It’s not like the halcyon days when I first started writing for newspapers, back in late 1969. Today, print media is struggling to survive in a world dominated by digital media and mega-corps owners (although not so hard it can’t pay its CEOs and executives several million dollars while they slash real jobs).*
Print media has long been losing its advertising share, a trend exacerbated by the internet. Newspapers now have about 11% share, compared to about 35% for the internet, according to a Globe and Mail story. A Pew Research study in 2015 showed newspaper advertising in the USA dropped 4% in 2014.
But for Postmedia the picture has been consistently bleaker: a drop of 17.6% in advertising in three months of 2015 alone – and advertising represents 57% of the company’s income. Plus it lost $3.2 million in circulation revenue (excluding the Sun papers). Even its digital revenue (excluding the Sun) dropped by $5.9 million in that quarter.
This year has been a particularly tough one for Canadian media: in January Postmedia announced 90 job cuts and the merger of several, previously competitive newsrooms. But no cuts were made to CEO Paul Godfrey’s $1.4 million salary plus bonus package, of course. No share-the-pain momentum in the upper echelons. As the CBC reported:
Postmedia’s finances have been sagging for several quarters under a large debt load, much of which was accrued when the company bought the entire Sun chain of newspapers from Quebecor in late 2014 for $316 million.
That move consolidated most of the English-language newspapers in Canada under the Postmedia banner, with the notable exception of the Toronto Star and the Globe And Mail.
And the pain wasn’t over yet. As the CBC story continued:
A big problem for the chain, Waddell noted, is that Postmedia paid for the Sun Media purchase with debt loaned by U.S. backers. Those debts must now be repaid at a time when the Canadian dollar is worth much less, which means it costs more money to repay at a time when the chain has less cash overall.
“This is an organization that is losing money and losing a lot of money,” Waddell said.
Even though I despise Postmedia’s misplaced affection for the uber-right and its kowtowing to its American hedge fund owners, it’s a sorry day for Canadian media when any paper closes, when any journalist gets laid off. And that’s been happening a lot of late.
In January, with as much fanfare as one can have at a funeral, the Guelph Mercury – a Metroland paper – closed its doors after 150 years. Or rather, had its doors closed by its parent company.
That same month, TorStar closed its printing plant in Vaughan where it had printed the paper for the past 25 years, cutting almost 300 jobs.
In August, TorStar announced it was cutting 50 jobs, mostly “…from its newsroom and tablet edition, amid increasing pressure from declining print advertising revenue” according to a CBC story. That was followed by an additional 26 employees. TorStar’s operating revenue has been falling for several years in a row, its annual report shows and its subsidiary, Metroland saw losses as well (revenues down $37.1 million, see p. 5 and 19, with an operating loss of more than $250 million in 2015, p. 20).
A popular Postmedia Vancouver paper, 24 Hours, laid off all its staff of eight, including its three reporters, in September. The paper was repurposed to merely regurgitate content from other Postmedia papers.
Also in September, the Globe & Mail asked that 40 of its 650 employees take voluntary severance packages, the third time in as many years that the newspaper has tried to slash its payroll. Sixty employees took the first offer in 2013, one site reported.
In September, Rogers Media stopped printing four of its magazines and moving them to digital-only platforms. The company also reduced the number of editions of others, noting that print advertising revenue had dropped 30 per cent in the past year. Number of jobs last was not reported.
And then earlier this month, PostMedia announced it was cutting its salaries by 20%, and layoffs loomed if enough employees didn’t voluntarily resign. Postmedia had 4,733 employees at the end of August, 2015, according to CTV News, but was down to around 4,000 about a year later.
725 total views, 5 views today