Warner Bros Discovery New Zealand has made the surprising move to exit the local TV market. This decision marks a significant shift in the company's strategy.
The move affects the company's local TV channels, which will no longer be available to New Zealand audiences.
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Warner Bros. Discovery New Zealand
Warner Bros. Discovery New Zealand is proposing to close its Newshub operations by June 30, which would eliminate up to 200 media-related positions.
The decision comes after Warner Bros. Discovery, which took ownership of Three in 2020 and later merged with Discovery in 2022, initiated consultations with employees regarding the future of Newshub's comprehensive news services.
Warner Bros. Discovery cited significant economic challenges and a pronounced decline in advertising revenue as the main reasons for considering this strategic shift.
The company reported a $NZ34.8 million loss in the previous year and is facing a broader economic recession affecting New Zealand.
Glen Kyne, a senior vice president at Warner Bros. Discovery in Australia and New Zealand, acknowledged the critical role of Newshub in the nation's media ecosystem, stating that these proposed changes will be hard if implemented.
James Gibbons, another executive, explained that there was no single trigger that caused this, but rather a combination of negative events in New Zealand and globally.
Free-to-air and news are expensive businesses to run, and the economic headwinds mean the returns are not there.
Potential Closures
Warner Bros Discovery is proposing to close New Zealand's Newshub operations by June 30.
This decision would eliminate up to 200 media-related positions and mark the end of a 35-year legacy of broadcast journalism on the network Three.
The company cited significant economic challenges and a pronounced decline in advertising revenue as the main reasons for considering this strategic shift.
Free-to-air and news are expensive businesses to run, according to Glen Kyne, a senior vice president at Warner Bros Discovery in Australia and New Zealand.
Advertising revenue in New Zealand has disappeared far more quickly than Warner Bros Discovery's ability to manage this reduction and drive the business to profitability.
Warner Bros Discovery reported a $NZ34.8 million loss in the previous year, highlighting the financial difficulties facing the company.
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