TVNZ, RNZ demand right to be in on collective negotiations with Google, Facebook

Tuesday, 7 December 2021

TVNZ and RNZ support the right for the media to band together in negotiations with Google and Facebook and say they should not be shut out from such talks.

TVNZ and RNZ say they should be allowed to join other media businesses in being granted a right to collectively negotiate with Facebook and Google over payment for their content.

The News Publishers’ Association (NPA) filed an application with the Commerce Commission last month, seeking the right for New Zealand-owned media organisations to negotiate as a block in any future talks with the two United States digital giants.

But the application excluded state-owned media organisations, including TVNZ and RNZ – as well as television channel Three owner Discovery on the basis that it is overseas owned.

TVNZ and RNZ said they supported the right for the media to collectively negotiate with Google and Facebook but that they should also be covered by the requested Commerce Act exemption.

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It appears Facebook does expect to have its say on a proposal that could strengthen the media’s hand in future negotiations with the firm and with Google – despite missing the original deadline for submissions.

TVNZ said in a submission to the commission that its digital news services “shared the same issue” as other media businesses in regard to the impact of Facebook and Google, also having an “unbalanced relationship and lack of bargaining power”.

“While these ‘must have’ digital platforms are themselves able to monetise our news and current affairs content … approximately only 10 cents in every dollar spent on digital advertising in New Zealand goes to the New Zealand news producers that invest in producing that journalism and content,” it said.

RNZ chief executive Paul Thompson told the commission it saw merit in allowing the news media to have the option to bargain collectively with the digital platforms.

He also called for “a ‘broad church’ approach that gives all accredited New Zealand news media the option of joining this collective or, if they choose, an alternative collective”.

Discovery’s law firm DLA Piper said there was “no good reason” why the TV company had been excluded from the scope of the NPA’s application.

Facebook and Google are not yet believed to have agreed to the types of negotiations that the NPA and its members – including Stuff and NZME – appear to be anticipating, which is understood to be for broad compensation for the value of their work shared through the online platforms.

Instead, the media organisations appear to be assuming that the Government will encourage or force Google and Facebook to the negotiating table and are acting proactively to head off the possibility of Google and Facebook using a strategy of ‘divide and rule’ in those negotiations.

The Commerce Commission originally gave a deadline of last Wednesday for submissions on the NPA’s application, and a deadline of this Wednesday for any cross-submissions.

There was no indication that Facebook or Google had made a submission by last Wednesday’s deadline, but a spokesman said some parties had been given an extended deadline to respond to the NPA’s proposal.

Google said it had no comment on the NPA’s application, but a Facebook spokesman indicated it believed it still had an opportunity to have a say.

A commission spokesman said that the NPA and other parties that had made submissions would have a further opportunity to provide cross-submissions on submissions that were accepted after the original December 1 deadline.