The Dominion Post has as its lead business item this morning the suggestion that TV2 be sold to take advantage of changes in Australian media ownership rules.
Goldman [Sachs JBWere] analyst Rodney Deacon suggests that, with TV2 sold, TV1 could be transformed into a BBC-style, commercial-free, public channel fulfilling TVNZ charter obligations. Mr Deacon values TV2 at $392 million but said that, based on recent media deals, it could fetch $436 million.
There is absolutely no reason for the government to own TV2, which is simply a light entertainment channel that already operates on a fully commercial basis. There is considerable support for keeping TV1 in the government stable and perhaps even reforming it into a commercial-free public broadcaster.
Baby steps have already been taken in that direction. TVNZ had a “charter” foisted upon it by the government in 2003, since when advertising revenue has fallen and the audience for TV1’s flagship 6 o’clock news had dropped 26 percent. Top presenters have resigned or been pushed out, taking top producers and technical staff with them and this series of disasters today claimed the job of Bill Ralston, TVNZ’s head of news and current affairs.
The biggest problem with state-owned television has nothing to do with money or programme quality, it goes to the very core of state ownership. A state owned broadcaster will usually (as TVNZ does) have a polticially-appointed board. This means there’s a far greater chance of the state interfering in the running of the broadcaster.
We saw an example of this in late 2005, when former TVNZ chief executive Ian Fraser resigned. At the time, he said:
“I should make it clear that this is not about the TVNZ board losing confidence in its chief executive. It’s about the fact that I have lost confidence in my board.
“The board of TVNZ is politically appointed. That makes it even more critical than it would be for a commercial board to stand well back from the day-to-day running of TVNZ, particularly our news and current affairs operation.”
It is imperative in a free society that the state does not control our news outlets and, for that reason, not only TV2 but also TV1 and Radio New Zealand should be sold.
These icons link to social bookmarking sites where readers can share and discover new web pages.