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Chief Executive of Priority One with |
The last few weeks have seen some dramatic changes to New Zealand’s media landscape. These changes are part of an industry transformation that’s been underway for a while but they are more prominent, and unsettling, than changes we’ve seen in the past.
During the last 15 years, media has become an increasingly tough business.
The old ‘rivers of gold’ that newspapers saw from classified advertising for cars, houses and jobs have diminished significantly, moving into digital channels and away from those that employ journalists.
Likewise, general advertising is now much more digitally driven, with global tech giants able to offer much more targeted, result-based advertising to brands as they follow us around the internet – whether you know about it or not.
Advertisers can access unprecedented data on potential customers and their behaviours – so that’s where the money goes.
Media consumption habits have changed too, with availability and consumption of news and entertainment in different ways, at different times, on different screens – this might span from TikTok to long-form podcasts to subscription video.
The result of those changes is that the business of journalism is severely compromised.
In the past media organisations would trade the happy circle of investing in journalism to generate an audience, then selling access to that audience to advertisers.
This was helped by scarcity – either geographic or via radio or TV channels.
Without lower advertising income, these businesses must reduce their investment in journalists.
The situation is made worse in mediums that have high costs of journalism, such as TV news – which is why we’re seeing the structural changes at both of our major broadcasters.
Free market
The need for any industry to adapt to societal and technological change is nothing new, the free market will determine who survives or thrives.
Where the public should become concerned however is the impact on media’s essential role in our society.
That might be in holding our politicians to account, unbiased reporting on current affairs, or by being a trusted source of essential information.
During my time at Fairfax Media, I witnessed first-hand the essential role that Stuff and The Christchurch Press played in a time of need during the Canterbury Earthquakes, with swift reporting of news and essential information for locals and the world.
While it’s easy to cast a cynical view over ‘mainstream media’ based on the style of reporting or how well paid a TV presenter is, or their attitude to unfavoured politicians, the consequences of the demise of this industry for our society are bad.
We need them to provide essential information and to hold those in power to account.
Imagine a world without trusted, local media outlets.
We’re fortunate
So what does that mean for the future?
Clearly news media needs to be efficient and adapt to changing audience habits.
That might mean paywalls for news websites are universal, or that news bulletins are shorter, cheaply produced, or accessible in bite-sized pieces.
Government may need to play a stronger role to address the conditions that favour overseas tech-giants over local media companies, either via the Fair Digital News Bargaining Bill or by addressing tax paid by digital advertising companies.
As a community we need to value journalism, while it’s easy to see it as a free public good – commercial reality means that the business behind it needs to be supported.
We’re fortunate to have some great publications such as the one you’re reading here locally. Let’s make sure we support them.
Prior to his role at Priority One, Nigel held leadership roles within technology and media companies.