Meanwhile, it was confirmed this afternoon that TVNZ’s Sunday current affairs show would also be cancelled, with staff being told that the last show will be on May 19.
TVNZ yesterday confirmed that the Fair Go show and the Midday and Tonight news bulletins would close in mid-May - part of a series of cutbacks resulting in the loss of up to 68 roles.
Media and Communications Minister Melissa Lee said it was “a black day” for the broadcasting sector, but would not say what stage she was at in putting any proposals before Cabinet to address problems facing the media industry.
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TVNZ has proposed that the Fair Go brand can remain in digital form, staffed by a team looking after long-form current affairs and consumer journalism. As part of this proposal, four new roles would be created.
An Advertising Standards Authority report released yesterday clearly outlines the challenges faced by the likes of TVNZ and Warner Bros Discovery.
It shows traditional television advertising revenue fell from $517 million in 2022 to $443m in 2023. TV digital revenues rose - from $82m in 2022 to $91m in 2023 - but not enough to offset that fall in traditional revenue.
Newspaper revenue fell from $216m in 2022 to $190m in 2023, while newspaper digital advertising revenue dropped from $119m in 2022 to $107m in 2023. The likes of the NZ Herald have digital subscription revenue adding to the coffers.
Radio revenue (traditional and digital) fell from $276m in 2022 to $267m in 2023.
Magazines revenue (traditional and digital) fell from $153m in 2022 to $128m in 2023.
Total digital revenue - mainly the global tech giants such as Google and Facebook but also including TV, newspapers, radio and magazines - rose from $2.025 billion in 2022 to $2.112b in 2023.
Meanwhile, screen producers’ guild Spada today called for “swift and decisive action” from the Government as the domestic screen industry faces a “major crisis”.
It says both TVNZ and Warner Bros Discovery are making dramatic cutbacks to their spend on local production because of falling advertising revenue.
“We acknowledge our friends and colleagues in news and current affairs who are impacted by the broadcaster cutbacks and, understandably, it’s the newsroom cuts that have dominated media coverage to date, but it is actually the whole production sector being impacted,” said Spada president Irene Gardiner.
Spada has calculated about $50m was being cut from the sector.
“Ironically it is our big, popular shows that will be most vulnerable - as they are what has traditionally been fully funded by advertising revenue. This creates uncertainty around the future of favourite series like Shortland Street, Celebrity Treasure Island, The Traitors NZ, Married at First Sight NZ, food shows, home shows and more.”
Gardiner said Spada had been calling for Government regulation of international streamers for some time.
“These large multinationals need to contribute to the local production industry in some way, to alleviate the market distortion they have created. This regulation is now urgent. The impact of the streamers, along with Facebook, Google and YouTube, on advertising revenue has been devastating, and has now hit a crisis point.”
Gardiner acknowledged tough economic times for everyone “but the Government, the sector and New Zealanders need to understand local production is at a pivotal point in time. We are not just another business”.
“We represent the New Zealand voice - the cultural impact of us not seeing ourselves on our screens, of us not creating our own stories, will be profound, particularly at a time of social change and division.”
Media and Communications Minister Melissa Lee said yesterday that cutbacks were “very upsetting” and “distressing” for staff - “I feel for them” - but there was no easy solution to the range of challenges facing the media industry.
“I am working towards a solution,” Lee told journalists at Parliament, referring to a long-awaited Cabinet paper that has no set timeframe for a release, or when decisions might be made.
“I know that it is very slow. If only I was a magician, if I could actually just snap up a solution, that would be fantastic. But I’m not a magician and I’m trying to find a solution to modernise the industry... there is a process happening.”
Editor-at-Large Shayne Currie is one of New Zealand’s most experienced senior journalists and media leaders. He has held executive and senior editorial roles at NZME including Managing Editor, NZ Herald Editor and Herald on Sunday Editor and has a small shareholding in NZME.
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