Monthly Archives: January 2010

| Business, Media

Congratulations, you’re an unsecured Canwest creditor

FTI Consulting, one of the groups of lawyers handling Canwest Limited Partnership’s creditor protection filing, has a section on its website devoted to the proceedings. There you can find, among other things, a list of creditors (PDF).

They include, of interest to Montrealers and Gazette followers (in alphabetical order):

  • $253,808.16 to 1001 Dominion Square Management Inc., The Gazette’s landlord
  • $12,726.14 to Agence France-Presse, a newswire
  • $406,505.42 to Amex for corporate credit cards
  • $6,556.34 to the Audit Bureau of Circulations
  • $47,497.80 to Bleu Blanc Rouge, which handles The Gazette’s marketing campaigns
  • $5,213.38 to Bloomberg, another newswire
  • $114,700.77 to the Calgary Flames
  • $74,763.18 to Canada Post
  • $44,237.47 to Canadian Press (even though Canwest no longer uses CP) – listed separately as Canadian Press and The Canadian Press
  • $5,179.91 to CNW for press releases
  • $38,892.90 to Garda for security services
  • $24,035.10 to Getty Images
  • $1 million exactly to GWL Realty Advisors of Edmonton, the largest single non-bank creditor
  • $24,419.64 to Henry’s photo shop
  • $44,100.00 to Ipsos Reid for surveys
  • $21,380.91 to La Presse
  • $22,575.00 to Kleintel, a Montreal-based phone survey company
  • $28,041.92 to Legacy.com, a partner for paid obituaries online
  • $10,450.00 to Loblaws
  • $12,167.94 to the Los Angeles Times – Washington Post, another news service
  • $16,558.62 to Messageries Dynamiques, a Quebecor-owned distribution company
  • $52,783.50 to Microsoft Canada
  • $145,026.49 to the Ministère du revenu du Québec
  • $8,475.66 to the National Newspaper Awards
  • $17,931.06 to Nestle Canada
  • $5,065.31 to New York Times Digital
  • $9,946.29 to the Ontario Press Council
  • $50,400.00 to Orsyp Logiciels, a Montreal-based job schedule software company
  • $90,000.00 to the Régie des alcools, des courses et des jeux
  • $72,930.38 to Rexall Sports Corporation, which owns the Edmonton Oilers
  • $37,153.20 to Rogers Media
  • $34,755.00 to Rogers Publishing
  • $11,841.84 to Saxotech Integrated Mediaware, which is providing a new desktop publishing system for Canwest papers
  • $331,160.57 to Service-Now.com, which … well, it’s anyone’s guess what they actually do.
  • $70,987.96 to Sun Media
  • $15,813.11 to Montreal’s Teleze Inc., a telemarketing company selling Gazette subscriptions
  • $87,499.65 to the Globe and Mail
  • $8,065.02 to New York Times Syndication, yet another news wire
  • $54,485.00 to the Salvation Army in Saskatoon
  • $145,341.3 to Toronto Star Syndication Services and Torstar Syndication Services
  • $10,773.90 to (Chicago) Tribune Media Services
  • $27,151.49 to United Way in Edmonton
  • $6,124.99 to the Winnipeg Free Press
  • $112,481.44 to the Workers’ Compensation Board of British Columbia
  • $15,491.17 to World Entertainment News Network for celebrity gossip
  • $45,986.85 to three radio stations
  • $45,437.84 to four union locals

The list is very long, but two items stand out like a sore thumb because of the extra digits, and those are the ones that really matter in all this:

  • $78,382,191.78 to the syndicate of banks under the senior subordinate credit agreement
  • $449,411,375.34 to senior subordinated notes

That’s (some of) the money Canwest LP owes the banks, and the reason it’s in financial trouble.

What the list doesn’t include, though, are freelancers, those independent contractors who provide stories and photos to newspapers in exchange for a negotiated fee. Most freelancers who did work between mid December and the Jan. 8 filing (and some who did work much earlier than that but weren’t paid or didn’t cash their cheques before the filing) are now grouped in with the paper suppliers, wire services, distributors and anyone else who provides goods and services to the newspapers and websites.

I counted two freelance columnists in The Gazette on the list through their companies:

  • $5,418.00 to L. Ian MacDonald’s Lian Public Affairs Ltd.
  • $9,673.79 to Phil Reimer’s Phil Reimer Communications. He’s Canwest’s travel cruise columnist

Other freelancers, including fine dining columnist Lesley Chesterman, are also out thousands of dollars as a result of this filing. Smaller freelancers (which may include myself, I’m still not sure yet) are out mere hundreds of dollars.

Whether they’ll see any of that money owed depends on how much money is left to give to all the other creditors, and that will depend mostly on the sale price of Canwest LP. The banks have set a floor bid of $950 million, the amount they’re owed for their loans (which means they wouldn’t be paying for the chain but rather exchanging their debt for equity and ownership), but they’re hoping someone will put in a higher bid. The higher the sale price, the more money can go to creditors. But there’s little hope that the price will be high enough to pay 100 cents on the dollar.

That’s very disappointing. The banks won’t fold if they’re out a few hundred million. The wire services aren’t a few thousand dollars from bankruptcy. But some freelancers rely on it as their only source of income, and a few hundred dollars can be the difference between making a rent payment and having an angry landlord.

After Canwest LP filed for creditor protection (not to be confused with bankruptcy, which eliminates debt), it secured so-called debtor-in-posession financing, which allowed it to continue its business. This means that people who did freelance work after Jan. 8 will still get paid (along with other post-filing creditors), as publisher Alan Allnutt explained. That also puts many in a strange position of getting screwed out of payment but still continuing to do business with a company.

If only I understood business, it would all make sense to me.

| Photos, TV

Just give money, m’kay?

Mittens for Haiti!

I passed by this donation bin setup at Concordia for Haiti. In it, I saw bags with scarves, winter coats, and mittens.

I’m guessing they were from people who have never been to Haiti, and who aren’t experts in meteorology. (Or, as someone comments below, hopefully for Haitian refugees coming here, which would save on shipping costs.)

The difficulty in getting supplies (particularly the right ones) to disaster zones is one of the reasons charities ask you to give money instead of stuff. A lot of stuff, unfortunately, is useless.

Hope for Haiti Now is on until 10 p.m. on CBC, CTV, Global, CityTV, ABC, NBC, CBS, Fox, Vermont Public Television, CNN, MuchMusic, MTV Canada, National Geographic Channel, WGN, WPIX and BET. Quebec’s Ensemble pour Haïti airs on Radio-Canada, TVA, V, Télé-Québec, TV5, LCN, RDI, MusiMax and Musique Plus.

Remember if you’re watching the U.S. special to donate to Canadian charities to take advantage of the government’s donation matching program 1-877-51-HAITI or canadaforhaiti.com.

| Media, Technology

Rogers’s half-assed quality control

Last fall, I was asked to participate in a beta test of Rogers On Demand Online, a video streaming website for Rogers customers only. It has since launched and anyone who subscribes to Rogers Cable or Rogers Wireless can watch videos on the site. My review pointed out the disappointing video library, which included mostly Rogers-owned stuff like Citytv and a few specialty networks that didn’t really excite me (and are also unavailable unless you subscribe to the channel with Rogers Cable).

A couple of weeks ago I was on the site watching the one series that’s worth my attention – the West Wing through its Warner Brothers channel – when I noticed the video was a bit dark.

Make that very dark. I could barely make out what was going on in many scenes. Adjustments to my screen’s brightness were futile. So I clicked on the “feedback” link on the video and said that it was too dark.

This is the email I got back:

Continue reading →

| Media

Transcontinental centralizes pagination in Maritimes

It’s the craze that’s sweeping the nation: centralized pagination. Instead of having people layout their own newspapers, big newspaper companies (including Quebecor and my employer Canwest) and have editors send stories to a pagination factory where specialists put together the pages for you and send them back.

The presentation is usually the same: The specialists are well-trained, local reporters and editors remain in control and have the final say, this will create “efficiencies” and allow journalists more time to focus on their core function – writing copy.

The hidden reality is that these copy editors tend to be non-unionized and have lower salaries, they have little connection to and may not even be familiar with the communities they serve, and the local journalists don’t have the time to correct all of the things a lazy, overworked copy editor hundreds of kilometres away might have done that they don’t agree with.

And, of course, with efficiencies come layoffs.

Transcontinental Media, which has already done this for its community papers in Quebec, is setting up a pagination shop in Charlottetown to handle layout for its Maritime papers. The number of layoffs isn’t known yet, but there will be some.

It could be worse: They could be outsourcing pagination to Bangalore.

| TV

Massive cuts at CityTV, but Rogers doesn’t care

Anne Mroczkowski

The axe fell Tuesday at CityTV. Everyone found out yesterday that long-time Toronto anchor Anne Mroczkowski and about 60 others have lost their jobs in a new round of cutbacks at Canada’s fourth-largest English broadcast network, which will also result in a lot of local programming being cancelled.

Coverage at the National Post, Toronto Sun, Toronto Star, Financial Post, Canadian Press, Globe and Mail, Reuters, the Wall Street Journal and all the usual Toronto blogs. Eye has a timeline of City cuts. Breakfast Television’s Kevin Frankish has a video of remaining employees talking about how much it sucks.

The irony in this is that CityTV is owned by Rogers, which is part of that Stop the TV Tax campaign by the cable and satellite companies against fee for carriage. Rogers has argued through it and appearances in front of the CRTC that local television doesn’t need the extra funding and that it is committed to local television without government funding.

With the cuts at City, and more importantly the cuts to programming at all City stations, we can formally call bullshit on that claim. Rogers doesn’t oppose fee for carriage because it believes that’s what’s best for City, it opposes fee for carriage because its cable business is more important to it than its TV business.

And so Rogers continues to sabotage its TV stations for its own benefit, and people like Anne Mroczkowski pay the price.

| Media, Montreal

Journal union celebrates a year off the job with a party

The one-year anniversary is only days away (today is Day 363)

The Syndicat des travailleurs de l’information du Journal de Montréal held a press conference yesterday to advance the upcoming one-year anniversary of their lockout. I was working so I couldn’t make it, but there’s plenty of coverage in The Gazette, Presse Canadienne, Radio-Canada, Le Devoir, Metro (which has video of the press conference), and – to be fair – Quebecor-owned Argent does an acceptable job of getting both sides.

The STIJM also announced that they’re holding a party on Sunday – the one-year anniversary – at La Tulipe. Performers include Richard Desjardins, Tricot Machine, Louise Forestier et El Motor, Loco Locass and Jean-Sébastien Lavoie. Tickets are $20 and available only at the box office (assuming they’re not already sold out).

| Montreal, Radio

PJ Stock joins CHOM morning show

PJ Stock

James Mennie has the story for The Gazette that P.J. Stock, formerly of the Team 990 and best known as a Hockey Night in Canada analyst, is going to be a morning man at CHOM.

Kind of.

The first news about Stock going to CHOM came from Pat Hickey back in December, when Stock left The Team 990 because of what was apparently more work and travel than he could handle (he left his regular TV segment on the CBMT newscast for the same reason). Back then, the idea was to do a five-minute phone-in once a day.

But the departure of Ted Bird changed that. So instead, Stock tells Mennie, he’ll be on for two hours a day (7am to 9am) Monday to Thursday.

The irony is that Bird was instrumental in getting Stock onto CHOM in the first place, convincing both sides that it was a good idea. Obviously, it wasn’t supposed to be as a replacement.

Still, Bird was gracious in an email to me about Stock joining his former morning team:

To his credit, PJ called me this past weekend to make sure that I was through at CHOM and that he wasn’t undermining me in any way.  He’s a class act and a decent and funny guy, and he’ll do well as long as they let him be himself and don’t try to recreate him as something he’s not, which is what programmers who’ve never sat in the chair and don’t understand or appreciate the craft have a habit of doing.

The big question is what CHOM is going to do with Stock. Is he going to talk about hockey or music? I’ve heard a couple of people complain that CHOM already talks too much about the game, and this certainly won’t change that. Will he join in the usual cliché morning show banter? Will it be “Chantal, Bad Pete and PJ”? Or will he be more of a supporting cast member and less of a star?

What is clear is that if Stock has two hours four mornings a week to sit in a studio on Fort St. while rock music is playing, then he would have had more than enough time for hockey analysis at CKGM 990 on Greene Ave. So it’s not just a question of having too much work.

I couldn’t reach Stock for comment, so you’ll just have to fill in the blanks there with your imagination.

Mennie says Stock’s first shift will be Feb. 1. Stock repeated that on the CHOM morning show the next day, but Pete Marier kept saying Feb. 2. Feb. 1, notably, is the day after Stock’s contract at CKGM expires. UPDATE: Astral’s press release, which I assume to be a definitive word on the subject, says Stock begins Feb. 3.

UPDATE: Listen to Stock’s phone-in on Thursday’s CHOM morning show (MP3). Stock will take over the CHOM “sports department”, which sounds like it will still be Chantal and Bad Pete but that Stock will do the morning sports news currently being done by CJAD’s Abe Hefter.

| Media

The Globe Ad Fail

Newspaper advertisements – both in print and online – often suffer from failure of context, where the ad seems inconsiderate next to specific kinds of news stories (usually bad ones).

In newspapers, it tends to happen because advertisers don’t know what copy will appear next to their ads, and copy editors often (for good reason) don’t know what ads will appear next to their copy. The most obvious example is an ad for an airline next to a story about a plane crash (which is why airlines regularly pull their ads after plane crashes, and editors are told not to put plane crash stories next to airline ads).

The Globe and Mail Jan. 20 Pages A8-A9

In today’s Globe and Mail, American Express has one of those special-order ads, the ones with a weird shape that dominate pages without filling them, purposefully leaving holes for editorial copy so that readers’ eyes will stay on the page.

The ad reads: “Tired of standing in line?” (or, more accurately, “Tired of standing in liiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiine?” – the lower-case “I”s like little stick figures weaving across the two-page spread), with a kicker that talks about travel (it doesn’t say so explicitly, but the assumption is plane travel for a vacation).

You can probably figure out where this is going by now.

Two editorial holes appear on the page, and both contain news about Haiti. On the top, two standalone pictures from photographer Peter Powell of people struggling for survival. The headline reads: “Where food and water are worth fighting for”. On the bottom, an article from Paul Koring about the overtaxed Port-au-Prince airport.

It’s not just an ad fail, it’s a huge, spectacular double fail filling a two-page spread in the middle of the A section of Canada’s national newspaper. Making fun of standing in line is cute anywhere in a newspaper except next to a picture of starving Haitians beating each other up for the necessities of life. And having an ad about vacation travel works everywhere except next to a piece on how the airport is congested at the most awful place on the planet right now.

It’s not like it was a massive coincidence that this stuff ended up on this page. Haiti coverage is all over this paper, and has been for the past week.

So, then, I have to ask: Did no one at American Express Canada (wow that’s a silly name) think for a moment that the holes they left for editorial content might be filled by news from a disaster that’s already a week old, and that such coverage might not play well with their campaign? Did no one in the Globe’s advertising department put two and two together?

This is the risk you run when you book these kinds of ads, especially in the A section. Advertiser beware.

See also: Timothy Hunt, who points to a similar problem with a similar ad in another edition.

| Business, In the news, Media, Montreal

I, for one, welcome our new consortium overlords

Over the past few months, rumours had been circulating around the newsroom that some local rich guys were interested in buying a part of the Canwest newspaper chain, including The Gazette.

Today, those rumours prove true. A consortium led by Jerry Grafstein, Raymond Heard and Beryl Wajsman announced it will be submitting a bid to buy The Gazette, the Ottawa Citizen and the National Post, pending due dilligence.

The coverage – Toronto Star, Globe and Mail, CBC, Reuters, Editor & Publisher, Financial Post – all say the same thing, quoting liberally from the news release and saying the three consortium leaders believe in local control of local newspapers.

No price has been mentioned, nor are the other financial backers named.

All three have media cred: Grafstein, a recently retired senator, founded Citytv in Toronto. Heard was managing editor of the Montreal Star and then worked as news director at Global TV in the 80s. Wajsman is the editor of The Suburban and publisher of The Métropolitain. The Globe’s Jane Taber has analysis of their political leanings, in case anyone really cares.

Unions (and unionized employees) look favourably at the central idea of this bid (Lise Lareau of the Canadian Media Guild calls it good news) because it seems to reject a lot of Canwest’s anti-union moves, like centralization and outsourcing, and it’s making all the right noises about local control of local newspapers.

There’s also the unsaid implication that these three care more about respect than profit. (Like sports teams, media outlets tend to be more about ego than the bottom line.)

Looking at Wajsman’s newspapers, there’s at least some reason for optimism. The Suburban is big for a community paper, and while it’s not pure as the white snow, it’s not filled with press releases and it does actually employ journalists. The Métropolitain, meanwhile, is more of a think-tank than anything else, and is clearly not motivated by profit.

But looking at those newspapers also leaves some worried. Wajsman’s editorials are a bit much for even some staunch federalists, and the papers have some clear editorial biases when it comes to things like the Israeli-Palestinian issue (something the Suburban doesn’t have to deal with much but which The Gazette would have to deal with on a daily basis).

Many will also focus on Wajsman’s political past. One person reminded me of his alleged connection to the adscam scandal, others have already created a Facebook group to protest his bid because of his pro-Israel, pro-business, anti-union stances.

Though I disagree with most of what he writes in Suburban editorials (and most of the opinions written in The Métropolitain), I’m tempted to ask how a right-wing, pro-Israel owner will somehow be different than Canwest. And if “progressive anglos” don’t want their paper to fall in his hands, they’re more than welcome to submit a bid of their own.

There are other obstacles to Grafstein and Co.’s plan, even if they have the money. The biggest is that Canwest (and the banks arranging for the chain’s sale) want Canwest Publications sold as a unit. That centralized services include websites, customer service, advertising, page layout and Canwest News Service. Undoing that might be difficult and expensive (but it might also mean hiring more journalists, programmers and copy editors, which would clearly work in my favour).

And there might be other bids. The Globe is convinced Paul Godfrey is putting one together with his own financial backers. Other names being bandied about include Torstar, Quebecor, Transcontinenal, FP Newspapers and that guy Joe at the end of the bar.