MDST 2020 Lecture 4: Week Four
Week Four
Canada’s Magazine Industry
Tough industry
Believed important culturally
A 1.6-billion-dollar industry dollars per year
Employs 14 thousand people
Over 2000 magazines produced
80% Canadian content
Municipal World
Caters to municipal government workers around the world
Niche magazine
Diverse
Can be an effective tool for advertisers
Ads can be more creative
More pictures, less words
Can be bigger
Colour and texture
Can keep it- it has more endurance than newspaper
Read by all age groups
Canadian magazines reach 9 out of 10 Canadians per week
7 out of 10 Canadians are magazine readers
Digital magazine readership in Canada now up to 5 million vs 1.85 million in 2013
How is the magazine industry unique?
Industry occupies middle ground with regards to its relationship with the state
compared to newspaper/TV
Magazines privately owned but industry wants protection
Tend to be smaller operations than newspaper
Impact of the internet
Digital readership has tripled over the past two years
Digital advertising is becoming a larger source of revenue and is increasing
The Magazine Industry
The Canadian industry
Demand for American magazines in Canada is declining
More retail magazines in Canada per capita than any other country
What is the Canadian Periodical Fund?
oWhere the government gets involved
oStarted out as a postal subsidy
oProvide production support
oSmall magazines get more money than larger magazines
oDone to enhance Canadian access and strengthen industries
General issues
Magazines provide advertisers access to very targeted audiences
Circulation and Pass-along rate
CPM: Cost per thousand readers is higher than other mass media
Revenues expected to continue to fall
Book Industry
A tough industry
Publishing side – employs 9,000 people and generates 2 billion in revenue in Canada, 40
billion in sales in United States
Chapters comes on scene as response to big box stores in USA
Chapters merges with Indigo in 2001, ending chaos in the industry
Chapters was a way to block US bookstores from coming into Canada
Canadian Book Industry
Number of titles has increased dramatically
More Canadian books published for same number of customers according to study
commissioned by Heritage Canada
Book Industry in General
About 70% of adults read one or more print books
Almost 30% read an e-book (Amazon has the majority of the market!)
Book Industry
Canada Book Fund
Help Canadian authors
Indigo made about 21 million dollars’ gross profit on revenues of just over 1 billion
dollars for 2016
Core business of books is growing again, but Indigo has had to diversify into other areas
Barnes and Noble made approximately 22 million dollars on sales of about 3.9 billion
dollars
Borders went bankrupt in 2011
Margins are not high in this business at any end
The Future?
Mergers and consolidation
Retailers like Amazon
Going digital
Forced to diversify
End of the industry?
Media and Government
Document Summary
Caters to municipal government workers around the world. Can keep it- it has more endurance than newspaper. Canadian magazines reach 9 out of 10 canadians per week. 7 out of 10 canadians are magazine readers. Digital magazine readership in canada now up to 5 million vs 1. 85 million in 2013. Industry occupies middle ground with regards to its relationship with the state compared to newspaper/tv. Magazines privately owned but industry wants protection. Tend to be smaller operations than newspaper. Digital readership has tripled over the past two years. Digital advertising is becoming a larger source of revenue and is increasing. Demand for american magazines in canada is declining. More retail magazines in canada per capita than any other country. What is the canadian periodical fund: where the government gets involved, started out as a postal subsidy, provide production support, small magazines get more money than larger magazines, done to enhance canadian access and strengthen industries.
