Tuesday, August 30, 2011

New CPF funding formula puts the emphasis on reaching readers

At long last, Canadian Heritage has released its revised formula for support under the Canada Periodical Fund (CPF). The new rules under the Aid to Publishers (ATP) segment, the core of the program, had been significantly delayed and a good many publishers have been anxious about the changes being contemplated.
  • The new formula is based on circulation levels and success in reaching readers (rather than postal or editorial costs, as in predecessor program, the Canadian Magazine Fund); 
  • Magazines will receive higher funding per copy than newspapers;
  • Paid circulation will receive higher funding per copy than request; 
  • Funding is weighted to benefit small circulation publications (for instance, a magazine with 25,000 paid copies could receive a maximum of $31,000; 
  • A third of recipients will see their amounts change by more than 50%; most publications will see increases, but some will see decreases.
  • The cap on funding remains $1.5 million, applied to the largest publications. 
  • The new formula will be phased in over a three-year period, starting in 2011-12.
 Here is an example of one of the tables that illustrate the application of the new formula under the ATP:
Magazines Canada said in a release that the new formula would create some subtantial changes in levels of support, compared with last year and that this would be a significiant challenge for many titles; however it said that it welcomed the three-year transition. 
The CPF was announced in February 2009 and in the 2011 federal budget, long-term stable funding was committed. The program receives $75 million annually and is distributed among some 900 Canadian magazines and non-daily newspapers.
In addition to ATP, the CPF funds business innovation for small and mid-sized printed and digital magazines and collective initiatives for industry organizations for research into new technologies, business planning and marketing.

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