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Canwest Bleeds … So Cuts Itself Again

November 14th, 2008 · 10 Comments

The bleeding continues.  But as if a thousand cuts from outside forces are not enough,  Canwest Global has slashed at itself again … as a way of getting better.  Media moguls, like mental cases who also cut at themselves repeatedly, should know it does not work: cutting on-air personnel/presentation/product will only increase blood loss.

Do they really think their consumers .. and advertisers …  won’t notice? Do they truly believe that reducing their local news product will attract more viewers? If so, I believe they are kidding themselves. 

The company (my old employer) announced Wednesday the elimination of ANOTHER 560 jobs … 5% of its workforce …  in an attempt to stop the bleeding (ie cut $61 Million from its annual operating costs.)  But this is in addition to reportedly 200 other jobs eliminated at Canwest over the past two years.

And now the company has just reported a quarterly loss of $1 Billion. But I don’t blame news for that: I attribute the hemorrhaging to foolish, overly ambitious expansions in recent years that I just don’t believe Izzy would have ever counselled or proceeded with at such a rapid rate.

Now, news is once more paying the price. Doing more with less seems to have now become doing less and less with less and less. Is that supposed to promote growth???  I can’t see how. They are, in my view, only hastening their own breakup, and even possible demise. Izzy must surely be rolling over in his grave.

And what makes these latest slashes by management to its corporate entity here in BC particularly damaging, is the elimination of more than three dozen jobs  in Kelowna and Victoria.

Media reports say 19 people have lost their jobs at CHEK TV in Victoria and another 24 were slashed at their station in Kelowna … both cuts apparently including newsroom positions.  And there have also been several newsroom cuts elsewhere in the country.

That’s Canwest cutting its own wrists! Local news should the lifeblood of Canada’s television stations and, at some point,  the CRTC is going to have to STOP  private broadcasters from strangling local news into zombie status.

Only two months ago, Canwest announced it would be expanding its news operations with fully staffed bureaus in New Delhi, London, Beijing and Jerusalem. I thought that idea was great… another Canadian point of view on world issues.

But in my own view, to expand the foreign component of news, while reducing  local news operations is foolish: bad for news and bad for business. In fact, I understand the ratings still show, when the numbers are all added up, MORE CANADIANS watch local news across the country than national or international news shows.

Local news is “where it’s at” for most of us … but I believe at Canwest, this is just another step at reducing the quality of local news, already stretched, watered down and filled with far too much powder-puff content. To cut even more resources and staff from local news will prove a terrible mistake.

I have NEVER met a single person who has asked me if I have seen ANY international news story produced on Global. NEVER.  NOT ONE.  Sure, the expansion of foreign bureaus was only recently done, but for most Canadian viewers, that’s simply not their priority.  Local news rules with the viewers!

My advice to Canwest: Close the foreign bureaus! Put that money back into IMPROVING and EXPANDING local news content. That’s where the viewers, and higher ratings, and higher advertising revenues will be as the economy recovers..

But looking at their local news product across the country (I was recently in Montreal and Toronto … and was not impressed with any of the local news I saw),  I don’t really get the impression media bosses back East are listening too much to news types out West. Which is really too bad … because the “underlings” out here have produced news ratings for decades that the “experts” back East could only dream of emulating. Yet judging by what they put on air, they don’t seem really too interested in even trying!

I predict local news coverage/presentation/quality will now become even worse, especially in smaller communites.

Canwest CEO Leonard Asper said the latest cuts are required to enable Canwest “to maintain its strength”  and build market position.

Wonder if he noticed that Canwest stock (which was around $15 a share when I retired a couple of years ago)  closed the day after the new cuts were announced at an almost tragic  80 cents … down another 5% from the day before..  (A further slide in a fall that started well before the current global economic mess.)

And slashing local news in another cutback operation won’t likely help cure this corporate patient … or stop the eventual transplanting of some of its vital organs into healthier, more vibrant business bodies. 

Harv Oberfeld

Tags: Media

10 responses so far ↓

  • 1 George Orr // Nov 14, 2008 at 7:35 pm

    Those in charge of these enterprises actually have a social obligation. They represent the public and the public need-to-know in very practical terms. They are a vital part of the checks-and-balances process that defines democracy.
    Here they back away from this, and say they have no choice… this would be like the politicians saying they’d like to hold open meetings, but cutbacks have to mean less public access…
    Sorry, but you either fulfil the role you have chosen in this, or you evacuate the field in favour of those who can…
    Broadcasters like Canwest have a responsibility higher than their corporate returns. And if the men and women who ran these enterprises had any social conscience at all, they’d act on it.

    As a Canadian, I am embarrassed for them because they seem incapable of seeing how shamefully they are acting.

  • 2 A Dave // Nov 14, 2008 at 9:22 pm

    Perhaps the good news in all of this is that more and more people over 40 are turning to blogs written by people they respect to get local and insightful coverage. The “kids” under 40 rarely watch the 6′oclock news or buy newspapers anyway, and ad revenue has been steadily decreasing as a result. The reason Canwest’s earnings dropped off a cliff this year is the same reason your site is so successful, Harvey: the boomers are coming on board!

    (Response: Spread the word . Free speech rules .. unless we boomers head off for a little r & r from time to time.! Spread the Blog around.. the media won’t! lol. ho)

  • 3 Patrick Bell (NOT the MLA) // Nov 15, 2008 at 1:23 am

    Bang on A Dave. I am 43 and do most of my news updating on the web. Is it true that the Kelowna TV station won’t even broadcast locally now? Whenever, I am up in the Okanagan I always watch their local news on CHBC….a city of that size MUST have at least one local TV outlet.

    Harvey, every few days I put your blog link on my status update on Facebook and entice friends to come over and check you out…

    (Response: Thanks Patrick. That’s how we can keep the discussion going of what is really going on in the media and politics, as an alternative to the packaged stuff we see in the mainstram media. Taking off for three weeks holiday Tuesday.. and already feel guilty! LOL But we’ll get it going again when I return home. ho)

  • 4 Donald // Nov 15, 2008 at 2:55 am

    I shed no tears for the Asper Empire, they have perverted the news for far too long. Sadly, for Canada and Canadians, our news media has been subverted – investigative reporting is almost non existent and the rest, so overly politically correct, I want to upchuck!

    for the past year, unless there is a scandal, or tragic accident, it is the Olympics, Olympics, Olympics! Damn I’m tired of the Olympics and god know what the media outlets will report on after the Olympics.

    You are going on holidays, Berner is on holidays; is there a conspiracy?

    Read ya in three weeks!

    (Response: Yes,there is a conspiracy.. great cruise deal offered no doubt just to get me away from the computer! :) ho

  • 5 bob // Nov 15, 2008 at 4:29 am

    Canwest has the WORST set of websites of any media company. I am a news junkie and I spend way too much time surfing media sites from around the world… imnsoho Canwest needs to spend some time revamping their basic page template and getting readers involved in the website.

    On October 04, 2008 The Vancouver Sun introduced itself as a new paper with a new emphasis on various sections – what a waste of time and money. The effort was akin to rearranging deck chairs on the Titanic.

  • 6 Laila Yuile // Nov 15, 2008 at 6:33 am

    I have to agree with Bob. I reference news links from Canwest publications frequently on my site, and my readers have been requesting for some time that I simply post the article rather than the link. The sites are timely in loading for some people, and not engaging in any manner.

    For the most part,readers care more about local news that makes a direct impact on their lives -not something occurring a world away. Here today, gone tomorrow. The rural areas of BC support Global BC in a big way, in part due to the fact that for many years, Global BC was the only option since no one had cable. Unfortunately for them, urban dwellers desire more than they offer, and these are the pockets with dollers…with internet accesible sites being the norm for most now, they simply cannot compete.

  • 7 Westcoast Indie News // Nov 16, 2008 at 2:31 am

    I’m one of those citizen journalists and in the demographic the group that finds the dishonesty and bias of the corporate media appalling, while recognizing good journalists still write for them.

    In one week, my new blog has received over 400 hits, because I’ve been offering perspectives and details that expand on, or are quite different than what mainstream corporate media is offering.

    Example, here are some of my latest posts:

    Follow the Money Trail – Part 2: All Good Things Seem to Lead to Liberals

    They Can’t be Serious: Jamie Graham for Victoria Police Chief?

    And, some advice for Canwest in this one:

    CanWest: Oh the Times They Are A-Changin’

    Excerpt:

    I have a suggestion for cost cutting measures for
    CanWest:

    STOP SUING PEOPLE & the CANADIAN GOVERNMENT!

    Do you really not see the painful irony in filing civil lawsuits against free speech activists while launching the multi-million dollar David Asper Centre for Constitutional Rights

    That $7.5 million donated might have been used in other ways. It’s all rather confusing and one might wonder if the donated funds are going to file, or fight, constitutional challenges?
    **
    What I’m find fascinating is the anger and sometimes just plain intolerance being directed at me, a humble blogger, who believes in free speech, because I dare to encroach on the “professional journalist’s” territory and write about things I have just as much right to touch on as anyone else. Last time I checked Canada was still a democracy and free speech was still in the Charter of Rights. You’d be amazed at some of the venom being spewed and I’m quite sure a gentleman journalist like Harvey would NEVER reprint the kind of odious things being written about me and others.

    CanWest like most of the arrogant, elite class are out of touch and just waking up to the impacts of their insular and oldschool way of doing things. Too little, too late. I feel bad for those losing their jobs though, as the market shrinks, the work will be harder and harder to get. Maybe they can start blogging too. Our media needs to get back to good old investigative journalism and exposes. That is good journalism.

  • 8 Martin C // Nov 16, 2008 at 8:04 am

    Haven’t watched televised news in 7 years. I don’t miss TV at all. Everything I need is online for a 41$ internet charge per month.

    Occasionally I’ll buy a Globe & Mail, but other than that I get the news I’m interested in reading about online. It is far preferable this way. I don’t have the opinions of newsreaders shoved down my throat interspersed with loud obnoxious ads anymore. I can skip over the violence, sports and anything else I have no interest in. Less stress all around. Far less propaganda too, and more even handed reporting – I can read the same story as reported by multiple sources giving different angles.

    The model is changing, and it’s changing FAST.

    If it wasn’t for waiting rooms and airplanes there wouldn’t be any need for most magazines either.

    I only hope the small time bloggers and reporters find a way to earn a living so they can keep going.

  • 9 Geoff // Nov 17, 2008 at 4:50 am

    It’s too bad that BCTV’s slogan (and mandate), “TV for BC” died a horrible death once Global took over.

    I agree that content is going to suffer tremendously. Unfortunately, it’s going to get a LOT worse, before it gets better.

    It seems that much of the content on Global BC is driven by advertising. I’m not just talking about the Global-1 commercials… uh, I mean, “traffic reports”. Just take a look at the regional weather forecasts. The last time I checked, Whistler wasn’t a region of our province. Now, I wonder why they’re on there, and not any of the other ski-resort towns, like Rossland or Kimberly. It just goes to show you that news can be bought.

    Just don’t get me started on any of the “series” stories that Global airs. Any story that is comp’d (ie. airfare/accommodations paid for by the subject of the story) ISN’T A STORY worth reporting.

  • 10 Worried // Nov 17, 2008 at 9:00 pm

    As a current (and hopefully still) employee of Canwest, I watch these types of moves with false hope that the big heads above will move towards more spirited, local content. In the print sector, the daillies have been sucking on the fumes of the real estate boom, pilfering the news section for their advert-ainment angle of homes, gossip and promos of developers gone wild! If Canwest really wants to save this sinking ship (print-wise) I’d suggest 3 things — tie an anchor around the NaPo and let it go… Return editorial freedom to each paper, instead of dictum from Winnipeg… Put one of the Vancouver dailies up for sale.
    Our community is well-served by the community publications, two chains that seem to be going strong (Canwest cutting has hurt at this level, but not the extreme up at the dailies and TV stations), but Vancouver truly needs real competition.
    Of course, the Asperians aren’t known for listening.

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