Has new media model learned the old lessons?

The leaked news that the Government is considering restructuring TVNZ and RNZ into a new multi-platform public service provider might signal the best news for public media in New Zealand since the closure of TVNZ7.

From the reports so far, the new model is intended to have a ‘‘clearly defined public media mandate and purpose, with the core functions of a globally recognised public media entity’’, with ‘‘some’’ services that ‘‘may’’ be advertising-free.

This could be problematic if the plan is simply to bolt RNZ to TVNZ, chuck an extra $15 million at them to fight over, and hope for the best. For nearly 30 years, the two have been on divergent paths of public service and commercial remit.

Introducing advertising or sponsorship to RNZ would immediately compromise its charter objectives. Programming and scheduling decisions would need to consider ratings and revenue. This would fundamentally change RNZ’s character and undermine its ability to provide a full range of programmes for a diverse range of communities.

Meanwhile, the former TVNZ charter arrangements are a salutary reminder that public service principles cannot easily be superglued to a commercial operation. TVNZ’s dual remit saw it pay the government more in dividends than it received in subsidies, and it was often unclear whether public funds were providing quality local content, or subsidising shows meant to compete commercially.

TVNZ 6 and 7, canned by National, proved dedicated funding of commercialfree public service television could work, even on a limited budget. The schedule included children’s programming, news and current affairs, as well as shows on arts and literature, the courts, politics, the media, and local communities. But none of these were sustainable without a commercial-free channel (although Back Benches and Media-3 initially survived with NZ On Air funds).

If the new model is to succeed, there are three factors it needs to get right.

■ The organisational structure needs to demarcate which services are subject to public service obligations. Keeping RNZ services as the public service core requires them to be insulated from commercial pressures, and given operational priority at board and management level.

■ The funding must be proportional to the vision. The current funding for RNZ’s services must be ring-fenced from any commercial budget and, if the plan is to wholly or partially decommercialise TVNZ’s channels, the subsidy must be sufficient to maintain programme range and quality without ads. Turning TV One ad-free would forgo $150m in advertising. But if public television funding is combined with commercial funding, it must be clearly earmarked for programmes in schedule slots that would not normally be commercially viable.

■ The governance structure needs to be robust and have a clear set of principles and expectations as to the desired balance between public and commercial operations. This includes having an independent board (preferably with iwi and civic representatives).

There is a view that public service media is an anachronism in an age of binge-watching on demand, at any time on any device. But the evidence suggests market failures in the digital media ecology, especially in respect to quality local content, news and current affairs, and content for minority groups.

In this respect, the latest proposal has not come a moment too soon.