Television New Zealand is looking at local content levels as profits continue to drop.
After-tax profit at the SOE for the second half of last year was $8.9 million, down from $18.3 million in the same six months the year before.
Chief executive Rick Ellis told Morning Report that advertising revenue is still declining because of the recession.
He said TVNZ is evaluating the situation in light of the financial realities, but he was not optimistic there will be growth in advertising.
While New Zealanders have "an almost unique appetite" for local content, Mr Ellis said, such content is also much more expensive than international material.
