Proposed Merger NZME and Fairfax

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#1665588 8-Nov-2016 10:49

Geektastic:

Bizarre that they telegraph their intentions just to see if anyone likes them.

Talk about lacking the courage of your convictions...!

That rejection is very condemning of the proposed merger.

The pessimist side of me says that they'll water down the proposed merger by offering to split off web/print/radio, ComCom will come back with a more favourable final report, the Minister(s) will say - despite no doubt being lobbied - that ComCom is independent and they can't influence their findings, then when the acid is put on, they'll argue that acceptance of the revised merger proposal was a good compromise, as it's nowhere near as bad as it could have been.

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#1666030 8-Nov-2016 20:25

Geektastic:

Bizarre that they telegraph their intentions just to see if anyone likes them.

Talk about lacking the courage of your convictions...!

Please don't spew about things that you don't understand. This is part of the normal process under the Commerce Act. The CC have laws that it is required to follow.

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#1666042 8-Nov-2016 20:49

dejadeadnz:

Geektastic:

Bizarre that they telegraph their intentions just to see if anyone likes them.

Talk about lacking the courage of your convictions...!

Please don't spew about things that you don't understand. This is part of the normal process under the Commerce Act. The CC have laws that it is required to follow.

Seems pointless to me. They are supposed to arrive at a decision and impose it surely, not ask everyone if they like it first. No wonder their outcomes are so wet.

dejadeadnz

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#1666045 8-Nov-2016 21:08

You can say it's pointless to you one millon times if you want -- it doesn't change the fact that this is what the Commerce Act requires. It also doesn't change the fact that draft/indicative decisions are routinely provided by regulatory authorities overseas as well, so that parties applying to clear mergers can have the chance to make structural adjustments if they wish to move forward and continue with the application. And given your abundance of demonstrable knowledge on how the Commerce Act works, perhaps having a little bit of respect by not making such sweeping generalisations would be a good idea?

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#1666046 8-Nov-2016 21:11

Seems all too much like the police asking whether it would be ok whether they arrest criminals.

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#1666068 8-Nov-2016 21:52

Geektastic:

Seems all too much like the police asking whether it would be ok whether they arrest criminals.

I'd say it's more like you going to the council for a consent to do something on your property and them coming back to you saying consent isn't likely to be given for XYZ reasons, giving you the opportunity to make changes that may allow the consent to be given.

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#1774748 3-May-2017 08:49

The Commerce Commission declined NZME/Fairfax merge. Will post press releases when back on laptop.

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#1774816 3-May-2017 10:41

Press release:

The Commerce Commission has today released its final decision declining authorisation for NZME and Fairfax to merge their media operations in New Zealand.

The merger proposed to bring New Zealand’s two largest newspaper networks and corresponding online news sites under common ownership.

The Commission’s preliminary view, published in November last year, was that the merger would be likely to substantially lessen competition in advertising and reader markets – specifically Sunday newspapers, online news and community newspapers in 10 regions. It also indicated that the merger would not be of such a benefit to the public that it should be allowed. Those views remain largely unchanged.

Chairman Dr Mark Berry said the Commission recognises NZME and Fairfax face a challenging commercial environment as they seek to transition from their traditional print products to a sustainable online model. However, the Commission disagreed with some of the scenarios they put forward about their respective futures without the merger.

“Following our draft determination the applicants significantly altered their submission on what the state of the market would look like without the merger. The details of those submissions are confidential; however, we do not consider the scenarios presented to be likely outcomes. In our view, without the merger NZME and Fairfax will be increasingly focused on their online businesses as their print products diminish in number and comprehensiveness over time,” Dr Berry said.

“We accept there is a real chance the merger could extend the lifespan of some newspapers and lead to significant cost savings anywhere between $40 million to around $200 million over five years. However these benefits do not, in our view, outweigh the detriments we consider would occur if it was to proceed.”

The merged entity would have direct control of the largest network of journalists in the country, employing more editorial staff than the next three largest mainstream media organisations combined. Its news media business would include nearly 90% of the daily newspaper circulation in New Zealand and a majority of traffic to online sources of New Zealand news. Including its radio network, the merged entity would have a monthly reach of 3.7 million New Zealanders.

“This merger would concentrate media ownership and influence to an unprecedented extent for a well-established modern liberal democracy. The news audience reach that the applicants have provide the merged entity with the scope to control a large share of the news consumed by a majority of New Zealanders. This level of influence over the news and political agenda by a single media organisation creates a risk of causing harm to New Zealand’s democracy and to the New Zealand public,” Dr Berry said.

“Having reviewed all the evidence, our primary concerns remain that this merger would be likely to reduce both the quality of news produced and the diversity of voices (plurality) available for New Zealanders to consume. Competition between NZME and Fairfax leads them to produce higher quality content than would otherwise exist with the merger. This competition incentivises investment in editorial resources, motivates journalists and editors in their day-to-day work and acts as a safeguard to plurality.

“In our view, the merged entity’s competitors would not be able to constrain it in any real way from making cost-cutting decisions that reduce quality and plurality. The extent of internal plurality is also discretionary on the part of the media owner and we do not regard promises to maintain current levels as a sufficient safeguard on future editorial decisions.

“While we cannot weigh in dollar terms the net benefits against the detrimental societal impacts we expect to see, in our assessment this is not a finely balanced decision. We decline to grant authorisation.”

A copy of the Commission’s final decision will be available on its website shortly.

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#1774942 3-May-2017 13:31

I used to think the Dominion Post, at least, was a quality broadsheet. I even used to subscribe to it. Then I bought one on the weekend to have something to read while waiting at the hospital. On the inside front page was a long article about some device for hanging people upside-down for back pain. I was intrigued and read into a it a fair way before I twigged that it was an ad! Basically, just another overpriced exercise machine scam that probably doesn't work anyway. I looked very carefully, but could find nothing anywhere that stated this was an ad. The only thing that indicated this, other than reading the text, was a slight difference in the font. I am a former journalist and a critical reader but it sucked me in initially. I can imagine many people would never realise it. I know traditional newspapers are in trouble, but I find this despicable. If this kind of thing is their answer, they are no longer worth saving anyway.

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#1774962 3-May-2017 14:22

Merger would be the easy way. Unfortunately so is clickbait. Hopefully they will begin to engage brain and realise the public want to support them the hard way. Also requires developing better relationship with their current user base.

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#2480962 11-May-2020 10:05

And we're back: "NZME makes offer to buy rival Stuff for $1"

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#2480971 11-May-2020 10:22

freitasm:

And we're back: "NZME makes offer to buy rival Stuff for $1"

I just see this as NZME trying to get what they have wanted for years during a time when people are looking the other way. I still don't think this is a good idea.

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#2480974 11-May-2020 10:28

freitasm:

And we're back: "NZME makes offer to buy rival Stuff for $1"

I'm surprised they have $1 to give or that in clear conscience Stuff could justify charging $1 :)

Will they require a Government small business loan? :)

dejadeadnz

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#2480976 11-May-2020 10:30

There is absolutely no way that this should be allowed. NZME (if allowed to buy Stuff) will poison the NZ media scene like Murdoch has poisoned Australia's. People frequenting forums like this one can become a bit narrow-minded and presumptuous around media consumption habits (e.g. I might like RNZ/Newsroom and their investigative pieces but a lot of people only want to read news and opinions that are a few hundred words long) and general newspapers have their place. The kind of news coverage that you see from the likes of TVNZ is typically not the same as well.

The problem with NZME is that their most profitable arm is The Radio Network and the hard right bile/poison producing garbage factory that is Newstalk ZB -- even if you like their opinions (god knows why anyone would), one should still be alarmed by how the Herald has almost entirely stifled voices not of that ilk, bar the much more occasional pieces from Simon Wilson, Lizzie Marvally and the like. In addition, you can expect that the Herald will try to paywall Stuff. I've commented in the past that it's extremely irresponsible of the Herald to paywall COVID-19 coverage when many responsible outlets overseas are providing them free. As a matter of social policy, I'd strongly argue that we can't have all major newspapers hiding large chunks of coverage of major events like pandemics behind paywalls.

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#2480977 11-May-2020 10:30

Let them have it and hopefully it will all collapse and we will be rid of two very poor media outlets in one hit.

Here is a crazy notion, lets give peace a chance.

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