local news

Members of Parliament (MPs) questioned Rogers executives once again about the impact the Rogers-Shaw merger would have on local news at the Standing Committee on Canadian Heritage on March 2nd.

It’s a topic local news representatives were vocal about during the only public hearing into the matter.

Previously, the Canadian Radio-television and Telecommunications Commission (CRTC) held a week-long hearing in November. There, representatives from Unifor asked the CRTC to consider the impact the merger would have on employment and local news.

This largely stems from Rogers’ plan to redirect funding Shaw provided to Global News towards City TV stations, which it owns. Shaw pays Global about $13 million a year.

At the March committee meeting, MP Kevin Waugh said Rogers claims to put “a lot of money” towards local news but is “cherry-picking” the markets in larger cities and not in smaller communities.

Colette Watson, president of Rogers Sports & Media, said Global News has regulatory obligations to provide content in many markets, and that won’t change post-transaction. Global has a news budget of $121 million a year, $100 million more than the budget for City TV.

In her opening remarks, Watson said the only thing that the merger will change is where Global gets funding for news.

“The long-term viability of local news is indeed in question. But this transaction is not responsible for that reality,” she said.

Rogers will add an Indigenous component and 23 more reporters, along with two reporters to the parliamentary bureau from Western Canada, Watson said.

MP Lisa Hepfner, a former journalist, questioned how Rogers could be so sure the merger won’t impact local news, saying it’s a claim often made before mergers. “We’re reassured before the transaction that local news won’t be affected. Then a couple of months later, a whole bunch of stations get shut down and journalists get laid off,” she said.

When Global’s parent company Corus becomes independent, it will have to look to fill the $13 million gap from the Independent Local News Fund (ILNF). Global partaking in the fund will impact smaller stations, Hepfner said, as their share of funds will decrease. “So smaller markets, again, are going to be affected because the big players are taking the money meant for local journalism.”

Watson said there is no way of knowing how Global used the $13 million to create incremental news because there were no parameters put around how the money was spent. “What we’re saying is we’ll take the $13 million and prove to you how we’ll spend it.”

Pamela Dinsmore, vice-president, regulatory cable at Rogers, said the company does acknowledge Global will be eligible for the fund once the merger goes through, but the issue at hand is more significant than the Rogers-Shaw merger. Dinsmore said the CRTC should review if the structure of the fund should change.

The CRTC, the Competition Bureau, and the Ministry of Innovation, Science and Economic Development are required to approve the transaction.

Image credit: CRTC (screenshot)

Executives from Rogers have said their merger with Shaw will be good for local news as they’ll create localized teams to serve specific communities.

Critics have argued the validity of this statement from the beginning. In their latest outcry, several witnesses told the Standing Committee on Canadian Heritage local news will face the consequences if various government bodies approve the Rogers and Shaw merger.

Catherine Edwards, executive director of the Canadian Association of Community Television Users and Stations (CACTUS), said community news has long suffered from similar mergers. Over the past 20 years, 75 percent of the 300 cable TV stations that served local communities have shut down. Cable giants have scaled back on production infrastructure to cities and instead focused on selling tv subscriptions, specialty channels and mobile services.

“We believe community-owned media is the best way to serve communities with local news and to ensure a diversity of voices continue to fill our airwaves,” she said.

Edwards said local news stations are also important to all politicians.

“These stations ensure that you as parliamentarians can reach your constituents to talk about the issues that are important, not sound bites muted out from mega-corporations who are interested in blockbuster U.S series, but community-owned entities committed to supporting local democracies.”

Matthew Hatfield, the campaigns director of Open Media, said the merger would also cut funding towards Global News, previously funded by Shaw.

Rogers will instead be redirecting the funds to City News, forcing Corus to seek financial support from the independent local news fund (ILNF).

The fund supports smaller local news productions, and Hatfield said Corus could absorb between 60 and 80 percent of the funds, taking away from smaller outlets.

“To afford the purchase, Rogers is taking on immense levels of debt — debt that needs to be paid off by cutting costs or raising prices,” Hatfield said. “Given that local news is already barely economically viable, that’s not going to come in increasing news prices. It will come from slashing programming and jobs.”

Witnesses from the Canadian Radio-television and Telecommunications Commission (CRTC) will appear on another day. Rogers was also invited to speak before the committee but declined.

The CRTC held the only public hearing to discuss broadcast aspects of the deal in November. Private hearings are also taking place with the Competition Bureau and Innovation, Science and Economic Development Canada. No decisions have been shared at this time.

Source: Standing Committee on Canadian Heritage