Posts tagged ‘Mediaworks’


Saddened to see colleagues lose their jobs as we bid, ‘Auf wiedersehen, Heinrich Bauer Verlag’

03.04.2020

I am privy to some of the inner workings at Bauer Media through friends and colleagues, but I didn’t expect them to shut up shop in New Zealand, effective April 2.
   Depending on your politics, you’re in one of two camps.
   TV3, itself part of a foreign company who has made serious cutbacks during the lockdown, said Bauer had approached the government and offered to sell the business to them at a rock-bottom price in the hope of saving the 200-plus jobs there. The government declined. I believe that’s the angle foreign-owned media are adopting here.
   Both the PM and the minister responsible for media, Kris Faafoi, have said that Bauer never applied for the wage subsidy, and never approached the government to see if it could be classified as an essential service to keep operating. Indeed, in the words of the PM, ‘Bauer contacted the minister and told him they weren’t interested in subsidies.’
   It’s murkier today as there is evidence that Bauer had, through the Magazine Publishers’ Association, lobbied for reclassification for it to be turned down, though the minister continues to say that it had never been raised with him and that Bauer had already committed to shutting up shop.
   Outside of “we said, they said”, my takes are, first, it was never likely that the government would want to be a magazine publisher. Various New Zealand governments have been pondering how to deal with state-owned media here, and there was little chance the latest inhabitants of the Beehive would add to this.
   We also know that Bauer had shut titles over the years due to poor performance, and Faafoi’s original statement expressly states that the Hamburg-based multinational had been ‘facing challenges around viability of their operations here in New Zealand.’
   With these two facts in mind, the government would not have taken on the business to turn it around, especially while knowing the owner of Bauer Media (well, 85 per cent of it) has a personal worth of US$3,000 million and the company generated milliards in revenue per annum.
   I also have to point to its own harsh decisions over the years in shutting titles. In 2018, Bauer’s own Australian CEO told Ad News: ‘There’s a really interesting view that somehow we are here to provide a social service. The reality is we’re here to make money and if we can’t make money out of our magazines, we’ll sell them or we’ll close them.
   ‘We have an obligation, whether that’s a public company or private company, to make money for shareholders. If it doesn’t make money, why would we do it?’
   That, to me, sounds like the corporate position here as well, and no doubt Bauer’s bean counters will have crunched the numbers before yesterday’s announcement.
   I’ve had my own ideas how the stable could have evolved but it’s easy to talk about this with hindsight, so I won’t. Enough people are hurting.
   But I’d have applied for whatever the government offered to see if I could keep things going for a little while longer. Even if the writing was on the wall, it would have been nice to see my colleagues have a lifeline. Get one more issue of each title out after June. Maybe I’m just not as brutal. I mean, I’ve never defamed Rebel Wilson as Bauer’s Australian publications have. Maybe it’s different for a small independent.
   If I may use a sporting analogy, Bauer hasn’t let their players on to the field and kept them in the changing room, and more’s the pity.
   One comment I received yesterday was that Bauer wouldn’t have been in a position to pay its staff even with the government subsidy, with no advertising sales being generated. I’m not so sure, with annual global revenues of over €2,000 million. New Zealand was probably too unimportant to be saved by Bauer’s bosses in Hamburg. I guess we’ll never know.

Tags: , , , , , , , , , , , , , , , , , , , , ,
Posted in business, media, New Zealand, politics, publishing | No Comments »