Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Cinema Advertising Merger Cleared

Commission Clears Merger Of New Zealand's Two Major Cinema Advertising Companies

The Commerce Commission today cleared of a business acquisition that would merge New Zealand's two major cinema advertising services companies, Television and Media Services Limited (TMS) Media Entertainment Group Limited (MEG).

Commission Chair John Belgrave said that the Commission was satisfied that, should the proposal go ahead, a merged TMS/MEG would not be dominant in any market.

In its application, TMS argued that the relevant market for the proposal was an advertising market including different media not solely cinema advertising services.

Mr Belgrave said that the Commission noted that there may be some substitutability between different media but considered a national market for cinema advertising services to be more appropriate. This market accounts for less than 1 percent of the total advertising spend in the country.

The proposal would result in high market share in a cinema advertising services market, but the Commission was satisfied that in this market high market share would not equate to dominance.

The Commission concluded that the countervailing power of movie exhibitors, in particular, would be likely to provide an effective constraint on a merged TMS/MEG.

Exhibitors, particularly Hoyts Cinemas Limited and Village Roadshow Limited, told the Commission that they believe they have countervailing power in the market. If they were unhappy with a cinema advertising services company, then they could deal direct with advertising agencies.

The majority of the independent cinemas had no objections to the proposed merger. They were comfortable that their niche audiences gave them negotiating power.

"These factors, along with the likelihood of some constraint from other media, led the Commission to conclude that dominance would not be acquired or strengthened, and so to give a clearance," Mr Belgrave said.

Public copies of the Commission's decision, number 420, are available from its website,, and from reception at its Wellington office, Level 7 Landcorp House, 101 Lambton Quay. Public copies of TMS's application are available from the Commission by e-mail, contact , and in hard copy from reception.


The Commerce Act prohibits business acquisitions that result in dominance being acquired or strengthened in any market. Parties can apply for a clearance, which the Commission will give if it is satisfied that dominance would not be acquired or strengthened.

Media contact: Commerce Act Manager Geoff Thorn Phone work (04) 498 0958, cellphone 021 661 104

Senior Advisor Communications Vincent Cholewa Phone work (04) 498 0920, home (04) 477 0039

Commission media releases can be viewed on its web site

© Scoop Media

Business Headlines | Sci-Tech Headlines


Onetai Station: Overseas Investment Office Puts Ceol & Muir On Notice

The Overseas Investment Office (OIO) has issued a formal warning to Ceol & Muir and its owners, Argentinian brothers Rafael and Federico Grozovsky, for failing to provide complete and accurate information when they applied to buy Onetai Station in 2013. More>>


Tomorrow, The UN: Feds President Takes Reins At World Farming Body

Federated Farmers president Dr William Rolleston has been appointed acting president of the World Farmers’ Organisation (WFO) at a meeting in Geneva overnight. More>>


I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>


Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>


Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>


Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news