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Democracy warning as Canadian media outlets merge and papers close Democracy warning as Canadian media outlets merge and papers close
(6 months later)
Canada’s media crunch has prompted a federal minister to cite concerns for democracy as papers close, newsrooms merge and more of the country’s outlets come under the control of handful of companies.Canada’s media crunch has prompted a federal minister to cite concerns for democracy as papers close, newsrooms merge and more of the country’s outlets come under the control of handful of companies.
Related: Canada's largest newspaper publisher cuts jobs and merges newsrooms
Canadian newsrooms are shrinking as an oil shock rocks the economy and curtails the appetite of advertisers. The media retreat is touching small-city newspapers thousands of kilometres apart and television stations owned by larger telecom companies that struggle to turn a profit.Canadian newsrooms are shrinking as an oil shock rocks the economy and curtails the appetite of advertisers. The media retreat is touching small-city newspapers thousands of kilometres apart and television stations owned by larger telecom companies that struggle to turn a profit.
In January the Black Press closed its Nanaimo Daily News and Torstar’s Guelph Mercury stopped publishing a print edition, keeping its website going with content from other outlets.In January the Black Press closed its Nanaimo Daily News and Torstar’s Guelph Mercury stopped publishing a print edition, keeping its website going with content from other outlets.
Those cuts came just as the country’s biggest chain, Postmedia Network Canada Corp, fired 90 journalists and merged its tabloid and broadsheet newsrooms in four major cities including the capital, Ottawa.Those cuts came just as the country’s biggest chain, Postmedia Network Canada Corp, fired 90 journalists and merged its tabloid and broadsheet newsrooms in four major cities including the capital, Ottawa.
Print advertising revenues held up better in Canada versus the United States in the aftermath of the 2007-2008 financial crisis but are now sinking faster, according to data from Newspapers Canada.Print advertising revenues held up better in Canada versus the United States in the aftermath of the 2007-2008 financial crisis but are now sinking faster, according to data from Newspapers Canada.
US print revenues slumped 40% between 2007 and 2009, compared with 21% in Canada. But in the last two years Canada is down 31% while US sales eased 13%.US print revenues slumped 40% between 2007 and 2009, compared with 21% in Canada. But in the last two years Canada is down 31% while US sales eased 13%.
Concentration of ownership in Canada is roughly double that in the United States, according to Dwayne Winseck, a Carleton University professor and director of the Canadian Media Concentration Research Project.Concentration of ownership in Canada is roughly double that in the United States, according to Dwayne Winseck, a Carleton University professor and director of the Canadian Media Concentration Research Project.
“What sets Canada out as an outlier is the extent of vertical integration,” he said. “The companies that own the pipes also own the content providers whose messages are flowing over those pipes.”“What sets Canada out as an outlier is the extent of vertical integration,” he said. “The companies that own the pipes also own the content providers whose messages are flowing over those pipes.”
Related: Changes to Australia's media ownership laws to be introduced within six months
The Canadian Radio-television and Telecommunications Commission last week took a swipe at such companies – including BCE Inc and Rogers Communications, both of which have cut hundreds of media jobs recently – saying they must invest in robust news operations or be held accountable ahead of licence renewals due next year.The Canadian Radio-television and Telecommunications Commission last week took a swipe at such companies – including BCE Inc and Rogers Communications, both of which have cut hundreds of media jobs recently – saying they must invest in robust news operations or be held accountable ahead of licence renewals due next year.
A major media union wants even more forceful action, calling for Postmedia’s breakup and tougher rules against concentration and the type of leveraged buyout that helped Postmedia gain control of roughly one-third of Canada’s English-language daily newspapers.A major media union wants even more forceful action, calling for Postmedia’s breakup and tougher rules against concentration and the type of leveraged buyout that helped Postmedia gain control of roughly one-third of Canada’s English-language daily newspapers.
“I’m absolutely stunned it’s legal – it shouldn’t be,” said Martin O’Hanlon, president of CWA Canada, which represents roughly 6,000 print, digital and broadcast media workers, including at Thomson Reuters. “And we’re going to be pushing the government with all our might on that front.”“I’m absolutely stunned it’s legal – it shouldn’t be,” said Martin O’Hanlon, president of CWA Canada, which represents roughly 6,000 print, digital and broadcast media workers, including at Thomson Reuters. “And we’re going to be pushing the government with all our might on that front.”
The sharp reduction in the size of Canada’s press corps also has some questioning the media’s ability to investigate and report on corporate malfeasance and political chicanery.The sharp reduction in the size of Canada’s press corps also has some questioning the media’s ability to investigate and report on corporate malfeasance and political chicanery.
Mélanie Joly, the Canadian heritage minister, said via a spokesman that “journalism plays a central role in a healthy democracy” and that she plans consultations on how a shift to digital is impacting Canada’s creative, media and production sectors.Mélanie Joly, the Canadian heritage minister, said via a spokesman that “journalism plays a central role in a healthy democracy” and that she plans consultations on how a shift to digital is impacting Canada’s creative, media and production sectors.
The heritage committee plans at least 10 meetings to hear from experts and pull together recommendations.The heritage committee plans at least 10 meetings to hear from experts and pull together recommendations.
John Hinds, head of Newspapers Canada, an industry group representing publishers, said: “What we’re concerned about, as an industry and I think as a society, is the loss of public interest journalism.”John Hinds, head of Newspapers Canada, an industry group representing publishers, said: “What we’re concerned about, as an industry and I think as a society, is the loss of public interest journalism.”
Hinds wants the government to retake its role as the industry’s largest advertiser – spending that was cut under the previous Conservative government – and create tax incentives for local coverage.Hinds wants the government to retake its role as the industry’s largest advertiser – spending that was cut under the previous Conservative government – and create tax incentives for local coverage.
With ReutersWith Reuters