TVNZ chief executive Kevin Kenrick breaks silence on public media merger

Thursday, 14 November 2019

TVNZ chief executive Kevin Kenrick has written to its advertisers in an apparent bid to reassure them about the possible impact of merging TVNZ and RNZ into a new public media organisation.

The letter was sent out in the wake of an RNZ report that the Government was considering disestablishing both RNZ and TVNZ and creating an entirely new public media entity.

Broadcasting Minister Kris Faafoi said he didn't want to comment until the Government had a chance to consider its options.

But media industry sources said it was being assumed the RNZ report was reliable.

**READ MORE

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* TVNZ CEO says the network could merge with RNZ**

The Government's intention was to 'strengthen public media – not weaken commercial media', Kenrick wrote.

'You can be assured that TVNZ and the Commercial Communications Council have reinforced the need and value of television advertising platforms and opportunities for New Zealand business to build brands and promote products and services.'

Should any decision be taken to change TVNZ's future obligations, the legislative process would 'likely take years to implement,' his letter continued.

'TVNZ remains 100 per cent committed to continue delivering market leading television and online audiences and cost effective opportunities for your business to engage with these audiences.'

Television channel Three owner MediaWorks did not comment directly on whether folding TVNZ into a new public media organisation might cause it to revisit its own decision to try to quit the television business.

Chief executive Michael Anderson said last month that it had asked advisor UBS to solicit bids for its television arm, while leaving the door open to a change of heart if the Government's media policy changed.

'We have always said that something needs to be done to help the entire media landscape,' Anderson said on Thursday. 

'We are reserving judgement on any Government policies until there is something concrete to judge. At the moment it's just speculation.'   

Anderson has called for TV One to go non-commercial by removing advertising. That is an option that Faafoi is known to have previously asked officials to cost.

A lobby group that advocates for more investment in public media said merging RNZ and TVNZ into a new organisation that received some of its income from advertising would come with a risk.

Better Public Media chairman Peter Thompson said it would be good to see a multi-platform public media provider that had a 'clearly defined public media mandate'.

But he said it would not be a simple task to 'glue public service and commercial priorities together in the same institution without significant compromises'.

'It is therefore a concern that the suggestion is only 'some' of the channels and services 'may' be advertising-free,' he said.

Faafoi said he was close to taking media policy proposals to Cabinet and expected an announcement by the end of the year.

But he denied he had a preferred option and described the apparent leak to RNZ as 'unhelpful'.

He has previously emphasised the importance of media plurality given the wider, fragile state of the media market.

But speaking on Thursday, Faafoi said he thought the best way to deal with the 'general media issues in New Zealand … is to make sure we do as a Government what we can to support public broadcasting'.

'They are the assets that we own.'

RNZ reported the other options on the table were a merger of RNZ and TVNZ's newsrooms, and more funding for NZ On Air.

But it reported a new public media organisation was the 'preferred option'.

NZ On Air chief executive Jane Wrightson said it was taking part in discussions with officials about 'a range of options'.

A media source believed it was questionable whether there would be a large-enough role for NZ On Air if the new entity was set up.

But Wrightson said Faafoi had stated at an event last week that NZ On Air would continue to be an important part of 'a strong, effective and sustainable public media environment'.

RNZ reported that an advisory group, with representatives from both RNZ and TVNZ and 'public service agencies', concluded the status quo was 'unsustainable' and 'collectively recommended the government agree to disestablish TVNZ and RNZ and to establish a new public media entity'.

It would have a clearly-defined public media mandate and purpose, with the core functions of a globally recognised public media entity, it reported.

It would provide public media services across a variety of platforms, 'some of which may be advertising free', it said.

While it would receive some government funding, it would also receive income from other sources including 'advertising, sponsorship and subscriptions'.

Peter Thompson said that carried some risks.

'There will be strong public concern for RNZ under such a model. If RNZ were forced to factor in commercial ratings in its programming then its charter would be immediately compromised.

'This kind of dedicated public service may not be possible under a 'mixed funding model' unless the services are very clearly demarcated and the funding for core services carefully ringfenced.'

It is understood one of the group's concerns is what might happen to the new, enlarged entity under a future National government – for example the possibility that it might face the same fate as TVNZ7.

'None of the programmes on the arts, politics, the law courts, literature, local communities and the media – not to mention an hour of ad-free news and current affairs every evening – survived the National government's decision to discontinue [its] funding after 2012,' Thompson said.

'The public media service must be accountable to civil society, not the government of the day – either directly or by proxy,' he said.