Hon Kris Faafoi
Minister of Broadcasting, Communications and Digital Media
COVID-19 RESPONSE: SECOND MEDIA SUPPORT PACKAGE
Date:
22 April 2020
Priority:
Urgent
Security
Commercial In-Confidence,
Reference:
BR2020/172
classification: Budget Sensitive
Minister
Action Sought
Deadline
Hon Kris Faafoi
23 April 2020
Agree to the Ministry for Culture and
Broadcasting,
Heritage submitting funding requests to
Communications and
the Treasury for consideration as a second
Digital Media
support package for the media sector;
Direct officials to develop further policy
advice on initiatives that will support the
longer-term recovery and sustainability of
the sector.
Contacts
Name
Position
Contact
1st Contact
Anna Butler
Deputy Chief Executive, Policy 9(2)(a)
and Sector Performance
Leigh Huffine
Policy Advisor
Minister’s office to complete ☐ Approved
☐ Declined
☐ Noted
☐ Needs change
☐ Seen
☐ Overtaken by events
☐ See Minister’s notes
☐ Withdrawn
Comments:
Purpose
1
Your approval is sought to progress a second support package for media
companies impacted by COVID-19 by:
• submitting budget bids to the Treasury by Friday 24 April for funding initiatives
• directing officials to begin policy work on regulatory initiatives as part of a
strategic approach to providing longer-term support for sector sustainability.
Recommendations
2
The Ministry for Culture and Heritage recommends that you:
1
Note that, at your request, officials have identified a set of
YES / NO
initiatives to form a second support package for the media
sector in response to the impact of COVID-19;
2
Note that Cabinet will consider funding requests to meet near-
YES / NO
term recovery needs on 11 May, and requests must be
submitted to the Treasury by 24 April;
3
Agree to the Ministry for Culture and Heritage submitting
funding requests to the Treasury for the following initiatives:
9(2)(f)(iv)
a
YES / NO
b
increasing government advertising with local media
YES / NO
c
developing a long-term sector sustainability strategy
YES / NO
d
increasing RNZ’s baseline funding;
YES / NO
4
Note that the estimated total cost of this package is
YES / NO
approximately 9(2)(f)(iv)
;
5
Direct officials to develop further policy advice on the following
initiatives:
a
reducing barriers to sector consolidation
YES / NO
b
mitigating the impact of global digital platforms on local
YES / NO
media
c
developing tax incentives to support journalism;
YES / NO
6
Agree that the initiatives in recommendation 4 should be
YES / NO
considered as part of a wider strategic approach focused on
longer-term sector recovery and sustainability;
BR2020/172 COVID-19 RESPONSE: SECOND MEDIA SUPPORT PACKAGE
2
7
Note that the relative role and contribution of public media to
YES / NO
the wider media system would be considered as part of this
strategic work.
Anna Butler
Hon Kris Faafoi
Deputy Chief Executive, Policy
Minister of Broadcasting,
and Sector Performance
Communications and Digital Media
______ / ______ / 2020
Background
3
You have asked officials to develop support measures for media organisations in
response to the severe impact of COVID-19 on the sector.
4
The Cabinet Business Committee has considered a Cabinet paper seeking
agreement to an initial support package to provide short-term cashflow support
to the sector. The paper foreshadows that a second, more substantial support
package will be developed for consideration by Cabinet in May 2020.
5
The Treasury is coordinating a centralised process to consider near-term funding
requests for COVID-19 related expenses. Funding requests must be submitted
to the Treasury by Friday 24 April for consideration by Cabinet on Monday
11 May. Initiatives within the second support package that require funding will be
submitted for consideration through this process.
Second support package
6
The Ministry for Culture and Heritage (the Ministry) has identified a set of
initiatives for your consideration for inclusion in the second support package. In
developing these initiatives, officials have drawn on the input provided by sector
stakeholders through the workshops held in early April. These initiatives broadly
fall into two categories:
•
Near-term funding requests: New funding is required to support the media
sector’s viability in the short to medium term. These initiatives align with Wave
1 of the Government’s economic response to the COVID-19 pandemic, which
is fighting the virus and cushioning the blow (from now to six months).
•
Longer-term support for sector sustainability: Further policy work is required
before any fiscal or legislative implications can be identified. Officials
recommend that initiatives in this category should be progressed within a
strategic framework focused on longer-term sector sustainability. These
BR2020/172 COVID-19 RESPONSE: SECOND MEDIA SUPPORT PACKAGE
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initiatives align with Wave 3 of the response, which is resetting and revitalising
the economy (supporting significant and long-term change).
Near-term funding requests
7
The Ministry recommends that you seek funding through the Treasury process
for the following initiatives:
• 9(2)(f)(iv)
•
Increasing government advertising with local media ($13.2 million for
2019/20): This initiative will use the government’s role as a purchaser of
advertising to provide immediate cash-flow support for the media sector. The
initiative will involve the government making advance purchases of
advertising inventory for the 2020/21 year, and increasing the overall level of
government advertising expenditure.
•
Developing a long-term sector sustainability strategy ($2.0 million for
2020/21): This initiative will provide for the implementation of the work
programme outlined in the following section, which is intended to support the
longer-term recovery and sustainability of the media sector.
•
Increasing RNZ’s baseline funding ($21.75 million total, comprised of $7.25
million annually from 2021/22): This initiative will provide a permanent
baseline increase to RNZ to extend the time-limited funding it received in
Budget 2019. This funding will ensure that RNZ can continue to deliver public
media services at current levels. It will be important to preserve a strong and
stable public broadcaster providing essential news services, particularly if
there are reductions in the services provided by private media as a result of
COVID-19.
8
The estimated total cost of these initiatives is approximately 9(2)(f)(iv)
. Officials
have developed budget bids for each initiative using the required Treasury
template for COVID-19 expenses (refer Appendix 1). Please note that these
templates and the estimated costs are subject to further review and refinement,
in consultation with your office, before final submission on Friday 24 April.
Longer-term support for sector sustainability
9
Initiatives in this category would address fundamental challenges to the media
sector that existed prior to COVID-19 but have been exacerbated by the impact
of the pandemic. Officials recommend that these initiatives should be considered
as part of a wider strategic policy approach focused on longer-term sector
recovery and sustainability. This work is critical as significant and enduring policy
change is required to sustain New Zealand media; short-term relief measures in
isolation cannot achieve this outcome.
BR2020/172 COVID-19 RESPONSE: SECOND MEDIA SUPPORT PACKAGE
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10
Prior to commencing policy work on specific initiatives, officials would work with
the sector to develop a strategic framework for building the critical foundation
required to support a thriving media sector. Issues that could be considered as
part of this work include:
• Why does the media sector require a customised response to support its
recovery beyond broad response measures that the government may
implement across the economy?
• What core capabilities must be preserved to maintain a functioning media
system?
• What would a sustainable future system look like in terms of operating and
ownership models, funding arrangements, and the interaction between public
and private media?
• What policy and legal settings would need to be changed to enable this future
system to be achieved?
11
This approach would ensure that any further policy, regulatory or funding
interventions support longer-term objectives rather than being progressed on an
ad hoc basis. It would create a shared understanding at the outset of the critical
components required for a functioning media system and the benefits sought
through any subsequent work.
12
The stakeholder workshops identified specific initiatives that could be considered
as part of this work. The Ministry proposes that further policy work be
commissioned to scope and explore options relating to:
• reducing barriers to sector consolidation, e.g. potential legislative changes
such as establishing powers to enable a Minister to call-in particular media
mergers
• mitigating the impact of global digital platforms on local media, 9(2)(f)(iv)
• developing tax incentives to support journalism, 9(2)(f)(iv)
13
The relative role and contribution of public media to the wider media system
would also be considered as part of this work and would draw on the work done
to date as part of the Strong Public Media programme. In addition, other options
beyond the initiatives listed above may emerge through this process.
14
As part of the second support package, the government could signal its intent to
undertake this longer-term strategic work in partnership with the sector, alongside
the implementation of more immediate support measures. If you agree to this
approach, then officials will develop a more detailed plan over the coming weeks
for how this work would be progressed.
BR2020/172 COVID-19 RESPONSE: SECOND MEDIA SUPPORT PACKAGE
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Options not progressed
Government loan guarantees
15
Stakeholders raised the option of the government guaranteeing loans to media
companies, but officials recommend that this option is not progressed.
16
The Ministry consulted the Treasury on the applicability of its Economically
Significant Businesses (ESB) funding scheme to the media sector, which officials
had initially understood to be the appropriate workstream to consider this option.
17
The ESB funding scheme is intended for large businesses (over $200 million in
revenue) that are financially viable in the medium to long term. 9(2)(g)(i)
On the other hand, large media companies exceed the threshold for the
Business Finance Guarantee scheme for SMEs.
18
The Treasury does not support a tailored commercial policy approach for the
media sector. Media companies were facing challenges before the outbreak of
COVID-19, and most media companies that would seek this form of support are
already highly leveraged and have balance sheet viability issues which call into
question their repayment ability. Loan guarantees will not address the underlying
challenges faced by media companies and may prevent a necessary
recapitalisation of the business or sector consolidation. This approach would
therefore create a risk of benefitting creditors and shareholders rather than
supporting media policy outcomes.
Expediting assessment of mergers under the Commerce Act 1986
19
The Ministry, MBIE, and the Commerce Commission (the Commission) have
considered interim options to expedite the assessment of mergers of media
entities under the Commerce Act 1986. Parties agreed that no additional steps
need to be taken at this time on the basis that:
• Significant aspects of timeliness for the consideration of applications were out
of the Commission’s control (e.g. the quality of information provided by
applicants, the level of external opposition to applications).
• The Commission had a significant number of existing measures to encourage
an expedited process where possible (e.g. pre-engagement with applicants
and clear guidelines to lift the quality of applications, and the ability to redeploy
resources to particular applications). The Commission also noted it had pre-
existing relationships with the sector and external media sector expertise
which would be expected to support timely consideration of future
applications.
20
MBIE and the Commission were working to ensure that the Commission was
resourced to respond to potential demand, including from media. Any resourcing
could not be pinned to one sector but would be generic funding for the Commerce
Commission’s operation. This process would occur outside of the Ministry’s
media support work.
BR2020/172 COVID-19 RESPONSE: SECOND MEDIA SUPPORT PACKAGE
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21
Officials will continue to work with MBIE on options to reduce barriers to sector
consolidation as part of the longer-term strategy work, as noted above.
Consultation
22
Given the tight deadlines for preparing this advice, the Ministry has not had time
to consult relevant departments, in particular the Treasury, Te Puni Kōkiri and
MBIE. Officials will provide a copy of this briefing to those departments and notify
your office if there is any substantial feedback before the Friday deadline for
budget initiatives.
Next steps
23
The Ministry seeks your agreement to submit the budget initiatives provided in
Appendix 1 to the Treasury on Friday 24 April. Officials will work with your office
to finalise any further changes required before the bids are submitted.
24
If you agree to the proposed approach to the longer-term policy work, officials will
develop a more detailed plan for this work prior to any announcement. You may
wish to provide Cabinet with an update on the approach to policy and regulatory
options that are being commissioned as part of the second package.
Appendices
Appendix 1: Budget initiatives for second media support package
BR2020/172 COVID-19 RESPONSE: SECOND MEDIA SUPPORT PACKAGE
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Annex 2: Template – Submission Seeking
Funding for COVID-19 Related Costs
Portfolio of lead Minister
Broadcasting, Communications, and Digital Media
Portfolio(s) of other
N/A
Ministers involved
Impacted Votes
Broadcasting, Communications, and Digital Media
| 1
| 2
| 4
| 5
NOT GOVERNMENT POLICY
CLASSIFIED: COMMERCIAL IN CONFIDENCE, BUDGET SENSITIVE
Annex 2: Template – Submission Seeking
Funding for COVID-19 Related Costs
Funding sought
2023/24
Operating funding
2019/20
2020/21
2021/22
2022/23
&
Total
Sought ($m)
Outyears
Vote Arts, Culture and
$13.2
Heritage:
Total
$13.2
Capital funding Sought
2019/20
2020/21
2021/22
2022/23
2023/24
($m)
Vote X:
Vote Y:
Total
2024/25
2025/26
2026/27
2027/28 2028/29
Total
Vote X:
Vote Y:
Total
Funding sought to be reprioritised
2023/24
Operating funding
2019/20
2020/21
2021/22
2022/23
&
Total
($m)
Outyears
Vote X:
Vote Y:
Total
Capital funding ($m)
2019/20
2020/21
2021/22
2022/23
2023/24
Vote X:
Vote Y:
Total
2024/25
2025/26
2026/27
2027/28 2028/29
Total
Vote X:
Vote Y:
Total
[Add description of what the funding transferred will be used for and how it relates to COVID-
19 response and recovery. Also a reason why funding can be transferred]
NOT GOVERNMENT POLICY
CLASSIFIED: COMMERCIAL IN CONFIDENCE, BUDGET SENSITIVE
Overview of COVID-19 pandemic related funding or initiative
Key Question
Answer
Title of initiative
Support for media sector through government advertising
Portfolio of lead Minister
Broadcasting, Communications and Digital Media
Portfolio(s) of other
Ministers involved
Impacted Votes
Expenditure under this initiative will initially be incurred through Vote:
Arts, Culture and Heritage. Partial reimbursement of that initial
expenditure will take place during the 2020/21 year from other Votes
which fund government advertising.
What will this initiative do?
This initiative will use the government’s role as a purchaser of
advertising to provide immediate cash-flow support for the media sector.
The initiative will involve the government making advance purchases of
advertising inventory for the 2020/21 year and increasing the overall
level of government advertising expenditure.
The initiative is therefore an expansion of an existing area of
government spending, together with a one-off change to the way that
expenditure is made.
How does the initiative
This initiative responds to two important needs arising from the COVID-
relate to the COVID-19
19 pandemic.
Pandemic response and
The main driver is the need to replace advertising revenue that media
recovery?
companies are losing as a result of the general economic restrictions in
place during the COVID-19 response. Media companies are
experiencing a severe drop in advertising revenue and there is a real
risk that key parts of the media sector will be lost, with detrimental
consequences for New Zealand society in the long-term. Urgent support
measures are needed to maintain media sector viability in the short-term
and enable a transition to a sustainable future.
A secondary but significant driver is the greater need for government to
convey information to the New Zealand public. This includes information
to promote compliance with restrictions during the response phase and
information to assist people and businesses to recover from the impacts
of the pandemic.
It is not possible to make advance purchases of government advertising
for the 2020/21 year within existing baselines.
2 |
NOT GOVERNMENT POLICY
CLASSIFIED: COMMERCIAL IN CONFIDENCE, BUDGET SENSITIVE
How does this initiative This initiative strongly supports the first wave of the Government’s plan to
contribute
to
the respond to and recover from COVID-19 –
fighting the virus and cushioning
Government’s
plan
to the blow. The initiative provides immediate relief from acute cash-flow
respond and recover from issues affecting the media sector as a result of a steep decline in
COVID-19
advertising revenue. This will help ensure media sector viability in the
short-term and enable a transition to a sustainable future for the sector.
Increased advertising by government will also help to achieve both:
• higher levels of compliance with restrictions put in place as part
of the COVID-19 response; and
• better uptake of initiatives designed to promote social and
economic recovery.
Please provide a
The proposed funding will buy advertising inventory from media
breakdown of the costs of
companies.
this initiative
The starting point for the funding being sought is the current level of
expenditure on government advertising. Based on a recent survey of key
media organisations, this is estimated at $8.8 million per year.
The next component of the funding being sought is an allowance for a
25 percent higher level of government advertising expenditure, to
directly support the COVID-19 response and recovery. This increases
the $8.8 million starting point to $11.0 million.
The final component of the funding is an allowance for a further 20
percent increase in government advertising expenditure. This would
provide additional support for media companies with unsold advertising
inventory, and would enable a broader range of public good advertising
to be delivered as New Zealand starts its recovery from COVID-19.
This takes the full total of funding being sought to $13.2 million.
The costs of the advance payments made to media organisations will be
offset by advertising during the 2020/21 year that can be placed without
further cost.
How will this initiative be
This initiative will be coordinated by the Ministry for Culture and Heritage
implemented?
(MCH). MCH will make one upfront payment to each eligible media
organisation as soon as possible after receiving adequate evidence of
the organisation’s previous revenue from government advertising.
The upfront payment will create a credit in favour of the Crown, which
government departments will make use of as they place advertising
during the 2020/21 year.
MCH will require monthly reporting from media organisations so that
progress in using the credits can be monitored and verified. A
reconciliation process will be put in place so that departments reimburse
the original fund from which the upfront payments were made.
The key implementation risk for the Crown is the possibility that an
organisation that has received an upfront payment ceases to trade
before the Crown is able to fully utilise the pre-paid advertising with that
organisation.
| 3
NOT GOVERNMENT POLICY
CLASSIFIED: COMMERCIAL IN CONFIDENCE, BUDGET SENSITIVE
Why is funding urgently
This funding is required urgently because it is a significant part of a
required for this initiative?
package of immediate support for the media sector. Urgent support
measures are needed to maintain media sector viability in the short-term
and enable a transition to a sustainable future.
If support is not provided until 2021, there is a real risk that key parts of
the media sector that are critical to its future sustainability will have
ceased to operate.
Are there any other options This funding is necessary to ensure that advance payments for
to fund this initiative?
advertising are made to media organisations.
An alternative option would be to direct government departments to
make individual assessments of likely advertising expenditure in
2020/21, and arrange their own payments in advance. This would be
unlikely to achieve the objective of addressing the immediate cash-flow
challenges for media companies, as individual departments are unlikely
to have sufficient certainty about their plans to generate a significant
advance payment. Much greater certainty can be achieved by
considering likely advertising expenditure at a whole-of-government
level.
Does the initiative result in This initiative requires resources from MCH for its implementation. Most
new FTEs or contractors?
of these resources will be needed during the initial period where the
scheme is planned and established, and advance payments are made.
There will also be some ongoing resources needed for coordination of the
scheme through to the end of 2020/21.
MCH will meet these resource needs by redeploying staff whose normal
area of work is at a reduced level of activity.
Does this initiative overlap
Part of this initiative involves departments placing their advertising in the
with the work of any other
usual way, and not being required to pay for it where it is covered by an
departments? If so, how
advance payment from the Crown. Part of MCH’s coordination role will
have you worked with
include monitoring the utilisation of advertising inventory that the Crown
those departments to avoid has purchased, and ensuring that the credits in favour of the Crown are
duplication?
fully utilised.
4 |
ANNEX TWO – SUBMISSION SEEKING FUNDING FOR COVID-19 RELATED
EXPENDITURE
Funding sought
2023/24
Operating
funding
2019/20
2020/21
2021/22
&
Total
Sought ($m)
2022/23
Outyears
Vote Arts, Culture and
2.000
Heritage
Total
Capital funding Sought
2019/20
2020/21
2021/22
2022/23
2023/24
($m)
Vote X:
Vote Y:
Total
2024/25
2025/26
2026/27
2027/28 2028/29
Total
Vote X:
Vote Y:
Total
Funding sought to be reprioritised
2023/24
Operating
funding
2019/20
2020/21
2021/22
&
Total
($m)
2022/23
Outyears
Vote X:
Vote Y:
Total
Capital funding ($m)
2019/20
2020/21
2021/22
2022/23
2023/24
Vote X:
Vote Y:
Total
2024/25
2025/26
2026/27
2027/28 2028/29
Total
Vote X:
Vote Y:
Total
[Add description of what the funding transferred will be used for and how it relates to COVID-
19 response and recovery. Also a reason why funding can be transferred]
Key Question
Answer
Title of initiative
Strategic design work to support sustainable, viable media sector
Portfolio of lead Minister
Minister of Broadcasting, Communications and Digital Media
Portfolio(s) of other
Other portfolios, such as Finance, Commerce and Consumer Affairs, and
Ministers involved
Revenue, would be involved as this work progresses.
Impacted Votes
Vote Arts, Culture and Heritage
What will this initiative do?
Building on from the work commenced under the Strong Public Media
programme, Government will lead a process with the media sector to develop
and implement a strategic design to ensure the long-term viability and
sustainability of a strong and independent media.
This work would underpin further policy initiatives by Government to implement
changes to policy, legal or funding settings that are required to support the
sector to recover from the impact of COVID-19 and to transition to sustainable
and viable long-term arrangements for the future.
The Ministry for Culture and Heritage (MCH) will work with the sector and
relevant government departments to develop these policy initiatives, which are
expected to include:
• reducing barriers to sector consolidation and/or supporting new ownership
arrangements for private media
• developing tax incentives to support journalism
• mitigating the impact of digital intermediaries on local media
• optimising institutional and funding arrangements for public media.
Developing a strategic design for the long-term viability and sustainability of the
media sector is necessary to ensure that further government initiatives provide
value for money and do not prop up unsustainable business models. It is also
essential to ensure that further government interventions do not compromise the
independence of the media and preserve the vital contribution made by private
media providers within New Zealand.
The initiative will provide a coordinated and integrated approach to delivering
government support aligned with the long-term viability and sustainability of an
independent local media sector.
Key Question
Answer
How does the initiative relate Government has developed an immediate support package for the media sector
to the COVID-19 Pandemic
respond to the impact of COVID-19, in particular by providing short-term
response and recovery?
cashflow support to media companies. These initiatives have an immediate
focus on preserving existing capability and capacity within the private media
sector. They do not address the fundamental challenges to the continuing
viability of a strong private media presence in New Zealand.
The impact of COVID-19 has accelerated the impact of pressures on current
operating and funding models of private media arising from changes in audience
behaviour, reducing levels of revenue from advertising, and the impact of digital
intermediaries distributing content. Further initiatives will be necessary as part of
the recovery effort to support the sector to transition to new arrangements,
including structural and funding arrangements, that will be more sustainable in
the long-term.
A strong, viable and independent media supports New Zealand function as an
open, participative democracy. Private media supports economic activity at a
local, regional and national level and will be important to businesses seeking to
re-establish themselves and engage with consumers. Media also provides
essential local channels to distribute public health messages and trusted and
authoritative information to New Zealand audiences.
Long-term sustainability and viability of the sector will require fundamental
changes to the way the sector operates, including to ownership structures,
funding models and operating models, to address issues that were a feature of
the sector prior to the outbreak of COVID-19.
If this initiative does not progress the media sector will lose core capability and
capacity that will significantly compromise the ability to rebuild a viable local
media sector that is able to service local and regional communities and provide a
trusted, authoritative source of local news.
How does this initiative
The initiative is necessary to ensure a viable and sustainable future for the media
contribute to the
sector, both private and public. A strong local media capability supports the aim
Government’s plan to
of Wave 2 to kick start by economic as it provides channels for communicating
respond and recover from
timely and accurate information to New Zealand audiences about key government
COVID-19?
policies and further responses to COVID 19. In addition, private media benefits
from but also supports broader economic activity and provides channels for
businesses seeking to re-establish content with customers.
The initiative is clearly aligned with Wave 3 to Reset and Rebuild the economy
and provides the means to ensure a viable future for a core feature of New
Zealand’s cultural and economic landscape. The impact of the growth of global
digital providers of content (such as Facebook, Google and Netflix) has critically
compromised the viability of the media sector and such impact cannot be mitigated
by generic government intervention and support. To ensure the long term
presence of an independent and viable media sector, Government will need to
work with the sector to develop a comprehensive approach that clearly recognises
the role and responsibilities of government and the sector.
Key Question
Answer
Please provide a breakdown
The estimated total cost of this initiative is $2.0 million for the 2020/21 financial
of the costs of this initiative
year. A breakdown of costs is as follows:
• Developing and implementing a strategic framework
• Stakeholder collaboration and consultation: $150,000
• Research and Media Specialist consultancy: $250,000
• Strategy documentation: $300,000
• Reducing barriers to sector consolidation and/or supporting new ownership
arrangements: $100,000
• Developing tax incentives to support journalism: $250,000
• Mitigating the impact of digital intermediaries on local media: $250,000
• Optimising arrangements for public media: $500,000
• Integrate and align immediate and short-term interventions: $200,000
How will this initiative be
The initiative will be implemented by MCH leading collaborative work with
implemented?
relevant government agencies (e.g. Treasury,TPK , MPP, MBIE, IRD,
Commerce Commission) and the media sector.
MCH will lead engagement with the sector to develop a strategic design to
identify the core characteristics necessary to ensure the long-term viability and
sustainability of the sector. This design will underpin further policy initiatives by
Government to support the sector transition to new arrangements and to ensure
value for money from further Government investment.
MCH will also lead collaboration to progress policy initiatives that may include:
• reducing barriers to sector consolidation and/or supporting new ownership
arrangements for private media
• developing tax incentives to support journalism
• mitigating the impact of digital intermediaries on local media
• optimising institutional and funding arrangements for public media.
In addition, MCH will coordinate implementation of short-term interventions to
support the media sector.
Why is funding urgently
Funding is required to ensure that initiatives can be funded by Budget 2021 and
required for this initiative?
ensure timely implementation. Further delay would mean that existing capability
and capacity within the sector was compromised to a point that may preclude
any possibility of building a viable and sustainable sector.
To lead a strategic initiative of this magnitude the MCH will require both new
capability and capacity. It could not resource this initiative from baseline funding
and the level of resources committed to supporting short term essential
interventions mean additional capacity is required. In addition, specialist
expertise will be required to develop comprehensive responses aligned with the
long term future of the sector.
Are there any other options
A tagged contingency previously provided to support work to develop strong
to fund this initiative?
public media is not now available. Additional funding is required to progress
current initiatives in relation to public media and to develop the strategic design
required to optimise government investment in the wider media sector.
Does the initiative result in The funding proposed includes any requirement for additional capability and
new FTEs or contractors?
capacity to support MCH with this work
Does this initiative overlap
Contributions from MBIE, The Treasury, Inland Revenue and the Commerce
with the work of any other
Commission will be necessary to develop comprehensive and effective initiatives
departments? If so, how
and minimise the impact on existing policy settings.
have you worked with those
departments to avoid
The initiative would also be managed in ways that aligned it with work underway
duplication?
to support the viability of the creative sector, recognising the contribution of that
sector to local media.
ANNEX TWO – SUBMISSION SEEKING FUNDING FOR COVID-19 RELATED
EXPENDITURE
Funding sought
2023/24
Operating
funding
2019/20
2020/21
2021/22
&
Total
Sought ($m)
2022/23
Outyears
Vote Arts, Culture and
$7.25
$7.25
$7.25
$21.75
Heritage:
million
million
million
over
three
years
with
ongoing
annual
cost
Vote Y:
Total
Capital funding Sought
2019/20
2020/21
2021/22
2022/23
2023/24
($m)
Vote X:
Vote Y:
Total
2024/25
2025/26
2026/27
2027/28 2028/29
Total
Vote X:
Vote Y:
Total
Funding sought to be reprioritised
2023/24
Operating
funding
2019/20
2020/21
2021/22
&
Total
($m)
2022/23
Outyears
Vote X:
Vote Y:
Total
Capital funding ($m)
2019/20
2020/21
2021/22
2022/23
2023/24
Vote X:
Vote Y:
Total
2024/25
2025/26
2026/27
2027/28 2028/29
Total
Vote X:
Vote Y:
Total
Key Question
Answer
Title of initiative
Baseline Funding Uplift for RNZ
Portfolio of lead Minister
Minister of Broadcasting, Communications and Digital Media
Portfolio(s) of other
Minister of Finance
Ministers involved
Impacted Votes
Vote Arts, Culture and Heritage
What will this initiative do?
Radio New Zealand (RNZ) was allocated a two-year time-limited annual
operating funding increase of $7.25 million in Budget 2019. This was intended as
a measure to support RNZ while the Strong Public Media policy work was
undertaken.
This initiative will seek to increase RNZ’s baseline funding by the amount of
time-limited funding: $7.25 million from 2021/22 onwards.
How does the initiative relate COVID-19 has halted the Stronger Public Media programme while other urgent
to the COVID-19 Pandemic
media sector work takes place. The initial time-limited funding was intended to
response and recovery?
support RNZ until that programme was completed. RNZ needs this funding to
cover current levels of service.
The media landscape is being drastically affected by COVID-19, with many media
organisations are facing financial pressures from a steep drop in advertising
revenue and uncertainty about ongoing viability. A strong and stable public
broadcaster is required to provide essential journalism, news and media.
How does this initiative
RNZ is providing essential news and media services during the initial phase of the
contribute to the
COVID response and beyond. Its news content is being made available to other
Government’s plan to
broadcasters.
respond and recover from
RNZ is a key Lifeline Utility during Civil Defence Emergencies under the Civil
COVID-19?
Defence Emergency Management Act.
Please provide a breakdown
An ongoing increase of $7.25 million per year to RNZ, adding it to the annual
of the costs of this initiative
baseline funding from 2021/22, bringing it to $42.606 million.
How will this initiative be
RNZ funding is delivered through New Zealand on Air via its platform funding.
implemented?
The same mechanism will be used for the funding increase.
This is an established process which requires no new planning or
implementation.
Why is funding urgently
9(2)(b)(ii)
required for this initiative?
Are there any other options
to fund this initiative?
Does the initiative result in RNZ operational decisions may result in new FTEs or contractors but there are no
new FTEs or contractors?
specific plans at the moment.
Does this initiative overlap
Treasury has provided a report on this matter, stating the need for the ongoing
with the work of any other
baseline funding to avoid RNZ cost reductions. Approval in principle has been
departments? If so, how
gained from the Minister of Finance and the Minister of Broadcasting.
have you worked with those
departments to avoid
duplication?
Hon Kris Faafoi
Minister of Broadcasting, Communications and Digital Media
BACKGROUND AND CONTEXT OF THE SECOND MEDIA SUPPORT
PACKAGE
Date:
3 June 2020
Priority:
High
Security
Commercial In-Confidence
Reference:
BR2020/238
classification:
Minister
Action Sought
Deadline
Hon Kris Faafoi
Note the content of this briefing to
10 June 2020
Broadcasting,
support Ministerial and Coalition
Communications and
consultation on the second media support
Digital Media
package
Contacts
Name
Position
Contact
1st Contact
Anna Butler
Deputy Chief Executive, Policy 9(2)(a)
and Sector Performance
Tony de Jong
Policy Advisor
Minister’s office to complete ☐ Approved
☐ Declined
☐ Noted
☐ Needs change
☐ Seen
☐ Overtaken by events
☐ See Minister’s notes
☐ Withdrawn
Comments:
Purpose
1
This paper provides you the detail and context of the proposed second media
support package to support further consultation.
Recommendations
2
The Ministry for Culture and Heritage recommends that you:
1
Note the content of this briefing
YES / NO
2
Note this briefing supports consultation on the second media
YES / NO
support package and may form the basis of a future Cabinet
paper if required
Anna Butler
Hon Kris Faafoi
Deputy Chief Executive, Policy
Minister of Broadcasting,
and Sector Performance
Communications and Digital Media
______ / ______ / 2020
Background
Impact of COVID-19 on the media sector and government’s work programme
3
Prior to COVID-19 the Government had committed to significant work through the
Strong Public Media (SPM) programme to ensure public media were well placed
to adapt to the changing media environment and meet the needs of New
Zealanders. In January 2020, Cabinet directed officials to undertake a detailed
business case on the viability of establishing a new public media entity and invited
you to report back to Cabinet in July 2020 [CAB-20-MIN-0004 refers].
4
Since then, the commercial media sector has been severely impacted by the
COVID-19 response due to a drastic drop in advertising revenue. This was
particularly acute during the lockdown phase, with revenue loss across the media
sector estimated to be in the range of 40-70%, significantly impacting cash flow
and solvency to the point that the short-term viability of many media businesses
is at risk.
BR2020/238 BACKGROUND AND CONTEXT OF THE SECOND MEDIA SUPPORT PACKAGE
2
5
The economic situation through the recovery period will have a significant
ongoing impact on advertising revenue, with the media sector expressing
concerns that it may never fully recover to pre-COVID-19 levels.
6
A healthy media sector is a central component of a functioning democracy and
has a vital role in supporting wider economic activity. New Zealand media
organisations faced fundamental challenges to the viability of their commercial
models prior to the outbreak of COVID-19. The impact of COVID-19 has
exacerbated these challenges and shortened the runway available for media
companies to transition to more sustainable business models.
7
Government action is needed to ensure there is not an irreversible loss of
capability and infrastructure within the media sector as a result of COVID-19.
Changes to structural, funding and policy settings for both public and private
media will be required to address the underlying issues threatening the survival
of media companies and to create a viable path to recovery and sustainability.
8
At the same time, Crown-funded public media are relatively insulated from the
revenue and liquidity pressures facing commercially funded entities. While
enduring solutions for public media are still required, Radio New Zealand (RNZ)
and NZ On Air (NZoA) are well positioned in the short term to continue to provide
core services in this challenging environment. In April 2020, you agreed to pause
the SPM programme to focus on the response to COVID-19 and to expand the
scope of current work on public media to focus on the viability of the wider media
sector.
9
You directed officials to prepare an initial sector support package to be followed
by a further package addressing long-term sustainability of the media sector.
Media Support Package One
10
On 22 April 2020 the Cabinet Business Committee (CBC) with Power to Act
agreed to a $50.0 million initial media sector support package. This Wave 1
package sought to address immediate cashflow issues caused by the dramatic
and abrupt reduction in revenue over the lock-down period and short term
through:
a. Funding costs payable by media organisations, including
i. Six months of transmission costs (for users of Kordia and RNZ;
$21.1 million)
ii. Platform contributions to NZoA ($16.5 million)
b. Centralising government uptake of media subscriptions ($1.3 million)
c. Other sector support through a range of other mitigation measures ($11.1
million)
11
This package sought to preserve the critical sector components of the sector for
long enough to develop a more substantial and targeted support package and a
BR2020/238 BACKGROUND AND CONTEXT OF THE SECOND MEDIA SUPPORT PACKAGE
3
more enduring strategy for future sector sustainability1. This work is now well into
implementation. CBC noted that whilst it would provide immediate relief to the
sector it would not provide sufficient support if there was a prolonged impact on
advertising revenue.
12
CBC invited you to report back to Cabinet with further measures to form this more
substantial package, and requested work with the sector to develop bold options
to build the foundation required for future sector sustainability. A proposal for a
second support package was initially submitted through the COVID-19 Budget
2020 process.
Second Media support package
13
The proposed second media package was also developed in conjunction with the
sector. It positions the sector for recovery through targeted protection of the
components of media critical to meeting the public interest journalism needs New
Zealanders. It also prepares for a longer-term Wave 3 response by enabling the
development of a more enduring strategy for the future sustainability of the sector.
14
The revised package from the original April 2020 submission2 seeks 9(2)(f)
over three years for two critical initiatives to build on the immed
(iv) iate
cashflow support in the initial package:
9(2)(f)(iv)
b.
Recovery strategy for a sustainable and viable media sector - $2.0 million
for 2020/21 only
Detail of these initiatives is set out below.
9(2)(f)(iv)
1 Budget 2020 also includes a baseline funding increase for RNZ ($21.75 million total, comprised of $7.25
million annually from 2021/22) to ensure that it can continue to deliver public media services at current levels,
preserving a strong and stable public broadcaster providing essential news services
2 The original suite of media support initiatives submitted through the COVID-19 Budget 2020 process sought
9(2)(f)(iv)
In addition to the RNZ baseline increase noted above, a proposed initiative for
the advance purchase of government advertising was overtaken as part of the first support package.
BR2020/238 BACKGROUND AND CONTEXT OF THE SECOND MEDIA SUPPORT PACKAGE
4
9(2)(f)(iv)
BR2020/238 BACKGROUND AND CONTEXT OF THE SECOND MEDIA SUPPORT PACKAGE
5
9(2)(f)(iv)
Recovery strategy for a sustainable and viable media sector ($2.0 million for
2020/21)
26
This initiative will enable the rapid development of a strategic approach for a
viable media sector. This work is needed in order to inform a subsequent work
programme which will support the longer-term sustainability of the sector. The
approach and subsequent policy work would become the Wave 3 sector recovery
response.
27
While the first two packages provide short-term relief and protect key journalistic
content and capabilities to support recovery, they do not address the fundamental
challenges to the media sector that existed prior to COVID-19 but have been
exacerbated by the impact of the pandemic.
28
These challenges are significant, and include the failing of traditional advertising
and subscription-based media business models, competition from global
competition with digital giants who have increased available content but with a
limited New Zealand perspective, and fragile media ownership structures
dominated by overseas ownership without strong commitment to New Zealand.
29
In addition, New Zealand’s public media is fragmented and not able to effectively
respond to digital disruption, and under-taxation of the digital economy due to
deficiencies in current international tax rules distorts investment in favour of digital
multinationals.
BR2020/238 BACKGROUND AND CONTEXT OF THE SECOND MEDIA SUPPORT PACKAGE
6
30
Addressing these challenges is critical as significant and enduring structural,
funding, and policy change is required to sustain New Zealand media; short-term
relief measures in isolation cannot achieve this outcome.
31
Based on stakeholder input, officials have recommended a package of initiatives
that could be considered as part of a wider strategic policy approach focused on
longer-term sector recovery and sustainability (BR2020/228 refers). This further
policy work should scope and explore options relating to:
• optimising institutional and funding arrangements for public media, e.g.
progressing the SPM programme.
• mitigating the impact of global digital platforms on local media, 9(2)(f)(iv)
• developing tax incentives to support journalism, 9(2)(f)(iv)
• supporting new ownership arrangements for private media, including reducing
barriers to consolidation for existing media entities, e.g. potential legislative
changes such as enabling a Minister to call-in particular media mergers, and
32
Each of these initiatives would involve significant policy work. Prior to
commencing policy work on specific initiatives, officials would work with the sector
to develop a strategic framework to test and prioritise this work. Officials note that
the Government’s undertaking to consider these initiatives should not be seen as
a commitment to implement them. Likewise, alternative policy interventions that
support sector sustainability may be identified as preferred options in the course
of this work.
Strategic framework
33
Government, public media and private media will need to make decisions in the
short to medium term to recover and transition to more sustainable arrangements
as part of the COVID-19 response. Rapidly developing a strategic framework
would ensure that any further policy, regulatory, or funding interventions support
longer-term objectives rather than being progressed on an ad hoc basis.
34
Issues to be considered as part of this work include:
• Why the media sector requires a customised response to support its recovery
beyond universal broad response measures implemented by government
• What core capabilities must be preserved to maintain a functioning media
system
• What a sustainable future system would look like (e.g. operating and
ownership models, funding arrangements, and the interaction between public
and private media)
• What policy and legal settings need to be changed to enable this future
system to be achieved, and
BR2020/238 BACKGROUND AND CONTEXT OF THE SECOND MEDIA SUPPORT PACKAGE
7
• The roles and sector contributions of Government, and public and private
media
35
This work is intended to be short, sharp, and focused to ensure it can support
decisions in a timely, targeted way and secure sector buy-in during a challenging
period for businesses. It will also support Ministers to make informed decisions
on any further interventions that focus on critical capability and long-term
outcomes rather than investing in unsustainable business models.
36
The relative role and contribution of public media to the wider media system
would also be considered as part of this work and would draw on the work done
to date as part of the SPM programme. In addition, other policy options beyond
the initiatives listed above may emerge through this process.
Next steps
37
This paper was provided to support further consultation on the proposed Media
Package Two . The Ministry for Culture and Heritage is available to provide any
other information or material you may require for these discussions.
BR2020/238 BACKGROUND AND CONTEXT OF THE SECOND MEDIA SUPPORT PACKAGE
8
Hon Kris Faafoi
Minister of Broadcasting, Communications and Digital Media
STRATEGIC FRAMEWORK FOR A SUSTAINABLE MEDIA SECTOR
Date:
12 June 2020
Priority:
High
Security
In Confidence
Reference:
BR2020/228
classification:
Minister
Action Sought
Deadline
Hon Kris Faafoi
Agree that officials will work with
19 June 2020
Broadcasting,
stakeholders to develop a strategic
Communications and
framework that will enable government
Digital Media
and media entities to make informed
decisions, collectively and independently,
that support a sustainable media sector;
Agree to the scope for the strategic
framework;
Agree to convene a sector reference
group of nominated representatives who
will work with officials on the development
of the strategic framework;
Agree that the strategic framework will
inform the development of a subsequent
policy work programme that will include
both public and private media.
Contacts
Name
Position
Contact
1st Contact
Anna Butler
Deputy Chief Executive, Policy 9(2)(a)
and Sector Performance
Leigh Huffine
Policy Advisor
Minister’s office to complete ☐ Approved
☐ Declined
☐ Noted
☐ Needs change
☐ Seen
☐ Overtaken by events
☐ See Minister’s notes
☐ Withdrawn
Comments:
Purpose
1
This briefing seeks your agreement to an approach to developing a strategic
framework to support the longer-term recovery and sustainability of the media
sector, including the scope, timeframes, and roles and responsibilities.
Key Messages
2
As part of Wave 3 of the Government’s COVID-19 response, you have indicated
an intent to develop a strategic framework to support the longer-term recovery
and sustainability of the wider media sector, both public and private. The strategic
framework will help to ensure that decisions on any further government
interventions for the media sector support long-term outcomes. This initiative
forms part of the second media support package currently under consideration.
3
This work acknowledges that changes to structural, funding and policy settings
will be required to address the underlying issues that were threatening the
survival of media companies prior to COVID-19 and to create a viable path to
recovery and sustainability in the medium to long term.
4
The strategic framework would be developed in close collaboration with the
sector by September 2020 and would be presented to the Minister of
Broadcasting, Communications and Digital Media as soon as practicable after the
2020 election. If accepted, it would be presented to Cabinet for endorsement.
5
Officials seek your agreement to the scope for this work so that internal planning
can progress while the second media support package is under consideration.
Officials also propose the establishment of a sector reference group to support
the development of the strategic framework.
6
Stakeholders have proposed several policy initiatives for consideration as part of
the workshops on the COVID-19 support packages, and you have indicated that
these policy initiatives will be considered as part of this work. The strategic
framework will provide a way to assess the impact and relevance of these
initiatives to inform further decisions by Ministers.
7
Officials recommend that the next phase of the Strong Public Media programme
is progressed within the context of the strategic framework. It will be critical that
interventions to support public and private media align and are founded on a clear
understanding of the relative roles and contributions of each. Officials will provide
further advice on options to progress the Strong Public Media programme.
8
This work will also need to align with the Māori Media Sector Shift and will have
links to several existing policy initiatives across government.
9
This briefing is intended to be read in conjunction with
BR2020/227 Strong Public
Media Business Case: Strategic and Economic Cases Completed.
BR2020/228 Strategic framework for a sustainable and viable media sector
2
Recommendations
10
The Ministry for Culture and Heritage recommends that you:
1
Note that you have indicated an intent to develop a strategic
YES / NO
framework to support the longer-term recovery and
sustainability of the wider media sector, both public and private;
2
Agree, subject to confirmation of the second media support
YES / NO
package, that officials will work with stakeholders to develop a
strategic framework that will enable government and media
entities to make informed decisions, collectively and
independently, that support a sustainable media sector;
3
Agree to the following scope for the strategic framework:
YES / NO
In scope
Out of scope
Television and radio media
Music sector
Print media (includes
Film sector
newspapers and magazines)
Advertising sector
Digital media (includes digital
Games sector
news services and digital
Book publishing
content platforms)
Archives
4
Agree that the Ministry for Culture and Heritage will lead the
YES / NO
development of the strategic framework on behalf of
government;
5
Agree to convene a sector reference group of nominated
YES / NO
representatives who will work closely with officials on the
development of the strategic framework;
6
Direct officials to provide further advice on convening the
YES / NO
sector reference group;
7
Note that officials expect the strategic framework to be
YES / NO
developed by September 2020 and delivered to the Minister of
Broadcasting, Communications and Digital Media as soon as
practicable after the 2020 election;
8
Agree that the strategic framework will inform a subsequent
YES / NO
policy work programme that will include both public and private
media;
9
Agree that the Strong Public Media programme be progressed
YES / NO
in the context of the strategic framework and work programme
referred to in recommendation 8;
10
Note that officials will provide further advice on options to
YES / NO
progress the Strong Public Media programme.
BR2020/228 Strategic framework for a sustainable and viable media sector
3
Anna Butler
Hon Kris Faafoi
Deputy Chief Executive, Policy
Minister of Broadcasting,
and Sector Performance
Communications and Digital Media
______ / ______ / 2020
Background
11
New Zealand media organisations faced fundamental challenges to their ongoing
viability prior to the outbreak of COVID-19. The impact of COVID-19 has
exacerbated these challenges and shortened the runway available for media
companies to transition to more sustainable business models.
12
The Government is advancing its economic response to COVID-19 in three
waves1. 9(2)(f)(iv)
13
The Cabinet paper for the first support package noted that the intent of these
initiatives was to preserve the critical components of the sector long enough to
develop a more enduring strategic framework for the future sustainability of the
sector, which is proposed to form part of Wave 3.
14
The need for a more enduring strategic framework acknowledges that changes
to structural, funding and policy settings will be required to address the underlying
issues that were threatening the survival of media companies prior to COVID-19
and to create a viable path to recovery and sustainability in the medium to long
term. Short-term relief measures alone cannot achieve this outcome.
Stakeholders have proposed several policy initiatives for consideration as part of
the workshops on the COVID-19 support packages, and a strategic framework
will provide a way to assess the impact and relevance of these initiatives.
15
In April 2020, you agreed to expand the scope of current work on public media to
focus on the viability of the wider media sector (BR2020/161 refers). You
subsequently directed officials to develop advice on several policy initiatives as
part of a wider strategic approach focused on the longer-term recovery and
sustainability of the media sector (BR2020/172 refers).
16
Officials propose to work with the sector to develop a strategic framework for a
viable media sector prior to commencing work on specific policy initiatives. The
strategic framework and subsequent policy work would form part of the second
media support package. Officials prepared a budget bid for $2.0 million for the
resources required to deliver this work.
1
Wave 1: Fighting the virus and cushioning the blow.
Wave 2: Positioning for recovery.
Wave 3: Resetting and revitalising the economy.
BR2020/228 Strategic framework for a sustainable and viable media sector
4
Strategic framework for a sustainable media sector
Purpose and expected benefits
17
A strategic framework would be a document developed collaboratively to create
a common understanding across government, public media and private media of
the characteristics of a future sustainable media sector. This medium-term vision
will help to identify what change is required to achieve that future state. At a high
level the strategic framework would set out:
•
Context: the key issues, trends and opportunities within the wider sector, the
unique features of the relationship between media and government, and the
current legislative and regulatory settings that affect the decisions available to
the sector.
•
Outcomes: the benefits media create for New Zealand, the outcomes that the
sector should deliver, and what a sustainable media sector would look like in
future compared to where we are now.
•
Delivery: the critical functions, capabilities and infrastructure required to
achieve that future state, and the optimal roles of government, public media
and private media in delivering sector outcomes.
18
Government, public media and private media will need to make decisions in the
short to medium term to recover and transition to more sustainable arrangements
as part of the COVID-19 response. A strategic approach to these decisions would
help to ensure that further government interventions (policy, funding or
regulatory) are relevant, have the desired impact, and avoid the risks of ad hoc
decision-making.
19
A strategic framework will also support Ministers to make informed decisions that
focus on critical capability and long-term outcomes rather than investing in
unsustainable business models, as noted by Cabinet. It will clearly set out the
role of government in sector transformation, acknowledging that government
alone cannot resolve all the challenges facing media.
20
It also provides an opportunity to expand the current work programme, which has
focused primarily on public media, to include broader sector outcomes. On that
basis, officials recommend that the strategic framework is prepared in close
collaboration with the wider sector.
21
The expected benefits of developing the strategic framework are:
• A managed plan to transition to more sustainable sector arrangements that is
intended to inform decisions on a subsequent policy work programme.
• A means to evaluate, prioritise and sequence potential policy interventions in
order to identify initiatives that are likely to have the greatest beneficial impact
on sector sustainability.
• A shared understanding of the respective roles and contributions of the
government, public media and private media to agreed sector outcomes.
BR2020/228 Strategic framework for a sustainable and viable media sector
5
• A cohesive narrative on the Government’s approach to supporting the sector
to respond to the economic consequences of COVID-19.
• A framework to support a coordinated sector approach to other relevant areas
of policy work being undertaken across government.
Scope
22
The Ministry for Culture and Heritage (the Ministry) proposes the following scope
for the strategic framework in order to focus on the core components of the media
sector rather than adjacent sectors:
In scope
Out of scope
Television and radio media
Music sector
Print media (includes newspapers Film sector
and magazines)
Advertising sector
Digital media (includes digital
Games sector
news services and digital content
Book publishing
platforms)
Archives
23
Issues relating to content production, transmission and delivery, and revenue
streams (such as advertising) would be considered to the extent that they relate
to the areas deemed in scope.
24
The inclusion of print media, and of magazines in particular, represents an
expansion of the traditional scope of the portfolio. Prior to COVID-19, the Ministry
had had limited engagement with magazine publishers. Magazines have been
severely affected by COVID-19 restrictions, and publishers have advocated to be
included in subsequent policy work. Officials expect journalistic capability to be a
core feature of any sector strategic framework and therefore recommend the
inclusion of these parts of the sector.
25
Some areas have been proposed to be out of scope on the basis that they will be
considered through other existing work programmes (e.g. the Screen Sector
Strategy). Where possible, the strategic framework will account for intersections
with these areas, particularly where there may be shared economic and cultural
benefits.
26
Officials propose that the strategic framework have a five-year time horizon. This
relatively short time horizon reflects that this work is intended to form part of the
COVID-19 recovery response and that the sector requires a critical, medium-term
transition to more sustainable operating models. It also acknowledges the
practical challenges of anticipating further changes in the sector’s operating
environment.
27
The strategic framework would remain in place for the duration of the five-year
period unless there was a significant change to the strategic context that required
fundamental assumptions to be revisited.
BR2020/228 Strategic framework for a sustainable and viable media sector
6
Roles and responsibilities
28
The Ministry for Culture and Heritage (the Ministry) would be the lead agency
responsible for drafting and maintaining the strategic framework on behalf of
government. The strategic framework would be developed in consultation with
other relevant government agencies and sector stakeholders.
29
A broad cross-section of stakeholders, representing diverse interest groups, will
have an interest in this work (refer to Appendix 1). It would be impractical to
engage this wider group of stakeholders at every step of the process, and some
media companies may have a limited ability to contribute resource to this work
due to the business impacts of COVID-19.
30
Officials therefore recommend convening a sector reference group of 6-8
nominated representatives who will work closely with officials on the development
of the strategic framework. The Ministry will also establish periodic check-in
points with the wider stakeholder group to test thinking as it develops.
31
To form the sector reference group, officials will seek nominations from the wider
group of stakeholders. Appointees to the group should collectively represent the
broad interests of the media sector (e.g. experience across public and private
media and a variety of delivery platforms such as broadcast, print and online, and
emerging digital technologies, and representation of diverse cultural
perspectives). They should have a strong understanding of the current state of
New Zealand media and the credibility to express sector perspectives, interests
and priorities. Clear criteria will be established for the skills and attributes required
for these roles, and nominations endorsed by a collective group of stakeholders
will be welcomed.
32
The Ministry will assess nominations, including consideration of the overall
composition of the group, and make recommendations to you on appointments.
While you will make final appointments to the group, the group will be responsible
for providing advice and input to the Ministry. The group would be expected to
support the development of the strategic framework on behalf of the wider sector,
but it would not have any governance role for policy work progressed within the
context of the strategic framework, for example the Strong Public Media
programme.
33
If you agree to this approach, officials will provide further advice on convening
the sector reference group, including terms of reference and position
descriptions, for your consideration.
Timeframes and deliverables
34
Officials propose to develop the strategic framework from June to September
2020. The process would need to be short, sharp and focused in order to ensure
it can support government decisions in a timely, targeted way and secure sector
buy-in during a challenging period for businesses. To build momentum quickly,
officials would draw on the wide range of stakeholder inputs and policy reports
used to support previous advice, including the COVID-19 response work, as the
BR2020/228 Strategic framework for a sustainable and viable media sector
7
starting foundation for the strategic framework. A summary of previous inputs is
provided at Appendix 2.
35
The sector reference group would recommend the final strategic framework to
the Minister of Broadcasting, Communications and Digital Media as soon as
practicable after the 2020 election. If the Minister agrees to the strategic
framework, it would be presented to Cabinet for endorsement at the first available
opportunity (expected to be by the end of 2020). Wider sector stakeholders would
have an opportunity to endorse the framework following Cabinet consideration.
36
These timeframes would provide an opportunity for an incoming government to
consider a sector-endorsed strategic framework as a key input to shaping future
policy work programmes.
Subsequent policy work programme
37
The budget initiative submitted as part of the second support package included
the development of a strategic framework and consideration of the following
policy initiatives:
• mitigating the impact of digital intermediaries on local media
• supporting new ownership arrangements for private media, including reducing
barriers to consolidation for existing media entities
• developing tax incentives to support journalism
• optimising institutional and funding arrangements for public media.
38
The final point refers to next steps for the Strong Public Media programme, which
is discussed below. In addition, consultation feedback suggested that workforce
planning should also be considered.
39
Each of these initiatives would involve significant policy work. The strategic
framework will provide a means of evaluating and prioritising which initiatives are
most likely to support long-term outcomes. On that basis, the government’s
undertaking to consider these initiatives should not be seen as a commitment to
implement them. Likewise, alternative policy interventions that support sector
sustainability may be identified as preferred options in the course of this work.
40
Stakeholders may not see value in taking the time to develop a strategic approach
given the immediate financial pressures their businesses are facing. To maintain
momentum, officials propose to undertake initial scoping work on the policy
initiatives already proposed in parallel with the development of the strategic
framework. This approach will enable more detailed policy work to be progressed
quickly once the framework is finalised in order to inform advice to Ministers on a
recommended approach.
BR2020/228 Strategic framework for a sustainable and viable media sector
8
Alignment with existing policy programmes
41
There are several policy programmes across government that will have potential
links to the development of the strategic framework and any subsequent policy
work programme. These initiatives have been summarised in Appendix 3.
42
Officials will need to work closely with partner agencies to ensure alignment
between workstreams and to seek shared benefits or outcomes where possible
and desirable. Some existing policy initiatives may constrain the options available
as part of this work.
Strong Public Media programme
43
You have received a separate briefing on the completed strategic and economic
cases of the Strong Public Media detailed business case, including the Ministry’s
advice on issues that require further consideration (BR2020/227 refers).
44
Officials recommend that the next phase of the Strong Public Media programme
is progressed within the context of the strategic framework and as part of the
related policy work programme. It will be critical that interventions to support
public and private media align and are founded on a clear understanding of the
relative roles and contributions of each.
45 9(2)(f)(iv)
46
In addition, TVNZ is facing significant negative financial impacts as a result of
COVID-19 and is expected to require financial support to continue its operations
(Treasury advice T2020/862 refers). The Strong Public Media programme is
expected to set the strategic direction for the Crown’s media entities, particularly
TVNZ and RNZ. Advice on these options will need to take into consideration
TVNZ’s current position, its expected role and required capabilities, and the
transitional arrangements or support that may be required while this work is
progressed.
47
Officials will provide further detailed advice on these options, including advice on
the process recommended to progress them, once you have had an opportunity
to consider this paper and BR2020/227.
BR2020/228 Strategic framework for a sustainable and viable media sector
9
Māori Media Sector Shift
48
The strategic framework process will need to align strongly with the Māori Media
Sector Shift being led by the Minister for Māori Development, which is focused
on supporting Māori media entities2 to adapt to their changing operating
environment, better serve audiences, and contribute to te reo revitalisation
outcomes. Cabinet has already agreed to a set of principles, objectives and
outcomes to guide the Māori Media Sector Shift. Officials understand that Minister
Mahuta intends to take a set of proposals for progressing this work to Cabinet in
July 2020, following sector consultation.
49
It will be vital to ensure that the role of media in supporting Māori cultural and
language outcomes is considered as part of the strategic framework, and that
Māori media stakeholders are actively involved in the development process. It is
not intended, however, that this process will duplicate or revisit the policy work
already progressed through the Māori Media Sector Shift in relation to structural,
funding or governance arrangements for Māori media entities.
50
Officials have developed a strong working relationship with Te Puni Kōkiri officials
leading this work and will continue to work together to ensure alignment between
policy workstreams and to identify opportunities for collaboration.
Consultation
51
The Treasury and Te Puni Kōkiri have been consulted on this paper and agree
with the recommendations.
Financial implications
9(2)(f)(iv)
52
Next steps
53
Officials do not intend to discuss this work with stakeholders until the second
support package has been confirmed and announced. The timing of decisions on
the second package may have an impact on the timeframes for delivering the
strategic framework if there is a delay in commencing engagement with
stakeholders. Officials will continue to progress internal planning and policy work
to the extent possible in the interim.
54
If you agree to the recommendations in this paper, officials will provide further
advice on convening the sector reference group and on options to progress the
Strong Public Media programme in the coming weeks. Officials will also prepare
a stakeholder engagement plan in consultation with your office.
2 Māori Television, Te Māngai Pāho, and Te Whakaruruhau o Ngā Reo Irirangi Māori (iwi radio).
BR2020/228 Strategic framework for a sustainable and viable media sector
10
Appendices
Appendix 1: Stakeholder overview
Appendix 2: Summary of previous policy inputs
Appendix 3: Related policy work programmes
BR2020/228 Strategic framework for a sustainable and viable media sector
11
Appendix 1: Stakeholder overview
The following table provides an initial overview of stakeholders who have may an
interest in this work. It will be developed and refined further as part of a stakeholder
engagement plan.
Government
Departments
Media entities (Crown
Regulators
Transmission
owned or funded)
MCH
TVNZ
Broadcasting Standards
Kordia
Authority
Treasury
RNZ
Office of Film and
Literature Classification
Te Puni Kōkiri
NZ On Air
Ministry for Pacific
Māori Television
Peoples
MBIE
Te Māngai Pāho
DIA
Te Whakaruruhau o Ngā
Reo Irirangi Māori
National Pacific Radio Trust
Non-government
Private media
Industry bodies /
Production
Platforms
Other
interest groups
sector
MediaWorks
Newspaper Publishers
SPADA
Facebook
Academics
Association
Stuff
Magazine Publishers
DEGNZ
Google
E tū / PSA
Association
NZME
Radio Broadcasters
Ngā Aho
Netflix
Freeview
Association
Whakaari
Sky
Community
Amazon
NZ Media Council
Newspaper
Association
The Spinoff
Better Public Media
Apple
Advertising
Trust
Standards Authority
Newsroom
NZ Children’s Screen
Disney
Able
Trust
Allied Press
Advertising industry
Spark
Digital Media Trust
bodies (ANZA, CCC,
IAB)
Community Access
Media Alliance
Ethnic media
BR2020/228 Strategic framework for a sustainable and viable media sector
12
Appendix 2: Summary of previous policy inputs
The following inputs, which have been developed as part of previous policy work, will
be drawn on by officials to develop the starting foundation for the strategic framework:
• COVID-19 response: stakeholder workshops and information requests
• Strong Public Media programme: previous Cabinet papers developed with the Chief
Executive’s Advisory Group, strategic and economic cases of the detailed business
case, and the market soundings undertaken as part of the business case
• Public Media Ministerial Advisory Group: the three reports prepared or
commissioned by the group, as well as stakeholder submissions made to the group.
• Māori Media Sector Shift: previous Cabinet papers on principles, outcomes and
objectives
• NZ On Air report: Options to Improve the Environment for New Zealand Journalism
(report following the journalism roundtable in July 2019)
• Other sector research and reports (e.g. NZ On Air audience research, PwC’s Global
Entertainment & Media Outlook 2019-2023, Coalition for Better Broadcasting
report)
Relevant international work
• ACCC’s Inquiry into Digital Platforms, and subsequent policy work (Australia)
• Australian content on broadcast, radio and streaming services (Australia)
• Cairncross Review: A sustainable future for journalism (UK)
• Broadcasting and Telecommunications Legislative Review (Canada)
BR2020/228 Strategic framework for a sustainable and viable media sector
13
Appendix 3: Related policy work programmes
The following policy programmes will have potential points of intersection or alignment
with the strategic framework and subsequent policy work programme.
These intersections will be identified and explored further as work progresses.
Department
Initiative
MCH
Strong Public Media
MCH
Screen Sector Strategy (sector-led)
MCH / DIA
Content regulation review
Te Puni Kōkiri
Māori Media Sector Shift
Te Puni Kōkiri
Wai 262
IRD
Taxing the digital economy
MBIE
Copyright Act review
MBIE
Industry Transformation Plans – Creative industries
Ministry for Pacific Peoples
Pacific Aotearoa Lalanga Fou
Department of Prime
Foreign interference
Minister and Cabinet
BR2020/228 Strategic framework for a sustainable and viable media sector
14
Hon Kris Faafoi
Minister of Broadcasting, Communications and Digital Media
AIDE MEMOIRE: Submission of the second media support package
Date:
24 June 2020
Priority:
High
Security
Sensitive
Reference: AM2020/276
classification:
9(2)(a)
Contact
Liz Stewart, Programme Manager
Purpose
1
This paper provides an update on the next steps for the COVID-19 Response and
Recovery Fund Round 2 (Round 2) in which the second media support package is
being considered. It also responds to a request from your office to provide detail of the
information that will be submitted to The Treasury as part of this process.
Background
2
You have written to the Minister of Finance to propose a second media support
package
seeking 9(2)(f)(iv)
over three years for two critical initiatives to build on
the $50 million initial sector support package agreed in April 2020. Developed following
workshops with the sector, these initiatives are:
9(2)(f)(iv)
b.
Building a sustainable and viable media sector - $2.0 million for 2020/21 only.
Process for approval of Round 2 initiatives
3
The Treasury has contacted relevant agencies on the next steps for Round 2. It advises
that:
a. The Minister of Finance is expected to confirm a ‘near final’ Round 2 package on
24 June, following a meeting of finance Ministers.
b. Successful initiatives must be finalised in Treasury’s CFISnet system on 26 June,
including initiative titles, descriptions and financial recommendations.
1
c. Treasury intends to lodge a Round 2 Cabinet paper covering the full package on 3
July.
d. Cabinet is expected to consider the Round 2 package on 6 July.
Proposed initiative titles and descriptions for submission
4
The Ministry for Culture and Heritage (the Ministry) has been asked to submit
information on the titles, descriptions, and financial recommendations in support of our
proposed Round 2 initiatives to Treasury by 26 June.
5
In traditional Budget processes, the initiative title and description are approved as part
of the bid template submission by Ministers and are published in the formal Budget
documents. At this stage it is not clear if these will be published in a similar manner for
the Round 2 package, but the Ministry has prepared the title and description for the
two initiatives consistent with Treasury’s standard guidance and character limits as
follows:
9(2)(f)(iv)
Title
Description (500 characters maximum,
including spaces)
Title
Building a Sustainable and Viable Media
Sector
Description (500 characters maximum,
This initiative enables the rapid
including spaces)
development of a strategic framework and
subsequent policy work to support longer-
term sector sustainability and viability
including next steps for the Strong Public
Media programme. Both public and private
media face fundamental challenges to their
ongoing viability, and enduring structural,
regulatory and policy change will be
required to support media to recover and
transition to a more sustainable future
6
Financial recommendations to give effect to the funding proposals will also be provided
to Treasury for inclusion in the Round 2 Cabinet paper. We also propose to include a
AM2020/276 Submission
of the second media support package 2
delegation recommendation to allow you to make implementation decisions, consistent
with the initial support package:
Authorise the Minister of Broadcasting, Communications and Digital Media to take
further decisions on minor and technical matters to support the implementation of these
initiatives in line with decisions agreed by Cabinet.
Next steps for Strong Public Media
7
In April 2020, the Cabinet Business Committee noted that the detailed business case
on the viability of establishing a new public media entity would be paused on
completion of the strategic and economic cases, and that this work would be revisited
at a later date [CBC-20-MIN-0030 refers].
8
As noted in the initiative description, you have agreed that the Strong Public Media
programme be progressed in the wider context of the ‘Building a sustainable and viable
media sector’ initiative (BR2020/228 refers).
9
The Ministry proposes that the Round 2 Cabinet paper note your intention to resume
this work and suggests the inclusion of the following recommendations in the paper:
9(2)(f)(iv)
10
The Ministry intends to provide you with further advice on options to progress the
Strong Public Media programme shortly.
9(2)(f)(iv)
AM2020/276 Submission
of the second media support package 3
9(2)(f)(iv)
Next steps
14
The Ministry will continue to work with your office to confirm any final details required
to submit these initiatives to the Treasury by 26 June.
15
The Ministry will also work with your office to support a potential package
announcement following confirmation that the initiatives are being included in the
Round 2 package prepared for Cabinet consideration on 6 July 2020.
Liz Stewart
Programme Manager, Media and Broadcasting
AM2020/276 Submission
of the second media support package 4
Hon Kris Faafoi
Minister of Broadcasting, Communications and Digital Media
OVERVIEW OF THE SECOND MEDIA SUPPORT PACKAGE
Date:
26 June 2020
Priority:
High
Security
Commercial In-Confidence
Reference:
BR2020/282
classification:
Minister
Action Sought
Deadline
Hon Kris Faafoi
Agree to submit this second media
26 June 2020
Broadcasting,
support package to the Minister of
Communications and
Finance for inclusion in the COVID-19
Digital Media
Response and Recovery Round 2
package to be considered at Cabinet on 6
July 2020
Forward this briefing to the Minister of
Finance to seek his approval to include
these initiatives in the COVID-19
Response and Recovery Round 2
package to be considered at Cabinet on 6
July 2020
Contacts
Name
Position
Contact
1st Contact
Anna Butler
Deputy Chief Executive, Policy 9(2)(a)
and Sector Performance
Tony de Jong
Policy Advisor
Minister’s office to complete ☐ Approved
☐ Declined
☐ Noted
☐ Needs change
☐ Seen
☐ Overtaken by events
☐ See Minister’s notes
☐ Withdrawn
Comments:
Purpose
1
This paper provides you an overview of the proposed second media support
package and requests that you seek the Minister of Finance’s approval to include
these initiatives in the COVID-19 Response and Recovery Round 2 package to
be considered by Cabinet on 6 July.
Recommendations
2
The Ministry for Culture and Heritage recommends that you:
Minister of Broadcasting, Communications and Digital Media:
1
Note the content of this briefing
YES / NO
2
Agree to
submit the proposed second media support package
YES / NO
to the Minister of Finance for inclusion in the COVID-19
Response and Recovery Round 2 package to be considered at
Cabinet on 6 July 2020
3 9(2)(f)(iv)
YES / NO
4
Forward this paper to the Minister of Finance
YES / NO
Minister of Finance:
5
Agree to include the two second media package initiatives
YES / NO
outlined in this paper in the COVID-19 Response and Recovery
Round 2 package to be considered at Cabinet on 6 July 2020
Anna Butler
Hon Kris Faafoi
Deputy Chief Executive, Policy
Minister of Broadcasting,
and Sector Performance
Communications and Digital Media
______ / ______ / 2020
Hon Grant Robertson
Minister of Finance
______ / ______ / 2020
BR2020/282 OVERVIEW OF THE SECOND MEDIA SUPPORT PACKAGE
2
Why this package is required
3
A healthy media sector is a central component of an open, participative
democracy and has a vital role in supporting wider economic activity. The sector
provides jobs and platforms for advertising that underpin economic activity at a
local, regional and national level, and makes a strong contribution to wellbeing
outcomes, particularly cultural identity and civics and governance.
4
New Zealand media organisations faced fundamental challenges prior to the
outbreak of COVID-19. These challenges have been exacerbated by COVID-19
as many media companies have experienced a drastic decline in advertising
revenue (estimated to be in the range of 40-70% during the lockdown phase)
even as audience reach has soared.
5
The economic situation through the recovery period will have a significant
ongoing impact on media companies. Job losses have already been experienced
across the sector, and with concerns that advertising revenue may not fully
recover to pre-COVID levels, further losses are likely1. The impact of COVID-19
has shortened the runway available for media companies to adapt and transition
to more sustainable business models.
6
Government action is needed to ensure that regardless of the changing dynamics
and structure of the media sector, there is not an irreversible loss of capability
and infrastructure as a result of COVID-19, particularly for public interest
journalism.
Media support Package One
7
In April the Cabinet Business Committee agreed to a $50.0 million initial media
sector support package to address immediate cashflow issues caused by the
dramatic and abrupt reduction in revenue over the lock-down period and short
term. This investment sought to sustain critical components of the sector for long
enough to develop a more substantial and targeted support package and a more
enduring strategy for future sector sustainability.
Proposed Second Media support package
Overview
8
The proposed second media package sought through the COVID-19 Response
and Recovery Round 2 package 9(2)(f)(iv)
9(2)(f)(iv)
It seeks 9(2)(f)(iv)
for two critical initiatives to build on the immediate cashflow
support in the initial package:
9(2)(f)(iv)
b.
Recovery strategy for a sustainable and viable media sector - $2.0 million
1 For example, direct COVID-19 proposed redundancies have been announced for 200 jobs NZME, 130 at
MediaWorks, and 70-90 jobs at TVNZ.
BR2020/282 OVERVIEW OF THE SECOND MEDIA SUPPORT PACKAGE
3
Detail of these initiatives is set out below.
9(2)(f)(iv)
BR2020/282 OVERVIEW OF THE SECOND MEDIA SUPPORT PACKAGE
4
9(2)(f)(iv)
BR2020/282 OVERVIEW OF THE SECOND MEDIA SUPPORT PACKAGE
5
9(2)(f)(iv)
Building a sustainable and viable media sector
Funding sought: $2.0 million in 2020/21
26
Initiative description: This initiative will support the rapid development of a
strategic framework to support the longer-term recovery and viability of the wider
media sector, both public and private, and a subsequent work programme. It will
BR2020/282 OVERVIEW OF THE SECOND MEDIA SUPPORT PACKAGE
6
ensure that any further government interventions for the media sector support
critical capabilities and long-term outcomes. The Strong Public Media programme
will be progressed as part of this work.
27
Policy rationale: New Zealand media organisations faced fundamental
challenges to their viability prior to the outbreak of COVID-19, which has
exacerbated these challenges and shortened the runway available for media
companies to transition to more sustainable business models. Changes to
structural, regulatory and policy settings will be required to address the underlying
issues threatening the survival of media companies and to create a viable path
to recovery and sustainability in the medium to long term. Short-term relief
measures alone cannot achieve this outcome.
Implementation:
Strategic framework
28
Officials at the Ministry for Culture and Heritage will lead the development of the
strategic framework in close collaboration with the sector. The Ministry will
convene a Sector Reference Group of nominated media sector representatives
to support this work. Work will commence as soon as the initiative is approved.
The completed strategic framework would be presented to the Minister of
Broadcasting, Communications and Digital Media as soon as practicable after the
2020 election. If accepted, it would be presented to Cabinet for endorsement.
These timeframes would provide an opportunity for an incoming government to
consider a sector-endorsed strategic framework as a key input to shaping future
policy work programmes.
Subsequent policy work programme
29
This initiative will also include progressing the Strong Public Media programme
to secure enduring solutions for New Zealand’s public media. In addition, it will
consider the merits of the following policy initiatives, which were identified by
stakeholders as priority initiatives to support a sustainable sector:
a. mitigating the impact of digital intermediaries on local media
b. supporting new ownership arrangements for private media, including
reducing barriers to consolidation
c. developing tax incentives to support journalism.
30
Officials will undertake initial scoping work on these initiatives in parallel with the
development of the strategic framework, and other policy options may be
identified in the course of this work. This approach will enable more detailed
policy work to be progressed quickly during 2020/21 once the framework is
finalised. The strategic framework will provide a way to assess the impact and
relevance of these initiatives to inform decisions by Ministers on a work
programme.
Expected benefits:
BR2020/282 OVERVIEW OF THE SECOND MEDIA SUPPORT PACKAGE
7
31
The strategic framework will create a common understanding across
government, public media and private media of the characteristics of a future
sustainable media sector and the change is required to achieve that future state.
It will set out the respective roles and contributions of the government, public
media and private media to agreed sector outcomes.
32
The strategic framework will provide a means to evaluate, prioritise and sequence
potential policy interventions in order to identify initiatives that are likely to have
the greatest beneficial impact on sector sustainability. It will help to avoid
interventions that prop up unsustainable business models.
33
The subsequent work programme, which will be informed by and developed
alongside the strategic framework, provides an opportunity to design the changes
required to current policy and legal settings in order to respond to the challenges
of the changing media operating environment. It will provide a managed plan to
support media to transition to more sustainable long-term arrangements,
including recovering from the impact of COVID-19, in order to secure the cultural
and economic benefits that media create for New Zealand.
Scaling options
34
The Ministry notes that a range of scaling options are available for this package
if required.
35 9(2)(f)(iv)
36
The Ministry does not recommend scaling
Building a sustainable and viable
media sector initiative. In addition to any scaling likely to represent minimal
savings across the overall package, the funding proposed is a reflection of the
actual and reasonable
cost of the scope and scale of the work required.
BR2020/282 OVERVIEW OF THE SECOND MEDIA SUPPORT PACKAGE
8
BUDGET SENSITIVE
COVID-19 RESPONSE ROUND 2: PROPOSED MEDIA SUPPORT PACKAGE
26 JUNE 2020
FURTHER MEDIA SECTOR SUPPORT IS REQUIRED
MEDIA PACKAGE ONE PROVIDED:
THE MEDIA SECTOR PROVIDES:
•
journalism jobs and platforms for advertising that underpin NZ economic activity at a local, regional
• $50M of immediate cashflow relief for a broad range of (primarily broadcast) media to enable them to
and national level.
maintain delivery of essential services in the short-term
• a strong contribution to wellbeing outcomes, particularly cultural identity, civics and governance.
• critical components of an open, participative democracy
FURTHER GOVERNMENT SUPPORT IS NEEDED TO:
9(2)(f)(iv)
COVID-19 HAS MEANT:
• media companies have experienced a drastic decline in advertising revenue (est at 40 – 70% during
lockdown) while audience numbers have soared.
• job losses have been announced across the sector
• the runway available for media organisations to adapt to more sustainable business models has
shortened.
THE PROPOSED MEDIA PACKAGE 2 INITIATIVES
9(2)(f)(iv)
9(2)(f)
VIABILITY OF THE SECTOR (iv)
9(2)(f)(iv)
A LONG TERM VIEW OF VIABILITY :
A strategic view of the media ecosystem developed in
tandem with the sector, and considering global and local
evidence, to enable effective and efficient co-existence of
public and private New Zealand media businesses and
inform the policy changes required for the sector to more
readily respond to the changing operating environment.
IMPLEMENTATION OF THE INITIATIVES
9(2)(f)(iv)
Together with the sector, a framework will be developed
which will support effective decision making for
government and wider media sector
PRACTICAL EXAMPLES
9(2)(f)(iv)
INTENDED OUTCOMES
Productive co-existence of public & private media
organisations within the New Zealand eco-system.
Policy and legal changes to positively impact the sector
ecosystem through levers such as:
• Mitigating the impact of digital intermediaries on
local media
• Enabling consolidation of ownership
• Developing tax incentives to support journalism
A sector best placed to leverage the changing system in
which it operates.
9(2)(a)
9(2)(f)(iv)
9(2)(f)(iv)
9(2)(f)(iv)
9(2)(f)(iv)
9(2)(f)(iv)
Document Outline
