BRIEF ON THE FUTURE OF NEWS MEDIA

Submitted to Hearings Held by the Committee on Culture and Education

Quebec National Assembly

August 1, 2019 CBC/RADIO-: BRIEF ON THE FUTURE OF NEWS MEDIA

SUMMARY

Quebec’s news media are going through a period of major upheaval, a profound crisis that is threatening their existence and the diversity of voices in the public sphere. Radio- Canada firmly believes in the importance of credible, independent, high-quality journalism and a diversity of voices in a healthy democracy. That is why the organization is delighted to participate in these hearings held by the Committee on Culture and Education.

The production of quality news and a commitment to regional content are a key part of the public broadcaster’s mandate and strategy. Radio-Canada is present in all of Quebec’s main regions and across the country. Our connection with the regions is one of our strategic priorities for the next three years.

While maintaining its editorial independence, Radio-Canada is actively involved in the communities in which it is present, forging partnerships with local organizations and events. In the current media economy, the public broadcaster is willing to lend a hand to regional news outlets and explore various forms of collaboration, as resources permit and without ever compromising its independence.

This collaboration could take the form of training or shared expertise, as Radio-Canada has done in the past with francophone stations and Indigenous media. The public broadcaster is also planning other initiatives based on the model adopted during Quebec’s 2018 election campaign, where it provided a free, ready-to-air feed of the leaders’ debate. Radio-Canada is also prepared to establish ad hoc investigative reporting partnerships.

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In a similar vein, the content partnership model developed with other broadcasters for ICI TOU.TV shows how competitors can work together toward a common goal in order to take on the digital giants. Without necessarily using the same recipe, the public broadcaster plans to adopt a similar strategy as part of its contribution to Canada’s news ecosystem in the coming years.

While Radio-Canada is open to initiatives and partnerships that might help certain media companies, it does not want to jeopardize others in the process. Our actions must contribute to the health of our ecosystem as a whole.

The public broadcaster is favourable to the idea of government assistance for the media, provided it is done in a way that strictly upholds journalistic independence, the public interest and the common good. The same applies to the transparency Canadians expect from the media and the necessary freedom the press requires to fulfil its role. In return for this assistance, news media companies should agree to adhere to basic journalistic rules as set out, for example, in CBC/Radio-Canada’s Journalistic Standards and Practices or the code of ethics of the Fédération professionnelle des journalistes du Québec (FPJQ).

Comprehensive, diverse news is critical, but the public’s trust in the media is fragile. To build and maintain this trust, we need robust, multiple, independent media companies that will preserve the diversity of voices so precious to our democracy. Habits will continue to change and news sources – some reliable, some not – will continue to proliferate. However, members of the public will always need to know what is happening in their region, province and country. The survival of our culture and democracy depend on it.

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INTRODUCTION

Quebec’s news media are going through a period of major upheaval, a profound crisis that is threatening their existence and the diversity of voices in the public sphere.

CBC/Radio-Canada, Canada’s public broadcaster, is submitting this brief to hearings aimed at finding ways to keep these companies alive in the face of a collapsing traditional business model, changing consumer habits, and an erosion of public trust.

Healthy newspapers, robust regional news services and independent media are essential and must be preserved at all costs. More than ever, Radio-Canada is working alongside Quebec media in a spirit of solidarity made necessary by the scope of this challenge.

Radio-Canada holds a special place and plays an essential role in Quebec and Canada’s fragile news ecosystem. Unlike state broadcasters that toe the party line, Radio-Canada is an entirely independent public broadcaster. That independence is crucial to preserving the public’s trust and maintaining the relevance of a public media company – ensured by a diversity of faces and voices, and regional representation. Radio-Canada has made its connection with the regions, in Quebec and across Canada, a top strategic priority.

Whether it is providing continuous news, investigative journalism or cultural programming, Radio-Canada seeks to reveal and explain local issues, both within the communities concerned and across the country, from to to Matane to Halifax.

Radio-Canada has a strong regional presence in Quebec and in francophone communities outside Quebec as well. We will elaborate on our initiatives aimed at strengthening local and regional news further on in this brief.

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Radio-Canada thanks the Committee on Culture and Education for this opportunity to weigh in on complex issues with repercussions that extend beyond Quebec to the rest of the country and the entire world. The public broadcaster is joining the chorus of news media that are helping to make Quebec an enlightened and open society.

Since 1936, CBC/Radio-Canada has offered Canadians a window onto the world, at the same time giving them an opportunity to better understand themselves. By telling Canadian stories, explaining international affairs and also covering regional issues, the public broadcaster has, for more than eight decades, been a powerful driver of democracy. Despite this long history and its strong ties with all Canadians, CBC/Radio- Canada has not escaped the turbulence affecting the media industry for the past decade. Like other media organizations, the public broadcaster operates in an economic sector that is not immune to new budget cuts or financial challenges – which is why it needs to reinvent itself, innovate and find new ways to produce top-quality news.

Radio-Canada is aware of the important place it holds in Quebec’s media ecosystem. We have a role to play, but we cannot act alone. We are therefore willing to throw our support behind promising solutions for the sustainability of Quebec’s news media and the health of our democracy.

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THE CURRENT SITUATION

The year 2008 marked the beginning of a frontal assault on Canada’s media ecosystem. According to data compiled by the Local News Research Project,1 between 2008 and June 2019, 278 local and regional news outlets shut their doors. The vast majority were weekly newspapers (202), but free daily papers (23) and paid dailies (13) were also affected, as were private radio stations (11) and private television stations (10).

In Quebec, 40 media companies, mainly weekly newspapers (34), were shuttered, leading to the disappearance of voices essential to a diverse and healthy news landscape. Today there are fewer newsrooms and journalists2 to tell the stories of Canada, Quebec and the regions to a public seeking trustworthy information.

This sorry state is a reminder to all organizations, both private and public, that the days when the media industry enjoyed relatively stable revenues and a loyal audience base are over. The world has changed, with the economic crisis, digital shift, radically different media consumption patterns and, to top it off, an erosion of trust. News media have entered a spiral as unpredictable as it is uncontrollable, and all are seeking ways to ensure their survival. Not many anticipated the dark days ahead, even when the writing was on the wall in their newsrooms and sales departments . . . .

Google, Facebook, Amazon, Apple and others have entered our lives and our economy, taking a lot and giving back very little, creating new needs, becoming ubiquitous – if not essential – and lawfully helping themselves to revenues that were formerly reserved for so-called traditional media.

1 http://localnewsresearchproject.ca/wp-content/uploads/2019/06/LocalNewsMapDataasofJune12019.pdf 2 Databank of Official Statistics on Quebec

http://www.bdso.gouv.qc.ca/pls/ken/ken213_afich_tabl.page_tabl?p_iden_tran=REPER13ZN071212306784714~7WcJ&p_lang=1&p_i

d_raprt=2443

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We are witnessing a globalization of news and entertainment, dominated by a handful of U.S.-based digital giants that have considerable resources and are making huge profits on the Canadian and Quebec markets, with no obligation to reinvest in our industry.

The time when we were in competition with one another is over. Our true competition today is made up of these powerful tech companies. We need to help each other confront them, joining forces in order to support and promote our culture.

It is also important to recognize that the platforms and tools developed by these giants have become essential for the vast majority of news media seeking to engage audiences. Facebook and Google, to name just two, are important drivers of online traffic. Their followers and search results are compelling reasons to seek collaborative arrangements. It is a double-edged sword.

Be that as it may, the current state of our media ecosystem is threatening the public’s right to quality information and – even more worrying – will potentially damage the very foundations of our democracy.

Radio-Canada is delighted, in all humility, to know that it is French-speaking Canada’s most-trusted news source.3 4 At the same time, we are deeply concerned by the erosion of public trust in news media in general.

According to the latest edition of the Digital News Report by the Reuters Institute5 (2019), 52% of Canadians say they trust most news most of the time. This represents a drop of 6 percentage points compared to 2018. The decrease is more pronounced among francophones (-12 points) and those under the age of 35, anglophones and francophones

3 https://reutersinstitute.politics.ox.ac.uk/sites/default/files/2019-06/DNR_2019_FINAL_1.pdf 4 https://www.uvic.ca/news/topics/2019+gustavson-brand-trust-index+backgrounder_1.pdf 5 https://reutersinstitute.politics.ox.ac.uk/sites/default/files/2019-06/DNR_2019_FINAL_1.pdf

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combined (-11 points). Across the world, trust in news is down 2 percentage points (42%). These statistics are a call to us all to deepen our connections with communities.

Quebecers have a keen interest in regional news. According to data from CBC/Radio- Canada’s Media Technology Monitor,6 between 2014 and 2017, approximately two-thirds of Quebecers said they had consumed local news content, regardless of the platform, almost every day. In 2018, more than 6 out of 10 Quebecers said they watched a local news program in the evening.

Although overall television ratings were down between 2009 and 2019, average ratings for the 6 p.m. newscast on ICI TÉLÉ in Quebec increased by 16% (from 305, 000 to 354, 000 viewers).

During this same period, the average quarter-hour audience for radio news between 7 and 8 a.m. on ICI PREMIÈRE remained relatively stable (up from 230, 000 to 280, 000 listeners on average at 7 a.m., and from 255, 000 to 305, 000 listeners on average at 8 a.m.7).

The average number of unique visitors to Radio-Canada.ca jumped from 2.4 million to 4.5 million8 between 2014 and 2019.

Although these results are encouraging, they should not mask the size of the challenge facing all news media today.

Audience consumption patterns are changing: while many people remain loyal to conventional platforms (radio and television), a growing number are visiting digital spaces, some almost exclusively. For a broadcaster like Radio-Canada this poses a

6 https://mtm-otm.ca/Homettps://mtm-otm.ca/Home 7 Numeris, PPM 8 comScore Media Metrix®

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dilemma, since we have to adapt our production modes to new platforms without neglecting the traditional platforms that are still popular with large segments of the population. By continuing to produce top-quality news programs, Radio-Canada has become a leader in digital innovation.

We must try to reach all audiences, wherever they are. Podcasts, data journalism and other journalism labs (Rad9) are just some examples of our teams’ creativity. This balancing act forces us to review the ways we finance our activities according to the public’s new expectations. What should we keep and what should we let go? Which projects should we prioritize? We sometimes need to make difficult decisions so that the public broadcaster can continue to evolve and reach as many Canadians as possible, on whatever platform they choose.

The Quebec media’s digital platforms are very popular, but still do not generate revenues comparable to those of television. Neither do they compensate for the latter’s slowing revenues. It is important to note that in Canada, banner and video advertising revenues on digital platforms have been higher than television revenues since 2018, but most of this money flows into the coffers of U.S. tech companies.

We therefore urgently need to strengthen the ability of local media outlets in Quebec (and across Canada) to finance their operations in a world where the rules of the game have not only changed; they are not always respected by all players.

9 https://www.rad.ca

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RADIO-CANADA: COMMITTED TO LOCAL AND REGIONAL NEWS

Radio-Canada has always maintained a strong regional presence in Quebec, thanks to its teams in the field, from Gatineau to Sept-Îles and from Sherbrooke to the Saguenay. Across Canada, CBC/Radio-Canada is not only present in 33 communities; it is also actively involved with local populations, in English, French, and eight Indigenous languages.

As mentioned earlier, Radio-Canada has made its connection with the regions a strategic priority for the next three years. This connection has been part of our DNA for many years. We firmly believe in the need for a strong regional presence in order to reflect a diversity of voices and bring coverage of local issues to communities across Quebec and Canada. Thanks to our teams in the ten provinces and two of the three territories, audiences in Quebec are exposed to national issues and more local realities in other provinces and territories. The same is true for Canadians outside Quebec who, as a result, have a better understanding of the situation in Quebec. At a time when the public debate is marked by sharp divisions, reliable, diverse and balanced news is more essential than ever.

The 1991 Broadcasting Act10 stipulates that:

“. . . the Canadian Broadcasting Corporation, as the national public broadcaster, should provide radio and television services incorporating a wide range of programming that informs, enlightens and entertains; . . . the programming provided by the Corporation should (i) be predominantly and distinctively Canadian, (ii) reflect Canada and its regions to national and regional audiences, while serving the special needs of those regions,

10 https://laws.justice.gc.ca/eng/acts/B-9.01/

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(iii) actively contribute to the flow and exchange of cultural expression, (iv) be in English and in French, reflecting the different needs and circumstances of each official language community, including the particular needs and circumstances of English and French linguistic minorities, (v) strive to be of equivalent quality in English and in French, (vi) contribute to shared national consciousness and identity, (vii) be made available throughout Canada by the most appropriate and efficient means and as resources become available for the purpose, and (viii) reflect the multicultural and multiracial nature of Canada.”

CBC/Radio-Canada considers its regional presence to be more fundamental than ever – much more than an obligation stemming from a legal mandate.

IN THE HEART OF COMMUNITIES The notion of proximity is of the utmost importance to the public broadcaster. For us, all francophones in the country are equally important, whether they come from Regina, the Saguenay or .

Not so long ago, in , Rimouski and even , regional news often ended on Friday evening after the 6 o’clock newscast. If something important happened over the weekend, audiences would have to wait until Monday for regional coverage.

Radio-Canada therefore chose to offer seven-day digital coverage in the regions. This was made possible by the federal government’s reinvestment in the public broadcaster.

In addition to major national productions such as Le téléjournal avec Céline Galipeau, Radio-Canada offers 20 morning and 17 drive-home shows11 across the country on ICI PREMIÈRE, as well as 13 editions of the 6 p.m. Téléjournal (Monday through Sunday)

11 Including 10 programs in Quebec

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on ICI TÉLÉ, and 21 regional websites on Radio-Canada.ca and its mobile app, with new content added 24/7. These are all windows onto our regions, our country and the world.

The public broadcaster’s presence in each region is asymmetrical and adapted to local needs and realities. Factors shaping our regional presence in each community include population density, language, local culture and geographical expanse.

Our audiences’ needs and habits are changing. This means we have to imagine new ways to reach French-speaking Canadians and engage them with our stories and news. Whether we are creating a newsletter specifically for the Quebec City area, or a web page for audiences in the Saguenay, we are aware that expectations differ from region to region.

In the coming months, we will be developing a new mobile digital video offering for communities that do not have a local newscast. Using an agile, unique model, we will offer audiences a new way to stay on top of local news in their region. Combining the power of video and flexibility of digital platforms, this project will initially target the residents of Abitibi-Témiscamingue and could subsequently be rolled out in other regions as well.

Our results so far confirm that we are on the right track. For the past ten years, Le téléjournal for Montreal, Quebec City, Sherbrooke, Ottawa-Gatineau, Trois-Rivières, the Saguenay and Eastern Quebec has achieved and maintained record ratings. On our digital platforms, the number of unique monthly visitors12 to our regional pages has doubled, from 1 to 2 million in five years.

Radio-Canada plays an essential role in francophone minority settings, and CBC plays an equally important role in Quebec’s anglophone community of one million. Through its

12 comScore Media Metrix®

11 CBC/RADIO-CANADA: BRIEF ON THE FUTURE OF NEWS MEDIA production centres in Montreal and Quebec City, CBC keeps Quebec anglophones informed and brings them stories that resonate with them, whether they live in the Eastern Townships, the Magdalen Islands or the Greater Montreal Area.

BRINGING NEWS TO A WIDE AUDIENCE Radio-Canada firmly believes in turning the spotlight on regional news, both within communities and further afield, in order to showcase local realities.

Digital platforms are fertile ground to tap into our creativity and reach audiences at home and abroad. A number of recent digital projects from the regions are shining proof – for example, Raif Badawi: rêver de liberté,13 a digital cartoon documentary, produced by the Radio-Canada team in Estrie, which won gold (the “ID d’Or”) in the media category at the Grand prix de l’innovation digitale14 in Paris, in 2018.

Other examples include Embarquement pour les régions du Québec15 and Ces vies marquées par l’attentat de Québec,16 both digital features revealing regional realities likely to captivate a wide audience.

It is also important to note Radio-Canada’s engagement with Indigenous audiences. The teams behind Espaces autochtones17 and Regard sur l’Arctique / Eye on the Arctic18 address these communities with digital content on topics of interest, not only to the local population, but to all Canadians.

Radio-Canada is actively working on setting up a mobile Indigenous news bureau, which will go into the field to meet Indigenous Canadians and tell their stories – the ones that

13 https://ici.radio-canada.ca/regions/estrie/2017/bande-dessinee-raif-badawi/ 14 http://www.grandprix-id.com/index.php/les-laureats-id18/ 15 https://ici.radio-canada.ca/regions/special/2018/transport-avion-nord/ 16 https://ici.radio-canada.ca/nouvelles/special/2018/01/attentat-mosquee-de-quebec-victimes-un-an-plus-tard/index.html 17 https://ici.radio-canada.ca/espaces-autochtones 18 https://www.rcinet.ca/eye-on-the-arctic/

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matter to them. This is by no means a niche offering; the stories will be promoted to all visitors to Radio-Canada.ca.

In a similar vein, a section of CBC North19 is devoted to Quebec’s population of 18, 000. Its team produces digital content as well as two daily radio shows and one weekly television show.

WORKING TOGETHER While maintaining its editorial independence, Radio-Canada is actively involved in the communities in which it is present, forging partnerships with local organizations and events.

In the current media economy, the public broadcaster is willing to lend a hand to regional news outlets and explore various forms of collaboration, as resources permit and without ever compromising its independence.

In the past, Radio-Canada has supported francophone community radio stations and Indigenous media by offering training, among other things. We could envisage doing the same with regional news media, using the public broadcaster’s current training catalogue, which covers topics such as cultural diversity and reporting in hostile environments. We could also offer training and share our expertise on the principles behind CBC/Radio-Canada’s Journalistic Standards and Practices, an industry standard for rigour and credibility.

During Quebec’s 2018 election campaign, Radio-Canada provided a free, ready-to-air feed of the leaders’ debate to all media companies.20 The initiative, a first, was warmly welcomed and helped to broaden the reach of this important democratic exercise. Other

19 https://www.cbc.ca/news/canada/north 20 https://ici.radio-canada.ca/nouvelle/1123793/grand-debat-des-chefs-2018-elections-quebec

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productions based on this model could be considered in the future, within certain parameters.

It is also important to underline the contribution of ICI RDI, which helps to cover and broadcast news, notably in the regions. To a certain extent, ICI RDI plays the role of a French-language news agency, a source of content and stories for local media outlets. We believe this provides substantial support to news teams unable to travel to cover stories. By broadcasting numerous press conferences and other events live, ICI RDI makes this information available to the public, thus supporting the democratic process.

More broadly, Radio-Canada is open to exploring different forms of collaboration with other industry players, as it has done in other areas. The content partnership model developed with other broadcasters for ICI TOU.TV21 shows how competitors can work together toward a common goal in order to take on the digital giants. Without necessarily using the same recipe, the public broadcaster plans to adopt a similar strategy as part of its contribution to Canada’s news ecosystem in the coming years.

BALANCING STRENGTHS Strengthening our media presence in the regions is essential to guarantee diverse viewpoints and quality news. It is very difficult for a single journalist to act as a counterweight to local political and economic forces.

Simply by being present in the regional ecosystem, Radio-Canada helps to maintain the balance required for reliable and trustworthy journalism, in a context in which media presence in the regions is on the decline and existing news companies are fragile. A single regional media outlet is not the answer either. A diversity of voices is essential to a healthy society and democracy. Coexistence encourages all players to bring their A game.

21 https://ici.tou.tv/

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Quebec’s vast geography means we need to be even more creative in finding new ways to report from places that would otherwise be ignored, but whose stories are no less compelling and relevant for an increasingly demanding and fickle audience.

SEEKING A NEW BUSINESS MODEL

Changing audiences are forcing news media to find new business models in order to survive. Newspapers are in the vanguard, but electronic media must also reinvent themselves. Even digital media, until recently referred to as “new media,” are seeking new ways to finance their operations in a market with competition on all sides. Who will discover the business model of tomorrow? And is there just one model?

The public’s reluctance to pay for news obviously complicates this search for a new business model. According to the Digital News Report 2019,22 only 9% of Canadians reported paying for online content. At the international level, the models of The New York Times (subscriptions) and the Guardian (voluntary contributions and subscriptions) are worth consideration, but their pool of potential subscribers and contributors is far larger than Quebec’s small francophone market.

Radio-Canada salutes the Quebec government for supporting news media in their transformation and search for a new, viable business model. Examples include the recent $3 million grant to RecycleMédias and the previous government’s tax credit for innovation.

In its 2018 Fall Economic Statement,23 the federal government announced three new measures designed to support Canadian journalism, emphasizing the need for “strong

22 https://reutersinstitute.politics.ox.ac.uk/sites/default/files/2019-06/DNR_2019_FINAL_1.pdf 23 https://www.budget.gc.ca/fes-eea/2018/docs/statement-enonce/chap02-en.html

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and independent journalism [serving] the public good.” The measures included a non- refundable 15% tax credit aimed at increasing subscriptions to Canadian digital news media.

These measures are in addition to the $50 million granted over five years in the 2018 federal budget24 “to support local journalism in under-served communities, helping to ensure that Canadians continue to have access to informed and reliable civic journalism.” It remains to be seen what impact these measures will have, but it is encouraging to note that governments are seeking solutions to ensure the future of news media.

It is not up to Canada’s public broadcaster to tell the Quebec government what to do. Radio-Canada’s contribution to this exercise is focused on expressing solidarity and a willingness to support Quebec’s news media in their transition to a viable model in the longer term. This support may be offered in the form of training, as mentioned above, as well as production alliances, the broadcasting of content (e.g., ICI TOU.TV), and the sharing of expertise in business intelligence. Radio-Canada is also willing to enter into ad hoc partnerships for investigative reporting projects.

Although the public broadcaster is open to initiatives and partnerships that might help certain media companies, it does not want to jeopardize others in the process. Our actions must contribute to the health of our ecosystem as a whole. A diversity of voices is essential and the survival of news media is the foundation. The disappearance of news media poses a risk to citizens, not to Radio-Canada.

24 https://www.budget.gc.ca/2018/docs/plan/toc-tdm-en.html

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CONCLUSION

Although Radio-Canada has its challenges, it is aware that, as a publicly funded organization, it holds a privileged position in Quebec’s media ecosystem. It is important to remember that the public broadcaster uses this funding to fulfil its mandate and responsibilities – namely, to reflect the realities of this country, its regions and its diverse communities spread over a vast geographical area.

In honouring this mandate with the rigour for which it is renowned, Radio-Canada will continue to remain relevant to all Canadians. The fact that we are the most admired media brand in Quebec25 confirms that we are fulfilling our role admirably. Our ratings and reach also attest to our ability to meet the needs and expectations of our audiences.

The public broadcaster is favourable to the idea of government assistance for the media, provided it is done in a way that strictly upholds journalistic independence, the public interest and the common good. The same applies to the transparency Canadians expect from the media and the necessary freedom the press requires to fulfil its role.

In return for this assistance, news media companies should agree to adhere to basic journalistic rules as set out, for example, in CBC/Radio-Canada’s Journalistic Standards and Practices26 or the FPJQ’s code of ethics.27

The public broadcaster remains committed to providing quality information at the local, regional, national and international levels, to Canadians from coast to coast to coast. We firmly believe in the importance of having “boots on the ground” to provide local coverage.

25 https://leger360.com/wp-content/uploads/2019/03/Booklet-R%C3%A9putation-Final-V2.pdf 26 https://cbc.radio-canada.ca/en/vision/governance/journalistic-standards-and-practices 27 https://www.fpjq.org/fr/guide-de-deontologie

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Radio-Canada is open to collaborations that might allow other media to survive and contribute their own field reporting, with the aim of encouraging diverse viewpoints and ensuring that our coverage is relevant. Failing that, we risk losing the public’s interest.

The crisis shaking the news media is more than just financial. It is jeopardizing institutions, science, democracy and the truth. It is a social and human crisis, and it runs deep.

Our news media will have to rethink their business models. They will also have to rethink the ways in which they operate, inform, and deliver content. Society is changing. The status quo is no longer viable.

No media organization in Quebec or the rest of Canada stands to benefit from another’s demise. Comprehensive, diverse news and information is crucial, but the public’s trust in the media is fragile. To strengthen or simply preserve this trust, we need robust, multiple, independent media companies that will safeguard the diversity of voices so dear to our democracy.

Habits will continue to change and news sources – some reliable, some not – will continue to proliferate. However, members of the public will always need to know what is happening in their region, province and country. The survival of our culture and democracy depend on it.

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