Manitoba Contemplates Local Media Support

Premier Wab Kinew has called for an all-party committee to look at how local media can be supported in Manitoba. It is uncertain how the PCs will respond. As noted here, much of the print newspapers in the province is owned locally. The Winnipeg Free Press, Winnipeg Sun as well as papers in Brandon, Portage and Steinbach are locally owned. There are a fair amount of locally owned radio stations in Manitoba as well. A fair amount of independent media exist. No major television stations are owned locally owned in Manitoba including affiliates.

The big players in Canada of Bell Media, Quebecor and Corus have massive amounts of debt due to acquisitions. While many remain profitable, it is debt repayment and dividends that has them cutting employees regularly. Throughout the world ad revenue has gone to large international companies like Microsoft, Google, Facebook and others. Newspapers, radio stations and TV stations have closed across North America. Even this week Corus and Bell continue to lay off long time employees.

Winnipeg has had a few radio stations close or make cuts. Newspapers have been downsized. So too TV newsrooms. Federal government programs on digital membership tax credits, local journalism initiatives and periodical supports have been criticized over the years. Tax credits for print, TV and radio go to advertisers but digital ads are not included. It means 70% of digital ads go to foreign media. It seems odd to not make advertising in Canada to Canadian people on Canadian media something a tax credit should be exclusive to.

Provinces have contributed to local media by posting legal notices in newspapers, advertising and other business tax credits over the years. Ontario is committing a percentage of their Crown corporation spending to Ontario-based media. This could be about $10 to $15 million of the $100 million spending guaranteed for Ontario.

The large corporate ownership of media is Canada was profitable until it wasn't. They kept gobbling each other up or shutting down papers, radio stations and TV stations until their debt from concentration just couldn't keep up. Today, the majority of newspapers in Canada are owned by the U.S. and they continue to squeeze what they can out of their properties and shut down parts regularly.

A few newspapers have been converted to charities but it is an expensive preposition.  Some have become non-profits although you see that more in the U.S. than in Canada. The government could help with this process. A charity or a non-profit might be the way to salvage some local media from being closed. There are some co-op radio stations as well that could use a boost of support and would likely be something that survives because of community support.

Advertising though has been the lifeblood of media. Consumers have largely paid a subscription fee for newspapers and magazine or a cable fee to receive additional channels or for free after paying for your own TV and radio equipment. The costs are largely borne by advertisers. It is those advertisers that have been lost across the board in many industries to the large trans-nationals that rely on content made by others that it is often not paid for. 

Generally in business governments should not be picking winners and losers. If a government chose the horse over the car as the transportation of the future, they would have been very unwise. However, if they had let one car company be the only company supplying cars, it would be to the detriment of society. It is why antitrust exists. One dominant company can stifle further development, exert inordinate power and hurt more than it helps citizens.

The province of Manitoba can do little on antitrust as that is a federal jurisdiction. However, the province does have its own budget on advertising which, like Ontario. it can direct to Manitoba media such as TV, radio, print, podcasting and digital. The province can also add a tax credit for private advertisers to advertise in the province. There are other ideas out there but none should look like direct support to journalists which the federal government does. It should look like business to business relationships. It should be supporting business in Manitoba, not individual journalists.

The journalists get their support from their ownership, their advertisers and their appeal. It avoids accusations that they are state media or controlled by someone directly. It is a tough path to follow but when done correctly makes the media and the various views essential.

To be clear, some people want all media to collapse. They accuse it of harm. Some of this comes from anti-democratic views which have grown over the years. If freedom of the press truly falls, freedom of speech will as well. 

It will be interesting to see what ideas come from this discussion. It would be tragic if we see more small newspapers closes, more podcasts end, more radio station shutter and all regional TV stations become just national carriers or even international carriers that do not do any reporting from local areas.