Striking Media Gold
In an era defined by digital disruption, safeguarding a diverse and robust media ecosystem has become a matter of national importance.
As New Zealand's newly appointed Minister of Media and Communications, Paul Goldsmith, faces the daunting task of navigating the rapidly evolving media landscape. Goldsmith's role is pivotal in ensuring that the principles of a free press and fair competition are upheld, while also recognising the need for pragmatic solutions that address the challenges faced by both traditional media outlets and their digital counterparts.
As he takes on the role of Minister of Media and Communications in New Zealand, there are several key considerations to keep in mind. He rightly acknowledges that a functioning, sustainable media ecosystem is crucial for a healthy democracy. While he doesn't believe the system is broken, he recognises improvements are essential.
In light of this, encouraging a diverse range of media outlets, fostering investigative journalism, and ensuring fair competition between traditional providers and streaming platforms are essential. Legislative changes can help level the playing field.
The media landscape has transformed significantly over the past decade. Streaming giants wield immense power, impacting traditional media revenue. Balancing the interests of both traditional media and streaming services is critical. The Fair Digital News Bargaining Bill, which aims to make social media companies pay for using New Zealand media content online, is currently under consideration.
The main issues facing New Zealand media include the declining advertising revenue and circulation numbers threaten the viability of traditional media outlets; the shift to online media consumption and the requirement for media outlets to adapt and innovate in a rapidly changing landscape; the need for effective regulation and oversight in a rapidly changing media landscape; and the importance of maintaining high-quality, investigative journalism in the face of declining resources and commercial pressures.
These issues are interconnected and require a collaborative effort from media outlets, policymakers, and the public to address the challenges and opportunities. In a nutshell, New Zealand media's problems can be solved by exploring; ?alternative funding models, such as philanthropic grants, membership programmes, and crowdfunding; investing in digital infrastructure, skills development, and innovation to stay competitive; establishing an effective, independent media regulator to ensure standards and accountability; and investing in investigative journalism and in-depth reporting initiatives, while prioritising local content and stories that reflect New Zealand's unique identity and perspectives.
Additional solutions include collaborations and partnerships between media outlets, academia, and community organisations; media literacy programmess to empower audiences to critically evaluate information; and encouraging innovation and entrepreneurship in the media sector.
Given the existing players in New Zealand's broadcasting ecosystem are facing financial challenges, restructuring the ecosystem would require a comprehensive approach that addresses regulatory, technological, and business model aspects. There should be an update of the regulatory framework to promote competition, innovation, and sustainability. The licensing processes can be streamlined and barriers to entry reduced for new broadcasters and content providers. The government also needs to reassess content regulations and advertising guidelines to align with changing consumer preferences and market dynamics and ensure fair and non-discriminatory access to essential broadcasting infrastructure (e.g., transmission towers, satellite capacity) for all players.
Goldsmith could evaluate the feasibility of consolidating the core broadcasting infrastructure (terrestrial, satellite, internet) under a single, state-owned, or regulated entity, then implement infrastructure sharing models and fair pricing mechanisms to reduce operational costs for broadcasters. He might also encourage collaboration and resource sharing among broadcasters for content production, distribution, and technical operations.
The transition from analogue to digital broadcasting technologies (e.g., DVB-T2, ISDB-T) to improve efficiency and enable new services could be fast-tracked. There’s also a need to invest in upgrading the internet infrastructure (e.g., fiber-optic networks, data centers) to support high-quality online streaming and on-demand services. New Zealand might adopt IP-based technologies (e.g., IPTV, OTT) and cloud-based solutions to reduce costs and enhance flexibility.
The minister can encourage the formation of content aggregation platforms or joint ventures among broadcasters to pool resources and offer bundled content packages. The industry could also explore partnerships with international content providers to access a diverse range of programming and leverage economies of scale, as well as implementing advanced content recommendation and personalisation features to enhance user experiences and drive engagement.
Promotion of a shift towards hybrid business models that combine advertising, subscription, and transactional revenue streams should be on the table, while exploring alternative revenue sources, such as e-commerce, data monetisation, and sponsorships.
Broadcasters could be encouraged to develop niche content offerings and targeted advertising strategies to capture specific audience segments.
There is a need to implement robust and cross-platform audience measurement systems to accurately capture viewership across traditional and digital platforms, while developing advanced advertising technologies (e.g., programmatic advertising, addressable TV) to improve targeting and monetisation capabilities.
There is a priority for the government to review and restructure content funding mechanisms, such as public funding, tax incentives, and co-production agreements, to support local content creation and innovation. However, it could also encourage private investment and partnerships in content production through favorable policies and incentives. It could also foster collaboration between broadcasters, production companies, and creative industries to leverage collective resources and expertise.
The “transmission initiative” previously proposed by the New Zealand government, which funds 100% of Kordia TV/FM transmission fees for six months and 100% of RNZ AM transmission fees for six months, could potentially reduce costs for broadcasters in the restructured broadcasting ecosystem in several ways. By covering the transmission fees for a period of six months, this initiative provides immediate and tangible cost relief for broadcasters. Transmission fees can be a significant operational expense, especially for smaller and regional broadcasters. This temporary subsidy can help alleviate financial pressures and free up resources for other areas, such as content production or technological upgrades.
The initiative could incentivise broadcasters to accelerate their transition from analogue to digital broadcasting technologies, which are generally more cost-effective in the long run. By subsidising the transmission costs during the transition period, broadcasters may be more willing to invest in upgrading their infrastructure and equipment, ultimately leading to long-term cost savings and improved efficiency.
With reduced transmission costs, broadcasters may be more inclined to explore infrastructure sharing models, such as jointly utilising transmission towers or satellite capacity. This could lead to further cost reductions through economies of scale and resource optimisation, particularly for smaller players who may have limited bargaining power or resources.
The government's support could foster increased collaboration among broadcasters, as they may be more open to exploring partnerships, resource sharing, or joint ventures when the financial burden of transmission is temporarily alleviated. Such collaborations could lead to synergies and cost savings in areas like content production, distribution, and technical operations.
By reducing the financial strain on broadcasters, the initiative could create an environment more conducive to innovation and experimentation, with broadcasters having more flexibility to invest in new technologies, exploring alternative business models, or developing niche content offerings tailored to specific audience segments.
The government may consider extending or expanding such initiatives, potentially covering a wider range of operational costs, or offering targeted support for specific segments of the broadcasting industry, such as local or community broadcasters, to ensure a diverse and vibrant media landscape.
Investing in training programmes and initiatives to upskill the existing broadcasting workforce in digital technologies, data analytics, and new production techniques needs to be budgeted, and collaboration with educational institutions to develop specialised curricula and talent pipelines for the evolving broadcasting industry is essential.
In addition, the government could explore opportunities for international collaboration and partnerships with broadcasters, content providers, and technology companies, and leverage global best practices, expertise, and resources to accelerate the transformation of the broadcasting ecosystem. Partnerships with global platforms can provide New Zealand creators with access to a broader audience and resources, enabling them to produce high-quality content that showcases local stories and talent. Collaborations can facilitate the distribution of New Zealand content globally, promoting cultural exchange and understanding.
Starlink's satellite technology can enhance internet connectivity in rural and remote areas, ensuring equal access to online content and opportunities for underserved communities. Amazon's cloud services can support the development of cloud-based broadcasting infrastructure, enabling more efficient and cost-effective content delivery. Meta's AI technologies can enhance content discovery, recommendation, and personalisation, improving the viewer experience. And YouTube's video analytics and monetisation tools can help New Zealand creators optimise their content and revenue streams.
International collaborations can inform and shape regulatory frameworks that balance global and local interests, ensuring a level playing field for New Zealand broadcasters and creators. Global players can provide training and upskilling programmes for New Zealand broadcasting professionals, ensuring they remain competitive. Partnerships can prioritise the promotion of local content, ensuring that New Zealand stories and voices are amplified and celebrated.
By embracing collaborations with global players, New Zealand's broadcasting ecosystem can become more vibrant, diverse, and connected, ultimately enriching the local media landscape, and promoting cultural exchange worldwide.
A merger between the two state-owned broadcasters, TVNZ and Radio New Zealand (RNZ), could potentially be a viable idea, with both pros and cons to consider. It could lead to significant cost savings by consolidating operations, infrastructure, and administrative functions, thereby reducing redundancies and improving operational efficiency. A combined entity would have greater bargaining power when negotiating content deals, distribution agreements, and advertising contracts, potentially leading to better terms and increased revenue streams.
A merged TVNZ-RNZ could leverage the strengths of both television and radio to create cross-platform content, programming, and marketing opportunities, catering to diverse audience preferences. By combining resources, the merged entity could better fulfill its public broadcasting mandate, investing in high-quality local content, investigative journalism, and educational programming across multiple platforms. It could also foster increased collaboration, talent sharing, and cross-pollination of ideas between the television and radio divisions, leading to more innovative and diverse content offerings.
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However, TVNZ and RNZ have distinct organisational cultures, work practices, and audience expectations, which could make integration and harmonization challenges. A merger would effectively create a single, dominant state-owned media entity, potentially reducing competition and diversity in the New Zealand broadcasting landscape. There could also be public concerns about the concentration of power and potential for editorial bias or censorship if a single entity controls both television and radio news and programming. Integrating two large organisations with different systems, processes, and cultures can be a daunting task, potentially leading to disruptions, loss of talent, and transition challenges.
If a merged TVNZ-RNZ entity were to be primarily publicly funded and move away from a commercial advertising-driven model, it could potentially free up advertising revenue for other media outlets in the New Zealand market. Removing a major state-owned competitor from the advertising market could create a more level playing field for private media companies to compete for advertising dollars. With TVNZ-RNZ out of the advertising market, private broadcasters, newspapers, and digital platforms could potentially capture a larger share of the advertising pie.
A publicly funded model would allow the merged entity to focus on its public service remit without the pressure to chase ratings or prioritize commercially viable content. However, a significant increase in public funding would be required to sustain the operations of a merged, non-commercial TVNZ-RNZ, which could be a challenge in times of fiscal constraints. There could also be concerns about potential political interference or influence over editorial decisions if the entity becomes heavily reliant on government funding.
A major player exiting the advertising market could disrupt the advertising ecosystem and potentially lead to increased costs for advertisers due to reduced competition.
Alternatively, a mixed funding model combining public funding, subscription fees, and limited commercial revenue could be explored to ensure sustainability and maintain a connection with audience preferences.
Restructuring New Zealand's broadcasting ecosystem would require a coordinated effort involving policymakers, regulators, broadcasters, content creators, and technology providers. By addressing regulatory challenges, embracing digital technologies, diversifying business models, and fostering collaboration, the restructured ecosystem can become financially sustainable while delivering diverse and high-quality content to New Zealand audiences.
Some specific, actionable recommendations include the establishment of ?a dedicated “Future of Media” taskforce with representatives from government, media organisations, tech companies, and consumer groups to develop a comprehensive media transformation strategy. A governmental in-depth review of media ownership rules, cross-media ownership restrictions, and antitrust regulations to foster a more competitive and diverse media landscape should be initiated. The creation of a “Media Innovation Fund” funded by a small tax on digital advertising revenue or subscription fees to support local journalism, investigative reporting, and media startups is another good idea, as is the introduction of a “Digital Services Tax” on global tech giants like Google, Facebook, and Netflix to level the playing field and support local media initiatives. And the development of a “National Media Literacy Programme” in partnership with educational institutions to equip citizens with critical thinking skills for navigating the digital information landscape would help greatly.
The rise of doomscrolling (the act of spending excessive time online, immersing yourself in negative news or social media content) and the impact of social media algorithms on attention spans, misinformation, and mental health, necessitates a focus on responsible content curation and moderation. The proliferation of user-generated content, influencer marketing, and the blurring of lines between traditional media and social media creators, requires a reassessment of content licensing and compensation models. And the advent of deepfakes and synthetic media, poses challenges for verifying information authenticity and the need for advanced detection and verification tools.
The growth of immersive media experiences like virtual reality (VR), augmented reality (AR), and the metaverse, offering new storytelling and engagement opportunities are raising concerns about privacy and ethical use, and the increasing importance of data privacy, online safety, and responsible AI governance is a concern as media consumption becomes more personalised and data driven.
The BBC's Local News Partnerships, which provide funding and resources to support local journalism initiatives and foster collaboration between the BBC and local news providers, and the Australian News Media Bargaining Code, which requires tech giants like Google and Facebook to negotiate fair compensation with news publishers for displaying their content, are good examples of a way forward.
The California Consumer Privacy Act (CCPA) and the EU's General Data Protection Regulation (GDPR), which set new standards for data privacy and consumer protection in the digital age, as well as the “Trusted News Initiative” launched by major news organisations like Reuters, the AP, and the BBC to combat misinformation and disinformation during critical events like elections, are other examples that could provide policy guidance.
The “Transitional Data Transfer Project” by Google, Facebook, and Microsoft, is designed to facilitate data portability and interoperability, empowering users to move their data between platforms and could be a useful tool.
By incorporating these specific recommendations, emerging trends, disruptors, and concrete examples, a comprehensive and actionable roadmap for transforming New Zealand's media landscape can be considered while addressing the challenges posed by technological disruption and changing consumer behaviors.
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