Credit: Albert Dehon via Unsplash
Major New Zealand media group Newshub plans to close its newsroom following a collapse in advertising revenue, according to its US-based parent company, Warner Bros. Discovery (WBD).
Around 200 journalists, producers, editors, camera operators and associated staff would lose their jobs, in a move which would leave state-owned TVNZ with a "near-monopoly on TV news".
An unknown number of other positions across the wider company would also go, as the company may further restructure its ANZ free-to-air business.
James Gibbons, Warner Bros. Discovery Asia Pacific president, pointed to a dramatic and sustained fall in television advertising.
"Advertising revenue has disappeared far more quickly than our ability to manage this reduction, and to drive the business to profitability," Gibbons said.
“Everyone can see that the media sector, here in New Zealand, and around the world is facing some very tough circumstances. While Warner Bros. Discovery is a large global media company, each business is managed on its ability to sustain itself within the market it operates in. Subsidising losses for ongoing years indefinitely is not sustainable."
Glen Kyne, senior vice president, head of networks at Warner Bros. Discovery ANZ, said this is a hard day for everyone who works for Warner Bros. D ANZ and the country.
“Every time we think we’ve landed on stable footing, something comes along and makes it unstable again, forcing us to look at ways of further reducing costs. We’ve now reached a stage where any further reduction in costs means proposing major changes," Kyne said.
“Free-to-air and news are expensive businesses to run. Put simply, the economic headwinds means the returns are not there. These proposed changes will be hard if they are implemented, but we think they are necessary, which is why we have commenced consultation."
Elaine Gibbons, managing partner at independent media agency Sneakers Media, said the news marks a day tinged with sadness for New Zealand's media landscape.
"Our hearts go out to the hundreds of people impacted at Warner Bros. Discovery NZ," Gibbons told AdNews.
"Newshub offers Kiwis a fresh, relatable news and current affairs voice broadcast into the homes of Kiwis every day, and with its departure, leaves a notable void in households all across New Zealand.
"Newshub embodied the spirit of everyday Kiwis, positioning itself as the agile and relatable challenger in the media arena. Their exit leaves a significant gap, marking the end of an era and leaving behind a legacy that will be missed."
Alex Radford, co-founder and partner at independent media agency D3 Media, said the decision marks a significant moment for the country's media.
"It not only affects the dedicated Newshub team but also prompts a rethink in how businesses, agencies, and media partners collaborate in our digital age," Radford said.
“The impact on those behind the scenes – journalists, presenters, and production staff – is substantial. It's crucial as a community that we support those affected, recognising the vital role of journalism and local content in shaping well-informed societies.
“Given these changes, let's commit to building closer ties with our media partners, ensuring our engagement stays relevant and impactful.
"The changes at Warner Bros. Discovery is a call to action for the entire media industry – let's innovate, collaborate, and uphold the foundation of our work."
Warner Bros. Discovery reported a 7% fall in revenue to $US10.28 billion and a net loss of $US 400 million in the December quarter.
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