Pay television operator Sky Television Network is to set up a pay television service with the state-owned broadcaster, TVNZ.
Sky, which has a virtual monopoly on pay television services in New Zealand, will own 51%of the new service, with TVNZ holding the remainder.
The company says a new set-top box will provide a mix of free-to-air and pay content.
The service is set to start in the first half of 2012.
