The Covid-19 pandemic has already had a crippling effect on the nation’s media: Bauer has closed its New Zealand magazine titles and NZME will axe 200 jobs.
The Epidemic Response Committee heard from several media companies yesterday, which urged the Government to redirect advertising from social media to New Zealand firms.
But Allied Press, owner of the Otago Daily Times and a raft of community titles, was not invited to submit to the committee.
Chief executive Grant McKenzie said that was "disappointing".
"I was made aware of the meeting last Thursday and contacted the appropriate select committee to ask if we could present," he said.
"I was advised [on Tuesday] that we were not required."
That was "very disappointing given the issues discussed and the impact it could have on this business".
The company was preparing a written submission for the committee.
Among submitters were representatives from MediaWorks, NZME, TVNZ, MediaWorks, RNZ, Newsroom, The Spinoff and BusinessDesk.
Academic and former New Zealand Herald editor Gavin Ellis, who also submitted, said advertising revenue for media companies was estimated to drop between 50% and 75%.
There was concern it would not return, even after the Covid-19 crisis was over.
"I’m fearful if the financial standing of the owners of MediaWorks and Stuff decline sufficiently, they may be minded to follow Bauer and simply close New Zealand operations.
"We must ensure that doesn’t happen."
Prime Minister Jacinda Ardern, in a press conference yesterday afternoon, said the Government would continue to advertise with Google and Facebook because that was where New Zealanders were.
NZ Community Newspapers Association president David Mackenzie said community newspapers provided local content that was absent in daily newspapers and social media content.
Two-thirds of its 80 members had been unable to publish because of the lockdown.
Breaking even in the next 18 months would be a "great achievement", he said.
"We need cash to survive, we need local businesses to survive."
Broadcasting, Communications and Digital Media Minister Kris Faafoi told the committee the Government would make announcements within a week, but no final decisions had been made.
He has asked media companies how much the Government was spending on advertising with them, and a possibility to increase present cashflow was to bring future spending forward.
The Government’s short-term solution could include moving Government advertising towards local companies and reducing the transmission costs for broadcasters, he said.
A plurality of voices in the media was essential, he added, but Bauer had decided to leave the New Zealand market before the Covid-19 crisis hit. — Additional reporting NZME
