Cabinet is expected to consider proposals to address challenges to the New Zealand media industry this month.
The deadline is stated in the briefing to the new Media and Communications Minister Paul Goldsmith, which also advises the minister of the options the Government could take to aid the sustainability of local content providers in the face of declining revenue and overwhelming competition with global streaming and social media entities.
Every time a ministerial portfolio changes hands, the new minister receives a briefing that gives an overview of their responsibilities and the priorities of their department or ministry.
Goldsmith became the Media and Communications Minister after Melissa Lee, who held the portfolio from the beginning of the coalition Government, was demoted by Prime Minister Christopher Luxon in April.
In his recently released briefing, it stated the minister was set to determine the future of the Fair Digital News Bargaining Bill in May. Goldsmith had been requested to report to Cabinet this month.
Introduced by the former Labour Government, the bill sought to implement a regime by which social media companies and tech giants would pay for local news content that appeared on their platforms.
In Opposition, Lee hadn’t supported the bill but her view appeared to soften with her reserving judgement until after it went through the select committee process.
That concluded late last month in a confusing fashion with Goldsmith having to later admit Government MPs erred in recommending the bill not be passed. At the time, Goldsmith said he was still considering the bill.
Goldsmith’s office today wouldn’t confirm if the minister had reported to Cabinet, saying Goldsmith was currently reviewing the bill.
The plight of local media providers became starkly apparent in April when Warner Bros. Discovery confirmed Newshub would close in July. A week later, TVNZ announced deep cuts due to falling revenue which eventually led to the conclusion of current affairs shows Sunday and Fair Go.
Goldsmith’s briefing mentioned the struggles of both TVNZ and Newshub, alongside Mediaworks, which owned The Edge and MoreFM radio stations, and reported a $9.7 million net loss in 2022. It also referenced the 46 per cent drop in profit experienced by NZME, the owner of the NZ Herald.
It highlighted the “core” role media played in New Zealanders’ lives but also how it was threatened by challenging economic conditions.
“Significant media redundancies, pay cuts, and the reduction or closure of services have long-term impacts on sector capability and reduce the range of media choice for New Zealanders.
“Without intervention, parts of the sector think that New Zealanders will increasingly struggle to discover new local content and services, which in turn could undermine government investment and a thriving local media and production sector.”
It pointed to declining trust in news media as a “concerning trend” being felt globally. The briefing cited Auckland University of Technology research that showed trust in news fell from 42 per cent in 2023 to 33 per cent in 2024.
The broadcasting standards regime and its regulator, the Broadcasting Standards Authority (BSA), were identified as having “limited reach in the modern media landscape” and created disadvantages for organisations that remained subject to those standards while others weren’t.
It noted the overall regulation of media content was “fragmented and inconsistent”, saying there were opportunities to streamline regulation including potentially removing a levy on broadcasters and advertising restrictions.
The briefing explained how popular streaming platforms such as Netflix, Disney+, Amazon Prime and Neon reached 57 per cent of Kiwis daily, the second biggest audience behind YouTube, but had minimal local content.
“A manual scan indicates Netflix currently holds fewer than 10 New Zealand titles, half of which are more than five years old (and 13 international productions filmed in New Zealand).
“As at October 2023 Disney had none, and Neon (Sky New Zealand’s streaming platform) carried 54 home-grown titles, making up four per cent of its catalogue.”
It referenced how streamers in 2021/22 had spent more than $335m for 700 Australian programmes, even as the country proposed regulations for such platforms when investing in local content.
“Industry representatives here are calling for similar intervention to protect New Zealand’s local voice and stories. Encouraging streaming platforms to invest in local content could be used to offset government investment in local content outcomes,” the briefing said.
Adam Pearse is a political reporter in the NZ Herald Press Gallery team, based at Parliament. He has worked for NZME since 2018, covering sport and health for the Northern Advocate in Whangārei before moving to the NZ Herald in Auckland, covering Covid-19 and crime.