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TVNZ may axe news website, outsource some functions and consolidate others

Monday, 7 October 2024

TVNZ has outlined its high levels plans to cut costs to staff.
TVNZ has outlined its high levels plans to cut costs to staff.

TVNZ is proposing to outsource some of its operations, consolidate others and to axe its 1news.co.nz website from February as it looks to plug a $30 million funding gap.

However, a spokesperson said it was not currently considering reducing the number of channels it broadcasts from three; TVNZ1, TVNZ2 and Duke.

The proposals would see its ‘news’ and ‘content’ teams combined into one and some of its technology functions and “content workflows” outsourced.

The proposed restructure would also see some functions, including technology, consolidated into its ‘revenue’ team.

Its spokesperson said it was too soon for TVNZ to outline the possible implications for individual staff.

Media and Communications Minister Paul Goldsmith says he expects TVNZ to be financially sustainable.
Media and Communications Minister Paul Goldsmith says he expects TVNZ to be financially sustainable.

“Some of the proposals may result in redundancies but some may result in the creation of new jobs.”

TVNZ would now be seeking feedback from staff on the proposals, she said.

Media and Communications Minister Paul Goldsmith said the development “reflects the current environment in the media sector”, which he said needed to be innovative and responsive.”

TVNZ chief executive Jodi O
TVNZ chief executive Jodi O'Donnell flagged the need in July for the broadcaster to respond to a sharp drop in advertising revenues.

“We’ve been clear that we expect TVNZ to be financially sustainable and to be innovative and responsive to changing customer demands,” he said.

“Whilst the consultation process is underway it is not appropriate for me to comment any further. However, my thoughts are with the TVNZ staff as they consider the proposal.”

Media and Communications Minister Paul Goldsmith announced that the Fair Digital News Bargaining Bill will go ahead despite the ACT Party's opposition.

Chief executive Jodi O’Donnell flagged the need for a further round of cuts in July, after TVNZ chairperson Alastair Carruthers warned MPs it would need to shrink further as it shifted its focus from broadcasting to the “digital world” and dealt with the impact of the recession.

The funding gap that TVNZ is seeking to close equates to more than 10% of its costs, which totalled $304m last year, but will have fallen since in the wake of cuts to its news and current affairs programming earlier this year.

The state-owned broadcaster reported an $85m net loss in the year to the end of June after a $62m write-down of its assets added to a pre-tax $28.5m trading loss.

O’Donnell told The Post in July that while expectations of lower interest rates appeared to be assisting TVNZ, its revenues were still declining, albeit at a slower pace.

“I'd say there's been more of a stabilisation. I certainly wouldn't say that it has returned to growth or that there are ‘green shoots’ yet,” she said then.

Peter Thompson, chairperson of lobby group Better Public Media, said he would be surprised if the closure of 1news.co.nz saved TVNZ a lot of money.

It was clear the broadcaster saw streaming service TVNZ+ as “the primary portal for its digital future”, he said.

O’Donnell has set 2030 as the date by which TVNZ intends to return to profit and start persuading viewers to switch away from broadcast television and instead watch its programmes online.

But Thompson said its consultations on Monday “perhaps alludes to TVNZ’s perception that it needs to get towards ‘digital terrestrial’ switch-off in the shorter term rather than the longer term”.

“It hasn't made that part of the announcement, but we know that the cost of maintaining linear broadcasts is something that TVNZ and other other linear broadcasters are looking at very closely.”

TVNZ’s proposals