The spat between Freeview and Sky TV appears to be over - TVNZ has announced that its two formerly Freeview exclusive channels, 6 and 7, will now be available to Sky subscribers, along with HD versions of TV One and TV2.

The two networks had a carriage contract for TV One and TV2 was scheduled to expire at the end of 2011. The new agreement runs to 2020.

The HD versions of TV One and TV2 will be available to MySkyHDi viewers from 1st June, and 6 and 7 from 1st July.

TVNZ will be able to provide regional advertising on TV One from July 1.

Needless to say, the win is huge for Sky; especially for its HD expansion plans which had been hampered by not having TV One and TV2’s offerings on board.

Consumers can now get the lot in a single box.

Freeview was introduced by the Labour government to assist in the transition from analogue to digital television, but quickly evolved into an ideological tool.

Labour’s hostility to private broadcasters saw run-ins with Mediaworks (owners of TV3 and C4) over funding, and saw TVNZ block its HD channels and new channels from Sky users.

Sky reciprocated by not making Prime available to Freeview customers, but the arguments are of a chicken before the egg scenario.

New broadcasting minister Dr Jonathan Coleman announced – even before he was elected –that he was platform agnostic and would eventually like to see TVNZ channels available on Sky.

Megan Richards, spokeswoman at TVNZ told NBR that Dr Coleman had no role in negotiations and that talks between TVNZ and Sky TV had been in progress for a significant time.

The current economic climate is partially to blame and the added two million in subscribers will be a boost to TVNZ’s regional and national ad revenues.

With the change, Freeview has effectively lost any edge it once had over Sky, and returns to simply being an digital facilitator of free television, which may well harm its subscriber uptake.

Steve Browning of Freeview doesn’t think so, and says the TVNZ had kept him in the loop.

He always expected TVNZ 6 and 7 to be on Sky, but for consumers the main pusher for Freeview has been the classic free viewership versus a pay model.

“The added exposure on Sky may well draw attention to what consumers can get elsewhere for free,” he says.

When Sky spokesman Tony O’Brien was asked whether it would now renege and allow Prime to be broadcast on the Freeview network, his answer remains unchanged.

“The two issues aren’t really connected. John [Fellet] has said Prime will appear on Freeview when it makes economic sense to do so, and at this stage it doesn’t,” he says.

Given Prime produced some terrible advertising numbers at its half year result, Sky could probably learn a lesson or two from TVNZ.

Mr Browning says that the future of Freeview is not in any doubt, and he has been given full support of the broadcasting minister.

As for Sky? Expect that share price to fly.