A new public media entity to replace TVNZ and RNZ will be funded by a mix of advertising revenue and government money.
Minister for Broadcasting and Media Kris Faafoi confirmed the mixed funding model when he announced an eight member governance group to lead the next phase of work on the potential new entity.
The governance group will be chaired by former NZ First MP and former Minister for Children, Tracey Martin. Other members include former MediaWorks CEO Michael Anderson, Chief Executive of the BSA Glen Scanlon and media entrepreneur, Bailey Mackey, who has strong connections in Māori media.
“Public media makes an essential contribution to the overall media mix. Government is committed to ensuring public media is fit for the future and able to thrive and adapt amid the changing media landscape,” says Faafoi.
His decision that the new entity will carry advertising will not please some lobby groups hoping for a BBC or ABC (Australia) style model. They will also be concerned that TVNZ’s commercial culture will assert itself over the public service model of RNZ.
Private media companies like Discovery, which recently bought MediaWork’s TV operations, will be worried that the new entity will have significant market power but not be required to provide the normal economic return to its shareholder. Faafoi showed he was sensitive to those issues in a carefully worded media release.
“A new public media entity would operate with a mixed funding model, drawing part of its revenue from commercial sources, and part from government funding. It would provide content across a variety of platforms and have full editorial and operational independence from Government, enshrined in legislation. A new public media entity would operate in a way that complements and collaborates with private media.”
Faafoi says the governance group will also lead work on creating a charter for the new entity.
“They will seek feedback on what should be included in a charter for the new entity so that it meets the needs and expectations of New Zealanders in the 21st century and beyond.
“RNZ and TVNZ are high-performing entities that have served New Zealanders well. They provide a strong basis on which to build for the future.”
The Minister sought to allay fears from the Māori media sector they could be left behind in the public media revamp.
“Alongside work to assess the option of creating a new public media entity, Minister for Māori Development, Willie Jackson, is leading work to enhance support for the Māori media sector,” Faafoi said.
“This is a unique opportunity and the right time to make decisions about the whole public media system.”
Consultant firm PwC was working on the business case prior to the first Covid-19 lockdown in March 2020. The Ministry of Culture and Heritage continued that work but has now contracted Deloitte to complete the business case. Faafoi says he expects to be presented with a full range of “real world” options by the middle of the year.
And, Cabinet will be provided with advice on whether to create a new public media entity before the end of the year.
The full Governance Group is: Tracey Martin (Chair), Glen Scanlon, Michael Anderson, Sandra Kailahi, Bailey Mackey, William Earl John Quirk, and Dr Trisha Dunleavy. The members will be appointed until Cabinet have considered the outcome of the Business Case.
