PwC to assess TVNZRNZ merger

WELLINGTON: The Government is pressing ahead with plans to merge its radio and television assets into ‘‘a new public media entity as an independent multipleplatform, multimedia operation’’.

Broadcasting Minister Kris Faafoi announced consulting firm PwC would lead work on a business case, which Cabinet would use to assess how and whether such a new entity could be made viable. A report is due midyear.

RNZ and TVNZ operate on different models at present, their only common source of revenue being grants from the public funding agency for broadcast media, NZ on Air.

However, RNZ operates an advertisingfree model and can seek funds only from NZ on Air and through contentsharing arrangements with other publishers and broadcasters. These have proliferated in recent years, although their commercial terms are undisclosed, so their contribution to RNZ’s financial position is unknown.

TVNZ, by contrast, is primarily funded by commercial advertising and exists as a stateowned enterprise charged with making profits. However, it has suspended dividend payments to the government for the foreseeable future, arguing it needs to reinvest in content and digital streaming services if it is to compete with global streaming behemoths like Netflix.

‘‘The Government must ensure New Zealanders have a strong independent public media service for decades to come, which means ensuring public media assets are fit for the future and able to thrive amid the changing media landscape,’’ Mr Faafoi said in a statement announcing the longsignalled move to examine such a merger.

‘‘It’s well known that New Zealand’s media sector, both public and private, is facing unprecedented challenges with competition from the likes of Google and Facebook, declining revenue shares and changes in when and how audiences access their information and entertainment.

‘‘That presents risks for the future viability of New Zealand’s public broadcasting operators, RNZ and TVNZ, and the Government needs to address those risks.’’

No final decisions would be made until the business case was completed.

‘‘It is about establishing the best way of providing New Zealanders with a range of trusted news, information and entertainment that reflects New Zealand — its diversity, history, and aspirations.’’

NZ on Air would ‘‘continue to have an important role to fund local content for both commercial and noncommercial media outlets’’. — BusinessDesk