Room for TVNZ and Netflix

Traditional broadcasters are getting increasingly nervous as streaming services move into their territory.

In a sign that the worries are mounting, a senior TVNZ staff member recently criticised Netflix, calling it ‘‘over-hyped’’ and complaining that it gets too much attention.

I do have a little bit of sympathy for Kiwi streaming services as Netflix benefits from the ‘‘iPhone effect’’ where a brand name is used to refer to a gadget or service. Many people still call any type of smartphone an iPhone, and the same rule applies for iPads, Uber and Netflix.

But while TVNZ and other broadcasters should be worried about the rise of Netflix, they need to know that there’s room for several providers.

There are several reasons for this.

First, not everyone wants to pay to watch television. There is still a huge demand for free-to-air television shows.

This leads to the second factor – a lot of advertisers still value TV audiences and since they can’t use Netflix to show their ads, they still need traditional broadcasters.

Also, there are hundreds of shows produced each year, and Netflix can’t buy or make them all.

Kiwis get a good deal from TVNZ and TV3 – they both show programmes for free that other viewers around the world have to pay for.

And while some people complain about the quality of shows and number of ads on traditional TV, we are much better off if they stick around. The more television viewing options there are, the better for Kiwi TV fans.

But that doesn’t mean everyone will survive. Is there room for several traditional broadcasters in New Zealand? What about five subscription streaming services (Netflix, Lightbox, Neon, Quickflix and Amazon Prime Video)?

And more competition is on the way. The next big shift is going to come from the tech giants.

Facebook, Google (via YouTube) and Apple have announced they will be making shows and streaming them on their platforms.

TVNZ should probably be worried about these three more than Netflix, which is a pipsqueak in comparison.

The more television viewing options there are, the better for Kiwi TV fans.