Fretting over a “sharp downturn” in ad revenues, rising paper costs and “destabilizing unilateral decisions” by Canada Post, Magazines Canada is urging Ottawa to invest in the Canadian periodical industry in the upcoming Federal Budget.
In a pre-budget consultation paper released Friday, the industry association urged the Harper government to maintain its current level of investment in Canada’s periodical policy, including the Publications Assistance Program (PAP) and the Canada Magazines Fund (CMF).
According to Magazines Canada, the PAP supports more than 800 titles and has a “proven track record” securing higher levels of access to Canadian magazines. The program is supported by $45 million from the Department of Canadian Heritage, but Magazines Canada decried the decision by Canada Post Corporation to withdraw $15 million in annual funding to the program effective March 31, 2009. The loss of one quarter of the program’s funding will result in an “overnight” increase of 31% in postal costs and negatively impact the industry, said Magazines Canada.
“This is further exacerbated by the introduction by Canada Post of ‘distance related pricing,’ which in short, discriminates against readers outside of major metropolitan centres,” it noted. “There has been no consultative process in these matters.”
Magazines Canada described the CMF as a “linchpin” for the creation of Canadian content, with $15.5 million used exclusively for editorial development.
The industry association also lobbied for an increase in federal government advertising, arguing that an increased presence in magazines “will provide important information to Canadians on programs and policies in place to stimulate the economy, and how they can access them.” Increased government advertising, it noted, would also provide “an important direct stimulus to Canadian periodical publishing.”
Advertising comprises between 60% and 65% of magazine revenue, with much of it coming from beleaguered sectors like automotive that are cutting back on discretionary spending such as advertising.
“Canadian-owned magazines maintain a close ratio of advertising pages to Canadian editorial pages with the former ‘paying the bills’ associated with the latter,” noted Magazines Canada. “When advertising revenues decline, editorial pages also decline. In turn, investment in creative jobs declines.”
Magazines Canada noted that ongoing developments have forced publishers to significantly cut back on discretionary spending, curtail editorial investment, postpone or cancel freelance contracting and lay off staff. The magazine industry contributes $1.5 billion a year into the economy, it said, while creating over 8,000 full-time jobs and “ongoing creative opportunities” for more than 5,000 freelance writers, illustrators and photographers.
