Gavin Ellis: Media Commentator on TVNZ potentially shutting down the 1News website and investing in its streaming service TVNZ+

TVNZ's potentially looking at a challenge as it looks to further compete against streaming sites. 

The state broadcaster's consulting with staff on shutting its 1News website in February and investing in streaming service TVNZ+. 

TVNZ has a savings target of $30 million and has already axed its midday and late night news bulletins, as well as said goodbye to its 'Fair Go' show. 

Media commentator Gavin Ellis told Mike Hosking there are some huge risks. 

He says it's moving from a broadcast environment where they're a dominant player into a streaming environment with the likes of Netflix. 

LISTEN ABOVE 

See omnystudio.com/listener for privacy information.

Episode Transcript

Speaker 1 (00:00):
Now the ongoing carnage that is at least part of
our media landscape had another chapter added to it. Of course,
yesterday once again at TV and said looking to cut
costs for trench numbers. New consultation periods underway. They're looking
to save another thirty million dollars. Media commentator doctor Gavin
Allis with us, good.

Speaker 2 (00:14):
Morning, Good morning mate.

Speaker 1 (00:15):
Without being too mean about it, do you think to
a degree anyway they've missed the boat on tech and
transformation and they're now reaping what they've sold.

Speaker 2 (00:23):
I'm not sure that's yet to fully play out, you know,
the streaming. The streaming strategy is one that both they
and TV three are still working on, although I have
to say that there are plenty of others in the
market ahead of them. So from a you know, in
one CeNSE, yes, they are late to the game. Let's

(00:45):
say that, do you know.

Speaker 1 (00:48):
What they actually said yesterday and do they have a
specific plan because in the headlines I read it seemed
to be sort of will outsource a bit of this
and we'll set up a team here and we'll have
a creative hub. What is any of them mean?

Speaker 2 (01:01):
Well, I think that they were being very, very cautious
because of the mess they got themselves into with negotiations
with staff last time. Remember, they got a bit of
a slap over the wrist. So they're hedging their bets
here and not saying too much until the negotiating process

(01:21):
is out. But look, I think the one thing that
we do know for sure is that the one News
website is going to be scrapped. I don't think there's
any doubt about that.

Speaker 1 (01:30):
No, indeed, not do we need well I thought websites
were you've got to have a website, and then suddenly
you don't have to have a website.

Speaker 2 (01:37):
Well, it depends what they do with streaming, you know.
I mean, I regret the loss of any news outlet,
but you know, look, these people are in the same position.
TV broadcasters are in the same position now that newspapers
were in years ago, but with a compressed time frame.

(01:58):
The commercial realities are that they don't have the money
they used to have. So what they're doing is they're
reverting to their core skills visual production rather than the
written word. So I can understand that it's a risk, sure,
but you know, let's face it, One News is not
the top website, No, it is not by long shot.

Speaker 1 (02:17):
No, it is not. My other concern is they seem
to think streaming is the answer, which of course it is,
but they've also got to have the heft and then
wherewithal to be a great streamer and compete with the
big Do they have that or not?

Speaker 2 (02:30):
That's their real challenge because moving from a broadcast environment
into a you know, now they are the dominant player,
into a streaming environment where they clearly aren't. You know,
Netflix is dominant there. There are some huge risks there.
The other thing is that you know, they will face

(02:51):
pressure not to turn off terrestrial television because there'll be
people who you know, can't afford streaming or in areas
where it's difficult to get So they're going to be
in a position where they've got conflicting pressures on them
and they're not getting any more money. That's quite clear.
The government's not going to bail them out.

Speaker 1 (03:11):
No, You and I have been around Gavin for about
three hundred and twelve.

Speaker 2 (03:14):
Years, three hundred and fifteen fifteen.

Speaker 1 (03:17):
I stand corrected. Have you ever seen a bigger mess?
Not just TV and Z but the mess the media
is in?

Speaker 2 (03:24):
Probably not. I think that that things are getting to
a point where we might have what, you know what
a friend of mine calls a cathartic moment, you know,
where where something really major happens and it resets the
whole of the of the landscape. Now that's a pretty

(03:45):
dystopic view, I know. But we're seeing a lot of
negative things happening and not a lot of positives that
are that are coming up to, you know, to to
counteract them. I mean, I think that ends in me
move with one roof, for example, as a way in
which a company is diversifying to try and overcome the

(04:10):
commercial realities of traditional media. But many don't have quite
the same options that in Sidney has had.

Speaker 1 (04:21):
All Right, good insight, Kevin, appreciate it. Dr Gavin Ellis
who is with us this morning.

Speaker 2 (04:25):
For more from the Mic Asking Breakfast, listen live to
news Talks it'd be from six am weekdays, or follow
the podcast on iHeartRadio.