As if things aren’t bad enough for small media outlets, TC Transcontinental announced on Friday it is rolling out its Publisac replacement throughout the province and into areas of Ontario and British Columbia that other flyer distributors have pulled out of.
This is leaving many Quebec publications worrying that what happened to Métro Média could happen to them.
The process by which Transcontinental is selling off its remaining community newspapers in Quebec (and Cornwall, Ont.) took its biggest step on Wednesday with the announcement that Icimédias Inc., led by Renel Bouchard, with Marc-Noël Ouellette, will buy 21 community papers and its Inmemoriam.ca website and take over 140 employees plus another 28 from TC’s production operations.
Bouchard had been an owner of Le Canada Français, a newspaper that’s part of the transaction, and Ouellette was a TC manager for 15 years.
The newspapers involved in the transaction, whose price was not disclosed but also involves an agreement for TC to print the newspapers, are:
Transcontinental has now sold more than half of the 93 publications it put up for sale in April, all to small local owners, through 10 transactions.
But as the months progress, the chances of remaining newspapers being sold diminishes. That includes titles in various Montreal neighbourhoods, Courrier Laval, and papers in the Outaouais and Abitibi regions.
More coverage in Le Devoir and Le Canada français.
It’s true. Transcontinental, the publishing company that owns community weekly newspapers across the province, has confirmed that, for financial reasons, it is ceasing publication of the West Island Chronicle and Westmount Examiner. Their final issues are next week.
The Montreal Gazette has the details, as well as some comments from former Chronicle/Examiner reporters.
But as much as people are reminiscing the official passing of two institutions (the Chronicle dates back to 1924, the Examiner to 1935), the mourning began long ago. The newspapers aren’t so much being shut down as they’re finally being put out of their misery.
The fact that only three people are losing their jobs because two newspapers shut down should be as clear an indication as any of how far these papers had fallen in recent years. Where once they each had a small team of reporters and editors covering stories as best they could, at the end there was only a single reporter being shared by both papers. At that point, to call what’s being done journalism might be a bit of a stretch. The reporters that have gone through there have accomplished herculean tasks, and many have better jobs at larger media outlets now, but there’s just so much that can be done with no resources.
You need only take a look at the Chronicle’s last issue to see how thin it has become, or how much of it is ads, or advertorials. There’s journalism there, too, but nothing even remotely close to what it used to be.
Fortunately, Transcontinental will give them one last issue, just after the federal election, where they can publish results and maybe say goodbye.
The shutdown follows the conversion of the former N.D.G. Monitor to an “online newspaper” in 2009. That no longer exists, its old website URL redirecting to Métro. And this summer, Transcontinental turned another old newspaper, the Huntingdon Gleaner, into an insert in a French-language weekly, getting rid of the Gleaner’s staff. (I’ll have more on that in a future story.)
So now what? Transcontinental made a reference to the western Montreal market being served by alternatives. In the West Island, there’s the weekly West Island section of the Montreal Gazette (my employer). In Westmount, there’s the Westmount Independent. And in both, there’s the Suburban. Will one or more of these boost their resources to attract the closed papers’ former readers (and their advertisers)? Or will less competition open the door to them cutting back?
More coverage:
The transfer of large collections of print media to and from Quebecor has taken another step, with the announcement that Transcontinental is selling 15 magazines to its Groupe TVA subsidiary for $55.5 million (or $3.7 million each on average). (Quebecor release, Transcontinental release)
The deal, which also includes a contract that will see Transcontinental continue printing those magazines for seven years, includes the following (with number of editions a year and average circulation where I could find it):
Not included are Les Affaires magazine or other business publications, or magazines regional to Western Canada, Vancouver Magazine and Western Living.
These would be the first major English magazines to come under the umbrella of TVA Publications.
Following through on commitments made when Transcontinental bought Quebecor’s entire slate of community newspapers in Quebec, the company has received Competition Bureau approval to sell 14 community newspapers to smaller companies. And Transcontinental has responded by announcing it is shutting down 20 more, laying off 80 people.
The papers being sold, a mix of those previously owned by TC and Quebecor, are among 34 papers that Transcontinental was ordered to put on the market because they compete with other papers also owned by the company. (One of those papers, Le Courrier du Saguenay, which includes the Courrier du Fjord, Courrier de Jonquière and Courrier de Chicoutimi, was later removed from that list.)
Sold to Les Médias de la Rive-Sud:
Sold to Serge Langlois, Michel Langlois, Claude Langlois, Carole Côté and Pierre-Marc Langlois, who also own Les Éditions Blainville Deux-Montagnes:
Sold to Néomédia, a division of iClic Inc., where they will become online-only publications:
The remaining 19 community newspapers are now Transcontinental’s to do with as they please. Of them, 18 are on the shutdown list:
Also being shut down are:
The only paper that was put on the market and left unsold but will be kept by Transcontinental is Le Courrier du Fleuve in Rimouski.
Transcontinental is now left with 105 weekly papers, five biweeklies, six monthlies and one bimonthly in Quebec, plus the Métro Montreal daily, or 118 total newspapers.
UPDATE: The FNC-CSN union isn’t happy with the job losses, and worries about Néomédia, which it believes is more interested in advertising than maintaining editorial integrity.
Meanwhile, Radio-Canada’s eastern Quebec bureau gets some reaction to the closing of six papers in that region. And the FPJQ’s regional offices denounce the cuts in the Montérégie and Gaspésie regions
The Competition Bureau has ruled that Transcontinental can acquire Quebecor Media’s 74 regional newspapers in Quebec, but in order to preserve competition, it must then sell 22 of those papers and 12 of its own.
In its decision, the bureau said it looked closely at the financial situation of the Transcontinental and Quebecor papers, noting that rivalry between the two intensified in 2009:
Since 2009, Transcontinental and Quebecor Media have engaged in aggressive competition for advertisers, entering markets where the other Party was the historical incumbent and cutting advertising prices. While a few independents remain in certain markets, Transcontinental and Quebecor Media own the only community newspapers in many of Quebec’s local communities and, as such, the Proposed Transaction may allow Transcontinental to have the only community newspaper(s) in numerous local markets.
…
The Bureau determined that at least one of the Parties’ newspapers was in financial distress in the vast majority of markets where the Parties compete. These were typically the newspapers that had been launched in recent years.
The competition rules by which the bureau operates allows for mergers that would reduce competition if the alternative is that one of the parties goes bankrupt and nobody picks up its assets, which would reduce competition anyway. The bureau’s assessment shows the community newspaper sector isn’t doing that well, but that Transcontinental should nevertheless put the newspapers on the block, and for no minimum price, for a period of 60 days, and managed by a third party.
“Following the completion of the sale period defined in the Consent Agreement, if no potential purchaser is identified for a particular paper, Transcontinental will be entitled to retain ownership of the newspaper,” the bureau writes. So Transcontinental could end up keeping many of these papers (or being allowed to shut them down and merge them with their competitors in each market) if no one else is interested in buying them for even $1 (with printing and distribution provided by Transcontinental for a limited time).
You’ve probably already heard this news, but just for the record, Postmedia announced this week that it is outsourcing the printing of The Gazette to TC Transcontinental Printing, beginning August 2014. (Transcontinental has its own press release.) The decision will mean the layoff of 54 full-time employees and 61 casual employees. (Transcontinental says it doesn’t need additional resources to take on the Gazette contract.)
Unlike editorial, advertising, reader sales and business office employees, which are represented by the Montreal Newspaper Guild, a local of CWA-SCA Canada, the plant employees are represented by a local of the Teamsters union.
This will also mean the same of the presses, the building and the land it sits on, with the money from it going to pay down Postmedia’s debt. Whether its vocation as a printing press remains depends on who buys it, but there isn’t much optimism of that happening. So expect that land on St-Jacques St. W. in N.D.G. to be repurposed for some industrial or commercial purpose.
Since I’m an employee of The Gazette, I won’t go much into detail about this decision. Even though I’ve never met most of the people at the plant in person, I haven’t had any bad experiences with them either. Same thing for Transmag, the Anjou-based printing plant that will put out The Gazette. I worked with them a decade ago when I was editor of The Link at Concordia University. Deadline was a fluid concept to us, but thankfully they were much more reliable than we were.
Transmag is unionized, by the way. Their current contract goes until October 2015, and the details of it are here.
It was 2010 when it really started to heat up. Quebecor Media started up new community weekly newspapers in Laval and the north shore, encroaching onto territory served by Transcontinental Media. A few months later, new papers in Joliette and Repentigny. It was clear at this point that Quebecor was starting a war.
Transcontinental responded with papers on Montreal’s south shore, in Sainte-Agathe, Mont-Tremblant and Abitibi.
Before then, both companies had dozens of community newspapers across Quebec. There was sort of a gentlemen’s agreement, or maybe just a fear of competition, so they didn’t encroach on each other’s territory. Until Quebecor decided it would expand into fast-growing areas and take on Transcon directly.
But on Thursday, that ended, with this matter-of-fact announcement from Quebecor that it is selling all 74 of its community weeklies to Transcontinental for $75 million. The announcement comes a day after it said it would cut 200 more jobs at Sun Media, including 50 in editorial positions.
Quebecor has 600 employees at these papers.
“The digital revolution has brought profound changes in local print media markets,” Quebecor CEO Robert Dépatie said in the press release. “Advertisers now have a multitude of platforms available to them that did not even exist little more than 10 years ago. We believe in the future of print media but we cannot ignore the new market realities”.
Quebecor talks about how the papers are in good hands, but the reality is that with many papers in overlapping markets (and many of those in fierce, unfriendly competition with each other), some mergers and shutdowns are inevitable.
The fact that this leaves Quebec with only one major community weekly publisher will mean it should get attention from the Competition Bureau. Sun Media will keep running the papers until it gets approval.
UPDATE (Dec. 19): Quebecor has also killed Le Sac Plus, its Publisac competitor. The shutdown will result in the loss of about 30 jobs, not including all the people who actually deliver it. Selling the regional weeklies prompted it to re-evaluate Le Sac Plus’s viability as a business, Quebecor said.
The list of papers TC Media is acquiring is below.
Can you have a newspaper without journalists? Transcontinental certainly seems to think you can. It announced that the 22 community weeklies in the Montreal area, which include the West Island Chronicle, Westmount Examiner and papers that cover various boroughs in Montreal, will be cut down from 23 to 12 journalists. That’s about half a journalist per paper.
The CSN union got angry about this and sent out a press release on Monday, which prompted stories from the FPJQ and Projet J. La Presse’s media columnist used it to lament the decline of newspapers in general. Everyone seemed to agree it was sad news.
And it is, for the people who are losing their jobs, plus those who may have had some connection to these once-respectable papers that have since been left to rot into empty shells for advertising.
The two journalists at the Chronicle (Marc Lalonde and François Lemieux), and Toula Foscolos, who is the news director for the Chronicle and Westmount Examiner, will survive the cuts, Foscolos tells me. Union rules dictate that those with less seniority will get the boot. That means part-timers like Morgan Lowrie, who had been doing most of the reporting for the Examiner and will be looking for a new job in a few weeks.
What the papers will look like after these cuts is unclear.
According to the FPJQ, the remaining journalists won’t even really be journalists. They’ll be community representatives, tasked with desperately filling the space available the cheapest way possible. The papers will lean harder on free content from citizens, people with axes to grind or things to promote, and businesses who want free advertising.
The point of no return is long gone. Does anyone still read the West Island Chronicle, or the Messager LaSalle, or the Courrier Ahuntsic? Now there will be even less of a reason to do so.
It’s a shame. But if Transcontinental had any shame, it would have let these papers shut down with some dignity many years ago.
CORRECTION: An earlier version of this blog post said there was just one journalist left at the Chronicle. There are actually two. It also failed to mention Morgan Lowrie, who is among the cuts.
UPDATE (May 7): Projet Montréal plans to present a motion to city council denouncing the cuts. It’s an entirely symbolic move that will change nothing, but I’m sure the laid-off employees appreciate it.
The all-out war between Quebecor and Transcontinental continues. Only a few months after announcing new community weeklies in Laval and the north shore, Quebecor is opening up two other free weekly newspapers northeast of Montreal:
Quebecor says it will create 120 jobs with these new papers, which sounds like a lot, even from a company that is looking for creative ways around Quebec’s anti-scab law to get cheap content for the Journal de Montréal.
So far, there’s been no counterattack from Transcontinental in areas that Quebecor has historically covered, like the south shore. It remains to be seen if they will raise the stakes and create real competition in community newspapers, or if they’ll just give up and watch the media giant slowly erode what’s left of Transcon’s readership.
UPDATE: Seems I’ve missed the Rive-Sud Express, which was launched in April and competes directly with Quebecor’s Courier du Sud. Last week, Transcontinental added Point de vue Sainte-Agathe and Point de vue Mont-Tremblant, and Abitibi Express, that compete with Information du nord Sainte-Agathe, Information du nord Mont-Tremblant and La Frontière, respectively.
The Point de vue papers are actually a split-up of the formerly independent Point de vue Laurentides, which Transcontinental has acquired and turned into two weeklies, each running with a single journalist, a freelancer and a shared photographer, and a bunch of people doing ad sales.