Paul (Norris), Roger (Horrocks), distinguished guest speakers, ladies and gentlemen.

New Technologies and the Digital Future is a comprehensive examination of the issues associated with digital developments and their implications for New Zealand content in various media.

Like Paul Norris and Brian Pauling, the government recognises that these are issues that require government’s consideration and intervention in one form or another.

We all recognise that decisions made now affect generations to come, and we have an obligation to more than the current viewers
The policies developed by government must recognise the expectations of older New Zealanders as well as the highly technologically-savvy younger generations: those for whom the world before the advent of multi-channel options, or colour television, or television itself, is unimaginable.
One of the key determinants of the future environment will indeed be government policy. Given that the content of the material and the choices made possible by the new technologies must take a central place in government’s thinking on these issues, significant progress has already been made.
I will shortly release a discussion paper raising the regulatory and policy issues that may have implications for the government, and inviting public and industry input. Officials would then report back to government with recommendations by mid 2002.

The paper will deal not only with spectrum and transmission options but also the implications relating to access and content. It will cover three main topics –

·availability of transmission platforms (terrestrial, satellite, cable), including allocation of spectrum and “analogue switch off”;
·access to digital content including geographic coverage, reception in the home (STB), and access to transmission platforms by broadcasters; and
·Implications for content and new delivery opportunities, including delivery of TVNZ’s Charter, Maori television, non-commercial (regional) television and local and special interest content.

Background to digital television developments

Digital television is expected to replace analogue transmission in NZ over the next 10 to 15 years.

Already 20% of NZ homes subscribe to Sky’s digital service.

From tomorrow (Dec 1) TV One and TV2 will be available on a free to air basis on the Sky platform. TV3, TV4 and Prime are already available to Sky digital subscribers although these services are presently encoded and not free- to -air.

There are plans to offer digital television services via TelstraSaturn’s cable in certain metropolitan areas.

Sky has announced that it will shortly introduce some interactive services.

In short New Zealand is already some way down the track in developing and using digital TV services.

It is timely that we address the implications of digital TV particularly concerning content, access to content and transmission options.

Content

It has been said many times that CONTENT IS KING.

Sky and other pay services around the world have already proved this with the acquisition of popular programming rights, especially sport and movies. Because of this the pay broadcasters have led the way in attracting viewers to their digital services.

Other broadcasters are now starting to develop new services to take advantage of the new opportunities that digital television offers.

This also applies to the public service broadcasters. The BBC is a case in point. It has recently announced it will introduce three new digital television services. Two new television channels for children – one aimed at children aged 6 to 12 and another for the under six year olds. Plus another service intended to create a forum for debate aimed at anyone interested in culture, arts and ideas.

One of the UK Government’s requirements for these services is that they be supported with online and interactivity as these technologies develop.

These trends indicate that digital TV will no longer be solely the domain of the pay television broadcasters.

While it is not the Government’s role to pick what new applications are likely to succeed it is worth considering what some of the implications are, especially for public broadcasting services.

The following are possibilities -

Multi channeling
In time TVNZ ‘s charter delivery may no longer be confined to TV ONE and TV2. Digital may offer new ways of delivering charter content as is happening at the BBC.

Random programme selection
There is the prospect that programmes will no longer have to be watched in a linear way. Viewers will have the choice to select their viewing and watch programmes when they want to watch them. This could lead to programming brands being more important that than channel brands. For example, you could select a New Zealand documentary from the documentary menu.

This type of application could mean that regional and other special interest services could concentrate on producing selective content/programming rather than incurring the costs of running 24 hour channels.

Interactivity
Interactivity has the potential to provide web browsers for access and response to information and services.

All these applications have the ability to entertain, inform and educate.

If these developments happen then the viewer will no longer necessarily be a passive recipient of services. The viewer will potentially have a lot more choice and a lot more control. This will result in new challenges for content providers.

In a non-linear environment, visibility and accessibility will be as important as scheduling is in a linear environment. These challenges will also apply to local content. For example where local content is positioned on the electronic programme guide, or on the remote, or on what platform, may affect both its visibility and accessibility.

Access to content

TV is a universal medium. 90% of NZ homes have a least one television set. On average we spend close to 3 hours a day watching TV, although when I listen to Paul Norris' new world I wonder if their uptake depends on an increase in hours in a day. It has the power to entertain, inform and educate us. This medium also plays an important part in supporting democracy and cultural identity.

We must ensure that all New Zealanders can benefit from digital television as they have with analogue television, especially in relation to public service broadcasting. There are obstacles for the public -

For example -
·There are costs associated with the public acquiring digital reception equipment.

·There is the possibility of constraints on access to content via the set top box depending on the capability of the set top box and whether conditional access applies.

If TV is to remain a universal medium in the new digital environment then viewers should have the ability to access content and content providers must have the means of reaching viewers.

This will not happen if platform providers dictate what set top boxes the viewer must use, and on what terms, to access content.

It is appreciated that there is presently no universal set top box. There are different transmission systems (satellite, DTT and cable) and there are different conditional access systems and middleware options, often using different proprietary and non-proprietary systems.

Some may say an open access type situation is not technically possible at present and won't ever be. But we need to be thinking about what is best for the public of New Zealand and how we as a small country can maximise the benefits of digital television across the board. We need to think about what may be possible in the future, and not just what is possible now.

Transmission

Another issue we need to address is the availability of spectrum and access to the transmission platforms. Even in a digital environment, transmission is limited by the amount of spectrum, satellite capacity, cable roll out, and of course the cost.

Already satellite transmission has gained a major foothold in New Zealand. Satellite has its advantages, especially as a lower cost way of achieving near 100% geographic coverage in a country such as New Zealand.

However, digital terrestrial transmission has its own advantages such as lower reception costs and regional transmission. The allocation of spectrum in the UHF, and possibly the 12 GHz frequency bands needs to be addressed.

Access to spectrum and transmission platforms is important. Existing broadcasters will want the ability to migrate existing services from analogue to digital. There will be a need for simulcasting existing analogue services in both analogue and digital until such time as analogue can be switched off. There will be a requirement for spectrum for new services, both in the commercial and public broadcasting areas.

Analogue switch off (ASO)

Until a certain critical mass of viewers receiving digital transmissions is reached, it is expected that broadcasters will continue to transmit analogue programmes in both analogue and digital formats. A question for the Government is whether a date for the termination of analogue services should be mandated, and if so, when, and on what criteria, or whether it should be left to the industry to determine.

The rationale for government action is that a clear ASO date will;

·Provide a certain environment for investment in digital services and equipment;
·Set a limit on the cost on parallel digital and analogue transmission; and
·Encourage the viewer to buy digital reception equipment.

Setting an ASO date could force viewers to invest in receiving equipment before a receiver would normally be replaced. This in itself may be difficult for some sections of the community. The Government does not currently have sufficient information available to it to make an informed decision on ASO.

Most Governments overseas have turned away from setting a firm ASO date, preferring instead to establish criteria or timeframes for the issue to be reviewed. Australia has a minimum 8 year requirement to maintain analogue services. The UK aims to achieve an ASO between 2006-2010 subject to public up-take of digital television.

While there is a role for the Government in determining if and when ASO occurs, any decision will depend on how successful the industry is in persuading the public to make the change.

No Government would be likely to agree to a switch off date unless the public was ready for such a change.

Conclusion

Most of us associated with the industry are starting to work with, or consider the implications of, digital television and what it means to our country, our businesses, our democracy, and our culture and identity.

Soon the public too will become more aware of the opportunities and threats that digital television presents, as they become more familiar with the technology.

Ultimately the success of digital television from the public’s perspective will hinge on what it adds to the medium rather than what it takes away.

It is important that we are all engaged in this dialogue. The discussion paper will be an important catalyst to advance the development of digital television in New Zealand in away that enhances the medium of television.

The report written by Paul Norris and Brian Pauling notes that public broadcasting ‘serves different purposes from commercial broadcasting. It exists for different reasons, which are essentially about content, and no less valid in the digital age’. The government agrees wholly with this point.
The paradox of the digital revolution is that, while enormously increasing potential choice, it can work against the ability of citizens to access television that is representative of their own experiences.
Developing the Charter for Television New Zealand, and changing Television New Zealand's status so that as a Crown Company it is able to pursue the Charter’s cultural objectives, is about future-proofing the environment.
Let me remind you how it begins:

The following charter shall apply to all those parts of TVNZ’s operations that contribute to its broadcast content. It shall be predominantly fulfilled through free-to-air broadcasting.

The Charter will apply to existing and future channels: it is forward-looking, and anticipates providing services in a digital environment.
As in radio, the option of public broadcasting – and all that implies about social and cultural responsiveness, authority, commitment and equity – is preserved.

A recent Guardian editorial talked about the BBC in the digital age.
"The BBC is a public service broadcaster. This does not mean dropping popular programmes. It means having the courage to invest in cultural programmes that by their nature are not going to be in the top 10, but which enrich and educate everyone who happens to watch….When there are hundreds of channels to choose from quality will be its own beacon."

And, could I add in TVNZ's case, the beacon for our public broadcaster in a sea of digital channels, will be its uniquely New Zealand identity.