Postmedia newspaper empire falls in Canada.
The company owns some of Canada’s largest newspaper.
Papers such as The Vancouver Sun , The Province, The Montreal Gazette and The Ottawa Citizen.
It also owns a string of smaller community newspapers.
But the company is falling and flailing in its attempts to woo readers and advertisers.
And this has been going on for years.
So Postmedia’s solution is to cut staff and slash costs.
Instead of investing in its newspapers it slashes their budgets.
Postmedia Newspaper Empire Falls
Circulation at Postmedia’s papers is declining, as is advertising revenue.
On-line advertising is meagre.
Also Postmedia is obligated to pay back hefty interest payments to its owners.
The owners are U.S.-based vulture funds.
Their only interest is to get their money back.
They have no interest in journalism, let alone invest in it.
And yet there are examples of where newspapers are doing well.
Here are a few: The New York Times, the Wall Street Journal, the Guardian out of London, England.
But they realize there is a new new journalism environment – the digital world.
But they are only doing well because the owners are ploughing money into their newspapers.
Something that escapes Postmedia’s management.
The National Observer, an on-line publication, has published an article on Postmedia taking its management to task.
The article is called:
The tawdry fall of the Postmedia newspaper empire published in 2015 but still relevant today.
“They are basically built on the mass media model of advertising-supported journalism and that’s in crisis everywhere,” says Kelly Toughill.
He is a former deputy executive editor of The Toronto Star.
“I think it’s going to be difficult for them to survive.”
Ironically, though, the most serious threat Postmedia faces might be from its owners and debt-holders.
The company is controlled by two American hedge funds – GoldenTree Asset Management LP and Silver Point Capital LP.
Hedge funds are pools of capital that hunt for investment opportunities.
And they have a reputation for being destructive and remorseless sharks within the financial industry.