The government’s ever-increasing financial support for the news media was the subject of a non-public consultation earlier this year, with Canadian Heritage asking funding recipients what they think of the programs, what more needs to be done, and whether they have concerns about the risks to the independence of the press that can come with greater reliance on public funding. If you ask groups whether they want more money, they invariably say yes, so it may not surprise to learn the industry supports expanding the media funding programs and sees little reason to worry about independence concerns. The consultation, which focused on the Local Journalism Initiative (LJI) and Canada Periodical Fund (CPF), was not posted on the department’s public consultations page. Instead, the department circulated it to departmental contacts and stakeholders that “included current CPF clients and LJI delivery organizations,” and encouraged them to share it within their networks. Because I was included on that list and provided my thoughts, I received the summary of the results this week, which I have posted here, since the government has yet to make it publicly available.
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Why “Taking On” Google and Facebook Isn’t the Cure for the Media Sector’s Ills
Canadian media organizations face difficult challenges in an age of virtually unlimited Internet competition, a dramatic shift toward digital advertising, and an unprecedented global economic and health crisis. That has led media groups to urge the federal government to “take on” Google and Facebook by requiring them to fund local media. Prime Minister Justin Trudeau has thus far declined to do so. That may spark criticism in some quarters but claims that government-mandated payments from Internet companies will solve the sector’s ills are unconvincing.
My Financial Post op-ed notes that everyone agrees the media sector is more competitive than ever. News organizations such as the New York Times and Washington Post, digital media companies like The Athletic and The Logic, podcasters competing with mainstream media audio offerings and the CBC’s continued digital expansion all offer compelling and competitive news alternatives. This breadth of choice for Canadian news consumers isn’t the fault of Google or Facebook. It is a reflection of low barriers to market entry and a proliferation of services that often do a better job than many established media companies of serving specialized content.








