Canada’s Local News Landscape: A Decade of Decline and the Struggle for Survival
The Canadian media landscape has undergone a dramatic transformation over the past decade, with local news outlets bearing the brunt of the disruption. A recent study reveals a stark reality: since 2008, Canada has lost 11% of its local news sources, averaging 25 closures annually. This decline spans various media formats, impacting newspapers, online platforms, radio, and television. The repercussions are felt nationwide, with communities across the country experiencing a shrinking access to vital local information.
The year 2023 proved particularly challenging for the sector, witnessing the shuttering of 83 outlets. The bankruptcy of Metroland Media Group and the closure of Métro Média in Quebec contributed significantly to this loss. While Ontario has fared slightly better than other provinces due to the emergence of online-only platforms, overall, local news coverage is lagging, especially in the rapidly growing suburban areas surrounding major urban centres. The existing news infrastructure is struggling to keep pace with the increasing population, leaving many communities underserved.
The decline is not limited to print and digital platforms. Private broadcasting outlets in radio and television have also shrunk by 9% since 2008, with 2023 witnessing a record net loss of 14.5 outlets, largely due to closures at CTV and Corus. This trend underscores the systemic challenges facing the media industry, impacting traditional broadcasting alongside newer digital platforms. The shrinking media landscape creates information deserts, leaving communities with limited access to local news and hindering their ability to engage in informed civic participation.
Media consolidation further exacerbates the problem. As large companies acquire local outlets, often resulting in staff reductions and diminished local programming, the vulnerability of local news intensifies. The Metroland case serves as a stark illustration. The company’s move to a digital-only model and the cessation of its flyer business, driven by financial struggles, led to mass layoffs and a reduced capacity to deliver local news. When such large entities face difficulties, the impact on local news coverage is magnified.
The root of this decline lies in the outdated advertising-based business model that traditionally sustained news outlets. The rise of social media giants like Meta and Google has fundamentally reshaped the advertising landscape, diverting advertising revenue away from traditional media. The report describes this as the industry’s core challenge. As advertising dollars flow towards these digital platforms, local news outlets struggle to compete, lacking the financial resources to support robust local reporting. This financial strain underscores the urgent need for a shift away from the traditional revenue model.
The situation in Newfoundland and Labrador provides a stark example of the "worst-case scenario," with small towns losing three-quarters of their news outlets in the past 16 years. This dramatic decline illustrates the potential consequences of an inadequately supported local news ecosystem. Experts argue that the industry must fundamentally transform its business model to survive. Despite government efforts and regulatory measures aimed at bolstering the existing model, its decline continues to accelerate. A more balanced approach is required, one that encourages innovation while leveraging existing media infrastructure.
The report advocates for a multi-pronged approach to address the crisis. It suggests exploring new models, such as those employed by emerging online-only platforms, which utilize micro-targeted advertising. Furthermore, it emphasizes the crucial role of the CBC, urging the public broadcaster to expand its local and regional presence with a dedicated implementation strategy for local news services. Simply deploying single reporters to cover vast geographic areas is insufficient.
While the recently enacted Online News Act, designed to compel tech giants to compensate news organizations, is a step in the right direction, the report argues that these measures are inadequate and come too late for many communities. The agreements reached with Google and Meta, while providing some financial relief, do not fully address the systemic issues facing the industry. Furthermore, Meta’s decision to block access to Canadian news on its platforms underscores the complex and potentially adversarial relationship between tech giants and news organizations. Existing interventions, such as the digital news tax credit and the Local Journalism Initiative, while helpful, are not enough to reverse the decline.
The future of local news depends on a fundamental shift in approach. Hoping for rescue from tech giants is unrealistic. The focus must be on developing sustainable business models, fostering innovation, and empowering existing media institutions like the CBC to fill the growing void in local news coverage. Failure to address this crisis will have far-reaching consequences for communities across Canada, impacting civic engagement, local accountability, and the very fabric of our democracy.