Radio Broadcasters Association Inc.

Radio Broadcasting Issues

Digital Radio

The recent round of consultation undertaken by the Ministry of Economic Development regarding application of digital technologies in the wireless bandwidth has resulted in a “pause” for five years before giving serious consideration to the possible use of VHF Band III for digital radio broadcasting.

This is partly because of uncertainty regarding the eventual switch off of analogue TV, partly because of the absence of any successful business model for digital radio at this time.

The most advanced digital radio market in the world, the U.K, has been conspicuously unsuccessful from a commercial point of view and we believe there is every chance that Australia will end up in the same unfortunate position.

We are closely monitoring both the U.K and the Australian situation, as well as keeping in touch with developments of HD radio in the U.S (now offered by more than 2,000 stations).

The RBA is located on level 4 of the Textile Centre in Kenwyn Street, Parnell, Auckland.

Liquor Advertising – Again!

Liquor advertising is under scrutiny yet again for what must be the umpteenth time over the last 20 years, being an easy target for the antis.

This time it comes via the Law Commission Review into the overall regulatory environment for the supply and promotion of liquor. For a welcome change, the self-regulatory system operated by the Advertising Standards Authority, of which the RBA is a member, receives strong support. That won’t stop the antis from, as usual, calling for bans or severe restrictions but at least we are starting with our nose in front.

Where the Government goes from here is anyone’s guess, but ours is that because of the complexity and heat generated by the issue, they are likely to produce a Discussion Paper before moving to drafting of legislation.

One interesting move that has been undertaken by the ASA has been the establishment, for the first time, of a Code to cover non-advertising promotional activities such as sales promotions, naming, packaging, sponsorships etc. This has been in response to criticisms that while the advertising Code may work reasonably well, unscrupulous marketers will “skirt around the edges” of the intent of the Code and use other promotional techniques that have, until now, been without restriction.

Key to the success of this will be enforcement by the major retail groups who will withdraw any products found guilty of breaches against the Code – at least until modified to comply. Both grocery chains and all major liquor retail groups have signed on for the enforcement programme so we are confident that we will be able to achieve a high level of compliance.

Our submission to on the Alcohol Reform Bill

Our submission to the ASA on the Liquor Code Review

Advertising Agency Commissions

In a highly controversial move, TVNZ has given notice of its intention to reduce agency commission from the present 20% to 10% from the beginning of 2011.

To our way of thinking, this achieves nothing other than “alignment of convenience” with Australia.

As all media proprietors know, almost without exception the media commission is rebated back to agency clients, who then start with a “clean slate” fee arrangement. At the October Board meeting, it was resolved to take a “wait and see” position on this issue. The Commerce Act makes it impossible for the various media groups to collaborate on this issue, so each group has to take its own decision.

Our Annual Report