La Presse Strikes Revised Printing Deal with an Option to Publish Less Often

Montreal-based daily, La Presse who has invested heavily in the recent past to attract readers to its free tablet edition, is now firmly intended to reduce the high costs of printing and delivering physical copies, Financial Post reports.

La Presse's owner Gesca Ltd., a subsidiary of Power Corp. of Canada, has struck a one-time payment deal with Transcontinental Inc. for $31-million in exchange for price reductions on future services and flexibility regard publishing of the newspaper less often. Transcontinental will continue on as the exclusive printer of La Presse and maintain ownership of the printing plant and equipment.

The French-language newspaper will now enjoy more flexibility to reduce its printing volumes and save money. The Montreal-based printer called the new contract "mutually beneficial."

"Given the current pace of change in the newspaper industry, coupled with La Presse's digital strategy push over the past year, the amended agreement aligns TC Transcontinental and Gesca Ltd. more closely with new realities," CEO Francois Olivier was quoted in the MontrealGazette.com. While the agreement will provide "greater flexibility on price and volume," details on the changes, including new minimum printing thresholds are confidential. The contract, originally signed in 2003, still expires in 2018.

"Given the rapid pace of change in the newspaper industry and the success of La Presse+ and our multi-platform offering, we wished to review the terms of our printing contract in order to obtain greater flexibility with respect to our printing needs," said La Presse president and publisher Guy Crevier. La Presse has spent about $90 million annually on printing the paper.

By: Savita V Jayaram