Media
Trudeau’s Online News Act has crushed hundreds of local Canadian news outlets: study
From LifeSiteNews
Trudeau’s Online News Act, framed as a way to support local media, has hurt small media outlets while giving massive payouts to legacy media, a study has found.
According to a new study, Prime Minister Justin Trudeau’s Online News Act has successfully crushed local media outlets while mainstream media has remained relatively unaffected.
According to an April study from the Media Ecosystem Observatory, Trudeau’s Online News Act, also known as Bill C-18, has caused a 84 percent drop in engagement for local Canadian outlets, as Big Tech company Meta – the parent company of Facebook and Instagram – has refused to publish links to Canadian news outlets on their platforms.
“We lost 70 per cent of our audience when that happened,” Iain Burns, the managing editor of Now Media Group, which manages news posts for outlets serving smaller communities, revealed. He further explained that he experienced a 50 percent loss in revenue following the move.
“We’re not the only ones. Many, many outlets are in this situation,” Burns added.
The Online News Act, passed by the Senate in June 2023, mandates that Big Tech companies pay to publish Canadian content on their platforms. While the legislation promised to support local media, it has seemingly accomplished the opposite.
While Meta has blocked all news on its platforms, devastating small publishers, Google agreed to pay Canadian legacy media outlets $100 million to publish their content online.
The study, a collaboration between the University of Toronto and McGill University, examined the 987 Facebook pages of Canadian news outlets, 183 personal pages of politicians, commentators and advocacy groups, and 589 political and local community groups.
“The ban undoubtedly had a major impact on Canadian news,” the study found.
The study found a 84 percent drop in engagement for Canadian outlets, with small local news outlets being the most affected compared to larger government-funded outlets.
“Local news outlets have been particularly affected by the ban: while large, national news outlets were less reliant on Facebook for visibility and able to recoup some of their Facebook engagement regardless, hundreds of local news outlets have left the platform entirely, effectively gutting the visibility of local news content,” it explained.
However, LifeSiteNews has been relatively unaffected by the ban as viewership on its official Facebook page has remained relatively the same, similar to its Instagram account since most views already came from the United States.
Similarly unaffected was Meta: “We find little evidence that Facebook usage has been impacted by the ban.”
“After the ban took effect, the collapse of Canadian news content production and engagement on Facebook did not appear to substantially affect users themselves,” the study said.
While local media outlets’ viewership has declined thanks to Trudeau’s new legislation, larger media outlets have thrived due to increased payouts from the Trudeau government.
Legacy media journalists are projected to have roughly half of their salaries paid by the Liberal government after the $100 million Google agreement and the subsidies outlined in the Fall Economic Statement.
Mainstream Canadian media had already received massive federal payouts, but they have nearly doubled after Trudeau announced increased subsidies for legacy media outlets ahead of the 2025 election. The subsidies are expected to cost taxpayers $129 million over the next five years.
However, just as government payouts increase, Canadians’ trust in mainstream media has decreased. Recent polling found that only one-third of Canadians consider mainstream media trustworthy and balanced.
Similarly, a recent study by Canada’s Public Health Agency revealed that less than a third of Canadians displayed “high trust” in the federal government, with “large media organizations” as well as celebrities getting even lower scores.
I Testified Before a Senate Committee About the CBC
I recently testified before the Senate Committee for Transport and Communications. You can view that session here. Even though the official topic was CBC’s local programming in Ontario, everyone quickly shifted the discussion to CBC’s big-picture problems and how their existential struggles were urgent and immediate. The idea that deep and fundamental changes within the corporation were unavoidable seemed to enjoy complete agreement.
I’ll use this post as background to some of the points I raised during the hearing.
You might recall how my recent post on CBC funding described a corporation shedding audience share like dandruff while spending hundreds of millions of dollars producing drama and comedy programming few Canadians consume. There are so few viewers left that I suspect they’re now identified by first name rather than as a percentage of the population.
Since then I’ve learned a lot more about CBC performance and about the broadcast industry in general.
For instance, it’ll surprise exactly no one to learn that fewer Canadians get their audio from traditional radio broadcasters. But how steep is the decline? According to the CRTC’s Annual Highlights of the Broadcasting Sector 2022-2023, since 2015, “hours spent listening to traditional broadcasting has decreased at a CAGR of 4.8 percent”. CAGR, by the way, stands for compound annual growth rate.
Dropping 4.8 percent each year means audience numbers aren’t just “falling”; they’re not even “falling off the edge of a cliff”; they’re already close enough to the bottom of the cliff to smell the trees. Looking for context? Between English and French-language radio, the CBC spends around $240 million each year.
Those listeners aren’t just disappearing without a trace. the CRTC also tells us that Canadians are increasingly migrating to Digital Media Broadcasting Units (DMBUs) – with numbers growing by more than nine percent annually since 2015.
The CBC’s problem here is that they’re not a serious player in the DMBU world, so they’re simply losing digital listeners. For example, of the top 200 Spotify podcasts ranked by popularity in Canada, only four are from the CBC.
Another interesting data point I ran into related to that billion dollar plus annual parliamentary allocation CBC enjoys. It turns out that that’s not the whole story. You may recall how the government added another $42 million in their most recent budget.
But wait! That’s not all! Between CBC and SRC, the Canada Media Fund (CMF) ponied up another $97 million for fiscal 2023-2024 to cover specific programming production budgets.
Technically, Canada Media Fund grants target individual projects planned by independent production companies. But those projects are usually associated with the “envelope” of one of the big broadcasters – of which CBC is by far the largest. 2023-2024 CMF funding totaled $786 million, and CBC’s take was nearly double that of their nearest competitor (Bell).
But there’s more! Back in 2016, the federal budget included an extra $150 million each year as a “new investment in Canadian arts and culture”. It’s entirely possible that no one turned off the tap and that extra government cheque is still showing up each year in the CBC’s mailbox. There was also a $93 million item for infrastructure and technological upgrades back in the 2017-2018 fiscal year. Who knows whether that one wasn’t also carried over.
So CBC’s share of government funding keeps growing while its share of Canadian media consumers shrinks. How do you suppose that’ll end?
We make content free for you but we require support to create journalism. Please consider a free subscription to our newsletter, or donate an amount of your choice.
By A flurry of controversial bills in Canada, some of which became law, serve to cement this impression.
Now, as President Trump prepares to start his second term in office in the US, Canada’s “orphaned” ruling class continues with the “disinformation” narrative – either as a sign of long-term commitment or looking for new “disinformation partners” elsewhere in the world – or simply as a sign of inertia.
Time will tell, and it will be interesting to see, but for the moment, news out of Canada speaks about a report compiled by the House of Commons Heritage Committee, titled, “Tech Giants’ Intimidation and Subversion Tactics to Evade Regulation in Canada and Globally.”
How about the tactics deployed in Canada – and globally – using all manner of intimidation and subversion to evade citizens’ right to free speech?
Maybe another day, by another ruling coalition.
Right now, the Liberals, the New Democratic Party, and Bloc Québécois stand behind statements such as this one, found in the cumbersomely-named report:
“The Government of Canada notes some individuals and groups create disinformation to promote political ideologies including extremist views and conspiracy theories or simply to make money.”
This looks like a call to combine (yet more) censorship with (yet more) deplatforming. And the ones to “fix” things for Canada’s current government are companies behind major social platforms, like Meta and Google.
But the group of Canada’s MPs behind the report believes so.
They want mechanisms put in place “to detect undesirable or questionable content that may be the product of disinformation or foreign interference and that these platforms be required to promptly identify such content and report it to users.”
Does Canadian parliament’s pressure on US tech companies not count as “foreign interference”? Unclear. Another thing that’s unclear – as in, undefined in the report – is what its authors have in mind when they mention “disinformation” and, “conspiracy theories.”
It’s as if these terms have become “art for art’s sake.”
Whatever that may be, Canada’s ruling parliamentarians want specific actions against these undefined phenomena to be enforced by tech companies.
“Failure to do so should result in penalties,” reads the document.
Canadian veterans battle invisible wounds of moral injury and addiction
Trump Effect: No One Gretz Off Easy Backing The Donald
New Australian law, if passed, will make the gov’t the sole arbiter of truth’
Up to $41 billion in World Bank climate finance unaccounted for, Oxfam finds
-
Brownstone Institute1 day agoThe Most Devastating Report So Far
-
Business1 day agoCarbon tax bureaucracy costs taxpayers $800 million
-
ESG1 day agoCan’t afford Rent? Groceries for your kids? Trudeau says suck it up and pay the tax!
-
Daily Caller1 day agoLos Angeles Passes ‘Sanctuary City’ Ordinance In Wake Of Trump’s Deportation Plan
-
John Stossel1 day agoGreen Energy Needs Minerals, Yet America Blocks New Mines
-
COVID-192 days agoDr. McCullough praises RFK Jr., urges him to pull COVID shots from the market
-
MAiD2 days agoOver 40% of people euthanized in Ontario lived in poorest parts of the province: government data
-
Alberta1 day agoProvince considering new Red Deer River reservoir east of Red Deer