CHECK AGAINST DELIVERYCEO Address to Shareholders January 10, 2013 Page 3
For our part, as we enter our third full year, we will keep up efforts to implement initiatives thatmove this company forward.We must face the implications of a changing audience dynamic and an uncertain revenueoutlook. We must ensure that we continue to explore new opportunities and seek a deeperunderstanding of our audiences.Recreating a cost structure that supports a new business reality rather than continuing tosubsidise the nostalgia of a former business model is critical.All of this takes hard work on the part of management and includes making some toughdecisions. But we can’t be tentative about this direction if we truly believe in the future of ourindustry and we do.We led the Canadian industry with the launch of paid online content models adding three morelast year. In the year ahead, we’ll roll this out to the rest of our newspapers.We have taken a thoughtful approach to this and through our ongoing pilot projects havedeveloped deep insights and a strong infrastructure of internal expertise and deepeningmetrics.Increasingly, the industry, across North America is moving away from a free-for-all, alwaysmodel to some type of pay model. Even the Washington Post, one of the last big holdouts, hasrecognized that giving your most important commodity away without any charge must come toan end.As far as we can remember, other media have benefitted from the investment newspapercompanies have made in journalism. TV and Radio, and now Web players, borrow and take,adapt and redistribute our content every minute of every day.Finally, news organizations have taken notice that the time of spending millions and millionsonly to give it all away for free is a road that leads to a dead end. We must find ways tocontinue the important work of providing Canadians with trusted, thoughtful, insightful andvalidated content
to be appropriately compensated for it. That is one of our greatestchallenges.