Introduction

The Government of Canada has a long history of support for Canadian periodicals, with a suite of policies and programs that have been adjusted and improved over time to respond to evolving market conditions.

This evolution has accelerated in the last decade with new industry challenges and changing media consumption patterns, requiring public policy to become more flexible and responsive. Indeed, over the past several years, Canadian periodical publishers have been faced with a media environment where change is the new norm. From new technology to new audiences, the needs of Canadian readers are changing and the landscape of the Canadian periodical industry is shifting in response.

On the technology side, the World Advertising Research Center has reported a steady rise in online advertising sales, which, combined with an increase in the number of Canadians online, has encouraged Canadian publishers to explore ways to use new media to complement their print publications. The result has been innovations in reader engagement and subscription sales – from community newspaper publishers introducing online video features to magazine publishers offering web subscription and email updates. An investment in the Internet also no longer seems as financially risky, given that the International Federation of the Periodical Press (FIPP) has found that two thirds of online magazine websites are now profitable world-wide. The growth of the Internet has also brought challenges for periodicals, however, as online users have become accustomed to free content and advertisers are seeking cross media discounts.

Canadian periodicals are also finding new audiences and new voices. The continued growth of ethnocultural community publications demonstrates how the concept of a community newspaper can include a diversity of languages and perspectives. According to the 2005-2006 analysis of global magazine trends produced by FIPP and Zenith Media, a record number of new Canadian magazine titles appeared in 2004. The rapid growth of several new categories, such as shelter (home and garden) magazines, demonstrates how publishers are recognizing content gaps and filling them with features geared towards a Canadian readership.

With continued fierce competition at the newsstand, subscriptions continue to be the dominant sales model for Canadian periodicals. Working towards stability in the government’s approach to distribution support and seeking to improve the newsstand share for Canadian magazines will be key challenges for the future.

Canadian Heritage is proud to contribute to the continued success of the Canadian periodical publishing industry and the production of content, tailor-made for the Canadian reader. It is with this sense of pride that we present our third annual report, Numbers and Issues, detailing our contribution to the production of Canadian magazines and community newspapers in 2005-2006. Over the next year, we will focus on working with the publishing community to ensure that our policies and programs are positioned to respond effectively to changing industry trends and needs.

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