Canadian local news providers are facing a significant revenue decline due to the implementation of Ottawa’s Bill C-18, warns the president of the Canadian Media Directors’ Council (CMDC) in a letter to advertisers. The letter urges advertisers to dedicate their spending to support smaller players in the industry. The Online News Act, known as Bill C-18, aims to compel tech giants like Meta (formerly Facebook) and Alphabet (Google) to compensate Canadian news outlets for featuring their content. However, in response, both companies have chosen to block access to Canadian news content on their platforms. This not only results in a loss of potential revenue for the news outlets but also restricts the amount of traffic flowing to their content.
To tackle this issue, Shannon Lewis, the president of CMDC, suggests that leaders in the media industry can make a positive impact independently, even without the influence of the government’s legislation or big tech companies. In her open letter, she calls for media and advertising companies to pledge 25% of their online digital marketing budgets to support local media. By allocating one-fourth of advertising dollars to local media, a total of $380 million can be contributed to support Canadian journalism, surpassing the revenue estimates associated with Bill C-18.
Lewis highlights the decline in advertising for Canadian news over the years, with a significant shift towards tech giants. In 2014, roughly 23.1% of advertising funds were directed towards Canadian and local media. However, by 2019, this figure had dropped to 5.7%. She also mentions the impact of this decline, as 473 local news outlets have closed in the past 15 years, affecting over 300 communities across Canada. Corus Entertainment, the parent company of Global News, is among the organizations operating local newsrooms and radio stations throughout the country.
Lewis argues that a robust and sustainable media landscape is beneficial for advertisers as well, as it allows them to reach audiences through trusted sources in brand-safe environments.
In conclusion, Lewis calls upon advertisers and stakeholders in the Canadian media industry to support the cause of protecting and strengthening local news by taking action and making a significant impact. The ultimate consequences of the blockades imposed by Google and Meta on Canadian news links are still uncertain. Heritage Minister Pablo Rodriguez expresses disappointment with Meta and appreciates Google’s ongoing discussions regarding potential regulation within the realm of Big Tech.
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