Decision to merge TVNZ and RNZ draws mixed response

Thursday, 10 March 2022

A decision to merge TVNZ and RNZ into a new public media entity has received a guarded reception from several quarters, but has been applauded by the two broadcasters.

Broadcasting Minister Kris Faafoi expected the new public media entity, which does not yet have a name, would be operating by July next year and would provide more services online.

TVNZ and RNZ will initially keep their separate identities, operating as subsidiaries of the new entity, but Faafoi did not rule out them being fully subsumed into the new entity after a transition period.

RNZ and TVNZ will retain their separate identities for a while, but not necessarily indefinitely.

The new entity would be “built on the best of both RNZ and TVNZ”, he said.

* TVNZ, RNZ merger proposal to go to the Cabinet 'soon'

* Why the Government might want to merge TVNZ and RNZ

Stuff chief executive Sinead Boucher said Stuff was still considering the possible impact of the Government’s public media plan on media companies and was looking forward to receiving further details.

Faafoi indicated a central reason for the merger was to enable TVNZ and RNZ to make a stronger push into the digital space.

But National Party broadcasting spokeswoman Melissa Lee said the merger was “a solution looking for a problem” that would reduce media plurality.

“There are significant differences between RNZ and TVNZ and it is bizarre that Faafoi thinks their amalgamation is the best answer for the future of our media sector,” she said.

TVNZ chief executive Simon Power, who has been tipped as a likely head for the new public media entity, was only giving interviews to the state-owned broadcaster on Thursday.

Faafoi said the public would have a chance to have their say when a law change paving the way for the merger was considered by a select committee later this year.

Before that, “an establishment board” will be appointed next month to oversee the detailed design of the entity and how changes will be managed.

Stuff chief executive Sinead Boucher said it expected to make a submission at the select committee stage.

Better Public Broadcasting chairman Myles Thomas says the new public media entity can’t be completely editorially independent while politicians control its annual budget.

“As a commercially funded New Zealand-owned company, Stuff is keen to ensure that government intervention in the market does not undermine the commercial viability of our newsrooms and operations in every region across the country,” she said.

TVNZ chief executive Simon Power declined a request for an interview. A spokeswoman said he planned to only speak with TVNZ’s 1 News team.

But Power said in an emailed statement that “creating a public media entity for the digital age” was an exciting opportunity, and it was pleased to have a decision.

RNZ chairman Jim Mather reiterated his support for the merger describing it as “a sound response to the challenges faced by New Zealand public media in a rapidly changing global media environment”.

Myles Thomas, chairman of lobby group Better Public Media, said it had serious concerns, one of which was that the merger might enable a future government to push RNZ towards a commercial model.

The governance structure of the new entity would be crucial, given the risk that commercial voices within the new organisation could have a louder voice than others, he said.

Faafoi’s promise of “complete editorial independence is impossible when politicians control the entity’s funding through the annual budget”, he said.

Broadcasting Minister Kris Faafoi says the merger of TVNZ and RNZ will “future-proof” public media.

“Nothing in this announcement suggests that TVNZ is going to improve in any way. It is still expected to be funded entirely through advertising, so it will continue to prioritise reality TV over nightly current affairs.”

Faafoi said the new public media entity would “showcase New Zealand voices and stories”.

RNZ and TVNZ were each trying to adjust to the challenges of a changing media landscape, “but our current public media system and the legislation it’s based on is focused on radio and television”, he said.

“New Zealanders are among some of the most adaptive audiences when it comes to accessing content in different ways; like their phones rather than television and radio, and from internet-based platforms,” he said.

“We must be sure our public media can adapt to those audience changes.”

National Party broadcasting spokeswoman Melissa Lee said there had been no cross-party consultations on the Government’s media plan.

Providing more content “on-demand” would help the new media entity attract new audiences, including younger audiences, he said.

It would collaborate with non-government owned media in some areas, but would “compete fiercely” in others, including news and current affairs, he said.

Faafoi acknowledged TVNZ and RNZ staff might be uneasy about change and did not rule out job cuts but said that was not the purpose of the merger.

The new public media entity would be structured as an “autonomous Crown entity”.

Since RNZ’s running costs exceed the profits TVNZ normally makes from advertising sales, it is expected to be non-profit, continuing to make money from advertising but also receiving government funding.

Faafoi said TVNZ and RNZ’s services that were currently commercial-free would remain so.

“The likes of RNZ National and Concert FM will continue.”

Although there has been speculation that Power will head the new public media entity, Faafoi said there would be a “full process” to recruit its chief executive.

“There is no preconceived idea about who that might be,” he said.

Lee said that despite “millions” being spent on the plan it was still not clear what would be delivered.

The country needed more media voices, not fewer, she said.

“Merging RNZ and TVNZ into an unaccountable publicly-funded monolith will only harm their long-term value to the taxpaying public,” she said.

TVNZ

Revenues: $340m

Staff 690

RNZ

Revenues: $50m

Staff: 310 (in 2020)