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Dixon appealed against both his conviction and sentence for accessing a computer at the Altitude Bar in Queenstown in September 2011 when he was contracted as a bouncer, and obtaining the CCTV footage of England rugby captain Mike Tindall with a former girlfriend.
Tindall is married to the Queen's granddaughter Zara Phillips, with whom he now has a daughter.
Dixon was sentenced to four months' community detention with a night-time curfew, and 300 hours' community service for dishonestly obtaining property.
At his appeal, Dixon argued the basis of the conviction was flawed, because digital footage did not fall under the definition of 'property' in section two of the Crimes Act.
The Court of Appeal agreed. However, it said Dixon had been charged under the wrong part of the law, and should have been charged with obtaining a benefit.
It quashed his conviction for dishonestly obtaining property, and convicted him of dishonestly obtaining a benefit.
It rejected his appeal of his sentence, saying it was not "manifestly excessive", as Dixon had claimed, but represented the significant breach of trust involved in his offending.