It’s a bizarre time to work in the media. We all use more news as we live out our pandemic lockdown lives, but fewer people pay for that news.
I’m not talking about the lack of newspaper subscriptions, I’m talking about the lack of ads in all papers. The lack of ads on radio and television stations, all of which are adjusted.
Ads that most media rely on to survive dried out as the economy began to shut down.
It was at the same time that the public began to search news organizations for more information on the decisions the government made and how those decisions would affect their daily lives.
We all read more stories, watch the news conferences live and listen to innovators and commentators on the radio.
Yet, the media that creates and pays for this content has less revenue at the time when it is needed most.
This is not a shout in my eye moment; I worry about any job in the sector, even at my competition. However, this is a column that should question how the government can help without picking the pocket.
Here are four easy steps the Trudeau government could take to help the media survive the long term:
– Adjust the playing field when it comes to taxing foreign tech giants
– Stop spending so much of the government’s ad money on social media platforms
– Following the UK’s lead with the BBC, ads are streaked from the CBC’s website
– Follow the lead from countries like France and Australia and force tech giants to pay for the content they need.
All of these proposals would be simple policy shifts that do not require taxpayer subsidies for traditional media, but would help strengthen the financial future of original content creators.
Companies like Facebook and Google sell a lot of ads in Canada, but have one distinct advantage: They don’t charge VAT, whether it’s GST or HST.
In Canada’s largest media market, Toronto, it gives them a 13% discount, even if everything else matches price and target audience.
There is no reason why these companies should not be forced to levy and levy the same tax as any other media company operating in Canada.
The federal government spent a little more than $ 43 million on advertising in print, television, radio, billboards and digital in 2018-19. More than 53% of that money went to digital business, and most went to Facebook, Google and other technology giants.
Little went to Canadian publishers no matter who they were.
It is not as if Canadian content creators do not have large audiences for their coverage of news, sports and entertainment. It is precisely that over the years – especially the last five years – the government has focused on digital and tech giants.
A few years ago, the British government made the decision to ban ads on the BBC’s domestic audience website. If you visit the BBC website from Canada you will see ads but not within the UK.
This freed up market opportunities for the private media companies that do not take government money.
Finally, there are the bold moves from France and Australia to force the tech giants to pay publishers for content companies that Google and Facebook use to generate so much of their revenue.
For years, news organizations have complained that tech companies act as pirates and take content that news companies have paid for and generate profits without even offering a stake.
Now France and Australia will force them to pay content creators.
That kind of bold move, especially if done in consultation with Americans, would change the landscape for the better, without an extra penny coming from taxpayers.
There is a public interest in keeping news businesses alive, and tech giants should too.
Without original content creators, what would you have left on Facebook except for your Aunt Marge posting six-year-old memes?
It’s time for bold ideas. It’s time for action, and it’s time for a level playing field.
