Support will continue for Canada Periodical Fund

The Canada Periodical Fund is going to continue to be the principal support for Canadian magazines and paid community newspapers, according to a speech by Heritage Minister Mélanie Joly. The announcement is one result of the comprehensive review of federal cultural policy and support for creative industries. It's something for which Magazines Canada has been lobbying.

Minister Joly signalled that the federal government recognizes the important role Canadian magazines play, both culturally and economically, and that Canadian Heritage officials will pursue their work to review and modernize the Canada Periodical Fund, all the while continuing to support the Canadian magazine sector.

"Whether they provide a guide to your own city or bring new intelligence to trade professionals, Canadian magazines build communities of readership that are unique and very important," said Scott Jamieson, Magazines Canada board chair. "Serving a geographic or linguistic group, focussed on an artistic practice, delivering entertainment and news, or exploring sexual identity, Canadian magazines' communities of readership are as diverse as Canadian society itself."

Circ eligibility under Canada Periodical Fund reduces from 5,000 paid a year to 3,500

The Department of Canadian Heritage has  reduced the required number of paid copies a magazine has to circulate in a given year in order to be eligible for application to the Canada Periodical Fund. Previously, the floor was 5,000 copies, which often made it very difficult for small literary and cultural quarterlies, for instance, to meet the threshold. Now, they must have sold at least 3,500 paid copies through subscription copies and single-copy/newsstand copies during the financial year. So, a 30% decrease. And aboriginal, official language minority, ethnocultural and lesbian, gay, bisexual, and transgender (LGBT) magazines must have sold at least 2,000 paid copies. 

(Some may recall that in June 2010, director of periodical publishing and programs from the Department of Canadian Heritage told a session at the MagNet conference said that magazines falling under a 5,000 copy-a-year threshold were "micro magazines"  and that the costs of servicing very small arts and cultural publications (roughly 50 of which became ineligible under the threshold) outstripped the benefit to Canadians of their tiny circulations. The CPF was basically an “industry support program” and that his department made the decision that the programming was intended effectively to support magazines as viable businesses.)

Funding still available, says Canada Periodical Fund, but best get applications in by Sept. 15

The Canada Periodical Fund is reminding eligible publishers that funding is still available for the 2014-2015 year under the Collective Initiatives component and, although applications are accepted through the year, the Fund suggests that applications should be filed by September 15 to allow sufficient processing time. More information. 

Applications being welcomed for business innovation component of Canada Periodical Fund

A note from Canadian Heritage says that funding applications for business innovations under the Canada Periodical Fund are being accepted now for the 2014-15 fiscal year. It is recommended that applicants allow four months prior to a project start date, though applications are accepted throughout the year. 

This component offers project funding to eligible small and mid-sized print magazine and digital periodical publishing firms. It encourages innovation to adapt to changing market conditions and contributes to the diversity of content sought by Canadian readers. 

Details: http://www.pch.gc.ca/cpf

Of note: this year there are minimum average price criteria for both subscriptions and single copies/newsstand copies sold; particular support is offered for  history related projects and history periodicals (http://www.pch.gc.ca/eng/1370873738331); and a webinar will be announced in May to assist applicants. 

Still time for magazine organizations to apply for CPF funding

There's apparently still some money in the kitty for organizations and collaborative groups wanting to access the Collective Initiatives component of the Canada Periodical Fund for 2012-2013. But there's just one month to pull the application togegther. Organizations must send their application by September 30, 2012.

The Collective Initiatives component is intended to increase the overall sustainability of the Canadian magazine (and non-daily newspaper) industry by supporting broad‑based marketing plans, research into new technologies and projects that tackle systemic issues affecting the sector.  The other components are Aid to Publishers and Business Innovation (aimed at small- to medium-sized publishers.)

Detailed eligibility criteria, application requirements and forms are available at the Canadian Heritage (PCH) website by following this link: 

http://www.pch.gc.ca/eng/1268240166828/1268328701928

Quebec MP questions whether mens' magazines are culture

Criticism is being levelled at grants from the Canada Periodical Fund to a Quebec men's magazine publisher. Summum and Summum Girl, published by Editions Genex, received a total of $141,000 in 2010/11 and $191,719 in 2011/12 under the Aid to Publishers portion of the fund. 

"It's unacceptable," said Bloc Quebecois MP Maria Mourani Wednesday. "You can't just subsidize magazines like this one willy-nilly - there needs to be some logic to it. It's supposed to be about supporting culture, well, we should ask: what is culture? Is it just anything?"

Patrice Demers, president of Editions Genex, told Montreal radio station 98.5 FM he shouldn't be singled out when the funds are available to all Canadian publications.

"It's helping all Canadian magazines survive," he said. "Why is it different for Summum?"

Canada Periodical Fund and Canada Council funding held safe in federal budget

In what was otherwise a tough day for the Department of Canadian Heritage, as a result of the 2012 federal budget, the magazine sector came off alright. Magazines Canada has posted a bulletin to its members congratulating the department for successfully defending funding for the Canada Periodical Fund (CPF) and the Canada Council.

Magazines Canada congratulates the Government of Canada for reaffirming its investment in the Canada Periodical Fund and the Canada Council for the Arts.

"We are pleased that Finance Minister Flaherty and Minister Moore have continued their commitment to the newly designed Canada Periodical Fund as an important driver of economic activity and the creation and circulation of Canadian content across multiple platforms," said Mark Jamison, CEO of Magazines Canada.

"Further, we congratulate the Government on its decision to sustain support for the Canada Council for the Arts—our most important agency of support and guidance to the broadest community of arts and cultural activity in Canada, including our arts and literary magazine creators."

Some $191.1 million is being cut in heritage programs over the next three years. The Canadian Broadcasting Corporation, which falls under the purview of heritage minister James Moore, will lose $115 million in funding over the next three years. The National Film Board will see its budget cut by $6.7 million over the same period while Telefilm Canada will lose $10.6-million The Canada Council for the Arts, the National Gallery of Canada and national museums will not see any budget reductions.

Magazines Canada letter to MPs challenges them to support domestic magazine industry

Magazines Canada has sent a release to all members of the House of Commons encouraging them to support Heritage Minister James Moore's streamlining and modernization of programs supporting cultural industries, particularly the Canada Periodical Fund. The release, in the form of a letter signed by the Magazines Canada chair, Deborah Morrison, the publisher of Canada's History and Kayak magazines, says that the new CPF is laudable because levels of support are based on consumer acceptance and gives publishers flexibility in where they invest public support.

The letter, in part, addresses some MPs' criticism of public money going to large publishing companies:

Criticizing our leading companies and governments for utilizing taxpayer dollars to achieve policy goals is a well- travelled road in this country, and it’s unfortunate. Some U.S. publishing companies are larger than Canada’s entire magazine publishing sector and U.S. magazines dominate newsstands across Canada. This does not just affect the availability of Canadian content. It affects Canadian commerce. Canadian businesses, in every sector, advertise their products and services in Canadian trade and consumer magazines. When consumers choose a foreign magazine and make purchasing decisions, they may end up bypassing Canadian suppliers for foreign ones....

Rather than criticize the modest investments made to support this tremendous success, we should be looking to position the industry to best take advantage of the opportunities of the vastly expanding world of digital media and firmly establish Canada’s presence in it. Will Canadians have the creative jobs in both content development and delivery platforms in this global business or will they go to others? Can Canada replicate the success it has had with homegrown magazines in the digital universe or will online content all come from beyond our borders?

The full text of the letter is available on the Magazines Canada website.

Aid to Publishers applications to Canada Periodical Fund due by December 12

Just a gentle reminder to publishers that there is a little more than two weeks until the deadline for application to the Canada Periodical Fund's Aid to Publishers component.

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.

Federal funding cheques may not come until September, and then only part

Be prepared to wait for federal funding; that's the reminder that Magazines Canada has sent to its members in its biweekly newsletter:

If you are eligible for the Aid to Publishers component of the Canada Periodical Fund, you should be aware that support to publishers will be delayed in 2011—and the delay could be quite substantial.

In the 2010 "transition year" (the first year of the CPF), publishers were notified of the amount they would receive and cheques started to be delivered starting in mid-June. In 2011, cheques are not likely to be mailed to publishers before August or September and the first payment publishers receive will be for only 75% - 80% of their final allocation. There are several reasons for this delay:

• This is the first year in which all magazines were required to fill out full applications. Each had to be assessed by the Department: extensive and time-consuming work.
• The budget for the CPF was only finalized in March of 2011, when the federal budget was tabled.
• The budget was further delayed by the federal election.

As a result, Department of Canadian Heritage officials have only recently been able to move the payment process forward. It is now expected that publishers will receive payment later in the summer—probably in August.

Also, as a result of these factors the Aid to Publishers payment will be broken into two parts. While the full budget of $75 million has been allocated to the program, $15 million of that funding was announced in the recent budget and further steps have to be taken to secure Parliamentary approval before it can be distributed. In the interest of expediting payment to publishers, officials will proceed with payment of the first 75% to 80% of the program this summer, and follow up with a second payment for the remainder, likely in January 2012.

Phew, the funding is safe!

The gratitude and sense of relief of Canada's magazine industry is quite evident in a release today concerning the most recent federal budget which confirmed $75 million in support for the Canada Periodical Fund. Magazines Canada has been lobbying hard on behalf of the fund.

“The CPF commitment in the budget will help create jobs and economic growth while contributing to the industry’s transition to new digital distribution channels,” said Mark Jamison, CEO of Magazines Canada. “This is good news for Canadian magazine readers and the creative industry that produces high quality Canadian content.” 

“Minister Moore has shown great leadership in modernizing and updating the Canada Magazine Fund to make it more relevant and effective in the digital age,” said Jamison. “We thank him for securing a full budget for the program for the coming years.”

Extra $15 million in CPF funding up in the air, Magazines Canada tells members

Magazines Canada is telling its members that the election call and the fact that the recent budget was never passed may mean 20% less money in the Canada Periodical Fund. The March 22 budget had contained a provision for a $15 million addition to the $60 million fund.

• The road ahead is not clear but there is a very good chance that, when payments to publishers are made in June or July of 2011, they will be based on a budget of $60 million, 20% less than the $75 million the program dispensed last year at this time [the item in the association's newsletter says]
• Whether or not the remaining $15 million is approved and the timing of its potential distribution to publishers depends on a series of variables.

The association says one of two scenarios could play out for the program -- which give grants for business and editorial development -- either of which will give pause to publishers counting on the money:

1. The Department of Canadian Heritage could disburse the $60 million come June or July then make a second payment later if the $15million materializes;

2. The $15 million is never approved, in which case the fund will have been permanently shrunk.

Not surprisingly, Magazines Canada says it will continue to advocate for the full $75 million.

Publisher says Canada Periodical Fund unfair to online-only magazines

The editor and publisher of CMG Online, an online-only motorcycle magazine is mounting a Facebook, lobbying and letter-writing campaign to get the provisions of the Canada Periodical Fund changed. 

Rob Harris's beef is that the funding earmarked for online development will go disproportionately to print magazines to create online sites that compete with web publications like his. He acknowledges that one part of the fund (Business Innovation) does allow print and web media to apply, but it’s geared to encouraging new media, not helping established magazines like CMG Online..

Harris

"The government’s Aid to Publishers fund that professes to enable Canadian magazines to “overcome market disadvantages and continue to provide Canadian readers with the content they chose to read” is threatening to kill innovation and quality on the Internet."[he writes in an editorial on the magazine's website]....

"I'm all for competition, but would rather compete on a level playing field where survival and prosperity are the upshot of one’s ability to do a good job and not on one’s ability to attain government handouts. And though I’d like to think that operating a lean machine, with a great staff and a loyal readership will be enough, it’s hard to even remain standing on a playing field that is tilting far from level.

"But if the government does insist on giving handouts then be fair about it. Promote magazines that provide Canadian readers what they want, regardless of the medium that they are presented upon."

Harris is asking readers and supporters to write to James Moore, the Minister of Canadian Heritage and provides a draft letter on his website and on a Facebook page he's created for the campaign. He has also enlisted the help of his own MP, Dominic Leblanc.

Canada Periodical Fund aid to publishers grant applications due November 24

The Department of Canadian Heritage is reminding magazines that they have only until November 24 (that's next Wednesday) to apply for the Aid to Publishers component of the Canada Periodical Fund. The applicants' guide is available at the DCH website.

Fuse magazine appeals to its subscribers for a $40,000 way out of a financial crisis

Fuse magazine, one of Canada's older arts and culture magazines, has been forced by a financial crisis to appeal for a bailout from its supporters in what they are calling their 40 for 40 campaign. Keying off their forthcoming 40th anniversary, they are trying to raise a total of $40,000 by March 31 of which they need to have  at least $10,000 in hand by December 1. 

A letter sent to subscribers and friends on Thursday details the situation this way, citing among other factors last year's decision by the federal government to exclude small-circulation arts, culture and literary titles from its new Canada Periodical Fund:

"Fuse has run into a financial crisis that we can't solve by shaving back our budgets or recruiting volunteers. Anyone who works in the cultural sector knows how increasingly vulnerable we have all become. Along with the closure of swimming pools, libraries and youth centres, the defunding of essential cultural organizations and alternative publications regardless of their value to the community is the result of a political climate shifting further away from the social good.

"The not-for-profit magazine community is declining as the commercial publishing model continues to dominate. Magazines operation outside of the mainstream industry, like Fuse, were further challenged this year by a 100% funding cut from Heritage Canada. The hit was both unexpected and impossible to fiscally absorb, and is being felt across small magazine publishing."

(As recently as 2008-09, Fuse received a grant of about $20,000 from the old Canada Magazine Fund's support for arts and literary magazines (SALM), which was discontinued last year. Magazines which had an annual, paid circulation of fewer than 5,000 copies -- mostly small, quarterly cultural titles like Fuse -- were left out of the Canada Periodical Fund because they're considered  "micro magazines", which are not businesses.)

Magazine publishers given just six weeks to apply for CPF program for 2011-12

[This post has been updated]Canadian Heritage has just published its application guide for aid to magazine publishers and has given publishers barely six weeks to apply. The deadline is November 24. The aid to publishers component provides publishers of paid or verified request magazines with funding to produce and distribute their publications.

The complete eligibility criteria are here. 

• Paid circulation magazines must have sold at least 5,000 paid copies annually, with the exception of aboriginal,official language minority or ethnocultural publications, where the floor is 2,500. 
• Eligible magazines must have a minimum average price of $1 per copy or an average minimum annual subscription price of $12. 
• Magazines must be majority Canadian owned and contain an average of at least 80% Canadian editorial content and no more than 70% advertising. 
• Verified request magazine must have distributed 5,000 requested copies, representating at least 50% of the magazine's total circulation. 

[Update: Most of the program is the same as the 2010/11 application except that there is no longer a provision that previous applicants will receive no less than 90% nor more than 120% of their previous year's grant.]

Canadian Heritage announces $52.7 million in Canada Periodical Fund grants

[This post has been updated] The  Aid to Publishers' grant data for the Canada Periodical Fund for the 2010-11 year have been released and are available online. A total of 484 titles received $52,669,029 in grants ranging from the largest, at $1,500,000 to the smallest, at $386. The CPF replaces the postal subsidy (Publications Assistance Program) and the Canada Magazine Fund (CMF).

(As reported in earlier posts, most of the smaller cultural magazines were shut out of funding by a circulation floor that disqualified titles with fewer than 5,000 paid copies per year. and the support for arts and literary magazines (SALM) was discontinued.)

The average grant under this year's CPF was $108,820, but this is somewhat skewed as 11 publications received more than $1 million and five publications received the maximum allowed ($1.5 million) under rules of the new program. The median (the figure where half of recipients receive more, half less) is about $22,222. Here are the magazines that got the maximum:

• Canadian House & Home 
• Canadian Living
• Chatelaine (English)
• Maclean's
• Reader's Digest

The other magazines receiving more than $1 million from the CPF including the above and

• Coup de Pouce ($1,426,187) 
• Style at Home ($1,349, 466) 
• Movie Entertainment ($1,292,492) 
• Châtelaine (French) ($1,236,251) 
• TV Hebdo ($1,157,100) 
• Primeurs ($1,103,183)

While not a surprise since the rules were announced last year, these larger consumer magazines were nevertheless getting considerably less than they previously received from the Publications Assistance Program (PAP) and the Canada Magazine Fund (CMF) combined.  For example, Canadian Living loses $1.36 million in funding under the CPF. The combination of Chatelaine and Châtelaine was $2,736, 251, compared with $3,892,943, a 30% drop. Canadian House & Home receives $1,500,000 where previously they received $1,623,492, a cut of about 7.6%.

At least in part because of this hard cap on grants and the smaller number of magazines eligible, many titles  received slightly or much more than previously. For example:

• Applied Arts ($67,446 compared with $65,616)
• Canadian Business ($535,000 compared with $471,000 in 2008-09) 
• Canadian Plastics ($13,731 vs. $12,758)
• Chirp ($282,220 compared with $211,308)
  
• Clin d'oeil ($480,749 compared with $436,581)
  
• Cottage Life ($265,674 compared with $237,535) 
• Fashion ($715,369, compared with $667,176)
• Flare ($782,000, compared with $720,000) 
• Frank (Atlantic Edition) ($28,450 vs. $8,202)
• Geist ($13,226 vs. $11,806)
• Hamilton magazine ($32,855 compared with $30,470)
• Homemaker's ($859,431 vs. $689,981)
• Legion magazine ($551,969 vs. $445,900) 
• LouLou ($1,027,357 combined for its English and French editions, compared to $891,413) 
• Maisonneuve ($25,717 vs. $26,319) 
• MoneySense ($211,635, compared with $156,930) 
• Motorcycle Mojo ($19,835 vs. $13,224)
• Opera Canada ($6,835 vs. $4,757)
• Outdoor Canada ($277,992 vs. $221,656)
• Prairies North ($26,912 vs. $20,592)
  
• This Magazine ($8,911 compared with $5,941)
• Toronto Life ($723,658 vs. $686,788)
• Up Here ($77,518 vs. $69,817)
• The Walrus ($261,264 vs. $217,199)

Here are some examples of magazines that stayed steady or saw a drop in support this year, compared with 2008-09 data on the Canadian Heritage website:

• Border Crossings ($49,515 compared with $52,346 (most of which came from discontinued Support for Arts and Literary Magazines -- SALM)
• The Dance Current ($19,352 vs. $20,487)
• Literary Review of Canada  ($19,499 vs. $19,882)

[Note, the comparative figures are between this year's CPF and the two components that were merged to create it. In some cases, the 2008-09 figures include funding under the SALM component.]

[Update: See Globe and Mail article on grants.]

[More analysis later]

Related posts:

• Small cultural mags were cut adrift because they're not businesses
• Periodical Fund quietly removes requirement to print funded mags in Canada
• New CPF wholly ignored industry recommendations says BCAMP exec
• Canada Periodical Fund abandons small literaries, cuts maximum funding for all but farm pubs
• Is consistency the hobgoblin of the heritage ministry?
• Canadian Business Press calls for federal fairness in funding
• Give responsibility -- and money -- for small mags to the Canada Council, Mags Canada says
• Time is ticking away for solution to small literary and cultural mag funding
• Does the government want to treat small mags and readers like cockroaches?
• Facebook group protests discontinuation of small arts and literary mag funding

Small- and mid-sized mags have until Sept. 17 to apply for CPF Business Innovation funding

Small and mid-sized print and digital magazine publishers have until September 17 to put in their applications to be eligible for the current round (2010-11) of the Business Innovation component of the Canada Periodical Fund from the department of Canadian Heritage. Applications received later will not be considered until the 2011-12 round. 

The business innovation program offers support for projects that innovate in adapting to changing market conditions and contribute to diversity of content.

A portion of the funding for this component has been reserved for digital periodicals. And priority will be given to arts and literary periodicals that were awarded a grant by the Canada Council in 2009-10. (In effect,this may soften the blow for small cultural publications who were denied access to the Aid to Publishers component because they had fewer than 5,000 paid copies annually.) The program for print periodicals is restricted to publications with 50% paid or verified requested circulation and no less than 250 and no more than 45,000 average circulation.

There is an extensive applicant's guide online. Among the general project requirements:

• Projects are considered innovative if they explore new technologies or business models;
• They must be well-researched and clearly demonstrate realistic objectives and measurable outcomes, supported by a business plan or market research;
• Projects must demonstrate that they will increase circulation, advertising or other revenue and thereby support the growth and sustainability of the publishing firm;
• The maximum government contribution is $25,000 ($10,000 for a business plan, $15,000 for a marketing plan) and represent 75% of the project's costs; the rest may be made up of in-kind or cash contributions, including pro-rated salary of individual(s) working directly on the project

New rules make for winners and losers in the new Canada Periodical Fund

MastheadOnline has compiled a good and interesting rundown of the winners and losers (actual and potential) under the rules for the new Canada Periodical Fund, finally announced this week.