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Some of the young cast of Head High (Photo: South Pacific Pictures/supplied)
Some of the young cast of Head High (Photo: South Pacific Pictures/supplied)

OPINIONBusinessOctober 19, 2021

If streaming services won’t make NZ TV on their own, NZ should force them to

Some of the young cast of Head High (Photo: South Pacific Pictures/supplied)
Some of the young cast of Head High (Photo: South Pacific Pictures/supplied)

Last week, Duncan Greive wrote about the cancellation of ‘groundbreaking, critically acclaimed, super-diverse’ series Head High. Here the man who first conceived of the show explains the near-impossible task of creating a high-rating local drama on network TV.

We stare at screens all day and all night. Is this good for us? We’re going to talk about that. Read more Screen Week content here.

It is hard to admit, but I understand why Three didn’t commission a third season of Head High. This is a hard admission because the initial concept for the series was mine. It also signals the emergence of platforms like Netflix and Amazon Prime as a part of the problem, and a huge part of the solution.

In 2014 I started a five-year stint as the director of content at Three. Part of the remit was to establish a new drama strategy. Outrageous Fortune and Westside had set the groundwork for Three as the dominant home for local drama and it was time for the next iteration. I wanted that to be inclusive of all New Zealand, diverse and positive. With rugby being so pivotal to our psyche and the growth in particular of 1st XV rugby, the germ of an idea formed: a family-based drama where rugby was central to the characters’ lives. In the hands of South Pacific Pictures’ Kelly Martin and Rachel Jean, Southdown High and St Isaac’s were born.

It took five years to get the first episode to screen. Making TV drama in New Zealand is hard.

Co-creator and star Miriama McDowell, who played Renee O’Kane. (Photo: Supplied)

Shows are developed, then funded, then produced, then post-produced, then marketed, and, finally, screened. Some shows rate, some don’t. Some make money for the network, some don’t. The cold hard fact is that in the traditional measure of success – TV ratings – Head High didn’t meet Three’s expectations. But it’s important to note the ratings don’t include the viewers who streamed the show via ThreeNow. By all accounts those numbers are good, very good even, and herein lies the core of the issue.

Most NZ-produced drama is funded like Head High: partially by the broadcaster – in this case Three/Discovery – and majority-funded by NZ On Air, the body that is a taonga for Aotearoa and a credit to the late 80s Labour government for establishing it. To be clear, without NZ On Air, there would be next-to-no scripted local drama or comedy on our screens. For the past 10 years NZ On Air has lacked any sustainable content funding increase. Production costs over that time have invariably risen and NZ On Air has had to spread its funds wider to accommodate the evolution of new content ideas and platforms, meaning the amount of premium drama it can fund is very limited. Although majority funded by NZ On Air, the commercial network contribution to local productions is still sizeable – and if you have a funded series that isn’t rating, you need to change.

But while change may make good business sense, what happens to a series like Head High that ticks all boxes for diversity and tells positive Māori stories? A series that is led by a cast whose diversity is ever-present, and has an increasing slice of its audience viewing online? What happens to these stories?

The way we consume content has changed dramatically in the past five years. The arrival of Netflix and then the continuous procession of services, including Amazon Prime, AppleTV+, and  Disney+, changed the game; it gave us premium TV without interruption. TVNZ, Three and others now had to share their playground with a whole lot of new kids and those kids have now taken over the jungle gym. I mean, they’re cool to hang out with, but they also don’t sound like us, they certainly don’t identify as New Zealanders, and when it comes to storytelling they just aren’t that interested in hearing our stories. Go check out New Zealand movies and TV shows on any of these services. When you do find NZ content it’s kind of like walking into a United Video back in the day, where you headed past the New Releases to the dusty New Zealand cinematic library shelves. There’s nothing wrong with that, but how about some New Releases, how about some Head High?

Netflix
Netflix’s New Zealand top 10 this week.

None of these services have commissioned any New Zealand premium drama content directly for New Zealand audiences, and there is not a chance that they will unless change is forced upon them. Streaming services rely on big titles to bring in and keep subscribers. As much as I’d like to think Head High on Netflix would significantly increase subscription numbers in this territory, it won’t, for no other reason than our population isn’t significant enough to drive the subscribers required to cover the cost. New Zealand isn’t big enough commercially for them to make it work.

But if these streaming services want to operate here, surely there has to be a cultural cost of entry. Many countries have waved sticks in aid of protecting their production industries and their cultural identity. Just look over the pond: in Canberra earlier this year, actors Simon Baker, Bryan Brown and Marta Dusseldorp were among those asking the government for 20% local quotas on the streamers. It’s helped. Amazon has recently commissioned over $20m worth of Australian content. And before you “Lord of the Rings” me here, whānau, our stories aren’t – and shouldn’t be – just shots of forest and fauna. It should be the responsibility of Netflix and others to ensure they represent the audiences they serve and it’s the government’s responsibility to ensure they do so.

Locally, for the first time Head High proves this. The linear TV model for drama is becoming more challenged: drama is increasingly the domain of streaming, and if these services are going to take eyeballs away from New Zealand platforms then they should have a responsibility to represent the audiences they serve.

Lionel Wellington as Tai in Head High. (Photo: supplied)

So, what happens next? We’ve actually already been here. In the late 90s the New Zealand music industry had a similar problem with commercial radio: the percentage of Kiwi music played was abysmally low, somewhere around the 3% mark. It was literally The Feelers and… The Feelers. The Labour government at the time waved the 20%-quota stick at commercial radio if there was no improvement. Together, commercial radio, the record industry, the New Zealand Music Industry Commission and NZ On Air worked to make change and self-imposed quotas on commercial radio happened. New Zealand music on commercial radio grew.

And then looked what happened. The 2000s gave us the hip hop revolution, led by Dawn Raid and Scribe. Anika, Bic and Brooke become household names. Blindspott gave us metal, and the D4 , Shihad and The Datsuns gave us rock. They were all played on commercial radio. By the end of 2020, New Zealand music airplay on commercial radio was near 21%. We now have artists with international recognition – mention Lorde, Benee, and Aldous overseas (when you can) and people know who you’re talking about. The stick-waving worked better than we ever could have hoped.

It’s now the streamers’ time to commit. If they don’t, we need to work out a way to protect our local production ourselves. Taxing the streamers and diverting that money directly to NZ On Air to bolster their contestable funding model? Well, that’s possible – this direct style of tax isn’t new. The precedent was set with a regional fuel tax diverted directly to Auckland roading.

South Pacific Pictures will continue to try and find a home for Head High, but that will take time and is by no means a certainty. But the free ride the international streamers are getting by launching their services here with no commitment to New Zealand storytelling needs to be challenged.

And before Trevor Mallard, speaker of the house, starts popping off again on Twitter about the travesty of Head High being cancelled, he may want to start the conversation internally with his government about how they can help. Because they certainly can.


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Netflix Joker
When Netflix arrived, a bomb went off in Aotearoa’s streaming wars. Photo composite: Tina Tiller

BusinessOctober 18, 2021

The day Netflix rolled into town

Netflix Joker
When Netflix arrived, a bomb went off in Aotearoa’s streaming wars. Photo composite: Tina Tiller

Six years ago, the world’s biggest TV service launched in Aotearoa, changing our viewing habits forever. Chris Schulz looks back and asks, what happens next?

We stare at screens all day and all night. Is this good for us? We’re going to talk about that. Read more Screen Week content here.

Rod Snodgrass could see it coming. Content was king and he wanted the throne. At the end of 2013, chess pieces were being moved around the board. Netflix was preparing to expand into New Zealand, and Sky TV was rumoured to be launching its own streaming service. 

Snodgrass, Telecom’s chief product officer, was desperate to be ahead of the game. So, after the business rebranded and morphed into Spark, he began work on launching the telco’s first ever attempt at an online entertainment platform. 

We knew Netflix was coming,” he told me over Zoom recently. “We wanted first-mover advantage in the New Zealand market.”

The race to launch was on. Snodgrass and his Spark Ventures team worked quickly, and quietly. They contacted overseas TV networks, signed contracts, and locked in content. By August 2014 they were ready to launch with a slick digital app and a solid slate that included exclusive new seasons of Suits, Vikings and Outlander, as well as back catalogues of Breaking Bad, Mad Men and Doctor Who.

Ironically, they’d also purchased New Zealand screening rights for some of Netflix’s tent pole offerings: House of Cards and Orange is the New Black. 

Snodgrass knew, long term, they could never beat Netflix. “They’re a global player and heavyweight,” he says. “They buy content on a global basis and create it with the same scale.”

Yet it was obvious TV streaming was on the rise – the tens of thousands of New Zealanders getting around geo-blocking to use Netflix’s US service proved it. “If you saw Netflix back then you knew that that was where the future was heading.” 

But Snodgrass had a window. Netflix hadn’t launched in Aotearoa so the market was wide open. He had a platform, and he had content. What he didn’t have was a name. His working title, ShowMeTV, had to be scrapped over a rights issue. 

Over beers and pizza late one night, he had a brainwave, stumbling across something that was both simple, and easy to remember. “We were just throwing ideas around,” Snodgrass says. “We said, ‘What we’re building here is a replacement for ‘the box’ which has light coming out of it … and people watch it.”

On August 28, 2014, Lightbox was born. With a 30-day free trial offer, and a $15-per-month fee, Aotearoa’s first subscription streaming service landed with a flurry of press releases and positive news stories. 

Lightbox
Lightbox was the first local subscription streaming service to arrive. Photo: Spark

I was working as part of NZ Herald’s entertainment team back then, and at home one night, a knock on the door surprised me. A full meal including slow cooked beef cheeks and salad, a branded wooden tray, porcelain bowl and giant caramel-chocolate tart was delivered, along with a Lightbox subscription pass. 

The gift, a TV dinner for the 21st century, was sent to win over many local TV critics. It worked. In a review written after an evening binge of Better Call Saul and way too much tart I praised the new streaming service, writing: “It sure as hell feels like a step in the right direction.”

A few days later, at a Lightbox launch party at a swanky inner-city bar, waiters dressed in Walter White costumes served blue drinks in beakers. Others dressed as characters from the shows Lightbox was offering: inmates from Orange is the New Black, pirates from Black Sails. In photo booths dotted around the venue, guests could snap themselves dressed as Jamie from Outlander. 

Aside from two small Australian streaming offerings called Quickflix and Ezyflix, Lightbox’s only real competition was YouTube. DVDs were hanging in there, and TVNZ had its free, but ad-fueled, OnDemand platform. For a very brief period, Snodgrass and his Lightbox brainwave had the pay-TV market to themselves. 

It was never going to last.

Just six months later, everything had changed. Neon entered the market in February 2015, trumpeting endless binges of Game of Thrones and back catalogues of Californication, Fargo and Girls. Its service was sleek, with an acid-green logo, a smart homepage and a back catalogue of shows cherry-picked from Sky TV’s exclusive HBO deal.

But its lengthy development and high subscription price of $20-per-month rubbed critics the wrong way. For the Herald, Karl Puschmann wrote, brutally, that Sky TV was “rushing to the streaming party late and befuddled like a charmless Hugh Grant”.

Lightbox wasn’t troubled at all. Another competitor was, says Snodgrass, “collectively growing the market”. Around the same time, Spark boosted subscriber numbers by offering free Lightbox with every home broadband package. It expanded its content too, offering customers Lightbox Sport, including live golf and Premier League football. It worked: Lightbox still appeared to have the edge over its rivals. 

But the real competition was yet to arrive. A few weeks after Neon’s launch, I received an email offering plane tickets and accommodation in Sydney for a secretive mission. I wasn’t told what it was, but it sounded important. I got on the plane. 

Once I landed, it soon became clear why I was there. Netflix had rolled into town, cannons at the ready. I was to meet two big wigs: Todd Yellin, Netflix’s vice-president of product innovation, and Sean Carey, vice-president of content acquisition. I Googled the pair and found photos. They looked like brothers, with white teeth, good suits and big smiles.

First, I had to make it through their PR team, the size of which remains, to this day, some kind of record. In an interview waiting room at Pier One, I sat surrounded by tables laden with untouched smoked salmon, cheese and grape platters. During that time, I met no less than four different PR staff. “You’ll like them,” one warned about Yellin and Carey.

Ushered into a second room, I felt like Neo from The Matrix, surrounded by TV screens and tablets all bearing the giant red lettering of what has become a very familiar logo. Yellin and Carey marched in, along with three different PR staff. They sat behind us, interjecting when they felt it was necessary. There were more tables full of snacks. No one touched those either. 

Netflix
Netflix’s New Zealand top 10 list has Squid Game at No. 1.

After firm handshakes, we got down to business. Yes, Netflix was about to launch across Australia and New Zealand. To tell me this, Yellin mashed words together like corporate-speak soup. They aimed to be “global throughout the entire world for all intents and purposes, in every country, within the next two years”. 

I asked him if New Zealand’s Netflix service would offer House of Cards and Orange is the New Black. The answer was no. Hilariously, they’d sold the rights to Lightbox.

Near the end of a tense chat, I asked if the New Zealand market had room for all these newfangled TV streaming services. Through that whitened smile, Yellin replied. “We have launched in very competitive territories and succeeded. We hope to succeed (in New Zealand) as well … The better ones will last and will go on and there’ll be a couple of different choices.”

Ouch. It sounded like a warning shot. Lightbox and Neon were in their sights. 

It remains one of the most imposing interview situations I’ve ever endured, less a simple chat about some cool telly and more like an indoctrination into a cult. Yellin left me with this: “From here on in, New Zealand is part of the Netflix family.”

On the way out, I met another member of the PR team. They corrected a couple of minor indiscretions from the interview, then handed me a bag containing a notebook and a subscription card containing three months of free Netflix.

Like any drug supplier will tell you, you make the first hit free. They pay in full after that.

We’re definitely paying for it now. Here in 2021, it’s easy to see that, back in 2015, Netflix’s arrival changed everything. At $9.99, its subscription prices were lower, and its interface was easier to use. Its algorithm was smarter, learning and predicting what viewers wanted to watch. Its content had bigger budgets, and there was more of it. 

And it just keeps on coming. Every Friday, entire new series and films land on the service, ranging across all genres. Netflix’s content often dominates the pop culture conversation. Making a Murderer. Tiger King. Squid Game. Their films and comedy specials attracted the world’s best directors, and biggest stars: Martin Scorsese’s The Irishman. David Fincher’s Mank. Bo Burnham’s Inside. Dave Chapelle’s The Closer.

Squid Game
Squid Game is among Netflix’s most-watched shows – including New Zealand viewers. Photo: Netflix

In just six years, Netflix and its giant cannons have blown its competition away. Quickflix and Ezyflix are dead and buried. Last year, Lightbox was gobbled up by Sky TV and merged with Neon, the service surviving by lowering subscription rates and continuing to offer HBO’s enticing catalogue 

Since then, more global players have come on the market. Maybe you already subscribe to Amazon Prime Video, Apple TV+ and Disney TV+, but a quick glance at the stats proves this remains a one-horse race. Netflix is the first choice for New Zealand TV fans. It dominates almost every other category. And it’s not slowing down any time soon.

Two graphs, taken from NZ On Air’s latest Where are the Audiences? survey, help tell the story. When researchers asked participants to list their most popular channels, stations and websites, Netflix was bigger than Spotify, TVNZ OnDemand, Three, Instagram and Facebook video. It’s on a par with YouTube, and appears set to topple TVNZ 1 by the next survey.

Every year, the red line keeps  going up.

The second graph, which compares streaming services, is even more stark. Netflix isn’t just the most popular streaming service by a long shot, it’s actually beating many competitors twice. More New Zealanders are using VPNs to get around regional geo-blocking to access the US version of Netflix than are watching Neon, Amazon Prime Video and Spark Sport. Only Disney TV+ is bigger – and it’s still got a long way to go to catch the reach of Netflix’s official New Zealand site.

Again, the red line keeps going up.

So we’re all watching Netflix – but are we seeing ourselves up on screen? Erm, no. Search Netflix for shows and movies from Aotearoa and you’ll be served up this: Taika Waititi’s Boy, the first season of Waiheke cop mystery The Gulf, the documentary Merata: How Mum Decolonised the Screen, and David Farrier’s Dark Tourist, which was mostly filmed overseas. For some reason, Inside the World’s Toughest Prisons makes the top five, even though no New Zealand prisons feature in the show. 

Instead, we’re watching what everyone else is watching. Right now, Squid Game is number one. Overseas dramas Maid, You and Sex Education feature in the top 10. We’re watching what the rest of Netflix’s 209 million subscribers are watching. It’s exactly as Yellin put it: “Global throughout the entire world for all intents and purposes, in every country.”

You only have to listen to this recent interview with outgoing TVNZ boss Kevin Kenrick to understand how Netflix’s screen domination is being felt locally. On The Spinoff podcast The Fold, he pitched a vision of TVNZ that pivots directly to streaming, “the digital version of TVNZ that replaces broadcast”. He also revealed that TVNZ OnDemand would soon launch an ad-free, paid subscription model, a direct rival Netflix. 

“The future is going to require multiple monetisation streams – I think it’s going to be pretty hard to do it solely on any one,” he told Duncan Greive.

Can it survive? Up against a behemoth like Netflix, can anyone?

Since leaving the streaming wars behind to start his own consulting agency, Snodgrass has been watching all this unfold from the sidelines. He remains a committed observer, and doesn’t think Netflix has finished eating up the market just yet. 

Ask him about Neon and TVNZ OnDemand, and he’ll say this: “They are going to continue to be challenged … they’re having to bid for content against guys who have really big budgets and can spread them across large global audiences. At the same time the market will continue to evolve and new global heavyweights … have entered. It’s not in a stable state yet.”

He’s not upset about Lightbox becoming a casualty. In fact, Snodgrass is loving all of the options Netflix’s competition is providing him, saying he subscribes to nearly all available streaming services, including Sky Sport, for “less than $100”. 

Lately, he’s been watching Amazon Prime Video’s The Boys, an ultra-violent comic book caper featuring Kiwi actors Karl Urban and Antony Starr going head to head, and the Israeli spy drama Fauda on Netflix. Snodgrass can’t get enough. “We’re getting awesome content choices along with the flexibility and freedom to watch what you want, when you want, on what device you want and therefore where you want,” he says.

Then he repeats a mantra that he and his team at Spark used to say to themselves around the time they launched Lightbox: “This is TV as it should be.”

Disclosure: Neon (and formerly Lightbox) have had commercial partnerships with The Spinoff, but had no involvement in this story.