‘Scoop’ founder accuses NZME and Stuff of ‘throwing independent media under the bus’

Alastair Thompson, founder news platform Scoop, has voiced serious concerns over the potential consequences of the Digital Media Bargaining Bill, arguing it will threaten the survival of independent news media in New Zealand.

Thompson warns that the bill, which seeks to compel tech giants like Google to pay for news content, could result in funding cuts that would endanger small and independent publishers.

“Commercially, the situation for all news media in NZ is dire and has been for years,” Thompson explained. He describes the bill as “an existential threat to NZ media diversity,” especially for smaller, independent publishers who rely on Google’s voluntary funding through programs like Google Showcase.

The Digital Media Bargaining Bill aims to enable news publishers to negotiate with digital platforms, primarily targeting revenue from companies like Google and Facebook, and is being pushed by the ailing legacy media outlets NZME (owners of NZ Herald and Newstalk ZB) and Stuff.

However, Google has pushed back, threatening to withdraw support from the New Zealand news ecosystem if the bill proceeds. The tech giant’s voluntary Showcase funding, which supports several New Zealand news outlets, would be discontinued, affecting both major and minor publishers. This includes Scoop, which has relied on the programme for the past three years.

“Google has made it very clear that if the bill proceeds, it will cancel this program, withdrawing millions of dollars of support currently provided to NZ media companies, both large and small,” said Thompson.

He criticised NZME and Stuff for lobbying for the bill, which he claims risks “throwing the rest of the industry under the bus” to secure funding for themselves.

“For us the villains here are the two largest digital publishers, NZME and STUFF who have pushed for this bill, and who appear to be unconcerned about the consequences of their actions for smaller publishers such as us,” wrote Thompson.

“The two largest online media companies seem to believe that this is in their interests to throw the rest of the industry under the bus, probably because they think it will reduce competition from the minnows in the market for donations and subscriptions.”

In a two-part opinion piece, Thompson also expressed frustration with the government’s response to the broader challenges facing New Zealand media, particularly regarding funding models. He highlighted that while Google has consistently supported news outlets through technical infrastructure and voluntary funding programs, the government’s attempts to bolster public interest journalism have fallen short, often favouring larger media companies over smaller, independent voices like Scoop.

“The Government could better support media by adopting a policy of paying for the media they consume, as they did during the Covid period, on an ongoing reliable basis,” Thompson suggested. He argues this approach could provide much-needed relief to New Zealand’s struggling news industry, especially small independent media.

As it stands, Scoop is exploring alternative funding methods, including possible advertising and crowd-sourced campaigns, should Google’s financial support end due to the bill. Thompson maintains that, given Google’s substantial contributions to the media ecosystem, the bill’s approach is misguided, urging the government to consider alternative solutions to ensure the sustainability of independent journalism in New Zealand.

Read Part 1 of Thompson’s opinion piece here, and Part 2 here.