It’s no secret that local media companies are struggling with the shift to digital and social media advertising platforms, and a local broadcaster is joining others across the country in bringing Ottawa’s attention to the growing issue.
Stingray, the parent company of VOCM, is collaborating with a group of independent broadcasters in calling on the federal government for help for the country’s radio industry.
The company has written Finance Minister Chrystia Freeland and Canadian Heritage Minister Pascale St. Onge with a number of recommendations to address what it calls the “economic challenges posed to local radio.”
That includes the shift to digital and the loss of advertising dollars to online platforms.
Bell Media and CBC both recently announced massive layoffs.
Steve Jones, the Senior Vice-President of Brands and Content with Stingray, says they’re not looking for handouts from government but are proposing that the federal government dedicate at least 70 per cent of its advertising spending on local media, ensuring an even distribution across radio, television, print and Canadian-owned digital media.
He says the federal government currently sends the bulk of its advertising dollars to big American and European platforms instead of local media.
The companies are also recommending a minimum 20 per cent tax credit to motivate advertisers to invest in Canadian-owned print and broadcast media.