Postmedia shutting down Metro Ottawa, 14 eastern Ontario newspapers

Fifteen eastern Ontario newspaperswill be shut down by mid-January after being acquired by Postmedia, the company announced Monday.

Included in those publications was Metro Ottawa. Staffsaid on Twitter their paper had been shut down effective immediately and there would be no issue on Tuesday.

In all, Postmediaacquired 26properties from Torstar in the exchange, which involves no cash, while Torstar acquired 17 from Postmedia.

Postmediais shutting down 24of the 26papers acquired, including the following from eastern Ontario:

• Metro Ottawa.
• Belleville News.
• Central Hastings News.
• Frontenac Gazette.
• Kanata Kourier-Standard.
• Kingston Heritage.
• Nepean/Barrhaven News.
• Orlans News.
• Ottawa East News.
• Ottawa South News.
• Ottawa West News.
• Quinte West News.
• Stittsville News.
• St. Lawrence News.
• West Carleton Review.

In a news release issued Monday, PostmediaCEO PaulGodfreyis quoted saying that the move will allow the company to focus on "strategicareas and core products ... in a deeply disruptedindustry."

"What makes this particularly difficult is that it means we will say goodbye to many dedicated newspaper people. However, the continuing costs of producing dozens of small community newspapers in these regions in the face of significantly declining advertising revenues means that most of these operations no longer have viable business models," Godfrey is quoted saying.

The transaction is not subject to the provisions of the Competition Act and no regulatory clearance is required to close it, Postmedia said.

However, the Competition Bureau said they"will be undertaking a review of the transaction."

Smaller communities will suffer

Papers like the KanataKourier-Standardhave been operating for decades in growing communities.

"Today, with all the huge amount of media it's hard to be known, hard to get anybody to pay for it," said Neil Thomson, the president of the KanataBeaverbrook Community Association.

"I wasnot necessarilysurprised, but very disappointed."

Most people in suburbs likeKanatarely on the paper to learn about events, notices or jobs, he said, but now there's going to be no way to get the message out.

AlexMunter, president and CEO of the Children's Hospital of Eastern Ontario, also commented Monday. He started theKanataKourier-Standardin 1982.

Ottawa Mayor Jim Watson also commented on the news, calling the loss of the community papers"very sad."

A Postmedia 'monopoly'

While some mourned the loss of smaller community papers, one observersaw it coming.

"The decline of newspapers is something that's been going on for quite a while," Christopher Waddell, a journalism professor at Carleton University, said.

He explained the move was likely about monopolizing advertising revenue, which can account for 80 per cent of a paper's income.If you get rid of your competitors, their business could move to your paper, he said.

"Metro was offering real competition for the Citizen and the Sun," Waddell said.

"We've created a monopoly in Eastern Ontario for Postmedia."