Broadcast Advertising Restrictions to Be Removed for Sundays and Public Holidays

The legislation aims to repeal all advertising restrictions on Sundays and public holidays, a move prompted by the changing dynamics of how New Zealanders consume media.

The Government has taken a significant step towards removing outdated advertising restrictions for broadcasters, with the first reading of a new Bill passing in Parliament today, announced Media Minister Paul Goldsmith.

The legislation aims to repeal all advertising restrictions on Sundays and public holidays, a move prompted by the changing dynamics of how New Zealanders consume media.

"As more audiences turn to streaming platforms for news and entertainment, these restrictions are becoming obsolete," Minister Goldsmith explained. "According to New Zealand on Air data, YouTube is now the most popular platform in the country, reaching 44 percent of the population daily."

The current restrictions on traditional broadcasters do not apply to digital platforms, creating a competitive imbalance.

"We need to level the playing field and ensure local broadcasters are not disadvantaged by rules that no longer reflect the realities of the modern media landscape," Mr. Goldsmith said.

Economic Benefits for the Media Sector

The repeal is expected to boost revenue for local broadcasters by $6 million annually, a crucial increase as the industry grapples with financial pressures.

"Every dollar counts in the current tight economic environment. Removing these restrictions will allow broadcasters to seize new revenue opportunities," the Minister stated.

The legislation aligns with a broader initiative to support New Zealand's media sector, which includes reassessing the proposed Fair Digital News Bargaining Bill to address digital media dominance and provide fairer conditions for local content producers.

Additional Industry Support Announced

In July, the Government introduced a package of measures to bolster the media and content production sector, including increased investment in local programming and initiatives to support public interest journalism.

The removal of advertising restrictions is part of this comprehensive strategy, alongside discussions on new models for funding and regulatory reform to address the challenges posed by global streaming giants.

Industry and Public Response

The proposed change has been welcomed by New Zealand broadcasters, who have long advocated for the repeal of these restrictions.

"This move will enable local media to compete more effectively and sustain high-quality programming for New Zealanders," said a spokesperson for the New Zealand Broadcasting Association.

Consumer groups have raised concerns about the potential for increased advertising interruptions, but the Government has emphasized that the decision ultimately supports the sustainability of local media in an evolving digital landscape.

Next Steps

The Bill will now move to the Select Committee stage, where stakeholders will have the opportunity to provide input. If passed, the new rules could come into effect by mid-2025, giving broadcasters the flexibility to plan their advertising schedules without restrictions on Sundays and public holidays.

"This is about future-proofing our media sector," Mr. Goldsmith concluded. "The Government is committed to ensuring local broadcasters remain viable in a rapidly changing media environment."