On-Demand Pay NetTv In New Zealand

Table of Contents

Executive summary ………………………………………………………………………………3
Background and problem definition………………………………………………………3
Secondary research sector……………………………………………………………………4
Findings …………………………………………………………………………………….…….4
Qualitative research sector……………………………………………………………………5
Findings …………………………………………………………………………………….……. 6
Recommendations ……………………………………………………………………………6
References ……………………………………………………………………………………….7

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Evaluation and analysis of the market proportion of on-demand pay internet streaming media services in New Zealand

Executive Summary

On-demand pay TV is a distribution that covers a wide area in New Zealand and it is accessed by a large population. Many of the citizens prefer to access video contents via the pay-TV channels as compared to the free-to-air since it provides valuable contents thus enhancing customer satisfaction. The largest provider of online pay-TV in New Zealand is the Sky Network Television Limited offering a wide range of movies, sports, music, on-demand and general content across more than 80 channels.

There exist other providers of pay-TV contents thus enlarging the New Zealand online pay-TV market and ensuring many people are able to access the contents via the internet. This is many possible through the increased rates of the use of smartphones and androids which are mostly used by the youths and people between the age of 15 and 65. There exist many competitors of New Zealand in the provision of online television content among them Sinclair Broadcast Group Inc., Sigma Marketing Group, SourceLink and ST Ives Plc.

Background and Problem Definition

On-demand pay internet is the digital distribution of television contents via the internet. It generally involves the delivery of television shows or any other video content over the internet by use of video streaming technology which is used mostly by traditional television broadcasters. The major problem that the essay aims at is evaluating the market demand for on-demand pay internet streaming media services in New Zealand that is, analyzing the demand levels to determine if there is demand for the NetTv in New Zealand. This is for the purpose of investigating the feasibility to be able to develop a New Zealand base service so that users will not have to use VPNs to access any media content.

Secondary Research Sector

In conducting the research, secondary data was gathered using review of an encyclopedia article, magazines, newspapers, journals, private sector research reports on the market for online TV in New Zealand.

Findings

The proportion of New Zealanders accessing video content via the internet is large since 64% of those aged between 15 and 65 currently own smartphones and the ownership levels are expected to grow strongly reaching 90% in 2018. Android which takes 64% leads over the Apple iOS which takes 24% as the preferred operating platform. The proportion accessing pay TV currently is estimated to be large since New Zealand is well-served with international communications. Two among the four Intelsat series satellites that are stationed in Pacific Ocean region provides New Zealand with primary and major-path satellite support for visually all international telephone and private services traffic to and from New Zealand thus enabling a large proportion to access online pay TV (Tassel, 2013). The online pay TV market in New Zealand is extremely large with many media channels which offer the service.

Fairfax Holdings in 2008 brought NZ$1.188 billion to the New Zealand Empire from Independent Newspapers Ltd only. In the concern for online business strategy in 2006, Fairfax brought the market leading online auction trading site, that is, Trade Me costing NZ$700 billion. Sky and its majority shareholder INL also emerged in 2005 with its Pay-TV services and it quickly reached more than 40% of the New Zealand households (Dwyer, 2010).

The main providers of on-demand internet TV content in the New Zealand market are Sky Network Television Limited and Netflix flips. Sky Network Television Limited is the largest known provider of pay-television services in New Zealand (Plunkett, 2007). It offers a wide range of movies, sports, music, on-demand and general content across more than 80 channels. It has a line-up of five movie channels, six sports channels, four documentary channels, five entertainment channels, three news channels, three children’s channels as well as other niche channels. On the other hand, Netflix flips debuts its streaming media services to different markets in New Zealand and Australia through official subscriptions to a variety of flat forms which may include Apple TV, smart TVs, Blu-Ray players, the web as well as game consoles.

Other main international providers of on-demand internet TV content that the New Zealanders can access through the use of VPNs include Sinclair Broadcast Group Inc., Sigma Marketing Group, SourceLink and ST Ives Plc. Sinclair Broadcast Group Inc. operates different programs and provides sales services to 60 different television and radio citations in 37 markets and mostly in the United States.

Sigma marketing group is a private direct marketing company that is based in Rochester in New York. SourceLink is a direct marketing company and it only provides data and resources to bulk mailers of printed advertising in the United States. St Ives plc. is a supplier of printed products and other related services to media and commercial markets in the United Kingdom. The user charges applied for accessing the content include withholding tax that is imposed on royalties sourced in New Zealand. Many of the e-commerce transactions involve the payment of those royalties (CCH New Zealand Ltd, 2013).

Qualitative research sector

In conducting the research, all the participants were asked to project their feeling and thoughts onto other things. The research was carried out through brand personification, sentence completion and later the provided answers from the participants

Findings

The New Zealanders access online video content via websites provided by national institutions due to the widespread access to digital content through the internet (Lau & Tammaro, 2012). The institution that provides the online video content is managed by the national library which has a legal requirement to collect all New Zealand information that is published physically or even electronically and ensure the information is available for the members of the public to access it.

Many people in New Zealand prefer accessing video content Via Pay-TV other than free-to-air because, in the pay world, it is all about customer satisfaction and value. The pay-TV offers wide programming and content range compare to free-to-air TV (Gran, 2009). Pay-TV also provides a direct customer relationship in the business and an individual is free to watch what he/she wants to watch at the time the individual wants as long as it’s paid.

Recommendations

Some video contents are likely to be lost due to network congestion when the streaming server starts sending the packet streams and, therefore, the providers of online video contents should ensure a well-controlled connection between the server and the internet (Oodan, 2013).

Often the video content quality is inferior to that of television and, therefore, the providers should ensure that contents of high quality are offered.

References

Plunkett, Jack W. (2007). Plunkett’s Advertising & Branding Industry Almanac 2007: The Only Comprehensive Guide to Advertising Companies and Trends. Plunkett Research Ltd.

CCH New Zealand Ltd. (2013). New Zealand Master Tax Guide (2013 Edition). CCH New Zealand Limited.

Tassel, V.J., (2013). Digital TV Over Broadband: Harvesting Bandwidth. CRC Press.

Dwyer, T. (2010). Media convergence. Maidenhead: McGraw-Hill Open University Press.

Lau, J., & Tammaro, A. M. (2012). Libraries driving access to knowledge. Berlin [etc.: De Gruyter Saur.].

Gran Bretanya. (2009). Public service broadcasting: Short-term crisis, long-term future? : report with evidence. London: Stationery Office.

Oodan, A. P. (2003). Telecommunications quality of service management: From legacy to emerging services. London: Institution of Electrical Engineers.

 

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