This is my concern, the fact that Sky wanted a BVOD service and didn’t want to launch its own with Sky Open due to cost even though they could of used Sky Go. It would of been great if we had a diverse BVOD market with TVNZ+, ThreeNow and Sky Go/Open as streaming viewing habits increase. It will be interesting to see what gets consolidated and closed down.
1 Like
Sky Go would have been too clunky to use as a proper BVOD service. It’s not really set up that way.
3 Likes
@OnAir Below are the key points as a recap (please note that the information is correct at the time of writing):
1. A necessary rescue, not a lucrative sale by WBD
The $1 price tag speaks volumes. It indicates that for Warner Bros. Discovery (WBD), Three was no longer a commercially viable standalone asset in its New Zealand portfolio. The reports confirm that Discovery NZ had been losing money, necessitating a significant restructure in 2024 (which notably included the closure of Newshub). WBD’s primary goal with this sale appears to be divesting themselves of a loss-making entity while ensuring the continued supply of their premium content to the New Zealand market through a multi-year commercial agreement with Sky Network Television. This move allows WBD to focus on its more profitable global streaming service (HBO Max) and production arms in New Zealand.
2. Strategic play for Sky
For Sky, this acquisition is highly strategic, despite the inherited financial challenges.
Expansion of free-to-air reach
Sky already has Sky Open, but Three offers a much larger, more established free-to-air audience. This immediately gives Sky a prominent position in the free-to-air advertising market, challenging TVNZ’s long-held stronghold.
Acquisition of ThreeNow
Sky acknowledges the strong value in ThreeNow as a fast-growing broadcast video on demand (BVOD) platform. This provides Sky with a crucial digital component it previously lacked, allowing it to compete more effectively in the streaming space without the significant costs and risks of building their own from scratch. It complements Sky’s existing subscription services like Sky Sport Now and NEON.
Content synergies and diversification
The deal includes continued access to WBD’s premium content which can now be leveraged across Sky’s broader portfolio - free-to-air and subscription. This diversifies Sky’s revenue streams, particularly in advertising and digital, and allows Sky itself to maximise returns on content investments.
Enhanced sports rights leverage
With a significantly expanded free-to-air presence, Sky gains greater leverage in negotiating rights to local and international sport. This could potentially allow Sky to offer free-to-air components of major sporting events on Three, drawing in larger audiences and further solidifying their position as to go-to for sports content in New Zealand. Concerns have been raised about whether popular free-to-air motorsport content (like NASCAR and MotoGP) on ThreeNow will remain free, given Sky’s pay TV model for sport. This will be a key area to watch.
Consolidation in a challenged market
The New Zealand media industry has faced significant challenges, including declining advertising revenue and the rise of global streaming giants (e.g. Disney+). This consolidation allows Sky to build a more robust and diversified business that is better positioned to navigate these headwinds.
3. Public perception and the poll
The Stuff poll, as I wrote earlier, found that 43% of respondents support the deal while 57% do not.
Reasons for support
Those who support the deal might see it as a necessary step to save Three from potential closure, ensuring a diverse media landscape. They might also appreciate the potential for more content accessibility through Sky’s broader reach. The idea of a New Zealand-owned entity (Sky is NZX listed) taking over a significant media asset might also be a factor.
Reasons for disapproval
The majority disapproval could stem from various concerns:
- Monopolisation/reduced competition: Critics might worry about too much media power being concentrated in one entity, potentially leading to less diverse viewpoints or fewer options for viewers.
- Impact for free-to-air content: There might be apprehension that Sky, traditionally a pay TV provider, could eventually move more content from Three behind a paywall, reducing free access to popular shows, movies or sport.
- Job security / news independence: While Stuff has confirmed ThreeNews will continue for now, there’s always a degree of uncertainty regarding news operations during such transitions, especially given the history of Newshub’s closure.
- Historical perceptions: Some viewers might have long-held preferences or biases towards certain broadcasters, and a major change like this can be unsettling.
4. Looking ahead
The acquisition is set to be completed next week (1 August), marking a new chapter for Sky and the channels formerly under WBD. Sky’s CEO, Sophie Moloney, has stated there are ‘no immediate plans’ to change the content line-up which is a reassuring message for viewers in the short term. The success of this acquisition will hinge on Sky’s ability to:
- effectively integrate the Discovery NZ operations and staff;
- leverage the combined assets to grow advertising revenue and digital audiences;
- maintain and grow the audience base for Three and ThreeNow while strategically cross-promoting its other services; and
- address public concerts about content accessibility, particularly for sport.
For me, as a television trivia expert, this is a transformative moment for the New Zealand media landscape. While the $1 price tag reflects Three’s recent commercial struggles under WBD, it represents a significant strategic opportunity for Sky to expand its footprint, diversify its revenue and strengthen its position in a competitive market. The long-term impact on viewers and the broader media ecosystem will depend on how Sky executes its plans and addresses the inherent challenges and opportunities presented by this acquisition. My well wishes for the management and staff at Sky and Three are certainly fitting during this period of significant change.
2 Likes
@MichaelPower’s mock last year fits well here 
6 Likes
I hope not. IMO the generic names like “TVNZ 1”are so lazy and boring. Rush and Eden are unique and more rememberable compared to just random numbers after the brand name…
Also Sky doesn’t exactly have a shining name (nor does Three but anyway) so i think keeping the Three brand alive would make sense (and although being the in minority, i love the logo!). And closing Sky Open would make more sense considering A. 3 comes first and B. i assume it would be similar content as Three. Plus they have a number of other channels to broadcast sport on.
And as much as i would love to see Rugby and other major sports being shown on Three, i can’t see that happening any time soon, but i’m more then happy to be proven wrong.
Either way i highly doubt that any major changes such as channel names will be happening anytime soon.
Listening to Glen Kyne and Duncan Griveve on The Fold podcast anyone would think this is the second coming of christ, they are being incredibly optimistic about what this means.
Its 2025 and FTA is imping along at this point, just look at the schedules across the major FTA channels these days. I’ve probably said it before but sports content is probably the only major ‘investment’ Three will get. Stuff will continue producing news because Sky never bothered producing it for Prime. The only non sport content they have at the moment is generally funded by NZ on Air. Sky have never been a major commissioner of local content outside of lucrative sports coverage and Three isn’t the drawcard it once was.
4 Likes
Well it was this or the status quo, which would have almost certainly led to Three closing altogether down the line, and a TVNZ monopoly. At least with Sky buying it, Three’s future is secure in at least the medium term.
2 Likes
What will happen to HGTV after WBD’s exit from Free-to-air TV? I believe Sky will Shut it Down and Replace it with Rush+1, Some it’s Programming moving to Three and Eden. Could Sky Open Relaunch as a 24/7 Music Channel?
Im curious what happens to the fast channels.
2 Likes
I suspect they’ll stay - they would fall under the content supply deal announced at the same time
4 Likes
Why a music channel? We already have Juice TV on Freeview.
1 Like
You mean TVNZ? They operate as a fully-fledged commercial operator as a state-owned enterprise. The purchase of Three by SKY NZ is only slightly delaying the eventual shutdown of Three to leave TVNZ as the last one standing eventually, I’d say.
I’m well aware the structure of TVNZ but they’re not a commercial entity they are still state owned, like SBS. I’m not sure what I said was inaccurate.
TVNZ runs as a fully-fledged commercial concern in my books, does not matter if it is state owned or not. SBS is limited by Govt legislation to 5 mins of commercial content per hour, whereas TVNZ has no such restriction. No way can TVNZ be considered anything like SBS. SBS is not required to return a profit dividend to the Crown unlike TVNZ which is.
4 Likes
TVNZ set to land FIFA WC 2026 rights… 
2 Likes
There will be some football in between those ads I guess.
Not sure why it’d be any different to any other World Cup they’ve previously had.
1 Like
Interesting said in the article that you might need to pay to watch some games… guessing they could launch a paid-tier sport bundle.
1 Like
WBD NZ annual accounts filed with the Companies Office shows it sold its 50% stake in the Bravo TV NZ joint venture to NBC Universal in December 2024. That transaction flew under the radar but was obviously tidying up loose ends before the trade sale or close down decisions for local WBD operations were made. The 50% stake was sold for $1. Sounds familiar…
6 Likes