Nearly 80 Canadian news outlets have closed since the beginning of the COVID-19 pandemic in 2020 despite the federal government previously introducing $595 million in media subsidies intended to support the sector, according to an internal briefing note.
“Since the beginning of the pandemic 78 news outlets closed including 65 community newspapers,” said a briefing note prepared in March for Heritage Minister Pablo Rodriguez and obtained by Blacklock’s Reporter.
The note also said 57 local news outlets were launched during the same time period, including two TV stations, five radio stations, nine community newspapers, and 41 online news organizations.
The note added that “some news organizations have experienced some stability and growth” since the pandemic’s onset because of the federal government’s “support and a recent boost in advertising revenue.”
It said 16 community newspapers have reopened since the peak of pandemic lockdowns and closures, but that “overall job losses have continued upwards.”
Heritage Canada further noted that the government’s previous subsidies for media outlets were only “temporary.”
‘Market Failure’
Earlier this year, the chief lobbyist for newspaper publishers in Canada said additional subsidies and federal legislation are needed to save more media outlets across the country from shutting their doors.“It isn’t working, so we need a solution, and that’s why we’ve come to the government, even though, frankly, we would like to stay as far away from government and the CRTC as we can, but we do need them.”
“The government’s view is that multiple interventions are needed in this space,” he said on April 25, adding, “Notwithstanding those interventions, we have continued to see a decline in the news sector.”
