Mediaworks Places Declining TV Program On Sale
On Friday, New Zealand’s largest self-regulating broadcaster Mediaworks indicated it is planning to sell its struggling television business.
Moreover, it has selected an adviser to categorize potential buyers.
Meanwhile, included in the business was the leading three TV news broadcasters.
The company might have to close down. This is if no buyer is found soon enough.
In addition, it will be leaving quite a lot of people jobless. The country will also have just one state-owned newscaster for reporting the TV news.
U.S. asset management corporation Oaktree Capital owns Mediaworks.
The firm indicated it would remain to hold its radio network. It is together with the New Zealand company of Australian outdoor advertising company QMS Media.
On the other side, it has accused the government of consenting state broadcaster Television New Zealand. This was after it has controlled the TV industry, thereby disadvantaging its business.
Chief Executive Michael Anderson stated, “The market that free-to-air television operates in is tough and has been exacerbated this year.”
He also indicated that the focus would now stimulate breaks for its radio and outdoor platforms. All of them have distributed better growth.
Escalating Pressures from the Declining Advertising
Lastly, “This is reflected in the performance of all free-to-air television operators in New Zealand, not just us,” Anderson added.
Mediaworks has also set the TV business connected to real estate up for sale.
However, it was not immediately clear how much the business would raise the funds.
Elsewhere, TV networks in New Zealand have a population of about five million people.
These residents have been facing mounting pressures from the dwindling advertising revenue. Moreover, rivalry from popular streaming services like Netflix and Amazon.
In the news report, Mediaworks announced a loss of NZ$5.5 million for the year ended December 2018. The damage was due to the weigh down of the Three TV business.
The announcement on social media by the reporters and media commentators was immediately conferred.
In addition, they requested for efforts from the public to support the popular TV network in finding a buyer.
Meanwhile, Broadcasting Minister Kris Faafoi indicated in local media that the government would not restrict the commercial decision of a private company.
