The Demise of Newshub
The Fair Digital News Bargaining Bill would not have made a difference
The demise of Newshub is tragic. It now seems more likely than not that, barring a miracle, that what started as Three News will no longer be on our TV screens or Three Now after June. The story has been reported through out the day and the Herald coverage has been detailed. Their articles may be seen here , here and here.
It was only two weeks ago that a Select Committee heard submissions on the Fair Digital News Bargaining Bill. News media were there in force. As may be expected they all supported the Bill and told tales of woe about how, without the financial assistance that the Bill, if enacted, would provide the future for news media - indeed mainstream media - would be very bleak indeed. Those submissions are available on the Parliament website.
But what was surprising, in the midst of all the fallout surrounding the announcement was a story on the Radio NZ website which reported as follows:
“Lee (the Minister for Broadcasting, Communications and Digital Media) said she spoke to Newshub boss Glen Kyne about the cuts on Tuesday night. He told her nothing could have helped prevent it, including a faster resolution around the Fair Digital News Bargaining Bill.
"He basically told me about the announcement he was actually making today... he said there was nothing that could have actually helped, it was actually a failure in terms of the way they're advertising for their news, it was actually a massive drop and nothing could have actually helped."
This was surprising given the united front that the mainstream media put up before the Select Committee.
I do not support the Fair Digital News Bargaining Bill. I posted my opposition and proposed a solution here. That article contains the submissions that I made.
Given that what happened to Newshub is what was the scenario presented by mainstream media at the Select Committee and given the comment by Mr. Kyne to Ms Lee, one wonders whether or not the Fair Digital News Bargaining Bill has a future. It seems to be a proposal of doubtful utility. But of course, it was introduced by the previous Government which might explain much.
It was most amusing to read responses to this on X.
"Democracy has died a little bit" and "one less voice to critique this bad government".
Thousands and thousands of business owners (including myself) lost some, half or all of their business. over covid. In many cases that included our life savings....money we foolishly invested in a business when we would have been much better off investing in houses.
I don't know how many tourism businesses were destroyed because this was never reported on in the media. But it must have been a considerable amount considering tourism went from a 17 billion a year (largely in foreign exchange) industry to a small fraction of that literally overnight.
Also never reported are the tens of thousands of poor children in South Auckland or the Far North or Gisborne, who lost up to a year of school, something that they will never recover and with no plan to help them recover it. Protecting the vulnerable, indeed.
Where are their "features" or documentaries?
Instead we get insipid "misinformation reporting" and the "far right boogeyman" lurking on every corner.
I don't expect sympathy, no one made me start a business that was my decision. But their's was the only industry to get bailed out, and they still couldn't make their business work. They are clearly very incompetent.
It beggers belief that these media businesses who have failed in their job to offer balance and challenge authority, would seriously expect any sympathy from the rest of us.
Their model is one of an elite group talking to itself while telling the rest of us to eat cake.
There is plenty of cronyism in our capitalist economy but here, the market is speaking. The mainstream media has not served the market and it is getting the punishment the market rightly gives all those who fail it.
We have RCR and substack and any number of other blogs and podcasts. I've got more from this substack in 6 months then 5 years of offal on stuff.
The media response to the "shock" closure of a failing business says everything you need to know about the completely insular nature of the mainstream media.
I look forward to something better rising from the ashes.
Well said. I agree. I take issue with your characterisation of it as a "tragedy". It is surely hyperbolic to describe it so.