200 jobs axed, This is awful’: Entire New Zealand TV newsroom shuts One of New Zealand’s two major free-to-air TV networks has gutted its newsroom, putting more than 200 people out of work after years of losses and continued structural decline in TV advertising. In a decision that has profound implications for the wider TV market, including in Australia, Newshub, which is owned by $US21 billion ($33 billion) US media conglomerate Warner Bros Discovery, will slim down at the expense of hundreds of jobs by June. The company blamed a poor advertising market and changing viewer habits for the decision. It leaves the state-owned – but advertising funded – TVNZ network as the sole remaining source of free TV news. One of New Zealand’s two major free-to-air TV networks has gutted its newsroom, putting more than 200 people out of work after years of losses and continued structural decline in TV advertising. In a decision that has profound implications for the wider TV market, including in Australia, Newshub, which is owned by $US21 billion ($33 billion) US media conglomerate Warner Bros Discovery, will slim down at the expense of hundreds of jobs by June. The company blamed a poor advertising market and changing viewer habits for the decision. It leaves the state-owned – but advertising funded – TVNZ network as the sole remaining source of free TV news. High-profile TV hosts and journalists, such as 6pm news hosts Mike McRoberts and Samantha Hayes, will be let go. The company’s Asia-Pacific president, James Gibbons, said the decision came after cascading negative events. It has started “consultation” on a proposed remodelling of the business, which is likely to mean the company continues as a predominantly streaming business. “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,” he said. Global troubles “The impacts of the economic downturn have been severe, and the bounce-back has not materialised as expected. Advertising revenue in New Zealand has disappeared far more quickly than our ability to manage this reduction, and to drive the business to profitability.” All over the world, media companies face “very tough circumstances”, Mr Gibbons continued. “Subsidising losses for ongoing years indefinitely is not sustainable.” In 2022, the NZ arm of Warner Bros Discovery lost $NZ35 million ($32.8 million) before tax – and $NZ21 million the year before that, despite cost cuts. It has 350 staff, including 200 journalists. Warner Bros Discovery has its own global financial troubles. The studio that owns HBO, streaming service Max, Warner Bros Entertainment, CNN and Discovery recently reported debt of $US44 billion. It has struggled to make headway in a market dominated by entertainment giants such as Netflix and Disney, and has frequently been flagged as a target for mergers or an acquisition. The New Zealand Newshub decision has reverberated around the Australian market, too. While Warner Bros Discovery does not own a free-to-air network locally, its rival Paramount Global owns Network Ten. It announced global cost cuts this month, including up to 20 from the local Paramount offices. In a statement, Warner Bros Discovery NZ said its new, slimmer model would be “digitally led”, with its streaming app ThreeNow the focus – “supported by free-to-air linear channels”. It will continue airing shows, but they will radically reduce costs. Mr Kyne said in a statement everyone at the network had done “everything we could have asked”. “Free-to-air and news are expensive businesses to run,” he said. “Put simply, the economic headwinds mean the returns are not there.” source from internet