The letter, written on April 28, came in response to a letter of expectations from shareholding ministers in March, in which they told the public broadcaster that they wanted further savings “to be identified and realised to ensure RNZ’s long-term financial sustainability”.
RNZ has subsequently received more cuts in last month’s Budget.
In his letter, Mather said RNZ was absorbing a 7% cut from last year’s Budget, “while also running the organisation at a heightened level of activity as we implement transformational technology, property, and transmission projects”.
“Those projects will be completed in the next three months. We are developing a business plan for FY27 focused on leveraging those investments for the benefit of audiences, identifying savings, increasing productivity, and ensuring financial sustainability.”
He said RNZ’s current capital plan reflected several major investments, most significantly a $10 million Auckland office relocation. RNZ is moving into the TVNZ headquarters in Victoria St this month.
RNZ earlier detailed to Media Insider a range of cost-saving measures and said staff numbers sat at 342, a 5.3% reduction on the previous financial year.
RNZ is moving into TVNZ’s central Auckland building in Victoria St this month.
‘This is not a cyclical downturn’
Mather opened his letter by painting a backdrop of the current state of New Zealand’s media industry.
It was, he said, “navigating its most disruptive period in its history”.
“The convergence of structural advertising losses to global technology platforms, rapid audience fragmentation, contracting commercial revenues, and AI-driven disruption has created acute and accelerating pressure across the industry.
“This is not a cyclical downturn. The fundamental business model of commercial journalism – the advertising subsidy of news – has been structurally broken by the diversion of revenue to global digital platforms.”
The consequences were visible, they included ongoing job losses, bureau closures and reduced investigative journalism capacity, and the emergence of news deserts in regional New Zealand.
New Zealand’s journalism workforce was about 25% of what it was 15 years ago, he said.
Audience trends
In his letter on behalf of shareholding ministers in March, Goldsmith commended RNZ for its audience growth but also made clear he wanted to see further improvement, especially in live-radio listening, and he specifically wanted to see Morning Report numbers reported in future.
He said ministers had asked for Morning Report’s data earlier, but that had not been reported back.
RNZ Morning Report co-hosts John Campbell and Ingrid Hipkiss.
Mather outlined seven key changes in his letter – part of the strategy to rebuild RNZ National audiences.
They included the appointment of a chief audio officer, increased training for on-air and programming staff, an extended 10pm bulletin, and Country Life returning to a 7am Saturday timeslot.
He also highlighted presenter changes, “with Guyon Espiner appointed to Midday Report, Corin Dann moving to a business editor role and John Campbell joining the Morning Report team”.
Midday Report host Guyon Espiner. Photo / Cole Eastham-Farrelly
There would also be “a greater Auckland focus”, with both Morning Report presenters and the Midday presenter now Auckland-based, and a full office transition to Victoria St underway.
And there were individual programme reviews, including a revamp of Morning Report, “informed by audience data and research insights into the preferences of the station’s target 45-69 audience”.
Rebuilding trust
In his original letter, Goldsmith also commended RNZ on improved trust results in 2024-25, saying he wanted to see the broadcaster continue that trajectory with “ambitious” goals in its next statement of performance expectations.
“Trust in the media remains an important issue for shareholding ministers, and we continue to expect RNZ to lead by example and share its experience to strengthen the public’s trust in the wider media sector,” Goldsmith wrote.
Mather acknowledged, in his own letter, the importance “the minister places on strengthening public trust in RNZ”.
“Trust is both a strategic objective and a core editorial value.
“Trust will be embedded throughout our statement of intent and business planning, and progress will be reported through normal accountability channels.
“Audience performance across RNZ National and our digital platforms remains a constant focus. No media organisation can afford to be static in the current environment, and the board is committed to ongoing development, rigorous measurement, and transparent reporting of performance against our audience objectives.”
The release of the letter today comes four weeks before Mather vacates his position as chairman, along with two other long-serving directors, Irene Gardiner and Jane Wrightson.
Current director Brent Impey will become the new chairman on July 1.
‘No surprises’
The ministers also told RNZ it needed to improve the timeliness and effectiveness of communication with them. It is understood there were concerns that an earlier review by Richard Sutherland was not shared soon enough with officials.
“It continues to be crucial that we are kept informed on a ‘no surprises’ basis about how RNZ is giving effect to its strategic direction, and any significant matters.
“It is expected that these ‘no surprises’ updates are received in a timely manner ahead of the matter in question, with sufficient detail, and we would like to reiterate the ongoing importance of RNZ working effectively and communicating transparently with Treasury officials.”
Strategic direction
Mather said in his letter that RNZ would shortly present a draft of its next statement of intent for 2026-2030.
“The board has honed RNZ’s strategic framework around four clear outcomes: Increase trust in RNZ; Reflect a changing nation; Win audience loyalty with energy and enthusiasm; [and] Run RNZ efficiently and effectively.”
The foundation of the strategy recognised that RNZ “must continuously adapt to a changing environment, audiences, and technology to maintain and improve its relevance and usefulness to the New Zealand public”.
“In developing the strategy, the RNZ board identified key challenges and opportunities.
“These include the importance of building trust with a series of pragmatic and focused initiatives; the need to keep broadcast services strong while also running successful digital and social products; the obligation to nurture New Zealand’s stories, values, and identity in a globalised media world; and to create outstanding impactful content for a range of audiences.”
Editor-at-Large Shayne Currie is one of New Zealand’s most experienced senior journalists and media leaders. He has held executive and senior editorial roles at NZME including Managing Editor, NZ Herald Editor and Herald on Sunday Editor and has a small shareholding in NZME.