Canada’s largest newspaper owner, CanWest Global Communications Corp., has announced plans to pull out of national news service Canadian Press (CP) by July 2007.
CanWest, which owns daily papers such as the National Post, Vancouver Sun and the Ottawa Citizen, wants to reduce the services it receives from the news service and pay less for doing so. But that idea was rejected as it would drastically change the cooperative payment structure under which the non-profit CP operates.
CP members are charged fees based on various factors such as a paper’s operating budget and circulation. The bigger the paper, the bigger the amount they must pay into the service and vice-versa.
CanWest pays approximately $4.6 million a year into CP-which represents almost 10 per cent of CP’s revenue. It is building a competing national news service of its own called CanWest News Service.
In order to leave the CP collective, CanWest had to give a year’s advance notice, which it did on June 28. However, the company can rescind their decision at any time during that 12-month notice period.
CP was formed in 1917 and is comprised of news outlets that share print and broadcast content. Besides CanWest, other major media members include Bell Globemedia (CTV, The Globe and Mail), Quebecor Inc. (Sun newspaper chain) and Torstar Corp. (The Toronto Star).