Montreal to fund local newspapers in lump sum, media head calls it 'fresh air' in challenging times

Montreal will deliver lump sums of $85,000 to small newspapers in an apparent effort to energize an industry hit hard by the effects of digitization and distribution costs.

“Aware of the major challenges facing the industry," the city says the funding should help companies review and transition their business models and stay afloat. "Montreal will invest $2 million to assist local print newspapers in this necessary transition,” reads a release to media.

The city says that it started dialogue with local media heads prior to its recent moves to regulate the distribution of paper advertising – a move met with resistance from some, specifically over changes to Publisac, the distribution system at the source of an arm-wrestle between its parent company, the city, and Canada Post.

In April, the city announced that TC Transcontinental, the company behind the Publisac, which delivers packages door to door containing coupons and flyers, would need to shift its deliveries only to households that opt-in.

The new rule is supposed to reduce the number of unused flyers ending up in the bin, but TC Transcontinental has said the opt-in model is unsustainable.

Metro Media, which relies on Publisacs for distribution, has been outspoken since the city introduced the restrictions. The company’s president, Andrew Mule, says member papers have felt the chill.

“We are distributed by a distributor that is right now being demonized by the City of Montreal,” said Mule Friday. “We live on advertising, and our advertisers see that.”

He says the alternative, distribution through Canada Post, would quadruple his costs.

‘FRESH AIR’

"We’ve suffered quite a bit since the original announcement in April,” said Mule. “The city understood the urgency, and turned it around quickly, I’m very happy.”

“I’m extremely happy that they managed to mobilize some funds to help give us a breath of fresh air.”

The city said its aware of 35 papers that are eligible for the funding, but that list is “not exhaustive,” according to Luc Rabouin, who handles the economic development file.

In order to qualify, news organizations must be the owner or occupant of a building in the metropolis, produce a paper delivered to residences, print at least 3,000 copies of each edition, at least six times per year. They must also have been around for at least 12 months prior to the regulation taking effect.

The only rules applying to content are that publish journalism written by at least one reporter, “intended exclusively to inform the population of one or more neighbourhoods, boroughs or municipalities in the agglomeration of Montreal.”  

"We are not opposed to moves that support the environment," said Mule. "As a matter f fact, the vast majority of our readers are militant environmental supporters."

"Our job is to reflect our readers’ needs," he added. 

-- Published with files from CTV's Billy Shields