Sale of Atlantic Canada’s biggest newspaper chain could reduce local content: expert

An master who tracks Canada’s mainstream media manufacture says Postmedia’s pending acquisition of Atlantic Canada’s largest newspaper concatenation is almost definite to consequence successful occupation cuts and a simplification successful section content.

April Lindgren, a publicity professor pinch Toronto Metropolitan University, says Postmedia Network Inc. has besides made a wont of closing unprofitable publications, having unopen down 57 news outlets since 2008 — much than immoderate different media institution successful Canada.

“Postmedia’s strategy has been to trim galore newspapers to ray shadows of what they erstwhile were by cutting expenses and cutting nan number of reporters connected nan ground,” Lindgren said successful an interview. “I don’t expect a alteration successful strategy if this woody happens.”

On Friday, Postmedia announced plans to bargain “certain businesses” belonging to SaltWire Network Inc. and The Halifax Herald Ltd., nan 2 insolvent media companies that successful March were granted court-ordered protection from creditors who were owed much than $90 million.

Toronto-based Postmedia owns nan National Post, Vancouver Sun, Calgary Herald and dozens of different publications. The acquisition is taxable to support from nan Nova Scotia Supreme Court and to “satisfactory outcomes” pinch unionized workers, nan institution said. It did not disclose immoderate financial details.

A typical from Postmedia could not beryllium instantly reached for comment.

Magda Konieczna, a publicity professor astatine Concordia University successful Montreal, said Postmedia is known for limiting its investments successful section news.

“It’s makes maine interest … astir conscionable really overmuch much section news abstraction will proceed to beryllium eroded done this acquisition,” Magda said successful an interview. “Our section populist needs much than nan finance that Postmedia has been consenting to put into section news.”

Konieczna said national programs, specified arsenic nan Local Journalism Initiative and Canadian publicity labour taxation credit, person helped struggling media businesses. But much thief is needed, she said.

“We request argumentation that will thief america build a section news ecosystem that is responsive to nan needs of section communities.”

Lindgren, main interrogator for nan Local News Research Project, said galore media businesses resumed cutting costs and shutting down operations aft nan COVID-19 pandemic, erstwhile authorities subsidies dried up.

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As well, she said advertizing gross has not recovered to pre-pandemic levels.

“All of nan harsh realities that were location earlier nan pandemic person reappeared,” Lindgren said. “Advertising doesn’t look to beryllium bouncing back. And those subsidies are gone. I don’t foresee things getting immoderate easier.”

Still, Lindgren said it would beryllium incorrect to azygous retired Postmedia for its cost-cutting strategy. SaltWire, for example, has closed 24 news outlets. As well, six different media companies — Transcontinental, Black Press, Glacier Media, Metro Media, Sun Media and Metroland — person each closed astatine slightest 2 twelve outlets since 2008.

As of June 1, a full of 521 news outlets had been closed since 2008, nan immense mostly of them organization newspapers, according to Lindgren’s research, which includes search nan destiny of newspapers, broadcast outlets and online news sources crossed Canada.

As for SaltWire and The Herald, cutting jobs won’t beryllium easy, fixed that layoffs are thing new. At nan flagship Chronicle Herald regular newspaper in Halifax, nan number of reporters has dropped from astir 100 successful nan mid-1990s to astir 2 twelve today, a national charismatic said.

Lindgren said nan number of editorial unit astatine Postmedia’s Ottawa Citizen has dropped from 190 unionized workers successful 1990 to astir 2 twelve today.

“That communicative is mirrored crossed nan country,” she said.