New Canada Periodical Fund holds steady at $75.5 million

The new Canada Periodical Fund is expected to deliver about $75.5 million in funding support for the magazine industry. The CPF -- which will merge the Publications Assistance Program and the Canada Magazine Fund starting in 2010 -- has essentially preserved the level of funding previously received. The announcement was made this morning in Montreal.

This can be considered a major accomplishment for James Moore, the minister of Canadian Heritage as he contends with straitened budget circumstances in Ottawa. It's also a lobbying coup for Magazines Canada.

The new program -- whose details will be worked out in industry consultations over the next year -- will probably cap grants to any one title at a level of $1.5 million, although it won't necessarily limit what can be given to a multi-title publishing company. The program won't necessarily start in April 2010, either; its implementation depends very much on having a smooth transition, according to industry sources. In the interim, current programs (PAP and CMF) remain in place.

Eligibility will require fundable magazines to have some combination of verified paid or request or newsstand circulation, as well as containing a minimum of 80% Canadian content.

“The periodical industry is a key cultural sector in Canada. Magazines and community newspapers generate revenues of about $3 billion annually and employ tens of thousands of Canadians in every region,” said Minister Moore in a release. “This industry needs stability in the levels of financial support it receives from the Government to weather the current economic slowdown, and that support should be flexible, targeted, and relevant. Our goal is clear: to offer Canadian publishers a simple and effective program so that they can continue to provide readers with a broad range of quality Canadian periodicals.”

There was no announced separate fund for community newspapers and the farm press, who had been pressing for it, so they will continue to be competing with consumer and b2b magazines in the main fund. While there is a lot of talk about online and digital publishing initiatives, this will depend on definitions derived from a consultation that hasn't yet been done.

The bulk of the money ($72 million) goes to publishers to spend as they wish on any aspect of building their businesses. In addition, there is about $2 million for "collective initiatives"; this replaces the association infrastructure program which was formerly about $2.5 million. And there is a $1.5 million for business innovation -- project support for small enterprises.

Small literary and cultural magazines come under the main funding umbrella; the current SALM (support for literary and arts magazines) program will be discontinued and it remains to be seen what proportion of the main fund will be informally allocated to small cultural titles.

“Today’s announcement demonstrates a strong commitment to a vibrant Canadian magazine sector,” said Mark Jamison, CEO of Magazines Canada. “This is good news for readers of Canadian publications, for the creative community and for the publishing sector. The new program will provide greater flexibility to publishers, providing more options in making magazines accessible to Canadian readers. It addresses the changes taking place in the publishing sector and will be more relevant in today’s environment.”

Professional association magazines such as those for accountants, engineers and so on will no longer be eligible.

Government release and backgrounder

Related stories:

• Tories announce details of reworked Canadian magazine fund (Globe and Mail)