
Québec culture minister Mathieu Lacombe
May 18, 2026
There’s an election upcoming in Québec this fall and the politics of media and culture can be expected to get lot of attention.
This past week media titan Pierre-Karl Péladeau delivered his remarks about Québécor’s most recent quarterly report by celebrating the strong growth in his expanding national telco business. He then tacked on a threat to cut more jobs and programming in his money-losing television business unless he gets what he wants.
Péladeau has cut 800 television jobs in the last four years and 20% of original programming. Citing a 14% drop in ad revenues over the last year, he told reporters that he has done his part by cutting jobs and programming, bringing his media division back to break-even after years of losses (owing to his cuts and stronger broadcasting revenues from Montréal Canadians hockey).
Now Péladeau wants to squeeze his suppliers. By that he means price reductions from independent producers who make his TV content and wage concessions from the crews that shoot them.
From the provincial government, Péladeau wants more television production tax credits and the removal of tax deductions for Canadian advertisers patronizing foreign tech platforms. His explicit “or else” is more job cuts and replacing original television content shot in Québec with foreign acquisitions.
The new CAQ Premier Christine Fréchette didn’t take the bait from Péladeau, the former leader of her rival Parti Québécois, preferring to reflect that her government “is closely monitoring developments in the cultural sector and in relation to digital media.”
But her culture minister Mathieu Lacombe, not so much. He was annoyed by Péladeau’s ultimatums, reminding the him that the province —which just increased its $50M annual budget to supplement federal contributions to French language television production—won’t overcommit to television programming on a “dying” cable television network. Salting it some more, Lacombe suggested that following Péladeau’s logic the province was being invited to go down the path of “nationalizing” Québécor’s TVA network.
Also, Lacombe might not appreciate Péladeau’s public demands just two months after his government’s March 2026 budget that delivered on extending Québec’s journalism labour tax credit to licensed television and radio stations at a cost of $40M annually. At the time, Péladeau commented that “while we have been calling for this for many years, the Québec government’s decision represents a major step forward.”
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The Québec government’s decision in March to extend journalism tax credits beyond print media to include television and radio stations did not get much attention in the English language press. The federal government is now considering the same move.
Under the radar, the Québec budget began its three-year phase out of an eight-year-old spending $8M per year program for digital transformation of legacy media.
Québec has always been more aggressive than the federal government about supporting digital innovation through subsidies, both as one-of tech projects and the inclusion of IT staff in its labour tax credit.
As Senator Andrew Cardozo and I wrote in our recent report, La Presse credits Québec’s support for digital innovation as making a big contribution to its successful digital transformation as well as its ability to retain software developers who might otherwise abandon their employer for better paying jobs in the tech ecosystem.
But in the March budget, the province eliminated the IT salary subsidy and began the wind down of the digital transformation grants.
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“Innovation” holds a magical place in media policy.
Some see innovation and government subsidies as binary: one cancels out the other. The assumption is that the opportunity for innovation to grease the skids of transition from legacy media to a successful new business model will be stymied so long as news outlets can fall back on subsidies.
In our report “Making News Media Sustainable,” Senator Cardozo and I see innovation and subsidies as complimentary. We wrote a longish part of the report on innovation and observed that the nation’s best adapters to digital —the Globe & Mail, La Presse, Village Media— draw journalism subsidies.
On either view, realizing the potential of innovation probably comes down to corporate leadership, something I think Ariel Freiman described well in this recent piece in J-Source.
It’s possible that if innovation and subsidies can elbow each other out, it will probably depend in part upon the particular market in which news outlets operate. Is that market national, regional, local or hyperlocal? What is the audience demographic? How saturated is the competitive landscape? What are the opportunities for scale? And so on.
We also tend to think about innovation as “tech.” There’s been plenty of that, with the above noted news outlets all hitting it out of the park by developing proprietary publishing software.
Another innovation theme that keeps emerging in media commentary is “the bundle.” That refers to the digital reimagination of the old newspaper formula of packaging news content together with an array of local information, buy-sell classifieds, pastimes, and invitations to community participation.
Village Media is a constant innovator on this score, as the Senator and I discuss in our report. Last week I stumbled upon a good e-newsletter on news innovation written by a German journalist Ulrike Langer, located in the US. Her latest is an interview with Richard Gingras, the former Google VP who now serves as chair of CEO Jeff Elgie’s board of directors at Village.
After describing the ways in which Village is putting together its content bundle, Gingras is at pains to describe Village as a “community impact platform” (or alternatively a “community operating system”) that includes news publishing in that bigger bundle.
Gingras also thinks that as AI tools automate writing and publishing, the “human element” (journalists?) will increasingly be directed at gathering information and forming the community bonds and sources to provide it.
In the course of the interview, Gingras let the cat out of the bag by revealing that the 27-location Village network is about to expand to 15 locations in the US with an American partner.
When I asked Elgie where and when, he replied in an e-mail that he isn’t ready to announce the move yet.
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I will plead guilty to the charge of indulging, from time to time, in bitter sarcasm. Most often in response to the hubris of the Big Tech elite. You may have noticed.
Netflix is the object of my disaffections this week.
The studio-streaming colossus has some claim to my better angels and maybe your’s as well. After all, Netflix isn’t a social media platform that floods the digital airwaves with poisonous content.
Just ask Netflix CEO Ted Sarandos. According to him, Netflix is a benevolent force for good in the world. In a riff on the adage “what’s good for General Motors is good for America,” Sarandos dropped this pearl last week, modestly dubbed “the Netflix Effect”:
Over the last decade, Netflix shows and movies have consistently shaped what people read, buy, listen to, eat, wear and play. We’ve pushed old songs back up the musical charts, helped niche sports go mainstream, and boosted sales…Now we have a responsibility to keep that flywheel going. That’s why, while other entertainment companies pull back, we’re leaning in — spending tens of billions of dollars on content every year, investing in production facilities from Spain to New Jersey, and growing the entertainment industry through training programs that have reached over 90,000 people across more than 75 countries.
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This blog post is copyrighted by Howard Law, all rights reserved. 2026.




















