1 00:00:00,040 --> 00:00:02,640 Speaker 1: TV and Z has announced a surprise dividend to be 2 00:00:02,720 --> 00:00:05,519 Speaker 1: paid to the government of three million dollars. The broadcaster 3 00:00:05,600 --> 00:00:08,559 Speaker 1: has delivered a twenty five million dollar after tax profit, 4 00:00:08,600 --> 00:00:11,120 Speaker 1: which is a huge turnaround after last year's eighty five 5 00:00:11,160 --> 00:00:14,240 Speaker 1: million dollar loss. Jody O'Donnell is the CEO of TV 6 00:00:14,320 --> 00:00:16,280 Speaker 1: and Z. Hey, Jody, Hi, here the hell are you? 7 00:00:16,560 --> 00:00:16,759 Speaker 2: Well? 8 00:00:16,800 --> 00:00:17,759 Speaker 1: Thank you? How wrong was I? 9 00:00:17,840 --> 00:00:18,000 Speaker 2: Though? 10 00:00:18,040 --> 00:00:19,720 Speaker 1: Just a couple of days ago, I was saying, that's 11 00:00:19,760 --> 00:00:21,439 Speaker 1: the end of the dividends from TV and Z and 12 00:00:21,480 --> 00:00:23,280 Speaker 1: here you go. How'd you do it? Well? 13 00:00:23,320 --> 00:00:26,880 Speaker 2: Look, I think that like many businesses last year, we 14 00:00:26,920 --> 00:00:30,440 Speaker 2: all had to make really hard decisions. But wasn't just 15 00:00:30,640 --> 00:00:34,280 Speaker 2: around us actually resetting our cost base. We actually really 16 00:00:34,360 --> 00:00:37,919 Speaker 2: ruthlessly focused around revenue initiatives as well, so we were 17 00:00:37,960 --> 00:00:39,919 Speaker 2: able to do it at the same time, and our 18 00:00:39,960 --> 00:00:41,519 Speaker 2: revenue was stronger than we had predicted. 19 00:00:42,120 --> 00:00:44,000 Speaker 1: Do you think it's the last one though, for the 20 00:00:44,080 --> 00:00:45,440 Speaker 1: last dividend? Yeah, for a while. 21 00:00:45,520 --> 00:00:47,960 Speaker 2: Look, it's our obligation to pay a dividend. We've actually 22 00:00:48,000 --> 00:00:52,000 Speaker 2: paid eight dividends over the last ten years, so it's 23 00:00:52,000 --> 00:00:53,920 Speaker 2: a process that we go through every year. 24 00:00:54,040 --> 00:00:56,000 Speaker 1: And if you're going to have a couple of losses 25 00:00:56,000 --> 00:00:57,560 Speaker 1: at least straight you're not going to be paying a dividend, 26 00:00:57,600 --> 00:00:57,840 Speaker 1: are you. 27 00:00:57,960 --> 00:00:59,520 Speaker 2: Well, Again, it's a process that would have to go 28 00:00:59,520 --> 00:01:01,040 Speaker 2: through every day, So I'm not going to stay up 29 00:01:01,040 --> 00:01:02,520 Speaker 2: front whether it's in or it's out. 30 00:01:02,760 --> 00:01:04,479 Speaker 1: Yeah, would you pay one in the loss? 31 00:01:05,520 --> 00:01:07,160 Speaker 2: Again, it would have to be a conversation that we 32 00:01:07,200 --> 00:01:08,240 Speaker 2: have with our board at the time. 33 00:01:08,520 --> 00:01:12,520 Speaker 1: Okay, so it's a possibility, given that you did turn 34 00:01:12,560 --> 00:01:15,399 Speaker 1: around a profit here, did you cut too hard when 35 00:01:15,440 --> 00:01:15,919 Speaker 1: you cut? 36 00:01:16,400 --> 00:01:19,600 Speaker 2: I knew you'd ask me that question. Look like I said, 37 00:01:19,640 --> 00:01:21,080 Speaker 2: we had to make the decisions that we had in 38 00:01:21,080 --> 00:01:23,400 Speaker 2: front of us at the time, and so what was 39 00:01:23,440 --> 00:01:25,840 Speaker 2: really important is that we set the cost base of 40 00:01:25,880 --> 00:01:28,759 Speaker 2: the business into a stable position that we could see 41 00:01:28,800 --> 00:01:30,480 Speaker 2: at least for the next three or four years. And 42 00:01:30,480 --> 00:01:32,440 Speaker 2: that was really important for us as we started our 43 00:01:32,440 --> 00:01:35,000 Speaker 2: investment program. So over the next two years, in particular, 44 00:01:35,080 --> 00:01:38,040 Speaker 2: we're self funding an investment program, and that's really important 45 00:01:38,120 --> 00:01:39,960 Speaker 2: for us to ensure that we can transform. 46 00:01:39,959 --> 00:01:40,560 Speaker 1: Tving said. 47 00:01:40,880 --> 00:01:43,120 Speaker 2: The first thing that all of our viewers will see 48 00:01:43,120 --> 00:01:45,960 Speaker 2: will be a brand new TVNZ plus platform next year 49 00:01:46,319 --> 00:01:49,960 Speaker 2: that obviously allows us to have enhanced user experiences, but 50 00:01:50,080 --> 00:01:52,720 Speaker 2: also allows us to unlock the pay capability, which you 51 00:01:52,720 --> 00:01:55,520 Speaker 2: would have heard us announced earlier this week with in 52 00:01:55,520 --> 00:01:57,120 Speaker 2: conjunction with a fef for World Cup rights. 53 00:01:57,120 --> 00:01:58,440 Speaker 1: When is the FIFA World Cup again? 54 00:01:58,640 --> 00:01:59,880 Speaker 2: It's middle June next year. 55 00:02:00,040 --> 00:02:02,280 Speaker 1: Okay, So does that is that the start of you 56 00:02:02,320 --> 00:02:04,240 Speaker 1: guys charging us for things? I mean, it's obviously the 57 00:02:04,280 --> 00:02:06,440 Speaker 1: first case of it, but how soon after that does 58 00:02:06,440 --> 00:02:07,520 Speaker 1: that become the regular thing? 59 00:02:07,760 --> 00:02:10,239 Speaker 2: Well, look, it's the first thing that we've identified that's 60 00:02:10,280 --> 00:02:13,000 Speaker 2: really important, and we know we'll be big for audiences. 61 00:02:13,400 --> 00:02:15,880 Speaker 2: So as a free to we broadcaster, there's always rights 62 00:02:15,880 --> 00:02:17,960 Speaker 2: that have been outside of our reach. So for us 63 00:02:18,000 --> 00:02:21,000 Speaker 2: to unlock that pay capability, we want to test and 64 00:02:21,080 --> 00:02:23,440 Speaker 2: learn how do the super fans want to watch all 65 00:02:23,480 --> 00:02:25,440 Speaker 2: one hundred and four matches and then how do we 66 00:02:25,480 --> 00:02:28,160 Speaker 2: balance that as well with the free to wear audience exposure. 67 00:02:28,240 --> 00:02:31,040 Speaker 2: So we've said the all whites will all be free 68 00:02:31,240 --> 00:02:34,040 Speaker 2: on TVNZ one, so it'll be a huge learning opportunity 69 00:02:34,080 --> 00:02:34,440 Speaker 2: for us. 70 00:02:34,680 --> 00:02:36,919 Speaker 1: Do you think are you guys looking at just charging 71 00:02:37,120 --> 00:02:39,520 Speaker 1: punters for the big events or do you think you're 72 00:02:39,560 --> 00:02:41,560 Speaker 1: going to charge us for the regular stuff that we 73 00:02:41,720 --> 00:02:43,240 Speaker 1: like to watch, like Bluey. 74 00:02:44,600 --> 00:02:47,959 Speaker 2: Fifty million streams of Bluey in the last wild how 75 00:02:48,000 --> 00:02:49,280 Speaker 2: many of them were your household? 76 00:02:49,360 --> 00:02:51,440 Speaker 1: So keep telling you put Bluey behind the pay will 77 00:02:51,480 --> 00:02:52,160 Speaker 1: you make a mint? 78 00:02:52,639 --> 00:02:55,000 Speaker 2: Look, we are thinking about it in an event space 79 00:02:55,160 --> 00:02:57,359 Speaker 2: at the moment. So what we want to be able 80 00:02:57,400 --> 00:02:59,480 Speaker 2: to do is you know, tvn Z is free at 81 00:02:59,520 --> 00:03:01,600 Speaker 2: its core, and that will continue. We're an ad funded 82 00:03:01,639 --> 00:03:04,160 Speaker 2: business and we will be free. But certainly once we 83 00:03:04,280 --> 00:03:07,280 Speaker 2: test this event pass with FIFA World Cup, we'll look 84 00:03:07,320 --> 00:03:09,560 Speaker 2: for other opportunities as well. It's really around what the 85 00:03:09,600 --> 00:03:13,360 Speaker 2: audience audiences want, but also with that pay capability, it 86 00:03:13,400 --> 00:03:16,120 Speaker 2: means we can compete for rights that we haven't been able. 87 00:03:15,960 --> 00:03:18,560 Speaker 1: To do in that I spoke to you about the netball, Yeah, 88 00:03:18,720 --> 00:03:19,280 Speaker 1: really happy. 89 00:03:19,320 --> 00:03:21,400 Speaker 2: You're just really happy to make it accessible for all 90 00:03:21,440 --> 00:03:22,560 Speaker 2: New Zealanders And I think. 91 00:03:22,440 --> 00:03:25,320 Speaker 1: I mean, are you actually paying anything or are you 92 00:03:25,400 --> 00:03:27,080 Speaker 1: just the lucky recipient of the netball. 93 00:03:27,800 --> 00:03:30,520 Speaker 2: That's obviously our commercial sensitivity, so I won't be able 94 00:03:30,560 --> 00:03:33,120 Speaker 2: to answer that, but certainly we've had the netball for 95 00:03:33,120 --> 00:03:35,960 Speaker 2: the last two years. We've had a free game a week, 96 00:03:36,040 --> 00:03:38,160 Speaker 2: and so we can see the audience growth there and 97 00:03:38,160 --> 00:03:40,880 Speaker 2: how much the audiences love it, and it's really important 98 00:03:40,880 --> 00:03:42,640 Speaker 2: for us that we can obviously showcase that well. 99 00:03:42,840 --> 00:03:44,040 Speaker 1: That it's got to be a point at which when 100 00:03:44,280 --> 00:03:46,640 Speaker 1: as you get more we're coming to watch the FEFA, 101 00:03:46,680 --> 00:03:48,320 Speaker 1: then we're coming to watch the netball, then we're coming 102 00:03:48,360 --> 00:03:50,440 Speaker 1: to watch the MPC, and we're watching all this stuff. 103 00:03:50,480 --> 00:03:52,240 Speaker 1: At some point you will have a critical mass where 104 00:03:52,280 --> 00:03:54,320 Speaker 1: you can start checking a lot more stuff behind the 105 00:03:54,360 --> 00:03:56,320 Speaker 1: pay well right, because we'll get used to the platform. 106 00:03:56,600 --> 00:03:58,839 Speaker 2: Yeah. Again, we are at our heart free to wear 107 00:03:58,960 --> 00:04:01,120 Speaker 2: and so that's a really important part of our DNA. 108 00:04:01,520 --> 00:04:04,200 Speaker 2: But with this capability it means that we can compete. 109 00:04:04,440 --> 00:04:06,400 Speaker 2: You need to make money, Joy, We do need to 110 00:04:06,400 --> 00:04:09,080 Speaker 2: make money, No, absolutely, we do, and we will always 111 00:04:09,120 --> 00:04:11,360 Speaker 2: make the decisions based on that basis. 112 00:04:11,480 --> 00:04:13,200 Speaker 1: Speaking of which, how much is are in Z paying 113 00:04:13,240 --> 00:04:14,040 Speaker 1: you to be in the building. 114 00:04:14,720 --> 00:04:19,880 Speaker 2: Again, that's a commercial negotiation, but we're looking forward to 115 00:04:19,920 --> 00:04:20,800 Speaker 2: them when they do move on. 116 00:04:21,760 --> 00:04:24,200 Speaker 1: Thank you, Jody, It's worth try Jody o'donald TV and 117 00:04:24,279 --> 00:04:28,360 Speaker 1: z's CEO. For more from Hither Duplessy Allen Drive, Listen 118 00:04:28,440 --> 00:04:31,480 Speaker 1: live to News Talk z'd B from four pm weekdays, 119 00:04:31,560 --> 00:04:33,760 Speaker 1: or follow the podcast on iHeartRadio.