Putting The You Into You Tube Taxpayer funds deal with tax avoiding Google

Taxpayers are subsidising content for Google-0wned YouTube, while some New Zealand media are in trouble and face a shortfall in subsidies. Now New Zealand On Air and You Tube have started a fund for Kiwi You Tubers. The initiative fits perfectly into the rationale for the funder to adjust to the New World Order by encouraging more digital content. The audience is shifting to digital platforms like You Tube. New Zealand On Air is platform agnostic and subsidises content for platforms that deliver enough bums on seats.

Called “Skip Ahead” the joint fund fund is tiny – just $300,000. But it is still odd for taxpayers to be indirectly subsidising a huge multinational to obtain content. NZOAGoogle takes huge levels of advertising money out of New Zealand and avoids paying local taxes and makes scant contributions to New Zealand content producers. Why are New Zealand taxpayers indirectly subsidising a foreign company that rips us off?  You’d hope this is not the promise of things to come.

Stuff reported:

NZ On Air and Google are partnering up to create a $300,000 fund for Kiwi YouTubers who are already pretty popular.The “Skip Ahead” contestable fund comes in a 50/50 split from NZ on Air and Google, who own Youtube. It’s built off a similar model already operating in Australia.The cash will help creators who have already built a “substantial” following on the video platform with a grant of up to $100,000. YouTube’s Felicity McVay said Google approached NZ On Air to start the fund after the success of the Australian model.”Like Australia, New Zealand is an export nation when it comes to YouTube. For every one video view from New Zealand there are are approximately nine views of New Zealand videos.

Quite rightly – New Zealand On Air is required to finance local content – not institutions. It is platform agnostic. I wonder if this tiny fund – part of $3.8 million allocated annually to digital ventures – takes NZ On Air down a new route of chasing international viewers. Any increased subsidising content for international platforms will make life harder for free-to-air firms that are solely focused on the local market. Besides that Google can afford to pay more

Google can afford more
Google can afford more

I’ve whined in the past that NZ On Air had become too keen to please the networks by backing commercial TV shows like X -Factor. The TV industry has been kept alive with handouts. Nowadays there are great concerns about about local content.  Considering the money Google Search makes out of New Zealand, undermining local media, maybe it needs to shell out more for the development of the local content industry.




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4 thoughts on “<span class="entry-title-primary">Putting The You Into You Tube</span> <span class="entry-subtitle">Taxpayer funds deal with tax avoiding Google</span>”

    1. Unless of course some of those factory workers want to become a YouTube sensation.

      Have a think about it.

      Currently only the ‘independently wealthy’ can afford the time and investment to make a YouTube career successful.

  1. Sure but NZonAir’s role is not to create a fairer tax system. They’re solely responsible for supporting NZ content. And to be honest, getting a platform to actually stump up this much money is a great thing.

    Usually TV channels like TVNZ and TV3, and nowadays websites put in very little ‘license fee’ when receiving the content funded by NZonAir.

    Creating a ‘joined up’ tax system is a question for politicians who choose to silo or integrate their departments, and not the departments themselves.

    1. Sure. But seems to be structured as staff training exercise linked with funding. Why isn’t this a commercial education course?

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