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Canwest profits from Government giveaway

Canwest profits from Government giveaway

Interview by Wammo - RDU's brekky political sleuth


Today on RDU98.5FM Mornings, Broadcasting Minister Steve Maharey confirmed that: Canwest will sell advertising on the Public-owned frequencies that it has been gifted by the Government.

Listen to the interview:

Scoop Audio.Scoop Streaming Audio: Steve Maharey Interviewed on RDU Over Kiwi FM

Click here to download file (mp3)

Canwest will be able to broadcast another commercial product on the current KiwiFM frequencies.

Commercial Advertising on Public Airwaves Canwest’s Radioworks will sell advertising on KiwiFM without the kind of limits applied to National Radio or the B-Net. While the Government has required the new frequencies be “not-for-profit,” Canwest will still be able to use KiwiFM to sell advertising across its network.

The government has imposed a restriction on KiwiFM, requiring that no more than 50% of its revenue comes from advertising. However, this does not prevent Canwest from using KiwiFM as a “free” bonus to advertisers spending on other Radioworks stations.

This practice will boost Radioworks profits, without showing on the KiwiFM ledger. This morning on RDU98.5FM, the Broadcasting minister cautioned Canwest against such practices, saying “if they do that then we won’t be renewing their license.”

And what will happen to KiwiFM’s old frequencies?

Canwest will slot another commercial radio station into the frequencies that were made vacant –thanks to the Government’s gift. Mahary confirmed this on RDU Mornings, saying “yes, [Canwest] will be able to use their station for that, because they currently own them.” The government’s hand out will boost Canwest’s large share of the New Zealand FM radio market.


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