Some of Kiwi television’s biggest stars have today been on the other side of the story, fronting on the heartbreak they’re experiencing as one of New Zealand’s largest news providers confirms it’s shutting up shop.
Speaking after the 11am meeting where Newshub’s closure and other production cuts at Three were confirmed, host Mike McRoberts said companies come and go but he will miss the people who created the broadcaster’s legacy.
Why is Newshub closing? What we know so far
“I really feel for everyone today, past and present who have given so much for 35 years to the news service,” McRoberts said.
“We’ve got such a great audience, a loyal audience, who have watched us for a long time, who I know are going to miss us from the cards and emails and stuff that they’ve sent through.”
Fellow host Samantha Hayes said it was a sad day, and asked reporters not to make her cry.
“People that we’ve worked with, for me 17 years, some even longer than that, 23 years, even people that have only recently worked at Newshub I think feel part of the family and that’s what’s gonna get us through, isn’t it? We’ll just look after each other for the rest of it,” Hayes said.
Owners Warner Bros Discovery told staff today that there is no deal “at this stage” with any third parties to provide a pared-back news service, including a 6pm bulletin for the Three channel.
The final Newshub at 6pm bulletin is scheduled for Friday, July 5. The closure includes the Newshub website and up to 300 job losses.
A Newshub worker said confirmation of the closure, made at the Dalmation Hall meeting in Auckland’s Eden Terrace and via Zoom, had been met with silence initially. “Inevitable but gutting,” they said.
The meeting lasted about 20 minutes.
Warner Bros Discovery has been in a five-week consultation period with staff after announcing the proposed closure of Newshub - including its 6pm news bulletin, website and entire newsroom - from late June. The American media giant has also proposed production cutbacks which will affect many popular local shows, including The Traitors, The Block NZ and Married at First Sight NZ.
There has been a glimmer of hope that news content might remain on Warner Bros Discovery’s Three channel - either in the form of a pared-back news service offered by a rival media organisation or if the company adopts any part of at least two staff proposals, including one led by senior investigations reporter Michael Morrah.
As Media Insider revealed exclusively yesterday, Warner Bros Discovery has raised the possibility of a pared-back news service with other media companies and private individuals over the past five weeks. Talks have been held in secrecy, with some parties even signing non-disclosure agreements.
Morrah told reporters outside the meeting the decision to shut down the news provider was devastating and a “huge blow for democracy”.
He believed staff proposals to save some of the organisation were listened to, and they had a “relatively constructive relationship” with management.
“We worked extremely hard on the proposal and tried to get as much information and make suitable cutbacks that we thought might pique their interest. And we’re absolutely gutted that they’ve ultimately decided against adopting our proposal.”
Their view, he said, was that even the proposal would still cause a downward trajectory for the business.
Morrah said staff did not know who the interested parties were, nor what they were proposing, but they have been told discussions are ongoing and separate from the internal consultation which was just concluded.
“Should there be another media business that comes along and tries to help salvage something of what we represent, then that would be a welcome opportunity. But that’s for another day, and we just don’t have the details of anything about that.”
Fellow journalist and broadcaster Patrick Gower remained committed to finding a lifeline for Newshub, asking those considering it to “get the deal done”.
“We know there is huge value in what people are doing for Newshub, not just in terms of what it does journalistically, but in terms of what it can do commercially for Warner Brothers Discovery and in terms of what those journalists can do if another media organisation is to come in and do this.”
Gower said they were losing 250 amazing people, who were good friends of his, and of all Kiwis.
“Give Newshub a lifeline, give some of the people in here a lifeline and give Kiwis the news that they deserve.”
At today’s all-staff meeting, Warner Bros Discovery’s New Zealand boss Glen Kyne said staff would be advised if any deal could be made.
“You could tell it was going to be bad as the three on stage looked so grim,” said a Newshub worker. “Michael Morrah [is] giving them a bit of s*** re not really looking at [the] staff proposal.”
Story continues after the live blog:
Story continues:
Meanwhile, staff from TVNZ’s Sunday will also hear today whether the current affairs show will be saved in any form after the state broadcaster announced plans to axe it later this year.
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.
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, but not enough to offset that fall in traditional revenue - from $82m in 2022 to $91m in 2023.
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.”
A newspaper has been saved, paving the way for several similar deals for other towns.