Calls for a levy on big tech as media industry struggles

There are calls from media experts to introduce a digital services tax after the recent changes in the industry.

There is already a bill in parliament proposing a digital services tax that has yet to be passed, but there is nothing in it to suggest any revenue will go to funding media.

Researcher for Auckland University’s Koi Tū Gavin Ellis thinks large online platforms should fund our media, instead of everyday New Zealanders.

“Rather than burdening the public further, we should introduce a digital tax to create a ring-fenced fund.

“We should then give all of it to the news and creative industries.”

Ellis also said it was a good idea to put a levy on big media corporations, as it will encourage them pay their taxes.

“These platforms get away with paying a tiny amount of their turnover, we should get back some of their tax that they should be paying in the first place.”

Warner Bros Discovery’s recent decision to shut down Newshub in June due to cost-saving measures, will result in a loss of over 300 jobs.

TVNZ has also seen major cuts to their news industry, with current affairs show Fair Go and their in-depth journalistic program Sunday also getting axed to save in cost.

Chairman of the Better Public Media Trust Dr Peter Thompson believes a levy on digital platforms to fund the media would be a good thing.

Dr Thompson said that the amount of money brought in would be able to fund a lot of extra projects.

“A 3 percent levy would bring in enough funding to help produce more projects… with it, shows like Fair Go and Sunday would not have to stop production.”

The Digital Service tax bill is still being debated in parliament but if passed would come into effect in 2025.