TVNZ-RNZ merger raises independence, cost-benefit issues, executives warn

The proposed TVNZ-RNZ merger has raised concerns among private media executives. Photo / Supplied

Private media executives have continued to warn that the Government's new public media entity, which will merge TVNZ and RNZ, will have distortionary effects on the media landscape, potentially shrinking newsrooms by undercutting commercial players' ability to sell advertising.

NZME managing editor Shayne Currie said that while he was "very supportive of a public media entity that was adequately funded and appropriately scoped", he had "a number of significant issues" with the proposal.

Currie directed criticism at the Minister for Broadcasting, Willie Jackson, who is responsible for the merger, saying he was "concerned about [Jackson's] comments that this public media entity was being set up partly because of the complete lack of trust in New Zealand media".

"This is a challenge and an issue that is affecting media around the world, it is by no means something that - to the extent that the minister spoke - something that we agree with at all," Currie said.

Many media executives, including those from TVNZ and RNZ, expressed concern that the bill would give the Government far greater control over the new entity than it has currently.

TVNZ chief executive Simon Power warned that ministerial powers under the entity were greater than at any point since the Muldoon Government of the 1970s and warned of a perception issue.

Currie said Jackson's comments undermined the Government's argument that it would not use its enhanced powers over the entity to influence its functions.

"One of the points around the independence of this new entity is the Government won't be seeking to influence - those comments from the minister sure undermine that argument," he said.

Currie said the Government had missed the "distortionary effects" the new entity would have on commercial players, and said that these effects needed to be assessed through a "thorough cost-benefit analysis to ensure it delivers net benefits to New Zealanders overall".

Answering a question from National's broadcasting spokeswoman Melissa Lee about media plurality, Currie said it was a concern that the TVNZ and RNZ newsrooms would eventually have a single voice after the merger.

He cited the example of NZME's failed attempt to merge with rival, Stuff, which was blocked by the Commerce Commission, largely on the grounds that it would compromise plurality.

"This was a key factor in our own process that we went through in 2016 with Stuff. Two big newsrooms becoming one means there is a single direction and focus and we do lose that plurality of voice and opinion and topics," he said.

MediaWorks chief executive Cam Wallace said the "dual funding model" of the entity, which will rely on government funding and commercial revenue, 'simply won't work".

He said it would give the "entity the best of worlds" in that it could be public service and commercial "if it wants to", all while operating at a "scale and size that no other commercial operator in their wildest dreams could compete with".

The effective public subsidy of the new entity meant it had the potential to offer "predatory pricing" of advertising.

He warned that this would make private newsrooms "less attractive for future investment".