While some countries are developing creative industries, their public service broadcasters shoulder the responsibility of boosting audio-visual industries. New Zealand has transformed her state television enterprise into a pubic-service one. This paper mainly asks: to what extent has the transformation of TVNZ contributed to the promotion of her audio-visual industry? According to the analysis, among the three policy options, New Zealand only adopted a reform on a minimal scale; thus TVNZ, trapped in the contradictions of public service and business performance, can not fully support the industry. Based on the above analysis, we suggest that future media reform should cover the governance of private media and the financial structures of public service television, in order to develop a sustainable audio-visual industry.