Scoop has an Ethical Paywall
Work smarter with a Pro licence Learn More

Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

TVNZ flags job cuts to arrest profit decline

Thursday 23 March 2017 05:17 PM

Television NZ flags job cuts as part of moves to arrest profit decline in shrinking ad market

By Jonathan Underhill

March 23 (BusinessDesk) - Television New Zealand has announced plans to streamline its businesses, cutting jobs to stem a decline in earnings in the face of falling advertising revenue.

Chief executive Kevin Kenrick said the changes were aimed at creating "a sustainable future video content business for TVNZ in an ever-changing media market."

Job losses would follow structural changes in the state-owned broadcaster's media operations and news teams, with cuts to existing jobs and some new positions created but "with an overall reduction in roles," he said.

The restructuring follows the release of TVNZ's first-half results last month, which included a 6.2 percent drop in earnings to $26.7 million as advertising revenue fell faster than operating costs. At the time, Kendrick said TVNZ's 5 percent drop in advertising revenue was a better performance than the broader TV market, which saw an 8.4 percent decline in ad sales.

The company planned to eliminate "a number of the duplicated processes, systems and roles in our news bureaus" while simplifying its media operations. The new structure for media and news will be confirmed by mid-April, it said.

"What we’re doing is making sure every dollar we spend is focused on telling the local stories valued by our viewers while reducing costs in other areas of the business,” Kenrick said in the statement.

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

The rise of Google and increasing dominance of social media platforms such as Facebook has slashed local media companies' share of advertising spending. Publishers Fairfax Media and NZME have been left as bit players in New Zealand's digital advertising market as a result, according to their submissions to the Commerce Commission on their proposed merger.

TVNZ's rival Sky Network Television had its own merger proposal, with Vodafone New Zealand, knocked back by the Commerce Commission last month.

(BusinessDesk)

ends

© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Business Headlines | Sci-Tech Headlines

 
GenPro: General Practices Begin Issuing Clause 14 Notices

GenPro has been copied into a rising number of Clause 14 notices issued since the NZNO lodged its Primary Practice Pay Equity Claim against General Practice employers in December 2023.More

SPADA: Screen Industry Unites For Streaming Platform Regulation & Intellectual Property Protections

In an unprecedented international collaboration, representatives of screen producing organisations from around the world have released a joint statement.More

 
 
 
 
 
 
 
 
 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.