Tuesday, 8 May 2012

Canadian publisher returns to national news agency service

Canadian publisher returns to national news agency service

One of Canada's largest newspaper publishers, Postmedia Network, has agreed to return as a client of the Canadian Press, the country's national news agency, after a five-year absence.
It means that Postmedia will close down its own breaking-news wire service in order to save money. It will also shift the organisation's focus towards opinion writing and local news.

The newspaper chain – which publishes leading titles such as the National Post, Ottawa Citizen, Vancouver Sun, Montreal Gazette and Calgary Herald - is struggling with debts of $516m (£321m). It lost £7m in the most recent quarter.
Postmedia pulled out of the Canadian Press (CP) service after deciding it was paying too much for the service and sought to replicate it in-house
The decision to agree a three-year deal with CP is part of extensive cost-saving moves by chief executive Paul Godfrey. He said last month that Postmedia is seeking to sell its Toronto headquarters.
Godfrey said: "To be honest I've always been a fan of the Canadian Press... I'm not sure there's a need for competition in this area." He said "commodity news" shouldn't be the company's focus.
The return of Postmedia will ensure that CP, now a privatised company, will post a profit this year.

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