After a year of high-profile cuts and the loss of an entire news organisation, media companies may be in for some more bad news - a new flagship law to support the industry seems now to be on shaky ground. Plus: A big watch out in the 6pm TV ratings
Media Insider: Fair Digital News Bargaining Bill up in the air – Beehive sources say new law ‘snagged’; Latest 6pm TV ratings
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Beehive sources confirmed the planned second reading had been pushed out and described the bill as “snagged”.
One well-placed source went further: ”Apparently it’s over.”
Media and Communications Minister Paul Goldsmith’s office initially said on Tuesday afternoon: “We’ll let you know when there’s something definitive. No date to advise at this stage. The Government will make announcements when it’s ready.”
Later, in an updated statement, Goldsmith’s office said: “The bill wasn’t ready this week. When the Government has something to announce, it will.”
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When Goldsmith’s office was asked to respond to a basic question – “Is the Government still committed to the bill?” – it did not respond.
It appears it’s all become too hard for the Government – sources say that while major media companies are aligned on the bill, other, smaller players have been more vocal about whether it is the right solution.
There is a suggestion the Government might now just implement a policy – similar to Canada – requiring Google to agree to a total pool of money each year for media companies.
The question then arises if that will be a meaningful sum or just in line with existing Google partnership agreements. The major media companies say those sums do not reflect the value of their content.
It is still not yet clear whether the bill faces being scrapped altogether or if there will be amendments. But clearly there have been yet more behind-the-scenes manoeuvrings which continue to create obstacles for the bill’s progress.
It has been a contentious piece of legislation.
The bill was introduced by the Labour Government last year and supported, with amendments, by National and NZ First (but not Act) at the coalition Cabinet table this year.
The new law would force tech giants such as Google and Meta (Facebook) to negotiate with media companies and pay for the New Zealand journalism and news content that help drive their fortunes.
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Media companies have said they are not looking for a handout – they’re after an even playing field.
Aligned with the new bill, Cabinet had earlier approved other legislative changes to help New Zealand media, including lifting a ban on TV advertising on Sunday morning and specific public holidays such as Christmas Day.
It is understood those changes, too, are now held up.
Prime Minister Christopher Luxon was asked directly by Newstalk ZB’s Mike Hosking this morning if the bill was dead.
“Yeah, no, look, that’s really a question for Paul Goldsmith. I tasked him with that role to work his way through that issue.”
Luxon said the bill’s non-appearance today was a result of juggling other legislation. “It’s still live. He’s working his way through it and he will pop up and have more to say about it shortly.”
Media’s tough year
It has been a challenging year for most commercial media companies, big and small, and in particular, the TV broadcasters.
The collapse of Newshub and a series of show cuts and layoffs at TVNZ – the latest of which were announced just last week – have dominated headlines.
Other media companies such as NZ Herald publisher NZME, Stuff and MediaWorks have all been cutting costs. This week, NZME lowered its earnings guidance, although it did say its fourth quarter had started positively.
While economic conditions have been tough, media companies say there are broken settings which allow tech giants such as Google to use content and journalism to drive their own business models, without fairly compensating local companies.
Google’s threats
Google – whose New Zealand operation made almost $1 billion last year – has described the new bill as a “link tax”.
It has been extremely vocal in its opposition to the bill.
Goldsmith met Google last Friday, the latest in a series of meetings and communications between the Government and the tech giant.
Media companies have also regularly met with Goldsmith.
One of Google’s most senior global executives wrote to Prime Minister Christopher Luxon earlier this year, threatening to end the tech giant’s “significant commercial investments” in New Zealand’s news media industry if the Government passed the new legislation.
Google seemed to have already won a significant concession, with the Government advising the tech giant it was confident it could mitigate its concerns about the bill creating an uncapped financial burden.
In Canada, Google has been granted an exemption from a similar law by agreeing to an annual capped amount of money – C$100 million ($119m) – to be shared amongst news media companies.
A similar move was likely being considered in New Zealand. But if the bill really has been thrown on the scrap heap, Google will have won the war.
The August 29 letter to Luxon from Google global affairs president Kent Walker expressed Google’s “heightened concerns” about the bill.
“We have ... consistently said that the news bill is the wrong approach to supporting journalism and believe that it will undermine the news ecosystem in New Zealand and our ability to support it,” he wrote.
“It is increasingly clear that in its present form, the news bill will result in significant changes to the services we can offer New Zealanders and a significant reduction in the valuable web traffic Google Search generates for Kiwi publishers.
“It would also require us to discontinue our significant commercial investments in New Zealand’s news industry.”
Walker’s letter and Goldsmith’s response were released to the Herald under the Official Information Act early last month.
A few hours before the release of the letters, Google NZ country director Caroline Rainsford posted a statement, with similar threats to blow up agreements with New Zealand news publishers and cease linking to New Zealand news content if the law was passed.
Publishers said the threats amounted to little more than corporate bullying.
One source said earlier: “They’re playing their usual games, being as obnoxious as they can be.”
News Publishers Association (NPA) public affairs director Andrew Holden said the bill was not a tax.
“It creates the environment for New Zealand media companies to sit down and have a proper commercial negotiation with big tech companies about their use of our journalism. This has only become necessary because the likes of Google have distorted the market and become some of the largest and most powerful businesses in corporate history.”
Citing recent and ongoing cases against Google in America, Holden quoted United States Attorney-General Merrick Garland describing one case as “a historic win for the American people”. “No company – no matter how large or influential – is above the law.”
Holden said: “The NPA agrees, and also believes that the Government of New Zealand should be able to make laws to strengthen democracy in this country without being subjected to this kind of corporate bullying.
“We trust the Government will stand firm and act in the interests of New Zealanders.”
Goldsmith himself has appeared to be taking a softly, softly approach to Google’s threats over the past several weeks.
In a response letter to Walker, Goldsmith thanked him for his earlier August 29 letter and a meeting on September 6.
“I welcome all opportunities to discuss the proposed changes to the bill and provide greater business certainty to relevant companies. I’ve taken some time to consider your main points and appreciate the valuable discussions we’ve had to date.”
He said Google was an important part of the media industry and “New Zealand’s future-focused economy”.
“I recognise Google is working constructively to provide pathways forward that continue to put investment into the New Zealand marketplace.
“I am confident that the changes proposed to the bill will provide Google with greater business certainty and mitigate your concerns regarding uncapped financial liability. I believe that as we continue to work together, we can achieve an outcome that benefits all parties involved.”
Latest 6pm TV news ratings
Ratings for the 6pm TV news bulletins have remained relatively stable over the past five months although a seasonal decline has started to kick in, and there is one particular watch out over the ThreeNews bulletin.
Overall ratings (all audiences aged 5+) for the Stuff-produced ThreeNews bulletin are now consistently below 200,000, whereas TVNZ tends to fluctuate more wildly but generally stays above 500,000 viewers with highs around the mid-600,000 mark.
But the most noticeable trend has been the drop in the 25-54 age bracket for ThreeNews – the group of viewers that advertisers are particularly keen to target.
ThreeNews’ ratings fell to an all-time low of just 18,500 people for that age bracket two Saturday nights ago.
Between July and October, there were regularly more than 50,000 viewers in the age bracket, with highs of 95,500 and 91,600 in August.
TVNZ’s numbers have also dipped in that age bracket.
Analysts such as GroupM’s Harry McFall say the latest ratings carry a seasonal factor “with viewership typically dropping as the weather warms and people become more active”.
Stuff referred comment on the TV ratings to Warner Bros Discovery but it’s clear its strategy is aimed far wider than just the 6pm bulletin.
With its new contract and investment in former Newshub talent, Stuff has lifted its overall video views for its website more broadly.
At the same time, latest Nielsen daily figures show the NZ Herald has now closed an earlier gap and it and Stuff are in a tight battle each day for overall website views.
A Warner Bros Discovery spokeswoman was upbeat about the 6pm TV ratings, and also pointed to the digital benefits.
“ThreeNews’ broadcast share is overwhelmingly stable, and our broadcast audience does not reflect the total numbers of people watching ThreeNews; ThreeNow is going from strength to strength (with weekly reach up 34% YoY), and ThreeNews is consistently a top performer on the service.
“ThreeNews is a fresh product, which means it has the luxury of being able to tweak the format and try out new features. We are committed to Three News, and in fact, just last week launched a new marketing campaign (Cut Through The Noise) across television, digital, radio and OOH [out-of-home advertising].”
TVNZ is also starting to see a seasonal dip, although it maintains the ratings are “exceptionally strong”.
“Importantly for TVNZ, our streaming numbers for our bulletin have also grown significantly year-on-year,” says a TVNZ spokeswoman.
“News is playing an integral role in helping us achieve our digital transition. We think the numbers speak to New Zealanders continued desire to stay informed about what’s going on here and overseas, as well as the trust they have in our journalists to bring them this information.”
The Great NZ Road Trip is back
We’re on the road again – from coast to hinterland – in a new editorial series to gauge the mood of the nation and celebrate the very best of New Zealand.
As we head into summer and out of a post-pandemic economic recession, it’s time to reset and uncover some of New Zealand’s great stories.
Join us for the Great New Zealand Road Trip, during which we’ll be meeting notable and everyday Kiwis helping make a difference in their towns, regions, country, and the world. Or there might be a strong story in the plight of your town and community.
In association with MTF and with the help of our NZME teams, editor-at-large Shayne Currie is travelling the country – starting in Northland from Wednesday, November 20, and winding his way south for the following fortnight.
Do you have a story that’s worth us covering or a person in your town or city worth speaking to?
We’d love to hear from you.
PLEASE EMAIL: roadtrip@nzherald.co.nz
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.
