Earlier this month, Canwest as a newspaper company disappeared for good, joining Saturday Night, the Telegram, Maclean Hunter and Conrad Black in the archive of defunct Canadian print media brands.
In its place a new brand emerged: Postmedia Network Inc. A group of investors led by National Post chief executive Paul Godfrey completed its $1.1 billion-acquisition of the newspaper assets of Canwest Global Communications’ newspaper group and emerged from creditor protection July 14.
The group now controls 11 major dailies and 26 community papers– including some of Canada’s largest daily newspapers like the National Post, Vancouver Sun, Calgary Herald and Ottawa Citizen–with a leadership team that looks an awful lot like the team that ran much of Canwest in the end. It includes former National Post publisher Gordon Fisher installed as president of the paper and the company’s executive vice-president, Eastern Canada, and Kirk Allen, formerly senior vice-president, advertising sales of Canwest LP, as executive vice-president, advertising sales. Doug Kelly was promoted from editor-in-chief to become the National Post’s newest publisher and taking over Kelly’s chair as EIC is deputy editor Steve Meurice.
In a memo to staffers, Godfrey said the Postmedia name “reflects both where we have been and where we are going… From the earliest days of information delivery via post, to the current online world of posting news and information as it happens and looking ahead to the continuous evolution of a post-media universe, our new name reflects both the strong legacy and the exciting future of media as we prepare to emerge as a new Canadian business.”
From the outset, the 71-year-old Godfrey has called for a “digital-first” approach to the newspaper business, and now he’s talking tough about his mission, suggesting anyone who’s not on board can find somewhere else to type. “I’ve watched the National Post team, and they’ve been leaders in what newspapers are doing in the digital world,” he says. “Some of the other papers are doing a great job, too, but others, I think are lagging. The leadership needed there will have to come from the publisher. Those publishers will have to embrace the digital-first philosophy and if they can’t I’ll have to find somebody else who can. The whole Postmedia team will have to be on the same page in that respect.”
The company is in the midst of evaluating its current digital offerings and overall operations across the organization. While new ownership and a renewed focus on multiplatform media is good news for a group previously saddled with debt and persistent rumours of lay-offs and other cutbacks, how are media buyers reacting to the arrival of this new partner? ZenithOptimedia president and CEO Sunni Boot views Postmedia’s acquisition as overwhelmingly positive. “All in all, this is a great story,” says Boot. “Contrary to popular belief, there is a significant group of investors there that don’t see the death of newspapers and who see the value of newspaper content. Of course, that content has to migrate on to other platforms, that we know, but these are phenomenal brands.”
The company’s roster of media offerings is impressive for a number of reasons. “If you look at the Ottawa Citizen, the Calgary Herald, the Edmonton Journal, these are terrific local brands,” she says. “And while we can get all kinds of news anywhere online, what is important is that trusted, valued brand that will give me that information, specifically in the local market.” Boot also praised the people who have worked through the financial foibles of their former owner. “Under the previous ownership and all through this transition, this company and its broadcast counterpart are very, very impressive,” she says. “They show us how to work under adversity like I’ve never seen before–every day, you go in and you don’t know if you have a job. They have been extraordinary in how they’ve serviced their clients.”
National media buyers, with a preference for single sales unit and consistent content offering, are particularly pleased that the group of papers was sold as one entity rather than being parcelled off. Boot did say that while multiplatform development is necessary and should most certainly continue, Postmedia Network and other major Canadian publishers can’t neglect the print product.
“The paper product is the bread and butter that fuels the investment in digital,” she says. “Digital is difficult to monetize for any media, so what they’ll be able to do is amortize the content. I think their writers and columnists are going to have to be digital-savvy, have video appeal, and do all those different things, all the while making sure the print product is of the highest quality– that the printing presses are up to date, and that they can get as much value as possible out of their distribution model.”
