Sky TV has agreed to fully acquire TV3 owner Discovery New Zealand for $1.

Discovery NZ is a part of US media giant Warner Bros Discovery, and operates channel Three and online streaming platform ThreeNow.

NZX-listed Sky said the deal would be completed on a cash-free, debt-free basis, with completion expected on August 1.

Sky expected the deal to deliver revenue diversification and uplift of around $95 million a year.

Sky expected Discovery NZ’s operations to deliver sustainable underlying earnings growth of at least $10 million from the 2028 financial year.

Sky chief executive Sophie Moloney said it was a compelling opportunity for the company, with net integration costs of about $6.5 million.

“This is a compelling opportunity for Sky that directly supports our ambition to be Aotearoa New Zealand’s most engaging and essential media company,” she said.

Confidential advance notice
Sky said it gave the Commerce Commission confidential advance notice of the transaction, and the commission did not intend to consider the acquisition further.

Warner Bros Discovery Australia and NZ managing director Michael Brooks said it was a “fantastic outcome” for both companies.

“The continued challenges faced by the New Zealand media industry are well documented, and over the past 12 months, the Discovery NZ team has worked to deliver a new, more sustainable business model following a significant restructure in 2024,” Brooks said.

“While this business is not commercially viable as a standalone asset in WBD’s New Zealand portfolio, we see the value Three and ThreeNow can bring to Sky’s existing offering of complementary assets.”

Sky said on completion, Discovery NZ’s balance sheet would be clear of some long-term obligations, including property leases and content commitments, and would include assets such as the ThreeNow platform.

Sky said irrespective of the transaction, the company was confident of achieving its 30 cents a share dividend target for 2026.

‘Massive change’ for NZ media – ThreeNews to continue
Founder of The Spinoff and media commentator Duncan Greive said the deal would give Sky more reach and was a “massive change” in New Zealand’s media landscape.

He noted Sky’s existing free-to-air presence via Sky Open (formerly Prime), but said acquiring Three gave it the second-most popular audience outlet on TV.

“Because of the inertia of how people use television, Three is just a much more accessible channel and one that’s been around longer,” Greive said.

“To have basically the second-most popular channel in the country as part of their stable just means they’ve got a lot more ad inventory, much bigger audiences.”

It also gave Sky another outlet for their content, and would allow it to compete further against TVNZ, both linear and online, Greive said.

He said there may be a question mark around the long-term future of Three’s news service, which was produced by Stuff.

No reference to ThreeNews
Sky made no reference to ThreeNews in its announcement. However, Stuff confirmed ThreeNews would continue for now.

“Stuff’s delivery of ThreeNews is part of the deal but there are also now lots of new opportunities ahead that we are excited to explore together,” Stuff owner Sinead Boucher said in a statement.

On the deal itself, Boucher said she was “delighted” to see Three back in New Zealand ownership under Sky.

“And who doesn’t love a $1 deal!” Boucher said, referring to her own $1 deal to buy Stuff from Australia’s Nine Entertainment in 2020.

This article is republished under a community partnership agreement with RNZ.

Article by AsiaPacificReport.nz

Many observers said this had been coming but few seemed to have a plan for it, including the government. 

Mediawatch looks at what viewers will lose, efforts to resist the cuts and talks to the news chief at Newshub which is set to close completely.

By Colin Peacock, RNZ Mediawatch presenter

On the AM show last Wednesday, newsreader Nicky Styris suffered a frog in the throat at the wrong time.

Host Melissa Chan Green took over her bulletin while Styris quickly recovered. Minutes later Styris had to take the place of no-show panel guest Paula Bennett.

Just before that, viewers saw co-host Lloyd Burr on his knees fixing the studio flat-pack furniture with a drill.

Three hours later they were at an all-staff meeting at which executives from offshore owner Warner Bros Discovery (WBD) confirmed the complete closure of Newshub by midyear.

On TVNZ’s Midday news soon after, reporter Kim Baker-Wilson was live from the scene of the announcement of Newshub’s demise.

The previous day the roles were reversed, with Newshub’s Simon Shepherd outside TVNZ’s building reporting TVNZ’s Midday had been scrapped, along with the late news Tonight and Fair Go. 

On Wednesday TVNZ also confirmed flagship current affairs show Sunday will cease next month.

So as things stand, it’s the end of the line for all news bulletins on TVNZ other than 1 News at 6, though the news-like shows Breakfast and Seven Sharp survive because they accommodate lucrative sponsored content (“activations” in the ad business) as well as ads.

And TV channel Three will be entirely news-free for the first time in its 35-year history.

Senior journalists led by investigations editor Michael Morrah presented a proposal for a stripped-back and shortened news bulletin to keep the Newshub name alive (and some jobs) but while WBD took it seriously, it eventually turned the idea down.

Another media player to fill the Newshub void?
There have been rumours and reports that other media companies were talking to WBD about filling the Newshub at 6 news void.

Initially light-on-detail reports of lifelines suggested a possible sale of Newshub to another media company. Then there were reports of other media companies pitching to make news for WBD on a much-reduced budget.

Among the names mentioned in media despatches was NZME, which has radio and video studios and journalists around the country, though most of them are north of Taupo.

NZME told Stuff “it was not currently part of the process”.

The Herald’s Media Insider column reported on Tuesday that Newshub was “set to receive a lifeline” and understood Stuff was “among the leading contenders.”

However when Stuff itself reported on Wednesday that Stuff was “understood to be a likely contender,” a spokesperson for Stuff declined to comment to Stuff’s reporter on whether Stuff had been in talks with WBD — or not.

RNZ said it wasn’t in the frame for this. (It recently killed off the video version of its only daily news show with pictures, Checkpoint).

Sky TV has production facilities galore and its free-to-air TV channel Sky Open currently runs a Newshub-made news bulletin at 5:30 each weekday. Sky has only said it was an “interesting idea” — or words to that effect.

“At this point there is no deal,” WBD local boss Glen Kyne told reporters after confirming the closure of Newshub on Wednesday.

Kyne also said the company’s “door has been open to all internal and external feedback and ideas, and we will continue to be”.

But anyone opening that door clearly isn’t willing to do it in daylight — or  tell the rest of the media about it.

Lifelines likely?

If there is to be any kind of “Newshub-lite” lifeline, a key question is: what is WBD prepared to pay for the programme?

Presumably not much, given that they said they had no choice but to carve the cost of Newshub — amounting to tens of millions a year — from its bottom line in line with its reducing revenue.

So is it worth any major media company’s while to commit to making news in video for another outlet? And it would have to be done in a hurry because the last Newshub bulletins screen on July 5.

When Newshub’s owners first announced they wanted to get rid of it in late February, its former chief editor Hal Crawford told Mediawatch the problem with finding a buyer was that minimum viable cost for a credible TV news operation was greater than anyone here was prepared to spend.

Longtime TV3 news boss Mark Jennings (now co-editor of Newsroom) said any substitute service on the fraction of the current budget would have another problem — TVNZ’s 1 News.

“You’re up against a sophisticated TVNZ product so viewers will have an immediate comparison. Probably that won’t be favorable for Warner Brothers,” he told RNZ.

TVNZ has its own news production problems after the cuts they confirmed this week.

“We’re proposing to establish a new long-form team within our news operation, which would continue to bring important current affairs and consumer affairs stories to Aotearoa in a different way on our digital platforms.”

TVNZ declined Mediawatch‘s request to speak to TVNZ’s news chief Phil O’Sullivan about that at this time.

Newshub’s news boss responds

One who did though is Newshub news boss Richard Sutherland — appointed as interim senior director of news at Newshub in January.

It was his second spell at Newshub, during a career in broadcast news spanning four decades at almost every significant national news outlet in the country, including RNZ, where he stepped down as head of news a year ago.

In that time he’s experienced many a financial crisis in the business — but did he see this one coming?

“The last couple of weeks has been coming for quite some time. I think that the so-called legacy news operations have almost done too good a job of keeping the lights on and papering over the cracks. And we just got to a point [the industry] couldn’t paper over the cracks any longer.

“But when you look at audience behaviour and the fall off and revenue, particularly in the advertising market, then that doesn’t surprise me that we’ve got to where we’ve got to.”

But if the audience was big, the ad revenue would be too?

“It’s certainly by no means as big as it once was simply because people have other options available to them. The cliche is that you’re not in a war with the other media, but in a war for people’s attention.”

“It’s not so much the audience has changed so much as the dynamics of the advertising market that has really changed over the last sort of 10 to 15 years. The digital advertising — and the big two main players in that space, Facebook and Google — are eating everybody’s lunch.”

TV ad income on the slide
Annual advertising stats that came out this very week show media in 2023 attracted $3.36 billion across the whole of the media industry — about the same as in 2022.

But TV advertising revenue of $517 million in 2022 slumped to $443 million last year.

“That’s why what the TV industry has found is that can’t cut its costs fast enough to meet the falloff in the advertising income,” Sutherland told Mediawatch. 

Digital-only ad revenue rose by $88 million in 2023 — but it’s Google and Facebook which secures the vast bulk of that.

But if this has been coming for a number of years, as Sutherland says, has there been enough planning for it?

After the closure of Newshub was mooted by its owner last month, seven of Sutherland’s colleagues led by investigations editor Michael Morrah put together a transition plan to keep Newshub on air in a few days.

Shouldn’t this sort of transition planning have been done at high levels over recent years right across the television business?

“Every media company that I’ve worked for or have observed over the last few years has been trying to innovate and get to a more sustainable level. The revenue was just collapsing far faster than anyone ever anticipated.”

“It annoys me when I hear people say older media haven’t innovated enough. We’ve done a lot of innovation. That’s pretty lazy politics to just say: ‘You need to innovate.’

“It’s also lazy politics to say, the government should just come in and bail everyone out. New Zealand Incorporated needs to have a big conversation about what it wants to do with the media and how it wants to fund it.

“For the past few years the industry has been like so many rats in a sack, fighting with each chasing a smaller and smaller amount of ad dollars. We need to get together and work out how we get ourselves collectively out of the sack,” Sutherland told Mediawatch.

Shortly before TVNZ and Newshub announced their cuts, there was a meeting of chief executives including Newshub’s owners Warner Bros Discovery to discuss a shared new service. TVNZ rejected the idea.

“But a lot has changed in the last couple of months. And I would like to think that eventually we’ll get to a point where we can actually have honest and productive conversations about what we can do to help each other as well as maintaining a degree of competition, but also realising that if we just keep fighting with each other, we’re not going to have a sustainable industry,” Sutherland said.

Would Sutherland want to work for a low-budget alternative to Newshub stave off the complete closure? And would Kiwis want such a service?

“There is a segment of the audience that appreciates a very highly produced, well-curated news bulletin every night. And there’s large numbers of people who no longer see that as part of their media diet.

“The trick is to provide options so that people can get what they want when they want it.

“It’s not really for me to say what a possible replacement for Newsub might look like. I’m well away from those negotiations.

“If we reach a stage where the media scene here withers away to nothing, there’ll be no-one to tell the stories. The media uncovers a lot of shady stuff in this country.

“And the fear of media coverage prevents people in positions of power and authority at all levels doing a lot of shady stuff. So it is important to document the ructions of the New Zealand media scene just like we do in other parts of the country.”

Minister in a corner

The day the axe fell at Newshub and at TVNZ, New Zealand’s screen producers’ guild Spada said “while the newsroom cuts have dominated media coverage to date, it is actually the whole production sector being impacted”.

“While TVNZ and Three aren’t giving definitive numbers at this time, Spada has calculated that we are looking at around $50 million coming out of our sector,” said president Irene Gardiner.

Spada is also asking the government to exempt screen funding agencies from the percent public spending cuts and to force the international streaming platform to support local production.

Spada called for” swift and decisive action” from the government on this.

Should they be holding their breath?

When confronted by reporters for a response to the current TV news crisis, Broadcasting Minister Melissa Lee said: “If only I was a magician, if I could actually just snap up a solution, that would be fantastic.

“But I’m not a magician, and I’m trying to find a solution to modernise the industry . . .  there is a process happening.”

But the media are not expecting magic — just a plan rather than assertions of a process with no timeline.

She has repeatedly said she’s preparing policy in a paper to take to cabinet, but refused to give any details.

On RNZ’s Checkpoint, persistent and pointed questions from Lisa Owen yielded few further clues.

Newstalk ZB Drive host Heather du Plessis-Allan told Melissa Lee she was being “weird and shady” and the next morning ZB’s Mike Hosking told her she was using “buzzwords that don’t mean anything” and was doomed to fail.

Stuff’s Tova O’Brien reported that the need to consult coalition allies on policy means it can’t be progressed until after Winston Peters returns from overseas at the end of the month.

The under-wraps media policy is also not in the government’s recently-released quarterly action plan.

Meanwhile this week, our two biggest TV news broadcasters ran out of time.

Ex-minister leading resistance to cuts

After his unenlightening on-air interview with minister Melissa Lee on Thursday morning, Mike Hosking’s ZB listeners told him she reminded them of ministers in the last government.

Coincidentally, one of them was also one of few people who did speak out about the crisis while it was unfolding.

Michael Wood represented TVNZ journalists from the E tū union as its negotiations specialist.

E tū  is now taking legal action against TVNZ, claiming it failed to abide by the conditions of their employment agreement.

Could that reverse or wind back any of the cuts TVNZ has announced?

“That does remain to be seen. The collective agreement has very clear processes around what should happen if TVNZ wants to move forward and make changes. It requires [staff members] to be involved throughout the process, and for the company to try and reach agreement with them. Our very strong view is that that hasn’t happened.”

“Staff have said: ‘Look, five years ago, we came to you and said we want to do these things with our shows to make sure they have a sustainable future to make sure that they have a strong online platform.’ And [TVNZ] frankly has not demonstrated strategy and leadership around those things.”

“These are still shows that are very, very popular. Canceling them will reduce costs, but based on TVNZ’s own information that they’ve provided, it will reduce revenue by more.”

It’s been difficult to get any media company executives or even journalists at the two companies affected by these cuts to talk about them, even off-the-record.

Wood is one of the few people who has spoken frankly to broadcasters’ executives, albeit confidentially behind closed doors.

“There is a bit of a delicate dance which has to happen when media companies themselves are making these decisions. And media need to report on that.

“So I have some sympathy, but these aren’t just individual employment issues. This is a public policy issue . . .  about whether we have a functioning and vibrant Fourth Estate.”

Wood was until last year a minister in the Labour government which could have averted the TVNZ cuts.

It spent more than $16 million planning a new public media entity to replace TVNZ and RNZ with a not-for-profit public media entity — but then scrapped it weeks before it was due to begin.

“You’ve just identified one of the core things that we’ve got to deal with. TVNZ, in terms of its statutory form, is neither one thing nor the other. It has a commercial imperative and it also has some other obligations in terms of public good.

“News and current affairs should be at the heart of that — and that is something that we should be much clearer about.”

This article is republished under a community partnership agreement with RNZ.

Article by AsiaPacificReport.nz

The day the news axe fell: Presenters, insiders fear ‘huge blow for democracy’

The future of New Zealand’s media landscape is becoming clearer by the day, with confirmation that it will no longer feature one of the country’s big two TV news networks.

Warner Bros. Discovery has revealed that all of Newshub’s operations will be shut down, effective July 5. That includes the flagship 6pm bulletin, The AM Show, and the Newshub website.

294 staff are set to lose their jobs.

It’s also been confirmed that TVNZ’s programme Sunday will be cancelled, following yesterday’s announcement that Fair Go, as well as both 1News at Midday and 1News Tonight, are being canned in their current format.

New Zealand’s media industry has been rocked by the bleeding obvious which is that their failed ratings system for legacy media was always more art than science.

The NZ radio ratings system is a diary that you fill in every 15 minutes — which no one ever fills in properly.

The NZ newspaper ratings are opinion polls and the NZ TV ratings system is a magical 180 boxes that limits choice to whoever had the TV remote.

When the sales rep told the advertiser that 300,000 people would read, see, hear their advert, it was based on ratings systems that were flattering but not real.

With the ruthlessness of online audience measurement, advertisers could see exactly how many people were actually seeing their adverts, and the legacy media never adapted to this new reality.

What we see now is hollowed out journalism competing against social media hate algorithms designed to generate emotional responses rather than Fourth Estate accountability.

New Zealand has NEVER had the audience size to make advertising based broadcasting feasible, that’s why it’s always required a state broadcaster — with no Fourth Estate who will hold this hard right racist climate denying beneficiary bashing government to account?

Minister missing in action
Broadcasting Minister Melissa Lee has refused to support the Fair Digital News Bargaining Bill that Labour’s former minister Willie Jackson put forward that would at least force Google and Facebook to pay for the journalism they take for free.

Lee has been utterly hopeless and missing in action here — if “Democracy dies in darkness”, National are pulling the plug.

This government doesn’t want accountability, does it?

Instagram this year switched on a new filter to smother political debate and we know actual journalism has been smothered by the social media algorithms.

I don’t think that most people who get their information from their social media feeds understand they aren’t seeing the most important journalism but are in fact seeing the most inflammatory rhetoric to keep people outraged and addicted to doom scrolling.

When Deputy Prime Minister Winston Peters does his big lie that the entire mainstream media were bribed because of a funding note by NZ on Air in regards to coverage of Māori issues for the Public Interest Journalism fund — which by the way was quickly clarified by NZ on Air as not an editorial demand — he conflates and maliciously spins and NZ’s democracy suffers.

Muddled TVNZ
Television New Zealand has always come across like a muddle. It aspires to be BBC public broadcasting yet has the commercial imperatives of any Crown Owned Enterprise. If Labour had merged TVNZ and RNZ and made TVNZ 1 commercial free so that the advertising revenue could cross over to Newshub, it would have rebuilt the importance of public broadcasting while actually regulating the broken free market.

When will we get a Labour Party that actually gives a damn about public broadcasting rather than pay lip service to it?

Ultimately Newshub’s demise is a story of ruthless transnational interests and geopolitical cultural hegemony.

Corporate Hollywood soft power wants to continue its cultural dominance as the South Pacific friction continues between the United States and China.

New Zealand is an important plank for American hegemony in the South Pacific and as China and American competition heats up, Warners Bros Discovery suddenly buying a large stake in our media was always a geopolitical calculation over a commercial one.

Cultural dominance doesn’t require nor want an active journalism, so they will keep the channel open purely as a means of dominating domestic culture without any of the Fourth Estate obligations.

That bitter angry feeling you have watching Warner Bros Discovery destroy our Fourth Estate is righteous.

Social licence trashed
They bought a media outlet that has had a 35-year history of being a structural part of our media environment and dumping it trashes their social licence in this country.

That feeling of rage you have watching a multibillion transnational vandalise our environment is going to be repeated the millisecond you see the American mining interests lining up to mine conservation land with all their promises to repair anything they break.

Remember — the transnational ain’t your friend regardless of its pronouns.

That person they rolled in with the soft-glazed CEO face to do the sad, sad crying is disingenuous and condescending.

Now Warner Bros has killed Newshub off, we have no option as Kiwis but to boycott whatever is left of TV3 and water down Warner Bros remaining interests altogether.

They’ve burnt their bridges with us in New Zealand by walking away from their social contract, we should have no troubles returning the favour!

The only winners here are rightwing politicians who don’t want their counterproductive and corrupt decisions to be scrutinised.

We are a poorer and weaker democracy after these news cuts.

Why bother having a Minister of Broadcasting if all they do is fiddle while the industry burns?

Welcome to your new media future in Aotearoa New Zealand . . .

Republished with permission from The Daily Blog.

Article by AsiaPacificReport.nz

Warner Bros Discovery will struggle to retain viewers in New Zealand if it has no news operation, Newshub journalist Paddy Gower predicts, as he continues his crusade for someone to save at least part of its newsroom.

A grim 48 hours for news media has resulted in many jobs being lost in the sector — as TV3 confirmed the closure of Newshub, and TVNZ announced it was going ahead with axing its current affairs flagship Sunday, consumer affairs Fair Go and two news bulletins.

About 250 jobs are being lost in the shutdown of Three’s national news service, which will close in July.

Gower told RNZ Morning Report Warner Bros Discovery needed to get on and do a deal for another party to take over the news bulletin.

He was among seven senior Newshub journalists who pushed back against the company’s proposal and put forward their own plan.

The proposal, led by his colleague Michael Morrah, was “radical”, “aggressive” and would have pared the news operation back to the bone, he said.

It centred on the 6pm bulletin which brought in a lot of advertising revenue, retain the website and would later build up the digital operation.

“Basically it was a cutdown radical proposal to hang on to the 6pm bulletin and find digital solutions out into the future.”

While management gave them access to figures and helped them in other ways they ultimately decided not to go ahead.

He said when the closure was confirmed, there was a feeling of “the weight of history” at the loss of a taonga which Kiwis would miss when it disappeared.

“It’s gonna be a dark time for news in this country,” he said.

Gower said Warner Bros Discovery would have “a helluva time” keeping viewers without Newshub providing news and current affairs.

“We tried. That’s the Kiwi way. That’s the Newshub way.”

He said another media company, such as Stuff or NZME, could now come in and further their own news brand and their reputation by saving part of a significant news operation.

They would oversee the making of a 6pm news bulletin that would be sold to Warner Bros Discovery and in the process be working with one of the world’s leading media companies.

“That has to be a possibility . . . They would be seen to be saving news in New Zealand and that’s a big ups for them . . .

“The company that is able to get that deal done …. is going to get some incredible journalists on board to help them do it,” Gower said.

It would probably save about 40 to 50 jobs, he said.

Warner Brothers Discovery declined to be interviewed by Morning Report.

Broadcasting Minister accused of lack of vision
Former head of news at TV3 Mark Jennings believed Broadcasting Minister Melissa Lee was “all at sea” as the country veered towards a media crisis.

He found her response to the Newshub closure confusing and did not believe the cabinet paper she has been working on would provide anything beneficial.

“I think you’re likely to have three parties, New Zealand First, ACT and National, all with different points of view and I can’t see them agreeing on any forward course of action, particularly not with Melissa Lee who appears to have no vision here at all.”

Jennings said he was notsurprised the Morrah-Gower plan did not succeed, because employers had considered other options and then made up their minds before the consultation period began.

If an offer from an outside organisation did get the go-ahead, it would be a “basic product” and would be “news-light”, he said.

It might be shot on i-Phones and edited by journalists and would not resemble Newshub’s current flagship bulletin.

While both the pandemic and social media had lowered the quality threshold of what viewers might accept, it would still be compared to what TVNZ was screening.

“The challenge will be for them to hold on to their ratings and more importantly, their share. Their share has been decreasing over time and if it gets too much lower, they’ll find themselves back at square one really.”

Minister Lee was unwilling to be interviewed by Morning Report.

On Wednesday, she refused to tell RNZ once again what her plans to reform the sector were, citing cabinet confidentiality.

She said she was focused on ensuring New Zealand’s media industry was sustainable and modernised, and she was looking at reviewing the Broadcasting Act.

Although she has written a cabinet paper, she would not say what was in it.

Lee said she had talked to international companies on how they could support and increase New Zealand screen production, but it would not include a quota.

She said it would not have helped the situation at Newshub.

Not much scope for NZ on Air
New Zealand on Air chief executive Cam Harland said the agency had a limited ability to intervene because its remit was to provide funding for a large number of audiences across a range of genres.

He heads the agency responsible for distributing public funds but its budget isn’t nearly enough to address shortfalls.

Daily television news was expensive to produce, so he considered it unlikely NZ on Air would help much, he told Morning Report.

The loss of jobs and talent was “monumental” and NZ on Air bosses intended to meet with TVNZ and Newshub as well as senior journalists, such as Jennings, to get more information before making any decisions.

“We absolutely want to help . . .  so I guess our view now is: Can we be more innovative with what we’re funding, can we get more bang for the buck?”

The organisation was also faced with reviewing its spending in line with the government’s requirements for the public sector.

Union files claim against TVNZ

The union representing journalists has filed a claim against TVNZ alleging the company breached its own consultation requirements in its job cuts process.

E Tu’s negotiation specialist, Michael Wood, said the broadcaster should have involved its employees before the proposal was presented.

Talks were continuing with the Employment Relations Authority to see if a legal case could be heard as quickly as possible.

“It’s an urgent matter now . . . We’ll be trying to get an outcome there as soon as possible and we want to see an outcome that respects the process.”

He said mediation between the parties might be a part of the process.

While the union and employees had a small victory with a handful of jobs being saved, there was still “a massive loss of capacity” with the axing of several programmes.

This article is republished under a community partnership agreement with RNZ.

Article by AsiaPacificReport.nz

All of Newshub operations — part of New Zealand’s second largest television news network channel Three — are to be shut down and 250 people will lose their jobs. The shutdown includes the company’s website, Warner Bros Discovery announced today.

The last 6pm news bulletin will air on July 5.

Warner Bros Discovery said talks were ongoing with third parties to provide a pared-back news service — such as a 6pm bulletin for the Three channel. However, no deals have been reached yet.

Head of networks Glen Kyne said Warner Bros Discovery had been clear it would listen to all feedback both internal and external over the five-week consultation period.

“Our door has been open and some conversations have taken place. They’re continuing to take place in confidence but there is no deal,” he said.

He promised to let staff know immediately if any new deals could be finalised.

He thanked staff for their feedback.

Definite shutdown
The announcement of the definite shutdown came at an all-staff meeting at a hall close to Newshub’s office in Auckland’s Eden Terrace this morning.

Newshub staff were told by Warner Bros Discovery managers in February it planned to axe the entire news operation.

The newsroom was losing too much money, staff were told.

Here is all the full information – devastated for my pals, colleagues and everyone who gives 110% there, NZ is a worse off place today with this news. https://t.co/q8HurxwV5g

— Darren Bevan (@geekboy73) April 9, 2024

Since then, it is understood there have been talks between Warner Bros Discovery and a number of media firms, including Stuff, about ways that part of the business could be preserved. It has been suggested that could include the production of a “slimmed-down” news bulletin by a third party.

Meanwhile, TVNZ staff will today hear the fate of its Sunday current affairs show, after the company confirmed on Tuesday it was axing the on-air version of Fair Go, and the Midday and Tonight news programmes.

Independent Spinoff founder Duncan Greive said the changes would be irreversible, and a “tragic” outcome for those affected.

This article is republished under a community partnership agreement with RNZ.

Article by AsiaPacificReport.nz

After Warner Bros Discovery top brass broke the bad news to staff on Wednesday, Newshub at 6 that night became a news event in itself.

RNZ MEDIAWATCH: By Colin Peacock, RNZ Mediawatch presenter

After Warner Bros Discovery top brass broke the bad news to staff on Wednesday, Newshub at 6 that night became a news event in itself.

In her report, political reporter Amelia Wade reminded viewers more than 30 years of TV news and current affairs — spanning the entire period of commercial TV here — could come to an end in June.

Before TV3 launched in 1989, state-owned TVNZ had been the only game in town.

But for most of its recent history, TV3’s parent company MediaWorks was owned by private equity funds and it was hamstrung with debts.

There were periodic financial emergencies too which seemed to signal the end.

In 2015, the boss Mark Weldon axed the current affairs shows Campbell Live and 3D and replaced them with ones that didn’t pull in more viewers or pull up many trees with their reporting.

“Reports of our death at 6pm have been greatly exaggerated”, host Hilary Barry responded to reports 3 News might be for the chop the following year.

But Weldon persuaded the owners to stump up a significant sum to launch Newshub instead.

When the huge global company Discovery bought MediaWorks loss-making TV channels in December 2020, many in the media were pleased a major media outfit was now in charge.

Using the Official Information Act, Newsroom later reported the Overseas Investment Office fast tracked Discovery’s application and sought no guarantees of a commitment to local news.

The 2021 mega-merger in the US that turned it into “Warner Bros Discovery” excited The Spinoff founder Duncan Grieve.

“Tova O’Brien breaking stories on CNN NZ at 6pm, before an evening of local reality TV souped up by global budgets and distribution — with major sports and drama rights for good measure,” was one scenario.

“It could also swing the other way, with the New Zealand linear asset seen as too small and obscure,” he warned.

After losses including a $35 million one last year, the owners now “propose” to slice out the entire on-screen and online news operation. New Zealand could lose more than 15 percent of its full-time journalists in one go.

Beginning of the end?

“Oh, the irony, right? When those so-called ‘vulture funds’ had it, the operation still continued, albeit always run on the smell of an oily rag. Then a big media organisation was the one which axed it,” long-serving TV3 current affairs journalist Eugene Bingham told Mediawatch.

“I’ve been around long enough to see death by a thousand cuts over the years. But this was a moment we’ll look back on as a watershed moment in democracy and journalism,” Bingham said.

Former MediaWorks executive Andrew Szusterman told RNZ’s Morning Report the next day this decision would also ripple out to local drama and entertainment.

“We’re going to start to see how this is going to impact the production sector. Irrevocably, possibly,” said Szusterman, now the chief executive at production company South Pacific Pictures.

Does Newshub’s demise also kill off Three?

There’s been no shortage of people this week pointing out the appetite for TV news — and linear TV in general — is not what it was. That’s the main reason for the ad revenue slump cited by WBD.

Some who do tune in to Three (and WBD’s other channels) for The Block, Married at First Sight and free movies may not miss the news shows from June 30. So maybe Three will be fine?

“The loss of the newsroom represents the loss of the ability to respond to any event in real time. That is the heart and soul of a traditional TV broadcaster,” Hal Crawford — chief news officer at MediaWorks (and effectively Newshub’s boss) until early 2020 — told Mediawatch.

“When the Queen dies you can send a team to London, you can have someone in the studio talking about it, you can interact in a way that makes people feel like it is alive and a real human entity.”

Channels without the live element news brings are effectively just “content databases”, Crawford told Mediawatch.

“News is the one programme that runs 365 days a year . . . which the schedule is going to rely on to lead into prime time. So the rest of your schedule is going to dwindle. Ratings are gonna fall off and everything is going to go to pieces.

“It really is going to dwindle as a cultural entity in New Zealand because you’re not going to be able to justify the funding from NZ on Air if you aren’t getting audiences. It’s hard for me to see a way out of Three basically going away as a cultural force in New Zealand.”

But TV-style news and current affairs is also now being done online.

After Eugene Bingham’s TV3 show 3D was axed in 2016, four members formed the Stuff Circuit investigative team. Its video documentary productions won awards until it was axed by Stuff late last year.

“Of course, there have been changes in viewing habits . . .  but there’s still a reason that the ‘1’ and the ‘3’ on remotes around the country are worn down. Hundreds of thousands of people at six o’clock flip the channel. Without a TV bulletin there, doesn’t (Three) just become like Bravo, where there’s just programmes running and you either switch on or you don’t?”

In the end, journalists have to confront the fact that not quite enough people these days care about what they do — including executives at media companies, politicians not inclined to intervene and members of the public.

Most New Zealanders are happy to use services like Netflix or Google search or Facebook that carry news and local content but contribute almost nothing to it.

“But I don’t think people quite understand the depth of the problem facing media and the implications. That certainly came through to me watching the broadcasting minister saying, well, people can still watch programmes like Sky for news,” Bingham said.

The National Party went into the last election without a media or broadcasting policy or any specific manifesto commitments.

What should/could the government do?

While Wednesday’s announcement shocked the 300-odd staff, the local chief executive Glen Kyne — close to tears on Newshub at 6 —  told Newshub’s Michael Morrah he had known about the possibility since January.

The government also got a heads-up earlier this week.

Media minister Melissa Lee told reporters WBD made no requests for help, prompting Glen Kyne to tell Newshub WBD did ask both the current and previous government for assistance, such as a reduction in the multi-million dollar fee paid to state-owned transmission company Kordia.

Lee later clarified her comment but was firm that the government had no role to play because this was a case of a private company taking action because “their business model actually wasn’t working.”

On Morning Report, Andrew Szusterman disagreed.

“Channels 7,9 and 10, SBS, ABC, and Fox in Australia all run news services. I don’t think their government would let the last commercial free-to-air news broadcaster just walk away. The fact the broadcasting minister hasn’t fronted . . .  it’s quite shameless,” he told RNZ’s Morning Report.

Stuff’s Tova O’Brien — who famously turned on her former employer MediaWorks on air in real time last year when it closed Today FM — called the minister’s response “cold and tone-deaf” and accused the government of a “glib shrug”.

That was partly because Lee’s first response to the Newshub announcement was to tell reporters: “There’s Sky as well, there’s a whole lot of other media about.”

Sky contracts Newshub to produce its 5.30pm free-to-air news bulletin — and Sky subscribers won’t find any locally-made news on Sky TV’s pay channels.

Lee should have known that. She was a programme-maker before she was an MP and was National’s spokesperson on broadcasting for years in opposition.

Lee declined all interview requests this week — including from Mediawatch — but did tell reporters at Parliament: “I wasn’t as articulate as I could have been. But I am taking this seriously.”

The PM told Stuff he is expecting an update at Cabinet on Monday. The media will be watching that space with pens and cameras poised.

There is legislation currently before a select committee which could compel the big online tech platforms to pay local producers of news for it.

In opposition, Lee opposed it and called it “literally a shakedown” in Parliament. (This weekend Facebook’s owner Meta announced it would not do any more deals with media under Australia’s News Media Bargaining Code, prompting a likely confrontation with the government there.)

“The government’s position on this will obviously take into account these latest developments in terms of the wider media landscape. This government is committed to working with the sector on ways to ensure sector sustainability, while still preserving the independence of a fourth estate and avoiding market interference,” Lee said in Parliament on Thursday when questioned.

The government already heavily intervenes in the market by overseeing the state-owned broadcasters and agencies — including TVNZ — and putting over a quarter of a billion dollars every year onto broadcasting, programmes and other content.

The former government also put $80 million over two years into Māori media content, partly in the expectation there might also be a new public media entity to broadcast it.

In 2019, Hal Crawford — boss of Newshub at the time — declared the New Zealand news media is broken.

His chief executive also urged the government to intervene. AM show host Duncan Garner switched the studio lights off as an on-air stunt.

Crawford is now a digital media consultant based in his native Australia. The broadcasting funding agency in NZ On Air hired him in 2021 to review its own spending of public money on the media.

“It’s not a good idea for governments to knee jerk and sponsor particular commercial companies in some sort of bailout,” he said.

“To give money to the people who are in financially the worst position is the most ineffective and unfair use of public money that I can think of. If the market is telling you that something isn’t wanted and needed, you have to listen to that.

“But it doesn’t mean that you have to always listen to the market and do things that have never been done before.”

He cites the Public Interest Journalism Fund which put $55 million into new content and created new jobs for cash-strapped news media companies.

Crawford’s fact-finding report on the planned PIJF in 2021 records media managers feared cuts and possible closures to come.

“Many of our interviewees believed that if an organisation could show that cuts were imminent, they should be able to apply for funded roles under the PIJF. Many saw the dangers in this non-incremental funding, but argued for exceptions in extreme circumstances. Although these arguments are compelling, Funding could evaporate quickly trying to keep the newsrooms of big commercial companies afloat if this became the primary aim of the fund.”

“Around the world and in New Zealand, there’s ample evidence that public funding of journalism is becoming more essential. There has to be a way there, because what we’re seeing with the the planned closure of Newshub is the end result of the factors that we’ve known about for at least a decade,” Crawford told Mediawatch.

“Direct subsidy from the government to a commercial newsroom isn’t going to work. The government has to find a way to sensibly finance news and structure it so that it doesn’t become a political football.”

This article is republished under a community partnership agreement with RNZ.

Article by AsiaPacificReport.nz