Google Announces $100 Million Distribution to Canadian News Companies

Google has officially announced its selection of the Canadian Journalism Collective (CJC) to distribute the $100 million it has pledged annually to Canadian news companies. This agreement is part of Google’s compliance with the Online News Act, which mandates tech giants to establish financial agreements with news publishers.

The CJC, a federally incorporated non-profit organization founded in May, will oversee the fair and transparent distribution of these funds. The collective was established by a group of independent publishers and broadcasters and includes a diverse steering committee of 12 independent media outlets representing French language, community, and Indigenous news, as well as publications focused on Black and minority Canadians. Among these organizations are Pivot, The Resolve, IndigiNews, Village Media, and the Canadian Association of Community Television Users and Stations.

“We look forward to working with the full diversity of the Canadian news ecosystem, including traditional print and broadcast organizations, and independent local news publishers, including those who serve Indigenous, Black, and racialized communities and Francophone communities,” said Sadia Zaman, the CJC’s independent board director, in a statement.

The CJC will soon establish its governance structure, but it remains unclear when the eligible news organizations will start receiving the funds. The distribution is contingent on Google formally receiving an exemption from the federal broadcast regulator.

Google expressed optimism in a blog post, stating, “We hope these next steps will be completed as quickly as possible, so Canadian publishers and journalists can soon begin to receive the proceeds of this new contribution model.”

Earlier this year, Google invited news organizations to apply for compensation under the Online News Act, receiving applications from approximately 1,500 outlets. The CJC will review these applications and distribute funds to those that meet the established criteria.

To be eligible for a share of the $100 million, news organizations must be designated as qualified Canadian journalism organizations under the Income Tax Act. They must also produce news content of public interest, operate within Canada, and employ at least two journalists. The funds will be allocated based on the number of full-time journalists employed by each organization.

An official from the Canadian Heritage Department indicated that small print and digital outlets can expect to receive around $17,000 per journalist employed.

The Liberal government has imposed caps on the funds that certain broadcasters can receive. The Canadian Broadcasting Corporation (CBC/Radio-Canada) will receive no more than $7 million annually from the fund, while $30 million is reserved for other broadcasters. The remaining $63 million will be distributed among other qualifying news outlets, including newspapers and digital platforms.

Information for this briefing was found via CTV News and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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