TVNZ Proposes Major Restructuring: Outsourcing and Closure of 1News Website and App
In a significant shift for New Zealand’s media landscape, TVNZ has announced proposals to outsource substantial portions of its daily operations and to close the 1News website and app by February 2025. This strategic move, articulated by Chief Executive Jodi O’Donnell during meetings with staff, aims to address a pressing $30 million revenue shortfall that has plagued the Crown-owned company.
The Rationale Behind the Changes
TVNZ, which operates on a commercial basis rather than relying on taxpayer funding, is grappling with a steep decline in advertising revenue. Over the past year, this downturn has resulted in a major budget deficit, prompting the company to implement cost-cutting measures. In May, TVNZ made headlines by axing long-standing current affairs programs such as Fair Go and Sunday, alongside job cuts in various departments, including Re: News.
In light of these financial challenges, O’Donnell emphasized the necessity of the proposed changes, stating that they are focused on achieving the $30 million target while ensuring the business remains sustainable and relevant for all New Zealanders. A spokesperson for TVNZ reiterated this sentiment, highlighting the company’s commitment to delivering on its Digital+ strategy amidst these strategic changes.
Proposed Changes and Their Implications
The proposed restructuring includes several significant alterations to TVNZ’s operations:
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Closure of 1News Website and App: The most notable proposal is the discontinuation of the 1News website and app, which will cease operations in February 2025. This move signals a shift towards prioritizing video storytelling through the Re: News platform.
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Consolidation of Business Areas: TVNZ plans to consolidate certain business areas to better align with its overarching strategy. This could lead to a more streamlined operation but may also raise concerns about job security for affected employees.
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Outsourcing Content Workflows and Technology: The company is considering outsourcing specific areas within its content workflows and technology by FY26. This decision could potentially lead to a reduction in in-house roles, although TVNZ has stressed that specific role reductions are not part of the current proposals.
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Changes to Roster Patterns: Adjustments to roster patterns are also on the table, which may affect how staff schedules are organized and managed.
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Creation of a Centre for Excellence: TVNZ aims to establish a "centre for excellence for data, analytics, and AI," indicating a commitment to leveraging technology and data-driven insights in its operations.
- New Teams for TVNZ+: The proposal includes the formation of a dedicated team for News on TVNZ+, as well as the establishment of a "Creative Hub" to foster innovation and creativity within the organization.
Seeking Feedback and Future Steps
TVNZ is currently in the feedback-gathering phase, inviting input from employees regarding the proposed changes. The spokesperson emphasized that no final decisions will be made until all feedback has been considered, highlighting the company’s intention to engage with its workforce during this transitional period.
The Broader Context
The proposed changes at TVNZ come at a time when the media industry is undergoing significant transformations, driven by shifts in consumer behavior and the increasing dominance of digital platforms. As traditional revenue streams dwindle, media organizations worldwide are reevaluating their strategies to remain competitive and relevant.
The closure of the 1News website and app, in particular, raises questions about the future of digital news consumption in New Zealand. As audiences increasingly gravitate towards video content, TVNZ’s pivot towards video storytelling may reflect broader trends in the media landscape.
Conclusion
As TVNZ navigates these challenging waters, the proposed restructuring marks a critical juncture for the organization. While the plans aim to address immediate financial concerns, they also signal a broader shift in how news is delivered and consumed in New Zealand. The coming months will be pivotal as TVNZ seeks to balance its operational needs with the expectations of its audience and workforce. The outcome of this strategic proposal will undoubtedly shape the future of New Zealand’s media landscape for years to come.