‘Heartbreaking’: Newshub could close within months
Shocked staff found out yesterday morning that Newshub is on the chopping block as its owner tries to cut costs.
Owner Warner Bros Discovery has begun consultation, the company said yesterday, and it will run until mid-March. A final decision is expected in early April, and any changes would take effect “after 30 June”, the company said in a statement.
Longtime journalist Mike McRoberts said the news was "heartbreaking".
He was not sure what the announcement meant for the future of news in New Zealand.
“We’re a pretty good newsroom. If we can’t make it work, who can?”
Stuff owner Sinead Boucher called Newshub a “fierce and respected competitor”.
“They have had a huge impact on the country, and we will all be poorer for its loss. Our hearts especially go out to all of our colleagues affected by today’s news,” she said.
Media organisations were operating in an “enormously challenging environment”, Boucher said.
“This is not just about the 6pm news, it is Newshub’s digital news website and all of the content their dozens of journalists and hundreds of other staff deliver each day.
“As was so eloquently put by news leaders from all over the country at select committee in Parliament last week, we need a broad range of voices in media. Newshub is one of the best of those voices.”
Newshub Wellington bureau chief Caitlin Cherry said on LinkedIn: “So the news is out that there’s a proposal to close Newshub at the end of June. It’s very sad and there are a lot of pretty devastated staff.”
The cost-cutting will affect the newsroom, including the Newshub website.
It was proposed that ThreeNow and Three’s offering would feature local programming as well as drama, comedy, sport, reality and factual shows, and key titles from Warner Bros. Discovery’s extensive library. Bravo, Eden, Rush and HGTV would continue in their current form with the same content.
Journalism union E tū said it had several members at Newshub and was in the process of contacting them to offer support.
E tū spokesperson Savage said: “We are dismayed to hear the news about Newshub closing down. It’s never a good thing in a democracy when you have fewer voices and competition in journalism.”
The Fair Digital News Bargaining Bill is before Parliament, offering some promise of an increased income for news media.
The bill was introduced by Labour, and during the first reading last year, the last government’s minister for broadcasting and media, Willie Jackson, said it would incentivise “fair commercial deals between news media companies and the big online digital platforms” by requiring them to negotiate commercial deals, with a failure to strike deals triggering a binding arbitration process.
It was not supported by either National or the ACT Party.
Savage said that “often, we have to force corporates to the table. It’s one way to ensure New Zealanders get good public debate.”
James Gibbons, president, Asia Pacific, Warner Bros Discovery, said “this is not a proposal the business arrived at easily. We are acutely aware of our position in the local media landscape and what this means for our people, and for the country as a whole”.
“There was no single trigger that caused this. Rather, it was a combination of negative events in New Zealand and globally. The impacts of the economic downturn have been severe, and the bounce back has not materialised as expected.
“Advertising revenue in New Zealand has disappeared far more quickly than our ability to manage this reduction, and to drive the business to profitability,” Gibbons said.
The media sector in New Zealand globally was facing tough circumstances, he said.
“The proposal is a result of a review of our New Zealand business, and while we didn’t come to it easily, it is one that we believe would be financially sustainable for the long term.”
The consultation process was not easy, and the company would support its staff, he said.
The proposed new model reflected to transition the operations to a digitally led business. If implemented as proposed, ThreeNow would be at the core of the model, supported by free-to-air linear channels.
Glen Kyne, senior vice president and head of networks of Warner Bros Discovery Australia and New Zealand, said the company had had to continuously reduce costs.
“We’ve now reached a stage where any further reduction in costs means proposing major changes. This is why we are proposing to shut down the newsroom. This would mean stopping all news production including the Newshub website from June 30.”
The proposal would be a significant change to the company’s New Zealand operations, with a much smaller operating model and lower cost base, Kyne said.
Newshub had been an important and central part of TV3, “and is a crucial part of a functioning media sector in New Zealand”, he said.