Government announces business case study to evaluate proposed merger of TVNZ, RNZ

February 7, 2020

A business case study is expected to be completed around the middle of the year.

Work is set to begin on a business case to assess the viability of forming a new public media entity which will merge TVNZ and RNZ.

Minister of Broadcasting, Communications and Digital Media Kris Faafoi today announced Cabinet has given approval to complete a business case to examine the viability of establishing a new public media entity as an independent multiple-platform, multi-media operation.

"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.

The final decision about the future of RNZ and TVNZ will be made once the business case is completed. Consultancy firm PwC will now conduct the business case, which is expected around the middle of this year.

"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."

Mr Faafoi said it was 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".

The group, which includes bosses of both broadcasters, told the Government the current model is unsustainable.

"At the same time we need to ensure any new public entity has the flexibility and the strength to meet future change and challenges," Mr Faafoi said.

TVNZ chief executive Kevin Kenrick said "it's encouraging to see Minister Faafoi acknowledge the challenges confronting local media and coming up with potential solutions to strengthen public media".

"TVNZ will support the minister and officials working on the business case over the coming months to assess the viability of the proposed new public media entity."

New Zealand First broadcasting spokesperson Jenny Marcroft said she supports the Government's move. 

"As a former broadcaster myself, I understand that the currency of the media is trust, and New Zealand deserves a media voice that can be trusted, and is independent and fearless. In a media environment that is increasingly dominated by digital platforms, and people receiving their news from dubious sources, it is clear that the future of organisations such as TVNZ and RNZ are preserved," she said.

NZ On Air will continue to fund local content for both commercial and non-commercial media outlets.

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