“This means the per-capita price paid will be lower than was consulted on in 2025, reflecting industry feedback and information provided through the consultation,” MBIE told Media Insider in January.
As the Government is legally required to do, renewal offers have now been sent to commercial operators.
Last night, commercial operators such as NZME, owner of Newstalk ZB, The Hits, Coast, ZM and several other entertainment stations, and MediaWorks, owner of More FM, The Rock, The Edge, Breeze and several other stations, received their formal offers.
Coast FM breakfast hosts Jason Reeves, Toni Street and Sam Wallace.
Publicly listed NZME told the NZX today that it had received its formal renewal offer – a total purchase price of $11.2m for its existing frequencies from April 3, 2021.
“This will be paid across four five-year tenure periods, with slightly higher payments in the earlier periods,” NZME said in its NZX statement.
“The purchase price is consistent with what NZME had anticipated and is materially lower than the price of the 2011 licence renewal.”
Commercial radio spectrum licences give holders the right to broadcast on specific AM and FM frequencies – for example, in Auckland, Newstalk ZB on 89.4FM and 1080AM and More FM on 91.8FM.
“Unlike the 2011 renewal, which was priced as a single amount for the full 20-year term, the new licences are structured across four five-year periods, with the applicable payment made in advance at the beginning of each period,” NZME said.
“NZME can relinquish individual licences during the term and would not be required to pay amounts relating to future periods for those licences. This will significantly reduce the immediate cash flow impact on NZME and allows the company to review individual AM and FM frequencies over the term of the licences.”
NZME chief executive Michael Boggs said the terms represented a “strong and sustainable” outcome for NZME and the wider radio industry.
“We appreciate the Crown taking industry feedback on board. Paying across four five-year tenure periods, rather than funding 20 years upfront, not only provides certainty but also gives us the flexibility to align our frequency portfolio with how New Zealanders’ radio listening changes over time.
“It also materially reduces the cash flow impact for NZME. Terrestrial radio remains a core part of our business, and these terms allow us to plan, with confidence and flexibility, beyond 2031.”
NZME said it had six months to accept the Crown’s offer, with the first payment due in 2030.
Additional licences
Media and Communications Minister Paul Goldsmith. Photo / RNZ, Mark Papalii
As Media Insider reported in January, the Government is also selling additional licences, which had previously been set aside for a national youth channel – opportunities for major players such as NZME, MediaWorks and others to open new battlegrounds in main centres.
According to the most recent GFK audience survey, radio attracts around 3.430 million listeners per week, a number that has remained broadly stable in the past two years.
“AM and FM radio is an important source of news and information for many New Zealanders,” Media and Communications Minister Paul Goldsmith said in January.
“It also plays a crucial role in emergency broadcasting.
“By extending the spectrum licences that underpin our radio networks until 2051, we are ensuring that the operators – whether they are large commercial networks, independent stations, or regional, community or iwi networks – can continue to broadcast.”
The decision to extend the licences – there are currently 1053 across New Zealand, almost 900 of them FM – follows a period of public and industry consultation last year.
The Ministry of Business, Innovation and Employment (MBIE) in January said commercial, community and iwi broadcasters would continue to have access to radio spectrum.
“Commercial broadcasters can expect renewal offers in coming months, while non-commercial operators will be engaged well ahead of the expiry of their current licences.”
The Breeze’s Auckland breakfast hosts Robert Rakete and Jeanette Thomas.
It said commercial licence holders – such as NZME and MediaWorks – could expect renewal offers in mid-2026, and would have six months to consider them.
“We are aware that licence holders will be keen to understand the precise costs associated with their specific licence set.”
Goldsmith said earlier: “While the landscape for the sound broadcasting industry is changing, with many New Zealanders now accessing news and community updates in other ways, it’s clear radio broadcasting still plays an important role.
“There are currently more than 1000 licences in place, reflecting the widespread use of both AM and FM frequencies across our country.”
He said the freeing up of more channels, from the previously planned youth network, would be the first availability of new channels in major centres for many years.
“This is an important commitment to our media industry, providing clarity and certainty about the future of our AM and FM networks.”
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.