Newshub closure ‘tough’ but media plurality will continue, says PM
Wednesday, 28 February 2024
Prime Minister Christopher Luxon has downplayed the implications of the loss of one of the country’s mainstream media outlets on the country’s democracy.
Luxon said that while the closure of Newshub would be tough for its 250 staff and families, there would still be a variety of media outlets.
Stunned staff were told on Wednesday morning that TV3-owner Warner Bros Discovery was consulting on closing Newshub at the end of June.
That would eliminate one of the country’s mainstream media outlets and leave state-owned TVNZ with a near monopoly on local TV news.
As well as producing news and current affairs shows for TV3, Newshub also produces Sky TV’s 5.30pm News First news bulletin, so its closure could leave a prime-time hole in the schedule of its Sky Open free-to-air channel.
Sky TV spokesperson Chris Major said it knew the importance of news to its customers and “the importance of plurality of news in New Zealand generally”.
“As a New Zealand broadcaster we are keen to explore how we might continue to play our part in delivering strong local news,” she said.
She would not comment on whether that meant there was a possibility of Sky taking over any of Newshub’s operation.
Luxon said consumers were getting news through lots of different channels and “multimedia outlets”.
“The plurality of media voices in New Zealand will continue,” he said.
But NZ First leader and Deputy Prime Minister Winston Peters appeared more concerned, describing Newshub’s closure as “a disaster, but also a disaster for the country’s democracy”.
“A critical part of democracy and a free society is an independent fourth estate and I'm concerned about where we're going now,” he said.
He said he, personally, had considered changing settings in the media market to provide more support “but I’m not going to say anything more than that”.
Act Party leader and Minister of Regulation David Seymour questioned whether state ownership of TVNZ had contributed to an “uncompetitive market”, saying he had sought advice “about that very issue” on Wednesday.
New Zealand had only one TV news channel for many decades prior to the1980s and was a “much darker, drabber place in those days with a lot less debate and frankly, a less healthy democracy as a result”, he said.
“For a long time, people have raised the simple question; how is it possible that New Zealand has very cheap television advertising and a major player owned by the Government that doesn't return a dividend as other companies are expected to do?”
Luxon confirmed he was briefed ahead of Warner Bros Discovery’s announcement and said it was clear it couldn’t make Newshub’s business model work in the face of declining advertising.
His advice to the media was “to find innovative business models to be able to make businesses like that stack up”.
A former cabinet minister told The Post that Warner Brothers Discovery had approached the Ardern and Hipkins governments for support a number of times, but was told they were not prepared to subsidise a big global media company.
The former government is understood to have directed Warner Bros Discovery to the now-defunct Public Interest Journalism Fund and NZ On Air.
Luxon said a “well-functioning media environment“ was needed, but intervention by the Government was unlikely.
In Newshub’s case, any intervention the Government had made was unlikely to change Warner Bros Discovery’s decision, he said.
The Government is currently considering whether to assist the media by passing the Fair Digital News Bargaining Bill, drafted by the former government.
It would force the likes of Google and Meta to negotiate licensing deals for content shared through their platforms, on terms that could ultimately be imposed by regulators.
Stuff owner and current News Publishers’ Association president Sinead Boucher warned the select committee considering the legislation earlier this month that some media were “clinging on by their fingernails”.
She told MPs the NPA’s members had asked her to convey the “utter urgency” of the legislation.
A spokesperson for Warner Bros Discovery said more government support, for example a commitment to support the Fair Digital News Bargaining Bill, would be unlikely to make a difference now.
“No decisions have been made and we will take all feedback that comes in and consider it carefully.
“But the fact is that advertising revenue has disappeared to such an extent that it would be unlikely to move the dial enough,” he said.
TV3 itself is not closing and will continue to provide television entertainment. Warner Bros’ spokesperson said it had not decided what would replace its 6pm TV3 news bulletin if Newshub’s closure was confirmed.
“If the proposal is confirmed, we will review all content moving forward.”
In July, Warner Bros Discovery’s local arm posted a $35m loss for the 2022 year.
At the time it appeared to take the loss in its stride, saying it “did not fully reflect the total model of the local operation” and it was satisfied with the performance of its Australian and New Zealand entity.
Boucher said it was a heartbreaking day for “Aotearoa New Zealand, for the industry, for all of our colleagues affected and for the strength of our democracy”.
“Newshub and its stable of really talented journalists have delivered extremely strong news journalism over many years, and have been a fierce and respected competitor. They have had a huge impact on the country and we will all be poorer for its loss.”
The development reflected the “enormously challenging environment in which all media organisations are currently operating”, she said.
“This is not just about the 6pm news, it is Newshub’s digital news website and all of the content their dozens of journalists and hundreds of other staff deliver each day.
“As was so eloquently put by news leaders from all over the country at select committee in Parliament last week, we need a broad range of voices in media. Newshub is one of the best of those voices.”