Sky New Zealand has announced the acquisition of Discovery NZ, the owner of free-to-air channels Three, Bravo, and HGTV, in a deal valued at just NZ$1, according to reports from Sky, RNZ, and Stuff. The symbolic purchase price is paired with a substantial five-year content supply agreement worth US$20 million, reflecting the strategic value of content rights over ownership cost in today’s media landscape.
Sky Chief Executive Sophie Moloney described the deal as “an important milestone” in Sky’s strategy to expand its reach and diversify its content offerings. “We are excited about the opportunities this acquisition brings to deepen our relationship with New Zealand audiences, deliver even more compelling content, and strengthen our position as the country’s leading media company,” Moloney stated.
Discovery NZ, formerly part of Warner Bros. Discovery, operates the prominent free-to-air channel Three, as well as Bravo and HGTV, and has been a cornerstone of New Zealand’s broadcast market. As part of the acquisition, Sky secures long-term access to these channels and their advertising revenue, while the US$20 million supply agreement guarantees continued access to Warner Bros. Discovery’s premium international content for the next five years.
Sky also noted that the acquisition aligns with its focus on delivering value to shareholders by enhancing its content library and offering a broader advertising platform. Moloney emphasized that the deal will enable Sky to offer a more comprehensive mix of free-to-air and subscription content, increasing engagement across customer segments and attracting advertisers.
The transaction, expected to close later this year pending regulatory approvals, is structured to minimize risk for Sky while capitalizing on Discovery NZ’s strong audience base. The symbolic NZ$1 purchase price is offset by the financial commitment embedded in the content agreement, which Sky sees as a critical component of its growth plan in a competitive media environment.
The acquisition comes as Sky continues to invest in its direct-to-consumer strategy and digital platforms, ensuring that it remains a key player in New Zealand’s evolving media market. According to Sky’s announcement, combining its pay-TV, streaming, and free-to-air capabilities with Discovery NZ’s portfolio will provide a robust offering that meets the diverse needs of both viewers and advertisers.
By securing Discovery NZ’s assets and forging a US$20 million content pipeline over five years, Sky aims to reinforce its leadership in New Zealand’s media sector while positioning itself for sustainable growth in a challenging global media landscape.