The current global crisis is playing out at a time when Canada’s media sector is struggling to adapt to major long-term shifts in the practice and distribution of journalism.

Some facts and figures

Traditional vs. new media
The readership of daily newspapers has been in decline since the 1970s, and traditional newspapers now face competition from a growing range of internet news sources, many of them available free-of-charge.

Impact of crisis on Canadian media
In a report released in November, 2009, the Conference Board of Canada report predicted that the print media and broadcasting, both heavily dependent on business advertising, would see revenues fall by 6.1 and 4.8 per cent, respectively, in 2009 as a result of the global recession.

Long-term advertising trends
The Interactive Advertising Bureau of Canada (IAB) reports that, between 1997 and 2006, although all forms of major media saw increases in ad revenue, traditional newspapers reported the smallest  increase – 17%, as compared to 54% for TV and a whopping 10 000% for internet. Between 2003 and 2007 the amount spent on internet-based advertising increased from $ 237 million to $ 1.2 billion.

Impact of economic crisis on advertising revenue
According to the Newspaper Association of America (NAA), American newspapers saw a 28% drop in advertising revenue between 2008 and 2009. The revenue generated by classified ads, which now face stiff competition from Craigslist and similar internet-based services, plummeted by 37.9% over the same period. Internet ad revenue also dropped – but by a lesser 16.9%.

Concentration of ownership
Since the 1960, the ownership of Canadian media outlets has become increasingly concentrated within the hands of a few corporations. Media ownership here is now more highly
concentrated than almost anywhere else in the industrial world.
Source: Council of Canadians

The disappearing newspaper
Since the crisis began, a number of major American dailies have stopped publishing a print edition, and the CanWest group, which publishes over 10 Canadian dailies, has filed for bankruptcy.


Sources:
The Effect of the Global Economic Recession on Canada’s Creative Economy in 2009, The Conference Board du Canada; La Presse, Nov 20, 2009; Interactive Advertising Bureau of Canada, citied by Radio-Canada, Jan 26, 2009; Council of Canada