$50m lifeline for media
Media companies will get $50 million from the Government to help them cope with a huge drop in income during the coronavirus crisis.
Broadcasting Minister Kris Faafoi said the help was the first stage of a twostage plan and would not be sufficient on its own to see the sector through a prolonged period of restrictions and reduced advertising.
Broadcasters will not have to pay transmission fees to state-owned company Kordia to broadcast television channels or FM radio channels for six months, or pay RNZ for AM transmission costs.
The main beneficiaries of that assistance, which will cost a little under $22m, will include TVNZ, television channel Three owner MediaWorks, Prime TV-owner Sky Television and Maori Television.
Broadcast media will also get the bulk of the benefit from a decision to reduce media companies’ contributions to NZ On Air screen content by $16.5m in the 2020-21 financial year.
The Government will provide $11.1m for ‘‘specific targeted assistance to companies as and when needed’’.
New Zealand Herald owner NZME and Stuff could be among the main beneficiaries of that element of the package, which is tipped to see government agencies given more cash to buy more print and digital advertising, or at least to bring forward their purchases.
Faafoi also announced government departments would get $1.3m to buy subscriptions to news services, which could provide a boost to paywalls.
NZME was not able to immediately estimate how much it thought the package might be worth to its company, but chief executive Michael Boggs said it would help support and sustain journalism and broadcasting in New Zealand.
‘‘We’re looking forward to working
Michael Anderson MediaWorks chief executive
with the Government on the package announced today, as well as longer term initiatives to ensure the New Zealand media industry is healthy and vibrant,’’ he said.
Stuff chief executive Sinead Boucher said print and online businesses ‘‘which employ the majority of journalists in the country’’ would not get the same level of benefit as the broadcasters at this stage ‘‘and certainly not at the scale needed to make up for the severe impact on the revenues that fund journalism’’.
‘‘Alongside the bigger companies like us are many smaller publishers who also have a very important role to play in the media eco-system in New Zealand.
‘‘We would have liked to have seen a package that went further in recognising the need to preserve that journalism across a wider spread of media, through a time when it has never been more needed and more in demand.’’
TVNZ chief executive Kevin Kenrick welcomed the relief it would receive on transmission costs and NZ On Air contributions.
‘‘The minister has indicated that this is the first part of a wider industry support package and we look forward to hearing the rest of the Government’s response in the coming months. Like other advertising-funded media organisations, the financial challenges confronting TVNZ are significant and they won’t be solved by a single solution.’’
MediaWorks chief executive Michael Anderson was perhaps the most enthusiastic, describing it as ‘‘not an insignificant package’’. ‘‘We need to do some further modelling to work out what this means for us and how it will affect us, but it’s a positive start."
He indicated MediaWorks would have eyes on some of the $11.1m in ‘‘special assistance’’ funding.
‘‘We will be continuing to have discussions with Government, particularly on the discretionary fund.’’
Faafoi said the short-term measures had been proposed by media companies themselves during workshops held with the Government.
The apparent focus on broadcast media reflected the fact that transmission costs were high, he said.
‘‘We need to do some further modelling to work out what this means for us and how it will affect us, but it’s a positive start.’’