Metroland Media Group, a prominent media organization, is planning to cease the print editions of its community newspapers and exit the flyer distribution business as part of a restructuring plan that includes seeking protection under the Bankruptcy and Insolvency Act. This strategic shift, announced on Friday, will result in the loss of 605 jobs, equivalent to approximately 60 percent of its total workforce.
Metroland attributes this decision to unsustainable financial losses, primarily stemming from changing consumer and advertiser preferences. The media industry, in general, has been grappling with existential challenges, largely due to digital technology giants dominating advertising revenue in Canada.
The company emphasized that the decline of the print and flyer distribution business was exacerbated by the COVID-19 pandemic. Additionally, both readers and advertisers reduced their reliance on flyers as a marketing vehicle.
As part of the restructuring plan, Metroland’s community publications will transition to a digital-only model. However, the company’s six daily newspapers, which include the Hamilton Spectator, Peterborough Examiner, St. Catharines Standard, Niagara Falls Review, Welland Tribune, and the Waterloo Region Record, will continue to be published in both print and online formats.
Metroland is owned by NordStar Capital, which also owns the Toronto Star newspaper. It’s worth noting that the Toronto Star is not involved in this restructuring.
These changes follow the breakdown of discussions earlier this year between NordStar and Postmedia regarding a potential merger. The talks between the two companies explored the possibility of combining forces, with Postmedia and Metroland Media Group forming a partnership while a new entity managed the Toronto Star.
The challenges faced by news outlets have persisted for years, with digital giants like Google and Meta (formerly Facebook) diverting advertising dollars away from traditional media. In response to this trend, Ottawa passed the Online News Act earlier this year, which mandates digital giants to compensate media outlets for the content they share or repurpose on their platforms.
In reaction to the legislation, Meta and Google announced their intentions to block content from Canadian news publishers on their services before the law comes into effect. These developments underscore the ongoing struggle within the media industry to adapt to changing consumer behaviors and technological advancements while facing intense competition from digital giants.