Some might say that one of the most important dates to affect the future of the North American local news media industry was June 22, 2023. On that day, Canada’s Senate passed Bill C-18, a law requiring Google and Meta to pay media outlets for news content that they share or otherwise repurpose on their platforms.
Many pundits are now blogging and editorializing about the upside and downside of C-18's passage and how it will likely impact pending similar legislation currently being discussed in committee in the U.S. Senate. The 2023 Journalism Competition and Preservation Act (JCPA) — a law very similar to Canada's — will allow small and mid-sized news organizations to negotiate jointly for compensation from digital platforms that access their content without allowing them to profit from their journalism. The legislation (like C-18) also allows news publishers to demand arbitration if they reach an impasse in negotiations with digital platforms.
And if anyone doubts how important this ruling is to Big Tech, just look at what happened almost immediately once C-18 became law. Two days after passage, Meta announced it would end access to news on Facebook and Instagram in Canada. And a few days after that, Google’s president of Global Affairs, Kent Walker, announced in a blog that it would remove links to Canadian news from Search, News and Discover products and would no longer operate Google News Showcase in Canada. Not to be topped, shortly after Google and Facebook’s actions, the Canadian government announced they would stop buying ads on Facebook and Instagram in return.
To offer some background, the Canadian local news media industry has experienced some of the same significant challenges their U.S. counterparts have in maintaining "top line" revenues impacted by digital disruption. Jobs, homes and cars, the three main "pillars" of the classified advertising category, have virtually disappeared from newspapers over the last 10 years. Inserts, and pre-press, which used to be a huge revenue stream for news publishers, are no longer being placed within the printed newspaper for local distribution, as major retailers prefer less expensive online couponing and digital loyalty programs.
But there's no question that, just like in the U.S., Canadian news publishers have lost the lion’s share of local advertising dollars to platforms like Google and Facebook, which garner a good deal of their audience through the news content they access for free from the local news media, and then monetize it.
In this episode of "E&P Reports," we look at the last few weeks in the life of Canadian news publishing through the eyes of Paul Deegan, president and CEO of the country’s largest industry trade organization, News Media Canada. Deegan unpacks the similarities and differences between Canada and the U.S. in national advocacy of Big Tech compensation legislation. He also discusses the battles that are now going on between Google /Facebook and the Canadian government as the digital platforms threaten to remove news content within the country, and Ottawa fights back by pulling ad dollars from the platforms.
239 NewsGuard under fire: Balancing credibility and controversy in modern journalism
238 Unpacking Dallas Morning News’ decision to reinstate a public editor
237 CherryRoad Media's 32-month journey: Revitalizing and rebirthing local newspapers in 18 states
236 Detroit PBS CEO Rich Homberg's mission to redefine public media
235 Turning the Page: Daniel Richardson's journey to restore local news to Tennessee towns.
234 Local Media Association and Pennsylvania NewsMedia Association partner to create fundraising lab
233 New York State implements historic tax credits to support local journalism.
232 Facebook blocks State’s Newsroom’s Kansas Reflector: A threat to free press and first Amendment?
231 Addressing America's Divides: The Chronicle of Philanthropy’s newest chapter1
230 Understanding the skills necessary to lead the newsroom of tomorrow
229 The “whats, whys and hows” of The Association of Community Publishers (ACP)
228 Exploring their new book: “What Works in Community News,” from authors Ellen Clegg & Dan Kennedy
227 A look at the broadcast news industry from RTDNA CEO Dan Shelley
226 A frank discussion about public media with industry expert Tom Davidson
225 Jeff Jarvis and Steven Waldman debate the hard questions facing the news media industry.
224 No more downsizing, as Gannett is hiring locally at all levels.
223 An inside look at The Messenger — from startup to shut down — 10 months and 50 million dollars later
222 An inside look at the LA Times with Guild President, Matt Pearce
221 Hussman announces four $25k prizes for best in fair and impartial reporting.
220 Word in Black's journey from a pilot project to a public benefit corporation
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