How is this news? Almost everyone has known for decades that this is where traditional media are heading. It shouldn’t be a surprise to anyone but it appears to be a surprise to the New Zealand media, who have had their heads wedged firmly up their own fundaments for quite some considerable time.
The uncertain future of traditional television broadcasting has been raised in a briefing document to new Media and Communications Minister Melissa Lee.
“As the sector transitions online, companies will be required to consider the viability of ongoing investment in analogue broadcasting infrastructure,” says the Ministry for Culture and Heritage briefing document, released today.
“It is likely that the Freeview chief executives (from TVNZ, Warner Bros. Discovery, RNZ and Whakaata Maori) will raise the future of traditional TV broadcasting with you. TV broadcasters pay a fee to Kordia (a government-owned firm), and the costs are increasingly unsustainable as competition increases from global streaming companies.
“The ongoing transition away from legacy transmission infrastructure continues to require careful management. Analogue radio and TV broadcasting still contribute to New Zealand’s resilience during natural disasters and towards equity of access for geographically isolated New Zealanders.”
The document outlines the sector’s big shift to digital – TVNZ is investing heavily in a new streaming platform – but also details the impact that the likes of global tech giants such as Facebook, Google, and Netflix have on the industry.
“Digital products provide only a fraction of the revenue previously provided by traditional operating models. At the same time, the expense of maintaining those traditional models means broadcasters are now facing the prospect of switching off TV and radio AM services and moving exclusively to online streaming.
“There are opportunities to support both sector innovation and greater audience choice. The media and content production sectors are aware of the need to find funding from sources other than Government and are strong supporters of creating a more modern and streamlined system that encourages more effective investment.”
The briefing document paints a sobering picture of the New Zealand media industry’s financial challenges, citing TVNZ’s drop in profits from $59.2 million in 2020/21 to $1.7m in 2022/23 and a forecast loss of $15.6m this financial year.
It also outlines heavy losses for MediaWorks and Warner Bros. Discovery as well as NZME’s drop in profit in 2022. A line about another company has been redacted.
NZ Herald
Stick a fork in them, they’re done.
This report is simply a justification for a continuation of substantial corporate welfare to prop up failing and moribund business models. The caterwauling should be ignored.
‘Adapt or die’ should be the Government mantra – along with ‘We ain’t paying anymore’.
If necessary sell these dogs to anyone who will pay.
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