When Newshub met its end last Friday night I was left with a niggling question: If Newshub been owned by local interests rather than an American corporation, would it have been summarily executed?
You see, I have a theory that local ownership exposes proprietors to pressures that are not felt by directors and executives sitting thousands of kilometres away.
If owners walk the same streets as the people they serve, they are confronted and held to account. Even the most isolated find themselves being questioned by the members of the social sets in which they move. They are forced to consider the impacts and consequences of their decisions.
Anonymous overseas executives and directors do not see the results of their abstract decision-making, apart (perhaps) from a small blip on the next set of financials.
TV3 has been losing about $35 million a year and, although no owner wants to see continued deficits, the amount ($21.5 million in US dollars) is not much more than a rounding number for WBD, which last year earned revenue of $US41.3 billion from its worldwide operations. That was roughly what this entire country earned from its goods exports.
There is little doubt that Newshub was costing TV3 too much money and something had to change, but was total closure of the news division the only option? At the time of its announcement, WBD said “there was nothing anyone in our New Zealand network business could have done better”. Maybe not, but could they have done things differently? Continue reading “What if Newshub’s owners had been walking our streets?”
