Author: Gavin Ellis

Gavin Ellis is a media consultant, commentator and researcher. He holds a doctorate in political studies. A former editor-in-chief of the New Zealand Herald, he is the author of Trust Ownership and the Future of News: Media Moguls and White Knights (London, Palgrave) and Complacent Nation (Wellington, BWB Texts). His consultancy clients include media organisations and government ministries. His Tuesday Commentary on media matters appears weekly on his site www.whiteknightnews.com

No printed Herald? Let’s hope the speculation is wrong

Amid a wave of speculation in The Australian about the future of New Zealand publisher and broadcaster NZME, one line sent a shiver down my spine. It suggested the owner of the New Zealand Herald could opt for “a digital-only publication model”. That would decimate its newsrooms.

Normally, speculation is just that: Something to take with a grain of salt until it comes to pass or not. However, the editor of The Australian’s Dataroom column, Bridget Carter, seems to have been particularly well plugged-in to the NZME boardroom battle precipitated by Canadian billionaire and New Zealand resident James Grenon.

Carter has been devoting more space than usual to what is happening, or about to happen, to media on this side of the Ditch and, although her suggestion of interest in NZME from toy manufacturer Nick Mobray did not pan out, she has been up with the play on other scores.

Hence, I am more inclined to put some weight on her predictions for the directions that a reconstituted NZME board might take. For example, I agree that there could be a pull-back on the plan to move more into news video streaming (by no means a guaranteed revenue source). She also flagged investing in talent to boost subscriptions and I can see the benefit of that.

However, I hope she is wrong about a potential move to a digital-only publication environment.

Yes, I freely concede that on my bookshelf is a coffee mug carrying the slogan I love the smell of newsprint in the morning (a souvenir from Washington’s Newseum). And, yes, it does sit beside another mug that is testament to my age – Grumpy Old Man. However, my reasoning goes beyond a sentimental attachment to the medium in which I spent a large proportion of my now-surprisingly-lengthy working life.

I believe a digital-only strategy at this point could well spell the end of the New Zealand Herald as an influential news source. The revenue fall would leave it unable to maintain the current newsrooms. So I only hope that incoming NZME directors are smart enough to leave a digital-only strategy in the ‘pending’ file.

NZME relies on its print publications for a significant proportion of its revenue and, although it is declining, it continues to far outstrip what is generated by its digital services. Continue reading “No printed Herald? Let’s hope the speculation is wrong” →

Canadian billionaire must explain his designs on NZME…now

New Zealand-based Canadian billionaire James Grenon owes the people of this country an immediate explanation of his intentions regarding media conglomerate NZME. This cannot wait until a shareholders’ meeting at the end of April.

Is his investment in the owner of the New Zealand Herald and NewstalkZB nothing more than a money-making venture to realise the value of its real estate marketing subsidiary? Has he no more interest than putting his share of the proceeds from spinning off OneRoof into a concealed safe in his $15 million Takapuna mansion?

Or does he intent to leverage his 9.6 per cent holding and the support of other investors to take over the board (if not the company) in order to dictate the editorial direction of the country’s largest newspaper and its number one commercial radio station?

Mr Grenon has said little beyond the barest of announcements that have been released by the New Zealand Stock Exchange. While he must exercise care to avoid triggering statutory takeover obligations, he cannot simply treat NZME as another of the private equity projects that have made him very wealthy. He is dealing with an entity whose influence and obligations extend far beyond the crude world of finance.

While I do not presume for one moment that he reads this column each week, let me suspend disbelief for a moment and speak directly to him.

Come clean and tell the people of New Zealand what you are doing and, more importantly, why. Continue reading “Canadian billionaire must explain his designs on NZME…now” →

Amazon founder Bezos dims lights on democracy

Little more than a month into the new U.S. presidency, the Washington Post’s owner has dimmed the light on a motto that became a beacon for freedom during the first Trump Administration.

Democracy dies in darkness has appeared below Washington Post for the past eight years. Last week it was powdered in irony after the newspaper’s owner, Jeff Bezos, decreed in an email to staff that the newspaper’s editorial section would shift its editorial focus and that only opinions that support and defend “personal liberties” and “free markets” would be welcome.

Amazon founder Bezos had already sullied the Post’s reputation by refusing to allow it to endorse a candidate during the presidential election – an action capable of no other interpretation than support for Donald Trump.

Since then, there has been a $US1 million Amazon contribution to Trump’s inauguration and, according to the Wall Street Journal, a $US40 million deal with First Lady Melania Trump for an authorized documentary to be run on Amazon’s streaming service.

Now Bezos has openly bowed before the new emperor and dimmed the Washington Post’s lights. Continue reading “Amazon founder Bezos dims lights on democracy” →

NZME’s ‘news that resonates’ sets off bad vibrations

LSD and LCD are not so far apart. Each in its own way is a drug.

The former is lysergic acid diethylamide, a powerful hallucinogenic. The latter is an abbreviation for liquid crystal display ­– the technology that dominates your addictive television, computer and cellphone screens. It also stands for Lowest Common Denominator, an equally powerful narcotic.

Announcements last week by NZME have raised fears that the Lowest Common Denominator is going to dominate the New Zealand Herald’s online presence and, inevitably, inject even more populism into the pages of a newspaper that once stood proudly on its news values.

In January, NZME signalled planned staff cuts. Last week the realities of that plan were revealed. Thirty editorial jobs will go, including people I think it can ill afford to lose. They include political editor Claire Trevett, deputy business editor Grant Bradley, senior sports reporter Chris Rattue, science writer Jamie Morton, investigative reporter Nicholas Jones, and several other key staff.

Some, no doubt, will step willingly off the treadmill and into a more leisurely lifestyle. Others will have had enough of the stress of uncertain futures. Nonetheless, the Herald will be poorer for their going.

While the loss of good, dedicated journalists was sad in itself, I was saddened further by the company’s statement of its future strategy. Through its Media Insider Shayne Currie, the company stated that in future there would be “a stronger focus on ensuring the newsroom is focused on journalism and other content that resonates with audiences, including subscribers”.

Let me translate that: “We will give the audience what they want”.

Let me further explain: “We will be driven entirely by our online analytics – more clicks mean more of the same”. Continue reading “NZME’s ‘news that resonates’ sets off bad vibrations” →