Despite millions in taxpayer bailouts, new Statistics Canada data shows newspaper revenues have dropped 25% since 2020. This follows comments from subsidized press lobbyist Paul Deegan that Canadian publishers cannot change their business model.

According to the StatsCan report Newspaper Publishers 2024, the industry is pressured by declining ad and circulation revenues and changing consumer habits competing with online platforms.

Go Ad Free

Profit margins fell to 3.2% while industry-wide operating revenues plummeted 24% since 2020, as reported by Blacklock’s, falling from $2.12 billion to $1.61 billion. Analysts noted that "Operating expenditures remained a key concern for newspaper publishers."

Data show newspaper revenues crashing despite millions in taxpayers' subsidies. Publishers' lobbyist says newsrooms cannot change their business model: "You may ask, why?"  https://t.co/z3PpIqLWLu #cdnpoli @CdnHeritage#cdnmedia pic.twitter.com/7KW4oDVqWq

— Blacklock's Reporter (@mindingottawa) November 12, 2025

Subsidized press lobbyist Deegan told the Commons government operations committee on October 28 that publishers can't change their business model, claiming, "We still need print ads and fliers to support a newsroom of full-time journalists."

Deegan argued that a purely digital model is unworkable because foreign tech giants monopolize digital ad revenue. He asserted that local print advertising is essential to fund newsrooms, cover local news, and ensure business profitability.

Circulation revenue dropped 7.6% and digital revenues fell 11.9% over the past two years, with losses accelerating "at a faster pace" than earlier this decade, according to Newspaper Publishers.

Deegan, in 2023, told the Senate transport and communications committee that newspaper publishers need the government. “We need them,” he said, noting, “We have a market failure here.”

In 2019, Parliament passed a five-year, $595 million newsroom bailout. Publishers Association chair Bob Cox testified that year, "Of course, there will be news outlets, newspapers, that fail the transition and you can’t give them forever," stressing, "There does need to be a deadline."

Cabinet renewed subsidies in 2023 with a $129 million bailout, including yearly payroll rebates of up to $29,750 per newsroom employee.

The Department of Canadian Heritage acknowledged its bailout failed to save jobs or journalism. Senior Assistant Deputy Minister Thomas Ripley testified, "We have seen a significant decline in journalism. Notwithstanding those interventions, we continued to see a decline in news."