Senior Newshub reporter Michael Morrah says he was told by Warner Bros. Discovery (WBD) they “still couldn’t see a path to profitability” in his proposal to save a dramatically stripped back version of the company’s news operation online.
The investigations reporter said they rejected his proposal outright which he has spent his weekends devising, pitching and discussing with colleagues since news of the Newshub closure was announced on February 29.
The Morrah-led plan was to keep a stripped-back version of Newshub’s television bulletin for a period of time and then eventually transition to a streaming and online-only news service under the Newshub brand over a two-year period.
“Essentially what we’ve been told is that they felt that our proposal would still generate losses which they were not willing to sustain,” Morrah said.
“It’s important to point out that this was a very stripped-back model. It’s not like our sub-committee’s proposal was intending to bring every single staff member and every single news programme with us.
“It was drastic and innovative, we thought. It’s disappointing that it didn’t ultimately succeed.”
But the Newshub journalist of nearly two decades said he was confident Warner Bros. Discovery (WBD) did consider his proposal in good faith.
“I know they did take it seriously. I can’t disclose exactly why but they had people involved right up the ladder of the company, scrutinising it and looking at it and offering us assistance,” he said.
“I’m disappointed, but overall it’s been constructive and I don’t hold any animosity towards WBD.”
Negotiations have been undertaken with rival media organisations to produce a basic TV news bulletin using some Newshub journalists, that could be sold back to Three for broadcast.
It’s understood Stuff and Sky New Zealand are the leading contenders at this stage to agree to this proposal. NZME, the publisher of the Herald, has said it is not part of any current talks.
However, Morrah did not have any insight into the details of these other rescue attempts.
He also said he has not approached any other media organisations with his own proposal.
“Essentially there’s external negotiations going on. I understand there was 12 interested groups initially,” Morrah said.
“I don’t know how many are still in talks now and I don’t know exactly what all of those parties are proposing. But those talks are still going and are very separate from today’s announcement which is our internal consultation.
“So there seems to be two processes going on. They’re both very different, and the one that relates to the external parties. I don’t know if that’s going to be successful. It doesn’t appear that a deal is imminent.”
Reflecting on his own future, Morah said he didn’t know what he would do next.
“It’s a terrible day for 250 people who ultimately work hard [for] society in New Zealand,” Morrah said.
“That’s what it’s all about really in my mind. As a journalist you do this job to try and improve society in some form, and to have that taken is absolutely gutting.
“Me, like all of my colleagues, are kind of just assessing what’s next, and for myself personally I don’t know. I mean, I love journalism and believe in journalism, I’d like to remain in journalism but we’ll have to wait and see.”
TVNZ yesterday said Fair Go and the Midday and Tonight news bulletins would also close in mid-May - part of a series of cutbacks resulting in the loss of up to 68 roles.
Tom Dillane is an Auckland-based journalist covering local government and crime as well as sports investigations. He joined the Herald in 2018 and is deputy head of news.