The Government will redirect nearly $85 million per year from NZ On Air to the new mega-media entity formed from TVNZ-RNZ.
The merger between RNZ and TVNZ , which will create Aotearoa New Zealand Public Media (ANZPM), will swallow up more than half of NZ On Air's annual content funding.
In a newsletter released on Friday afternoon, it was revealed the new public media entity will receive $84.806m per year reallocated from the funding agency, which also supports local music, student radio and public journalism. That leaves just $60.9m for all other media platforms and services to fight over.
NZ On Air chair Dr Ruth Harley said it is working on a new strategy to use the more limited budget to support public media for audiences using a range of platforms.
"Our priority is on ensuring we can give the sector certainty about funding opportunities beyond July 2023 as soon as possible," Harley said.
"In the interim, the board has taken a new position on TVNZ and RNZ funding applications."
Harley added the board has devised a "transitional approach", which will be applied this week to funding decisions made by the board.
"We will continue to collaborate with TVNZ and RNZ to work towards a smooth transition. Rest assured the board and staff of NZ On Air want to achieve the very best and fairest outcome for our content creators and platforms, and ultimately their audiences."