Inspiring New Zealanders on Every Screen - Tvnz

8 / TVNZ ANNUAL REPORT FY2009Chief Executive’s Overview (continued)The combined impact of thecost-cutting measures has enabledTVNZ to stay profitable.This stringent focus onreducing cost will continue.We are cautiously optimistic aboutthe 2010-2011 financial year. At thetime of writing the advertising markethas not yet bottomed out, but weare hopeful that it will have turnedthe corner by the middle of 2010.4. Government funding oflocal content on TVNZWith a change of Government,direct funding for local contentwas transferred to NZ On Air ina contestable framework, witheffect from July 1, 2009.During the year the companyattracted some outstanding proposalsfrom writers and producers whichenabled success in securing apleasing level of funding from NZon Air’s existing funding pool.The allocation from NZ on Air’sInnovation Fund for the ‘virtual’coverage of the Louis Vuittonseries was particularly pleasing.Funding for Maori programminghas been successfully negotiatedwith Te Mangai Paho.A longer formatted Te Karere wasapproved, with additional fundingfrom TVNZ; and Marae and WakaHuia were both funded for the 2010financial year at the level requested.5. Consumer insight andcompetitive trendsUnderstanding consumer needsand behaviour has become aprimary focus of the business.As television audiences fragmentin response to greater choice andcontrol, it becomes essential tobusiness success to generate strategicinsights into viewer behaviours.The value to television viewership ofthe tvnz.co.nz ondemand catchupservice was amply demonstratedthrough research into consumerbehaviours, which proved that a viewerwho could catch up on a missedprogramme online was 13% morelikely to return to the programmeon television the next week.With the predicted growth ofmedia consumption on screens(TV, computers, mobile devicesetc) the company believes it is wellpositioned to capitalise on this shiftin media consumption patterns.6. Organisation culturaltransformation andleadership developmentIn 2008 the company invested in aprogramme of business leadershiptraining for 50 senior staff members, inconjunction with Auckland University’sBusiness School. During FY2009 thisprogramme continued and has verysuccessfully strengthened leadershipand management capability,and has significantly increasedcollaboration across the company.It has been an important factor inthe positive way the company hasbeen able to respond to and managethe impact of the recession.Linked with the process of businesstransformation, a new performancemanagement framework has beenimplemented to foster a culture ofaccountability and excellence.7. Emerging Business growthplan implementationThe company exceeded its BusinessPlan targets for Emerging Business(renamed Digital Media in May).Advertisers responded well tothe redesign of the tvnz.co.nzwebsite, with a new <strong>New</strong>s sitelaunched in December and a newEntertainment site in May.Growth in viewing of TVNZ onlinetelevision has been exceptional,with 230,000 hours watchedonline every month. This is as wellas growth in standard televisionviewing, not instead of it.The company has also deliveredon its strategic objective ofresponding to consumer demandfor video content and services inthe broadband environment. It hasnegotiated a one third shareholdinginterest in the Australian SevenMedia Group subsidiary, HybridTelevision Services (ANZ) Pty Ltd.Hybrid holds the Australasianlicence for the US market leadingPersonal Video Recorder – TiVo.The launch of the company’s twodigital channels – TVNZ 6 andTVNZ 7 – on the SKY platformrepresented a significant advancein public accessibility, also akey strategic objective.8. Broadcast Servicesoperational reviewWith production budgets underpressure, TVNZ is examiningits processes and activities tolower costs and better meet theneeds of content producers.TVNZ was the first in the market withHD equipment, and has completedconstruction of a fully HD postproduction facility which is well usedand has attracted new clients.A new public website has beenlaunched, assisting content producersto assess available facilities.9. Digital infrastructure andbusiness transformationTVNZ has begun transforming thefundamental technical structure ofits operation from analogue to fullydigital media management. Theproject was initially cast as a technicalupgrade but in the last year hasbeen revised in scope to include theredesign of workflows in all areas ofthe business that intersect with thecurrent tape-based workflow. Analysisand design are almost complete, andinstallation and implementation isscheduled for completion in July 2010.