TVNZ cost-cutting proposals risk transforming it and other media, E tū union’s Michael Wood says

• TVNZ announced on Monday a swag of money-saving proposals, including ditching the 1News website, in a bid to save $30 million over the next financial year.
• E tū union negotiation specialist Michael Wood said if those plans go ahead they could have far-reaching consequences not only for TVNZ, but the entire media sector.
• TVNZ was working constructively with unions through the proposal process, a TVNZ spokeswoman said.

Proposed cost-cutting at TVNZ risks dealing another blow not just to the state broadcaster, but the wider media industry, a union leader says as the TV and news service begins consultation with staff over plans aimed at saving tens of millions of dollars.

Under the proposal announced on Monday, the 1News website would be axed and youth news site Re: News would focus solely on video storytelling, both from February next year.

The broadcaster also wanted to change some roster patterns, outsource some areas across TVNZ’s content workflows and technology from 2026 and invest in news on TVNZ+ – including setting up a dedicated team for this.

The proposed changes, which also included short-on-detail plans to create both a “creative hub” and a “centre for excellence for data, analytics and AI [artificial intelligence]”, were designed to shave $30 million off the budget over the next financial year by finding either new revenue or cost savings.

But they also risked transforming not just TVNZ, but other media as well, E tū union negotiation specialist Michael Wood said.

“The scale of change being proposed here is enormous. This is not just a transformation within TVNZ, but one that could have far-reaching consequences for the entire media sector.”

The former Labour Government Cabinet minister called on TVNZ to ensure “full and meaningful” engagement took place while the proposals were considered.

“These changes must be worked through with great care, and E tū and its members will accept nothing less than genuine engagement from all parties involved.”

The broadcaster had worked constructively with unions throughout the proposal process, and would continue to do so, a TVNZ spokeswoman said on Thursday.

“Mr Wood is entitled to his opinion on TVNZ’s proposed changes.”

They were now seeking feedback from TVNZ staff on the proposals presented to staff on Monday.

“While we are working through this process, we won’t be commenting further.”

She didn’t address a question from the Herald’s Media Insider on what two of the proposals – to create a centre for excellence for data, analytics and AI, and create a creative hub – meant.

An outcome was expected by the end of this monthaccording to a consultation document for the proposals, Media Insider was told earlier this week.

Structural changes would then be put forward in the first week of next month.

Former Labour Government Cabinet minister Michael Wood is now an E tū negotiation specialist. Photo / Jason Oxenham

The proposal was aimed at increasing revenue while cutting costs, delivering on TVNZ digital-plus strategy, and focusing resources on creating digital audiences and revenue at a faster pace than broadcast was declining, according to the document.

The broadcaster’s consultation was focused on how it might achieve its $30m target and deliver its Digital+ strategy, TVNZ told Media Insider this week in a statement.

“Proposals relating to individual roles are not part of this consultation. Our priority is to share proposals with our people first. We will not be commenting further at this stage.”

Union members were understood to be meeting this week to discuss the proposals.

The union understood the necessity of shifting towards a digital future, Wood said.

But they were “deeply concerned” about the potential loss of skilled staff and the broadcaster’s capacity to provide in-depth and quality journalism.

They were also particularly worried the proposal would outsource jobs, potentially overseas, he said.

The switch towards a more digital service must be done in a way that “preserves the essence of what makes TVNZ valuable”.

“It’s crucial to safeguard the ability to investigate and report on the stories that matter.

“Cutting back on text-based content while simultaneously removing successful video programmes like Fair Go and Sunday raised serious questions about the direction of these changes.

“If TVNZ is serious about a video-first strategy, they need to invest – not simply slash resources.”

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