Village Media, a thriving online local news network, is struggling due to the government's standoff over Bill C-18. The CEO discusses how the bill has hurt his business. They explore the impact of the bill on the news industry, lack of consultation, and the positive impact of Village Media on local communities.
The Online News Act, Bill C-18, has disrupted the growth plans of Village Media, a thriving local news company, due to a loss of traffic and revenue caused by Facebook and potentially Google no longer carrying links to news.
Village Media differentiates itself from traditional media by offering comprehensive news coverage, including service journalism like weather updates, obituaries, and local event information, highlighting the importance of community connection and delivering news to residents.
Deep dives
The impact of the Online News Act on local journalism
The podcast episode discusses the detrimental effects of the Online News Act, also known as Bill C18, on local journalism in Canada. The host, Paul Wells, interviews Jeff LG, the founder of Village Media, a successful local news company. LG had built Village Media into a thriving business with over 200 employees, providing salary and benefits to real reporters in smaller communities. However, the introduction of the Online News Act, aimed at making big web giants pay for linking to news organizations, has caused major disruptions. Facebook has stopped carrying links to news entirely, and Google may follow suit. This loss of traffic and revenue has forced Village Media to put their growth plans on hold and poses a significant threat to their business. Despite the negative impact, LG expresses disappointment in the government's lack of understanding and engagement with small business owners like himself throughout the process.
The evolving landscape of local media
The podcast explores the changing landscape of local media in Canada, particularly in smaller communities like Sault Ste. Marie, where Village Media operates. LG explains how Village Media sought to differentiate itself from traditional media by embracing technology and offering comprehensive and timely news coverage. They focus on providing a broad range of information beyond traditional journalism, including service journalism like weather updates, obituaries, and local event information. LG emphasizes the importance of community connection and the role Village Media plays in delivering news and information to residents.
The financial aspect of local journalism
The podcast delves into the financial aspect of local journalism and the sustainability of the business model. LG highlights that Village Media has been profitable for years, financing its expansion through operating profits. Despite the challenges faced by the industry, LG states that the money can be quite good once a certain scale is achieved. However, the loss of traffic from platforms like Facebook and potentially Google poses a significant threat to the revenue model of digital publishers like Village Media.
Concerns and criticisms of the Online News Act
The podcast episode addresses the concerns and criticisms surrounding the Online News Act, particularly highlighting its negative consequences for the industry. LG and others in the Canadian journalism community have voiced their opposition to the bill, arguing that it is based on false foundations and fails to address the real issues within the digital publishing landscape. They express concerns that the platforms like Facebook and Google may ultimately deprioritize news or completely withdraw from linking to news organizations, resulting in a further decline of quality journalism and community information.
As traditional news organizations have faced a steady decline, the online local news network Village Media has been thriving in small and medium-sized communities. But as the government and tech giants have gotten into a standoff over Bill C-18, the Online News Act, Village Media has been forced to pause their growth. Their CEO Jeff Elgie talks to Paul about how C-18 has hurt his business, and what’s at stake. You can get a premium version of this show with extra content by subscribing to Paul's newsletter: paulwells.substack.com
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