Canadian journalism urged to tackle the ‘culture of free’ to survive

As newspapers have fewer resources to do the journalism that matters in a particular community, they lose the trust and loyalty of its citizens, experts say.

Thestar.com
Jan. 26, 2017
By Sammy Hudes

If Canadian journalism is to survive, those in position to save it will have to figure out a way to address the “culture of free” that discourages readers from paying for online content.

So say the panelists who spoke Thursday evening in Toronto at a Canadian Journalism Foundation discussion, organized in partnership with Canada’ Public Policy Forum.

The panelists included Edward Greenspon, president and CEO of the Public Policy Forum, which earlier in the day published a report examining the journalism industry in the digital age.

Allan Gregg, principal at Earnscliffe, who conducted the poll and focus groups for the study, and April Lindgren, an associate journalism professor at Ryerson University, also spoke of the challenges the media is facing today. The panel was moderated by Christopher Waddell, an associate journalism professor at Carleton University.

“I see the media industry today kind of in the way that the music industry was in 2000, clinging to a business model that the consumers has completely rejected and as a consequence is losing its relationship with the audience,” said Gregg.

Based on public opinion polls and a series of focus groups he conducted, Gregg said people acknowledge that news is worth paying for, “but due to the free culture of the Internet, not by them.”

“Most people will pay for something, but they won’t pay for it if they can get the exact same thing for free,” he said. “While it may be infuriating, there’s a certain logic to the consumer’s point of view.”

Greenspon, a former vice-president of strategic investments for Star Media Group and editor in chief of The Globe and Mail, said that for the past 10 years, those at the forefront of the newspaper industry have tried to advocate two “contradictory” messages.

On one hand, they have quietly tried to convince the public that their product is struggling, but on the other hand boast to advertisers they have a bigger audience than ever before due to the Internet.

“People feel guilty about (not paying for news), but not too guilty,” he said.

Lindgren, who is conducting a study that will mainly focus on the health of local news in Canada, said downsizing as a reaction to declining revenue has only exacerbated the root causes of these financial problems.

As newspapers have fewer resources to do the journalism that matters in a particular community, they lose the trust and loyalty of its citizens.

“There’s an element of there’s nothing left for people to engage with,” she said.

The report includes 12 recommendations to help support the Canadian news industry. Among those is the creation of a Future of Journalism and Democracy Fund, an independent financing structure at arm’s length from government to support digital innovation projects.

“There is widespread understanding that news and journalists play an important role in democracy. We saw this in spades in the focus groups,” said Gregg. “The consumer’s not going to change to accommodate the industry’s business models. The industry’s business models are going to have to change to accommodate the consumer.”

Some have called for the government to step in and help struggling media companies, through subsidies or other funding.

But despite the public’s understanding of journalism’s importance, most Canadians oppose government interference in the industry, Greenspon said.

“Our challenge was, how do you design something that supports journalism without the government gaining leverage?” he said. “What we want to get away from is the newspaper industry having to lobby government because there’s something unhealthy about that.”

Greenspon said one of the main challenges moving forward will be coming up with a sustainable strategy while media companies continue to deal with increasing pressures that, to Lindgren’s point, further erode their ability to connect with consumers.

“It’s just a downward spiral,” he said.

“How you break that spiral, that’s what we’re trying to address.”