
It’s Flag Day.
February 15, 2025
Before catching up on MediaPolicy, there are two posts I offer up to you.
The first is my speech to the Digital Media at the Crossroads conference from last weekend. It’s a well salted explainer of the CRTC’s implementation of the Online Streaming Act on music streaming, its first efforts having drawn court appeals, trade threats and the launch of the “Scrap the Streaming Tax” campaign.
The Commission is going to announce a further public consultation on audio (including radio) this week.
The other post is an explainer of the federal Digital Services Tax that I wrote last year. Last week stories circulated in the press that the DST would be on the Trump retaliation list. If you didn’t have that on your bingo card, you should have. As detailed in my post, the DST is not a trade issue, it’s a tax issue.
The US digital giants offshore revenue from their Canadian operations (and do the same in other OECD nations) in order to minimize corporate tax.
The DSTs enacted in Canada and Europe are a response to that tax avoidance.
Former US President Joe Biden recognized that when he negotiated a tax treaty to fix it but US Congress refused to ratify it.
The tech bros appear to have backed the right horse.
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The Public Policy Forum just published a report on local news journalism, The Lost Estate. The report comes out of the Michener Foundation’s conference last October. Written by journalism A-listers Alison Uncles, Ed Greenspon and Andrew Phillips, the report covers familiar ground about the extent of Canadian news deserts and news poverty.
The Report’s public policy recommendations have evolved beyond those recommended in 2017 by Greenspon’s Shattered Mirror study and the roster of federal programs aiding news journalism enacted since then by the Trudeau Liberals.
Here they are:
- Work harder at getting philanthropic foundations, community organizations and individuals to utilize current tax write-offs for donations to news journalism.
- Make it easier for news organizations to go non-profit, unlocking those charitable donations.
- Mirror these contributions to the operational costs of running newsrooms with a public-private-philanthropic capital investment fund for community rescues of failing news outlets.
- Legislate a requirement that moribund media organizations must give a four-month public notice of closure so that local investors can save the outlet (this would require both provincial and federal action).
- Redesign Ottawa’s Local Journalism Initiative that funds 400 reporting jobs by matching federal funding to charitable fundraising, something that the recipient news organizations would be responsible for undertaking.
- Redesign the federal reporter subsidy by requiring staff retention and rewarding new hiring.
- Introduce an advertiser tax credit for expenditures in local media.
- Encourage more governments to increase their advertising expenditures in local media.
If there is a theme in these recommendations it is to juice the market-facing incentives in current programs while not abandoning government aid.
As an appendix to its Report, the Forum provided an Ipsos poll covering some familiar questions about public attitudes towards news journalism.
The results confirm a key trend in public opinion: mainstream media is highly trusted and information carried over social media is not.

On the other hand, two questions related to government subsidies to independent news journalism elicited concern that state sponsorship “might” stoke bias and a lack of independence from government.

The most trusted news sources are in fact the most subsidized by government, so give the public credit for agreeing with MediaPolicy: subsidies are a difficult to measure risk to public trust but so far not a harm.
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I sometimes close this post by recommending content, but consider this more of a referral: the Hollywood-crafted and star-studded Super Bowl ads you didn’t get to see because the NFL sold the Canadian programming and advertising rights to Bell Media’s TSN.
Nobody quite does goofy the way that Hollywood can.
Are you not entertained? You decide.

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Okay, changed my mind, I will recommend something serious.
I’m sure I wasn’t the only Canadian listening to Trump’s inauguration speech who noticed the President’s reference to “Manifest Destiny,” a long active but recently dormant part of America’s imperial DNA.
Here’s a good piece on that from the US National Public Radio news site.
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From The Lost Estate Report:
FOR PHILANTHROPY
Expand issue definition: Philanthropy is growing rapidly in the United States around local news. In addition to the small handful of U.S. foundations that are interested in journalism and democracy, a second wave of foundations and donors that were funders of other issues — including domestic violence, hunger, homelessness and poverty — have come to realize they’re not going to make any progress if there’s no local news. Canadian philanthropists should follow suit.
Step up community foundation involvement: There are more than 200 community foundations across Canada, as well as thousands of private foundations. They are just now beginning to channel their impressive fundraising acumen towards local news initiatives: The Winnipeg Community Foundation, for instance, has funded reporting on religion by the Winnipeg Free Press, and the Toronto Foundation is one of several foundations that help to fund The Local. Community foundations should be encouraged to support local news coverage as part of their wider missions to encourage social vitality, community health and local democracy. More media organizations should be knocking on those doors, and more community foundations should be stepping up.
Help enable new local news models, including not-for-profits and charities: Major French-language news outlets such as La Presse and Le Devoir have become not-for-profits and then used that status to apply for Registered Journalism Organization status to take advantage of money from foundations and individual donors. Only four media organizations outside Quebec have done the same; that represents a major missed opportunity to develop a new source of revenue to support local news. RJO status would mean new startup ventures could accept philanthropic support or present an opportunity for community-based fundraising to claim back news outlets from the corporate chains that have abandoned local coverage.
Foundations can help with this step. Achieving charitable status can be complicated, but foundations can offer guidance on how to navigate the rules around registered philanthropic organizations, such as setting up “friends of” charities that can more easily raise money from supporters. If more outlets had charitable status, more foundation help could be unlocked for local journalism.
FOR GOVERNMENT
Reconceive the Local Journalism Initiative: Report for America in the United States provides a good model of a partnership with strategic intent that builds long-term capacity rather than plugging short-term holes. Its stated mission is to “strengthen our communities and our democracy through local journalism” and it funds reporters in local newsrooms for three-year terms, rather than the single year or less of the LJI. Among its other virtues: It provides training for journalists, unlike the LJI; its grants get smaller each year, shifting more onus each year on the news organization to finance its staff; and it helps news organizations learn how to fundraise within their communities. A homemade “Report for Canada” would roll in LJI funds to match those invested by philanthropy. This would provide the added governance benefit of distancing the program from the government of the day and placing authority in an independent board. Public contributions, as with academic granting agencies, would come in the form of multi-year funding.
Mandate a sales notice period: Communities should have an opportunity to rally support for news outlets that are threatened with closure by corporate owners. Specifically, there should be a notice period, perhaps 120 days, before a news operation can be shut down or sold to a non-local buyer. That would give communities time to gather support for local ownership. To help promote local buyers, governments can explore policy interventions that could include training and development, support with restructuring operations, access to expert resources, navigation support of federal and provincial programs, as well as low-cost or no-cost loans.
Tie the Labour Tax Credit to jobs: The LTC is the most important government program supporting news operations at the moment, worth an estimated $67 million in the 2024-25 fiscal year.[42] It should be continued, but with important changes. Organizations should not take money and cut content; the tax credit should carry an incentive to grow newsrooms and should be tied to the increase or preservation of editorial positions and other resources necessary to produce local content. The credit would be higher for those who increase their spending on journalism.
Drive local advertising with a tax cut: Along the same lines, local advertisers should receive a tax credit for spending their ad dollars with independent, locally owned media. As advertising dollars continue to flow to foreign-owned digital sites, depriving local media of funds they need, a tax credit would give advertisers a greater incentive to vote local while leaving the decision about which outlets get support to them, not government. Equitable tax credits for advertisers have the additional benefit of being more likely to withstand shifts in the political winds. That said, local advertising only helps if Main Street can withstand the competition from distant digital retailers, which presents a different set of challenges.
Direct government ad dollars to local news: Governments should earmark a portion of their substantial advertising budgets to local publishers and broadcasters. Ontario is showing the way by requiring that 25 percent of government ad budgets, including spending by four large provincial agencies, be directed to “Ontario-based publishers.” This program, which went into effect in September 2024, is explicitly aimed at “helping to support these publishers and their workers, who are creating local news content for people across the province.” Brought in by a Conservative government, it could be worth some $50 million a year to Ontario publishers. The federal government, other provinces and territories, and municipalities should follow suit. Governments are already spending substantial amounts on advertising and marketing. It makes no sense for them to talk about the need for vibrant local democracy and a healthy local news environment while they continue to funnel their own ad dollars to foreign-owned social media sites.
FOR PHILANTHROPY AND GOVERNMENT
Encourage capital formation: The best way to strengthen local news is to help it remain in local hands in whatever form entrepreneurs believe will work best in each community. In many cases, this will require capital. Programs to encourage capital formation for this purpose would go a long way to preserving the public good that is local news. A sustainable investment vehicle, co-funded by the federal government, provincial and territorial governments, the philanthropic sector, as well as NGOs, could draw lessons from government programs like the Social Finance Fund[43] and the Canada Rental Protection Fund,[44] where federal investment complements other public, private and philanthropic money. The government should explore any mechanism that makes crowding-in more effective, by utilizing a “first-in, last-out” methodology. For philanthropic organizations engaged in social impact investment, local journalism is a perfect match. The same is true for governments that have already put in place measures to encourage employee ownership or support.
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