NZME pivots to video in 2025, the problem with TVNZ's cricket hit and DeepSeek explodes the AI world
Jan 28, 2025
auto_awesome
Glen Kyne, a seasoned media commentator, dives into the recent shake-up in New Zealand's media scene, highlighting NZME's shift from text to video journalism. He discusses the explosive rise of Chinese AI startup DeepSeek, which is shaking up the industry with its innovative approaches. The conversation also tackles the challenges TVNZ faces as it adapts to a digital-first audience. From monetization issues in podcasting to the evolving landscape of media consumption, Glen provides sharp insights into the future of content.
NZME's restructuring prioritizes video production over text journalism, raising concerns about potential declines in journalistic quality and expertise.
DeepSeek's emergence as a cost-effective AI competitor disrupts traditional investments in the sector, highlighting changing geopolitical dynamics in technology.
Deep dives
Restructuring at NZME and its Implications
NZME is undergoing significant workforce restructuring, resulting in the loss of around 40 roles, predominantly among senior journalists. This shift comes in the context of a changing advertising market and a focus on refining their content delivery based on data analysis from their paywall experience. The changes have sparked frustration among staff who believe the senior journalists possess critical expertise in specific areas, and their removal could weaken NZME's journalistic quality. Critics argue that a focus on producing more video content reflects a risky trend, moving away from successful models like paywall text-based news and radio.
DeepSeq AI Model Disruption
The emergence of DeepSeq, a Chinese AI startup that managed to achieve competitive benchmarks at a fraction of the cost of larger corporations, has sent shockwaves through the tech industry. This development raises concerns over the sustainability of significant investments made by companies like NVIDIA and underscores burgeoning competition between the US and China in the AI sector. The implications of DeepSeq's success could extend beyond technology, potentially affecting geopolitical dynamics and international investment patterns in AI. As such advancements progress, there are questions about the stability and future value of traditional AI investments.
The Evolving Landscape of Digital News Consumption
Recent data highlights a stark contrast between audiences for linear television events compared to digital platforms, emphasizing the challenges facing media companies like TVNZ. While an impressive number of viewers tuned into a popular event on linear TV, the digital audience represented only a fraction of that figure, revealing significant barriers to converting viewers from traditional TV to digital subscriptions. This discrepancy necessitates strategic decisions from broadcasters on whether to continue maximizing linear audience revenue or to focus on nurturing their digital subscriber base. The ongoing emphasis on creating opportunities for digital content must also account for the realities of audience engagement and monetization in a rapidly evolving market.
Competition in the Podcasting Market
The podcasting landscape in New Zealand is witnessing notable shifts, particularly with the announcement that ACAST has acquired the rights to the popular podcast 'Between Two Bears'. This strategic move not only highlights ACAST's confidence in monetizing local content but also signifies a challenging hit for NZME, which loses a significant part of its podcast portfolio. As other companies like MediaWorks explore similar partnerships, the competitive landscape for podcasts continues to evolve, with companies vying for listener loyalty and advertising revenues. The quest for effective monetization in this space remains a key challenge as businesses adapt to changing consumption habits.
Glen Kyne returns to The Fold to discuss the first big media news story of the year – NZME's decision to trade some senior text journalists for a sharp increase in video production. Next we discuss the shocking impact of Chinese-AI lab DeepSeek's world-beating LLM performance on a shoestring budget, Acast's big Between Two Beers podcast pickup and finally how a big success for TVNZ reveals a deeper challenge of video in a digital context.
The Fold Live
For the first time ever we are putting on a live version of The Fold on 20th February at the Hannah Playhouse in Wellington. Join host Duncan Greive, Bernard Hickey (journalist and host of podcast When the Facts Change) and Lucy Blakiston (CEO and cofounder of Gen Z media company Shit You Should Care About) for a lighthearted chat about media, culture and the creator economy. This show is part of the NZ Fringe Festival, you can get your tickets now at thespinoff.co.nz/events