\u201cThis means the per-capita price paid will be lower than was consulted on in 2025, reflecting industry feedback and information provided through the consultation,\u201d MBIE told Media Insider in January.<\/p>\n
As the Government is legally required to do, renewal offers have now been sent to commercial operators.<\/p>\n
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.<\/p>\n
Coast FM breakfast hosts Jason Reeves, Toni Street and Sam Wallace.<\/p>\n
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.<\/p>\n
\u201cThis will be paid across four five-year tenure periods, with slightly higher payments in the earlier periods,\u201d NZME said in its NZX statement.<\/p>\n
\u201cThe purchase price is consistent with what NZME had anticipated and is materially lower than the price of the 2011 licence renewal.\u201d<\/p>\n
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.<\/p>\n
\u201cUnlike 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,\u201d NZME said.<\/p>\n
\u201cNZME 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.\u201d<\/p>\n
NZME chief executive Michael Boggs said the terms represented a \u201cstrong and sustainable\u201d outcome for NZME and the wider radio industry.<\/p>\n
\u201cWe 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\u2019 radio listening changes over time. <\/p>\n
\u201cIt 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.\u201d<\/p>\n
NZME said it had six months to accept the Crown\u2019s offer, with the first payment due in 2030.<\/p>\n
Additional licences<\/p>\n
Media and Communications Minister Paul Goldsmith. Photo \/ RNZ, Mark Papalii<\/p>\n