One of New Zealand’s leading media companies providing free-to-air television and online news is set to close by the end of June, following an announcement by its parent company Warner Bros. Discovery on Feb. 28.
A subsidiary of the U.S. mass-media conglomerate, Warner Bros. Discovery New Zealand started when they bought MediaWorks TV in December 2020, prior to a merger with Discovery in 2022.
MediaWorks NZ offloaded its unprofitable TV division to concentrate on radio.
Mirroring the Newshub announcement, MediaWorks unexpectedly closed its Today FM brand last year citing financial concerns in the sector.
In a statement this morning, Warner Bros. Discovery said the decision to close the Newshub brand resulted from a review of profitability after a decline in advertising revenue, triggering a “proposed remodelling and restructure” of its free-to-air interests.
“The proposal includes the closure of all Newshub’s multiplatform news operations and output, and new local programming would only be in collaboration with local funding bodies and other partners,” read the statement.
Last year, the company made remedial changes to its programming schedule, including discontinuing its 4:30 p.m. news bulletin and cutting several jobs to offset a $25 million (US$15.3 million) loss.
Forecasts suggest media advertising revenue will remain negative for at least the next 24 months.
The closure of Newshub will result in up to 300 people losing their jobs, including high-profile presenters and journalists who front news, current affairs, and magazine-style shows.
Warner Bros. Discovery Asia Pacific president James Gibbons said the closure was pure economics, but was sympathetic to staff.
“Advertising revenue in New Zealand has disappeared far more quickly than our ability to manage this reduction, and to drive the business to profitability. We are acutely aware of our position in the local media landscape and what this means for our people, and for the country as a whole.”
Mr. Gibbons said that a slimmed-down staffing model working on delivering a “digitally-led business” focused on the on-demand streaming service ThreeNow was now the company’s focus.
Addressing employees, Warner Bros. Discovery NZ boss Glen Kyne said the closure was “awful,” before telling reporters that the proposal was “not a reflection of the efforts of staff.”
Mr. Kyne said Warner Bros. Discovery looked forward “to retaining a local presence, albeit with a much smaller operating model and lower cost base.”
“We know that Newshub has been such an important and central part of TV3 since day one, and is a crucial part of a functioning media sector in New Zealand,” he added.
The 6 p.m. TV edition, led by Mike McRoberts and Samantha Hayes, has an average of 22 percent share of terrestrial viewership during the timeslot.
Prime Minister Christopher Luxon, briefed by Newshub management on the closure, emphasised the need for media companies to innovate to remain viable in a challenging environment, echoing sentiments about the necessity for adaptation in the business landscape.
