Media Minister Paul Goldsmith says this change could generate approximately $6 million for the news industry. Photo: RNZ / Samuel Rillstone
The government is moving to open up Sundays and public holidays for advertising on traditional media outlets.
Legislation was introduced on Tuesday that will repeal all advertising restrictions for broadcasters.
Currently, ads on broadcast television are prohibited on Sunday and Anzac Day mornings between 6am and noon.
On Christmas Day, Good Friday, and Easter Sunday, ads are prohibited on television and radio.
Media Minister Paul Goldsmith said this change could generate approximately $6 million for the industry, which was facing a difficult environment.
"Traditional media outlets are operating in an extremely difficult environment and as the government, we must ensure regulatory settings are enabling the best chance of success."
He added any lost opportunities for revenue were significant in the current "tight financial context".
He also pointed out the restrictions no longer make sense.
"These restrictions are no longer aligned with the ways in which audiences consume content. As technology and audiences continue to move away from traditional linear broadcasting, the restrictions are increasingly redundant."
He says this will level the playing field so local media companies are not disadvantaged in ways that do not apply to digital streaming platforms.