Not long ago, the Canadian media was seen as a cornerstone of democracy, a diverse chorus of voices challenging power, not cashing cheques from it. But as Peter Menzies outlines in a recent Substack article titled “Canadian media’s dependence on Liberal subsidies cited as sign of democratic decay,” the country’s legacy media has drifted into dangerous territory: one where government handouts replace audience trust, and political dependency erodes journalistic integrity.
Menzies, a former vice-chair of the CRTC, offers a sobering diagnosis. Canadian journalism, he argues, is suffering from a form of institutional capture. Rather than competing for readers in a free marketplace of ideas, major outlets are increasingly surviving on federal subsidies, primarily from programs created or expanded by the Liberal government. These include the Journalism Labour Tax Credit, the Local Journalism Initiative, and now revenue from the controversial Online News Act (Bill C‑18). Together, these represent hundreds of millions of taxpayer dollars flowing into newsrooms.
This might seem noble at first, who doesn’t want to save local news? But Menzies is clear: this isn’t about saving journalism. It’s about saving zombie publishers, newsrooms that no longer generate value through market support but remain on life support thanks to government benevolence. 
“Subsidies are handed out not to create a better future, but to preserve a decaying past.” – Peter Menzies
And the public knows it.
In recent polling cited by Menzies, a staggering 70% of Canadians oppose government funding for news organizations. Trust in Canadian media continues to plummet. Just 14–15% of respondents feel their political views are fairly represented in national coverage. This is not a minor crisis. It is a crisis of democratic legitimacy.
Why? Because journalism’s core function is to act as a check on power. When the media takes money from the very institutions it should scrutinize, especially without audience consent, it becomes less of a watchdog and more of a house pet. Critical independence is dulled, and coverage may self-censor to avoid biting the hand that feeds it.
Even worse, Menzies warns that this model undermines media pluralism. The flood of subsidies toward legacy players creates an unfair playing field. Innovative, independent startups, those daring to build new models of journalism, find themselves crowded out by lumbering subsidized giants who no longer compete for readers but for federal dollars.
The effect is corrosive. Instead of public trust being earned, it’s being replaced with bureaucratic paperwork and subsidy eligibility. Meanwhile, government-aligned media becomes normalized. A once-vibrant press degenerates into a cartel of dependent outlets—a mutually beneficial alliance between journalists and politicians.
This isn’t theoretical. It’s happening now.
And both major parties are complicit. While the Liberals actively expanded media subsidies, the Conservatives haven’t promised to repeal them, even after blasting Bill C‑18 in public. This bipartisan consensus reveals a troubling truth: journalists have succeeded in capturing political institutions, not the other way around. The shakedown has worked. Ottawa pays up. The media keeps quiet.
But what’s the solution? Menzies outlines a three-pronged path to recovery:
- End production-side subsidies: Instead of giving money directly to media outlets, Menzies suggests we fund audiences. Let citizens, not politicians, decide what journalism deserves their support.
- Introduce subscription tax credits: Similar to charitable giving incentives, these would reward Canadians for financially backing the media they trust—whether legacy or independent. It’s a model that empowers the public and diversifies the ecosystem.
- Reform the CBC: The CBC should abandon its English-language commercial services and refocus on its public-service mandate, supporting unserved regions, Indigenous communities, and national unity. No more billion-dollar duplications of what the private sector already provides.
These changes won’t be easy. But they’re necessary. Without them, Canadian journalism will continue to drift toward a state-sponsored echo chamber, alienated from the very public it claims to serve.
There’s a lot at stake. As Menzies puts it, we are watching the “last days of media freedom” in Canada. And unless we act soon, the press will no longer serve the people, it will serve its paymasters in Ottawa.
So, remember when Canadian media was independent?
It’s time we make it that way again.
You can subscribe to Peter Menzies’ substack.
