2013.04.18

La Presse+ a bold bet on profitability of quality journalism

CWA Canada is hailing a bold $40-million bet by a Montreal publisher that stellar journalism delivered free to an iPad will revive the fortunes of a struggling newspaper industry.

"It's so refreshing to see a media company in Canada investing in quality," said Director Martin O'Hanlon. "Congratulations to La Presse."

The prestigious Quebec daily put three years of research and development into La Presse+ and hired more than 220 employees, including 120 journalists, to work on the project. In offering a free-subscription digital edition, La Presse is moving in the opposite direction of other newspapers in North America, which have erected paywalls and charge readers to view articles. La Presse+ is to be supported entirely by advertising revenue.

Guy Crevier, publisher of La Presse and president of the Gesca chain, a subsidiary of Power Corp., told The Canadian Press that newspapers can't simply cut costs to survive.

"I'm convinced, convinced, convinced that in a model like this there will be a growth in subscriptions and a growth in revenue for the coming years."

O'Hanlon concurred with Crevier's contention that the winning formula is to "redefine the way (readers) get their information, while maintaining … content quality."

"We've been saying for years that companies like Quebecor and Postmedia should be investing in quality jobs and quality journalism to win back disenchanted readers and boost profits, rather than laying off workers and putting out a second-rate product," said O'Hanlon.

"We hope that Quebecor and Postmedia will abandon their self-destructive race to the bottom and follow the lead of La Presse."

Crevier said in a news release that "La Presse+ is an exceptional tool that enriches and expands upon the quality and depth of the news experience. We chose the iPad for its outstanding content-presentation abilities and its potential as an advertising vehicle."