spinofflive
The Māori Television building, Auckland. Photo: RNZ / Shannon Haunui-Thompson
The Māori Television building, Auckland. Photo: RNZ / Shannon Haunui-Thompson

MediaAugust 2, 2018

What the new public interest defence really means for media and defamation

The Māori Television building, Auckland. Photo: RNZ / Shannon Haunui-Thompson
The Māori Television building, Auckland. Photo: RNZ / Shannon Haunui-Thompson

Steven Price, who argued against Māori Television in their landmark defamation case this week, explains exactly what the new defamation defence actually means, why it’s such a big deal and who really won the case.

I had an odd experience the other night. I had just popped the cork on a bottle of bubbly with Felix Geiringer to celebrate our success in the Court of Appeal in Donna Hall and Sir Edward Taihakurei Durie’s defamation case against the Māori Television Service, when I got wind of the Māori TV story about the case. They were reporting it as a win for Māori TV. “The Court of Appeal has upheld Māori Television’s right to responsibly report in the public interest,” it said. It reported that the appeal “was dismissed.”

This raises a fundamental question that strikes right to the heart of our polity. Should you believe a lawyer over a journalist?

I’m going to suggest that we’re more right than they are, and that anyway, the thing that makes this a landmark decision was something both sides agreed about.

But first, a bit about the background. Here’s how Māori TV described it in their Tuesday night story:

The ruling follows a Māori Television broadcast in 2015 that broke the story of serious in-fighting within the New Zealand Māori Council. It included allegations between influential Māori leaders, including retired High Court judge, Sir Taihakurei (Eddie) Durie, lawyer Donna Hall and Maanu Paul.

The problem was that their 2015 story wasn’t written as a story that merely exposed “serious infighting”. It said the Māori Council “has dumped their legal counsel, Donna Hall”.

The story was based on leaked minutes from a meeting called by one faction, and contained several very serious allegations against Donna and Sir Edward. Māori TV sought Donna’s side of the story (but not Sir Edward’s), and she told them that the allegations were wrong and she could prove it. (She in fact had not been sacked, for example). Māori TV included some of her response in its broadcast, but left it out entirely when it initially posted the story online.

Donna and Sir Edward sued for defamation.

Māori TV argued that even if the allegations were wrong, it should have a defence because it was in the public interest to report them and Māori TV had acted responsibly in checking out the story.

But it took that argument a step further. It said Māori TV should have defence even if it hadn’t checked out the allegations, because it was in the public interest to report the mere fact that they had been made. This is known overseas as a neutral reportage defence.

Neither of these defences had been accepted by appellate courts in New Zealand. The Court of Appeal had to decide whether they formed part of our law. Then it had to decide whether Māori TV could use them in this case.

Felix and I argued that the first defence (about responsible reporting) should be part of our law. The second one (neutral reportage) should not be part of the law, and if it is, it should be very tightly confined. But in any event, we said, neither defence could be used by Māori TV because their reporting was not responsible or neutral.

Māori TV argued that these defences were part of the law and should be left open for it to argue at trial.

So what did the Court of Appeal actually decide? Let’s look at the law first. It agreed with both sides that there should be a defence of responsible communication in the public interest. That’s what makes this a landmark case.

The majority of the Court also found that neutral reportage could be argued in some cases, but only in very rare circumstances where:

The public interest in the fact of the allegation is overwhelming and so compelling on its own that urgent reporting of it is justified without further investigation. A hypothetical example of such a situation might be the fact that the Governor-General has alleged a Cabinet Minister is taking bribes, thereby triggering a constitutional crisis.

What’s more, the publisher has to take a neutral stance – the allegation must be reported as someone else’s claim, and not adopted as true.

I think it’s fair to say that’s setting the threshold pretty high. Too high for Māori TV in this case anyway. By portraying Donna’s dismissal as a fact, Māori TV effectively adopted it. The Court of Appeal said this defence was not available to them and struck it out.

What about the responsible communication defence? The Court said that, at least in one respect, Māori TV’s reporting was not responsible. It was a “fundamental failing” to post the story online for two hours without including the response Donna had provided. This was “fatal to the defence”.

But the defamation claim also covers the original broadcast, and the online version after Donna’s response was posted. The Court traversed some of our arguments that those weren’t responsible either (such as Māori TV’s failure to contact Sir Edward or the Māori Council’s secretary for comment, or to put the story off until it could check out the evidence Donna said she could provide). It said they created “some difficulties for MTS” in showing that its behaviour was responsible, but in the end, that was a matter for the court.

So in this sense, Māori TV succeeded. The Court accepted that there was a public interest defence, and that Māori TV could raise it at trial to protect most of its coverage.

But in another sense, this was a greater win for Sir Edward and Donna. The neutral reportage defence was struck out, and the court found that one of the publications could not be defended as responsible at all and recorded its doubts about the rest of the Māori TV reporting too.

So Donna and Sir Edward’s appeal was not dismissed as Māori TV reported. The first clue was on the front page where the judges wrote “The appeal is allowed in part.”

A couple of last thoughts. First, this case is a Big Deal. This sort of defence only used to be available for coverage of politicians. Now it will be available for stories and commentaries criticising business leaders, public servants, lobbyists, journalists and others on any matters of public interest. It will affect almost every piece of defamation advice provided by a media lawyer. There will be much more emphasis on whether stories are responsibly prepared, and I’d hope that this will incentivise ethical behaviour: relying on reputable sources, conducting obvious checks, and seeking and including comment from the other side. I hope it will also make publishers consider whether they can genuinely claim that their stories are in the public interest.

Second, this case doesn’t just protect journalists. The defence concerns responsible communication in the public interest. It explicitly includes people publishing on social media. What counts as “responsible” behaviour by a blogger? The Court of Appeal said this was tricky, but that we can develop principles case by case. I suspect much will depend on the type of publisher – sites and blogs that look like mainstream media and report on news and current affairs to a wide audience in a substantial way will probably be held to higher standards of responsibility than someone who sends out occasional tweets slagging rugby referees.

It strikes me that the digital community should think hard about trying to formulate a voluntary social media code of ethics (and I’d suggest that it should revolve around rights of reply rather than an obligation to seek the other side before publication). This will be hard to develop; the needs of different online publishers vary a lot; plenty of people won’t want a bar of it; it will potentially be used as a rod for our own backs. But if we don’t do it, we’ll be leaving it entirely to the judges to define what counts as responsible.

Keep going!
A report with a bullet
A report with a bullet

MediaAugust 1, 2018

10 takeaways from NZ on Air’s shocking new audience survey

A report with a bullet
A report with a bullet

We’ve been waiting for the tipping point, where online really surges against broadcast media. It just arrived, says Duncan Greive, who has read NZ on Air’s epic new audience behaviour survey so you don’t have to.

The release of NZ on Air’s audience survey is on its way to becoming the most important event in media for the content creators, networks and absolute nerds (hi!) whose careers and interests hinge on the changing dynamic of audiences in the digital era. This is because it looks at trends in audience behaviour across multiple media, as opposed to snapshots within particular mediums over a night or a month. More importantly, it’s also untainted by the commercial interests of its funders, being commissioned by NZ on Air and carried out by Glasshouse Consulting – neither of which have a dog in this particular hunt.

Thanks to the frequency with which they’re carried out, there is a huge weight to the surveys – they capture two years’ worth of changes in behaviour, an incredibly long time in this lightning-paced arena. Additionally, this being the third in the series, we now have clear trend lines established, and they have some loud messages across age, device, brand and medium.

The launch was held at the Crowne Plaza in midtown Auckland, in a room full of mostly middle-aged people from across the various NZ on Air stakeholder groups. There’s an 80 page deck covering all the findings, which is required (and likely sobering) reading for anyone deep in the business. But here are my pick for the ten most telling data points.

Daily medium usage. Source: Glasshouse / NZ on Air

1. Broadcast is still #1 – but likely for the last time

“Despite rapid changes, the biggest audiences remain on broadcast,” said researcher Jeremy Todd. “In two years, if current trends continue, that will have changed.”

This statement summed up the whole presentation. For over a decade we’ve been talking about online as a delivery mechanism, waiting for it to arrive as a habitual alternative to traditional media formats. This is the year we really see that biting in terms of the daily, routinised behaviour. Linear TV – the industry name for pre-scheduled shows on free-to-air or Sky TV – remains the most popular medium, but its audience is in well-established decline. In just four years it has moved from the daily diet of choice for four in five New Zealanders, to just two in three.

2. SVOD will overtake linear sooner rather than later

Meanwhile Subscription Video on Demand services like Netflix and Lightbox have rocketed from a niche of 6% in 2014 to 37% today, their growth mapping that of fibre broadband, which has grown in tandem to nearly half of those surveyed.

One stat which shows exactly how straight the switch from linear to SVOD has been: linear users average four hours consumption a day; SVOD users watch three hours a day.

The generation gap. Source: Glasshouse / NZ on Air

3. The generational divide is stark (but narrowing)

Just 49% of 15-39 year olds watch linear TV on the average day, while 80% of those 45 and older do. This inverts for SVOD, which has a 52% daily usage for 15-39s and and 23% for 45+. This is the really big gap – that classic family mythic of dinner and the (linear) telly holds true for those born before the seventies, and is fading fast for those born after.

That said, older generations are still coming online – just more slowly. The drivers of increases in SVOD and smartphone usage, for example, are more older New Zealanders than younger ones (because the latter are mostly already there). Other factors which used to be helpful predictors of media consumption were ethnicity, gender, access to technology and whether you lived in Auckland. They’re much less useful now: broadly speaking a lot more people are now behaving the way white Auckland men did in 2014 (this sounds terrible I know; and it probably is).

OnDemand slowing. Source: Glasshouse / NZ on Air

4. OnDemand appears to have already peaked

OnDemand (free-to-air, ad-supported television or Sky’s catch-up service) has strikingly stagnated in daily usage, moving from 18% to 19%. Frighteningly for Sky and Three, usage of their platforms is flat or declining, with only TVNZ seeing a significant rise, from 10% to 13% in that timeframe. This is in part a result of a heavy investment by the state broadcaster – playing heavily hyped shows like Killing Eve online first, screening reality smash hits like Love Island and The Bachelor there the same day they air overseas and investing in a library of cool local exclusives.

5. TVNZ is playing a very smart game

This online emphasis can be seen as a kind of self-cannibalising of its younger demo channel, with TVNZ 2 declining to a 20% daily reach – if current trends continue, TVNZ OnDemand could well have overtaken it by 2020. By contrast, TVNZ 1 has actually increased its daily usage, a remarkable effort in this climate.

This part of a broader attempt to use revenue from its huge but ageing TVNZ 1 audience to stake out the internet (see also: its excellent youth venture Re: and kids’ portal HEIHEI). It’s the right thing to do, but also a coolly calculating commercial play: TVNZ surely doesn’t particularly mind that it appears to be having a serious impact on its major private sector competitor.

In part this shows the kind of adroit, far-sighted thinking you can do when you’re backed by the government. Yet it also suggests that Mediaworks CEO Michael Anderson’s comments regarding the shaky future of its TV assets were no bluff. As if to back them up, Three’s daily usage has declined from 31% to 25% in two years. The survey suggests that, far from sabre-rattling, the future of private sector TV is a real and present conundrum for this government.

Daily usage by channel. Source: Glasshouse / NZ on Air

6. Netflix is a juggernaut

Most of the lines above follow a reasonably gradual gradient. By far the steepest in either direction is Netflix. The company has a market cap of $233bn, not a long way off New Zealand’s annual GDP. It will spend around $12bn on content in 2018, while costing around half that of the most basic Sky package. In a little over three years it has vaulted both TVNZ 2 and Three in popularity. And it’s incredibly popular here, with 69% of those aged 15-34 having access to it.

One big difference between Netflix and linear: It’s ad-free, meaning that those who traditionally used television to reach their audience must learn a new trick.

Lightbox meanwhile has a huge penetration, at 19% of New Zealanders, but its daily usage is lower, at 5% – significantly up on 2% in 2016, but a ways off Netflix.

7. Netflix’s dominance is a problem for a number of different people

This survey’s commissioners at NZ on Air cannot currently directly fund content for what is already the single most popular longform platform for young New Zealanders. More ominously, New Zealand is a tiny market for Netflix, which is headquartered 10,000 kilometres away in California – so our ability to influence it as consumers or government is close to nil.

The latter characteristics are shared with two other bigger video portals: YouTube and Facebook. Each are still growing, albeit at slower rates, but their stats are coloured by, respectively, a significant usage as a music player and a preponderance of short viral videos which are somewhat peripheral to the core purpose.

Netflix, YouTube and Facebook are characterised by a quest for sector domination which makes local video creators effectively powerless as priorities swing around in response to consumer behaviour, public pressure and investor priorities.

It’s a freaky scene and it’s only going to get worse.

Sky usage: Source: Glasshouse / NZ on Air

8. The Sky is falling

Sky’s recent troubles are both well-documented and perhaps overstated: it does have declining revenue and subscriber numbers, and has lost some marquee sports to Spark. And yet it remains massively profitable and popular, particularly with older (read: richer) New Zealanders.

What this survey shows is a major decline in daily usage, one which significantly outpaces its loss of subscribers (in all likelihood because its base has aged and their children have left home).

The worst affected has been Sky Movies, perhaps the most direct competitor with Netflix, which has gone from a 7% daily usage to just 2% in four years. With a new CEO and a major suite of new online products launching next year, this is one stat which may yet be able to buck the broad trends.

The slowdown and the ramp up. Source: Glasshouse / NZ on Air

9. The news is in trouble

As someone who works in and avidly consumes the news, this one gives me the shits. Daily online video viewing on Facebook or YouTube has overtaken newspapers (including news sites) for all New Zealanders. The headline drop in newspaper consumption from 49% to 41% actually masks the true scale of the problem: daily readership is just 26% for 15-39 year olds. Magazines like ours fare slightly better – they are treading water around the 20% mark (though it’s just 9% for younger people). RNZ has had the best sustained run in media these past few years, and it remains the most popular station in the country – but a decline to 9% daily usage (amid a broadly static radio market) shows the importance of the extra online resources it has recently been granted. 

One big bright spot for news is the Herald’s video: nearly doubling from 6% to 11% in just two years, trailing the monster that is Stuff by just 2%.

That can’t disguise the scale of the challenge to the news media, though – we need to figure out how to reach and sustain the attention of far more people under 40 than we currently do.

10 This really matters

While I said at the top this was only of interest to content creators, networks and nerds, that shouldn’t be the case. NZ on Air commissions this research to find out where its audiences are, what they’re doing and who is not seeing NZ on Air-funded content.

This, then is a licence to redirect funds. While some major changes have come through in recent years – most notably the platform-agnostic move of 2016 – the motion has been somewhat timid. This work, particularly what it reveals about the habits of young New Zealanders (and under 40s are roughly half the population), gives a clear mandate to chase audiences into the stratified, niche-strewn online murk.

Yet as much as it is a guiding light for NZ on Air, it should also echo throughout many other sectors. Advertising, communications and production in the public and private sectors can all create new baselines from this research. It shows a vast new complexity to all those sectors, and no one’s job is any easier off the back of it.

The work has to be done though. Already we see signs of its absence affecting our democracy, in plunging youth voter turnouts, diminished census returns and lower trust in and consumption of news media. For a decade we’ve largely been content to take small steps, wary of over-committing and running ahead of behaviour. What we see now, clear and unmistakable, is that the time for caution is over: the great online migration is in full flow.


Declaration of interests: Lightbox is a partner of The Spinoff’s television coverage, and has commissioned an original show coming later in 2018. Mediaworks syndicates content from The Spinoff, and airs The Spinoff TV on Fridays at 10.45pm