New Zealand on Air will now focus its funding on single music tracks, rather than whole albums.
The agency ended album and new recording funding schemes earlier this year.
A new scheme will see $2 million spent on at least 200 single track recording projects and 200 music videos per year.
Previously, 50 recording projects and 170 music videos were funded each year.
New Zealand on Air says the focus has shifted in response to the way people now consume music, by downloading singles.
Chief executive Jane Wrightson says the new scheme will also create the opportunity for more artists to record more songs for a wider audience.