Source : Calgary Herald

The impact of technology is "profoundly" changing the balance of power in Canada 's media industry and blurring the lines between television, newspaper and online content, CanWest Global Communications Inc.'s chief operating officer Rick Camilleri said Wednesday.

"In the past, media companies decided what people watched, listened to and read. Now, technology is the great enabler and the consumer is king," he said.

Speaking at an RBC Capital Markets investor conference in Banff, Camilleri outlined CanWest's strategy for merging its traditional broadcasting content with its newspaper assets by charging fees for online access.

The company, which owns most of Canada's major metropolitan dailies, including the Calgary Herald, has already rolled out a revamped web-based news and information service with four levels of Internet content.

Those with seven-day subscriptions to the Ottawa Citizen and National Post, for example, are able to read breaking stories, columns and features and access links to weather reports and other sites.

Later this year, the firm expects to partner with cable, satellite and telecom providers to launch a multimedia digital newspaper, with news, information and entertainment content culled from CanWest's TV, newspapers and online sources.

Subscribers will be able to place their own classified ads, for example, by sending a digital video file.

"This is how we see television and newspapers fusing together," said Camilleri, who referred to the technology as "PowerPoint on steroids."

"It's a platform that will enable us to engage in one-to-one dialogue with our readers, subscribers and viewers," he added.

"Our publications put out reams of content every day and we plan to deliver that."

Traditional broadcasters, faced with competition for advertising dollars from specialty channels and other rivals, are seeking to attract new revenue sources by merging together a cross-section of media ventures.

In its most recent quarter, CanWest said newspaper advertising was stable, while publishing revenues rose two per cent to $303 million from $297 million from the year-earlier period.

The Winnipeg-based company posted first-quarter net earnings of $81 million, or 46 cents a share -- a 19 per cent increase from the $68 million, or 39 cents a share, a year earlier.

In addition to restructuring its online presence, CanWest is exploring possible acquisitions in the increasingly hot media sector. Among the assets up for sale are Calgary-based Craig Media Inc. and its Toronto 1 TV station.

© Calgary Herald