How Canadian Media Faced a Double Blow: Government Policy and AI
Two years ago, Facebook exited the Canadian news-sharing space after the government introduced the Online News Act. This legislation aimed to make Big Tech pay for carrying news links, but it overlooked the changing nature of how people consume information. Links—those URLs you used to click on from search engines—are fading fast, much like print newspapers once did.
The government, influenced by struggling publishers desperate to reclaim lost advertising dollars, pushed through a plan targeting tech giants. Google responded by creating a $100 million fund for news organizations to avoid more direct payments, while Meta (Facebook) chose to stop carrying news links altogether. The immediate impact? A loss of potentially hundreds of millions in referral revenue for Canadian media.
Did the Public Suffer?
Despite warnings, the public still accessed emergency information through various channels—Facebook posts, over-the-air broadcasts, text alerts, and official government sites. So, the dire predictions about a media blackout didn’t materialize.
But there's a new force now reshaping how we get information: Artificial Intelligence (AI). Rather than clicking through lists of links, users simply ask AI-powered tools questions and receive concise summaries. These tools aren’t flawless; errors happen. However, traditional media and even search engines have never been perfect either.
AI: Threat or Opportunity for Journalism?
AI could either destroy what remains of traditional news media or become its lifeline. Why? Because AI depends on reliable, factual, and independent sources to generate accurate responses. Without trustworthy journalism, AI would rely heavily on government and official sources, which raises concerns about bias and control.
This creates an incentive for Big Tech companies like Meta, Google, Twitter (now X), and Microsoft to support quality journalism. However, supporting journalism doesn't necessarily mean propping up current business models that many agree are broken. AI might still need investigative journalists but might not require legacy newspapers in their current form.
New Revenue Models and Their Limits
Google has introduced tools to facilitate micropayments to publishers, potentially opening new monetization paths. But such measures are unlikely to stop major outlets like the Toronto Star from struggling in the evolving media landscape.
One challenge is that Google's initial fund for Canadian news may have inadvertently capped publisher revenues, limiting their bargaining power as AI reshapes content distribution. Collective funding models often have a ceiling that restricts growth, which could hamper innovation in journalism.
The Final Blow: AI's Impact on Traffic and Revenue
News sites in the U.S. are already seeing significant drops in traffic, and with Facebook no longer linking Canadian news, Canadian outlets face a similar or worse fate. AI answers users' questions directly, bypassing the need to visit original news sites. Without a compensation framework, AI could kill the very sources it depends on for credible information.
This paradox raises a critical question: will Big Tech protect journalism or let it fade to benefit from AI’s efficiencies? The current signs don’t inspire confidence.
Government Support and Media Dependency
Instead of fostering innovation to transition journalism into a sustainable model, Canadian policy subsidized outdated business structures. Many media companies now rely heavily on government grants and tax credits, while broadcasters seek regulatory funding.
With tightening budgets and austerity measures impacting even publicly funded broadcasters like CBC, the future looks challenging. What began as an effort to save legacy media from Big Tech has largely set the stage for AI to consume it.
What This Means for PR and Communications Professionals
- Media relations will continue to evolve. Traditional news outlets may shrink, meaning PR pros need to diversify outreach channels beyond legacy media.
- Understanding AI's role is crucial. AI-generated summaries will influence how stories are told and consumed. Crafting messages that remain clear and trustworthy in this environment is critical.
- New business models will emerge. Micropayments and alternative funding could change how media operates. Staying informed about these shifts will help communications strategies adapt.
- Trust and credibility matter more than ever. As AI leans on reliable sources, maintaining transparency and factual accuracy will enhance reputations in a world of automated content.
For those looking to deepen their understanding of AI’s impact on media and communications, exploring targeted AI courses can be valuable. Resources like Complete AI Training's latest AI courses offer practical insights into how AI tools are reshaping industries.
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