The government is pushing ahead with plans to merge RNZ and TVNZ to create a new public media entity.

It is understood the two companies will be dis-established to operate under one big new organisation with a public service mandate, but there will be a lengthy transition period through which the broadcasting operations of both would continue.

It would operate under a charter; it would have the ability to raise some revenue through commercial operations, but commercial-free aspects, particularly for RNZ, would be protected - a "mixed funding" model that's been discussed throughout, reports RNZ.

It is likely to operate on a not-for-profit basis which would mean TVNZ would not have to pay the government a dividend, so any profits could be reinvested.

Labour first announced intentions to boost public broadcasting through 'RNZ Plus' at the 2017 election, but since then the proposal has gone through several iterations.

The final decision went through Cabinet a few weeks ago and the announcement from Broadcasting Minister Kris Faafoi is being confirmed today.

Faafoi says the merger is about 'ensuring New Zealanders continue to have access to reliable, trusted, independent information and local content”.

'The public media sector is extremely important to New Zealanders in providing them with high quality, independent, timely and relevant media content.

'But we know the media landscape is changing and the sector is having to adapt to increased competition, changing audience demands and ways of accessing media, falling revenue, and new and emerging digital platforms.

'We need public media which is responsive to these changes and can flourish.”

Faafoi says RNZ and TVNZ are each trying to adjust to the challenges, but NZ's current public media system, and the legislation it's based on, is focused on radio and television.

'This is why the Government will create a new organisation by the middle of next year, built on the best of RNZ and TVNZ, to future-proof public media for New Zealanders for decades to come.

'Whether it be Covid, national emergencies or Olympic Games, the last few years have shown how important a strong media environment is to reflect New Zealanders' stories, dreams and aspirations and it is important we support public media to flourish.
'A public media entity which is resilient, sustainable, and has the wherewithal to deliver independent, trusted information is a key to that.”

Faafoi says that a business case, which looked at the feasibility of and best approach to creating a new entity, emphasised the importance of public media and its role in society to provide trusted news and content that reflects our people and cultures.

'It also confirmed the pressures New Zealand's public media is facing retaining audiences and attracting new ones, particularly young people, in the face of access to global platforms.

'That is why the Government has accepted the Business Case Governance Group's recommendations and agreed to establish a new public media entity, which can utilise new and existing platforms to build audience here in New Zealand, as well as take our stories abroad more successfully.”

Government funding decisions will be made as part of Budget processes, and the entity will be an Autonomous Crown Entity with complete editorial independence receiving commercial and Crown funding for operations and will:

-provide quality public media content to all New Zealanders, including groups who are currently under-served or under-represented

-use a range of platforms, including current radio and linear TV and those of third parties, to reach audiences when, where and how audiences choose.

-operate under a charter, set out in legislation, and provide trustworthy news as a core service.

-deliver on the Crown's Te Tiriti obligations and provide Māori stories and perspectives.

-carry advertising, while ensuring services which are currently commercial-free will remain so.

-collaborate with and support the wider New Zealand media sector where appropriate.

An Establishment Board will be appointed next month to oversee the detailed design of the entity and the change process, with the aim of having it operational by July 1, 2023.

The public will have a chance to give their views, including on the entity's charter, through the select committee process when legislation is considered later this year.