake, and can discuss the nation's internet opportunities.

- BusinessDesk