Introduction
The Canadian magazine sector includes both consumer magazines and business-to-business (B2B) publications.
Magazine publishers are highly diverse in their scale and output; they range from the largest companies that release
more than 20 titles in a range of categories, to producers of only one or two niche titles.1 Canadian publishers
increasingly engage their audience online as well as through traditional print channels, embracing advertising and
circulation opportunities on the web, over social networks and via mobile devices. 2
Ontario’s periodical publishing industry is the largest in the country, generating $1.18 billion in operating revenues in
2011— more than half of national revenues. 3 Over 45% of copies of the top Ontario-produced print consumer
magazines are sold or delivered outside of the province.4
Ontario magazines are frequently recognized for their excellence in content, design and production:
At the 36 th National Magazine Awards held in June 2013, Ontario magazine Corporate Knights won Magazine of the
Year. The Walrus picked up four Gold awards at the event, and Hazlitt, Report on Business, Maclean’s and Corduroy
were among those publications taking home more than one Gold award. Ontario magazines led National Magazine
Award nominations, collectively garnering over 100 nominations.
On the B2B side, at the 59 th annual Kenneth R. Wilson Awards, Ontario’s Marketing and CA Magazine received
honourable mentions for Magazine of the Year (Professional), and picked up several awards including Best
Professional Article and Best Profile of a Company, respectively. Renovation Contractor and Salon Magazine were
nominated in the Magazine of the Year (Trade) category.
The Walrus and Salon Magazine won for Best Overall Companion Website in the consumer and trade categories of
the 2012 Canadian Online Publishing Awards.
In its 2012 Ancient Forest Friendly Awards, the environmental non-profit Canopy recognized Quill & Quire and
Alternatives Journal for their efforts to implement more eco-friendly paper-purchasing policies. St. Joseph Media
received a Best in Class award for Consumer Magazines.
Industry Size and Economic Impact
Revenues and related figures
The Canadian periodical publishing sector generated $2.09 billion in operating revenues in 2011, representing a 2.2%
decrease over 2010 figures. In 2011, while operating expenses decreased 0.6% from the previous year to $1.94
billion, publishers posted slimmer operating profits of 7.1%, compared to 8.5% in 2010. 5
2
Ontario’s periodical publishing
sector reported more than half of
national operating revenues in
2011 for a total of $1.18 billion, on
par with 2010 figures. Operating
expenses declined marginally from
$1.16 billion in 2010 to $1.12
billion in 2011. Ontario periodical
publishers showed a profit margin
of 5.2%, which is below the
national average of 7.1%, but
improved from 2010’s margin of
4.0%, and 2009’s margin of
0.7%.6
Canadian Periodical Publishing Operating Revenues by Region,
2009-11
In 2011, Ontario periodical
publishers reported $645 million in
Source: Statistics Canada, "Periodical Publishing 2011," Table 1.
advertising revenue and $282
million in circulation revenue. Ad
revenue decreased compared to
2009, the last year this data was collected, but along with Quebec, Ontario publishers fared better than their
counterparts elsewhere in the country as circulation revenues increased marginally – by 0.8% – rather than
decreasing over this two-year period.7 In 2011, sales of advertising space accounted for 69.5% of Ontario publishers’
core revenues, while circulation sales made up 30.5%, displaying a somewhat increased reliance on circulation
revenue compared with 2009. 8
PricewaterhouseCoopers (PwC) forecasts minimal compound annual growth of just 0.2% for the total Canadian
consumer magazine market, including both advertising and circulation, from US $1.60 billion in 2012 to US $1.62
billion by the end of 2017. Circulation spending is forecasted to decrease overall, as gains in the rate of digital
circulation spending fail to make up for steeper declines in print circulation.9 Similarly, PwC forecasts only slight
growth in the Canadian trade magazine market for the next few years, from US $329 million in 2012 to US $333
million by 2017, for a compound annual growth rate of 0.3%.10
Employment and wages
Canadian periodical publishers paid $592 million in salaries, wages and benefits in 2011, down $28 million from
2010. Ontario-based periodical publishers were responsible for 61% of that spending, or $362 million.11
In 2011, approximately 30.9% of Canadian magazine publishers’ operating expenses were allocated to salaries,
wages and benefits. A further 14.5% was spent on sub-contracting costs.12
3
A study of the magazine industry published in 2006 demonstrated that, between 1997 and 2005, the Canadian
periodical publishing industry generated an average of 9,011 direct jobs annually within the industry. The equivalent
of a further 897 jobs annually for freelance writers was directly attributed to the periodical industry.13 The same study
estimated the level of the Canadian magazine sector’s direct, indirect and induced impact at approximately 17,879
jobs annually. 14 Overall in Ontario, the magazine industry is estimated to have been responsible for an average of
9,389 direct and indirect jobs annually between 1997 and 2005. 15
Consumer market
In 2012, there were approximately
Number of Consumer Magazines in Canada, 2002-2011
2,070 consumer and B2B
magazine titles produced in
Canada, with 668 million copies
circulated.16 The number of
consumer magazine titles in
Canada has increased over the
last decade. In 2000, there were
941 consumer magazines
published and by 2012 that figure
had grown to 1,286, a 37%
increase. Canada also has one of
the highest numbers of consumer
magazine titles per capita, more
than France, the U.K. or the
Source: Magazines Canada, Consumer Magazine Factbook 2012 , p.9.
U.S. 17 In 2012, 784 B2B
magazine titles were published
across Canada, representing 38%
of all magazine titles in the country. A recent study which surveyed business decision-makers found that B2B
publications were ranked second among highly-valued sources of information, just behind the Internet. 18
According to an analysis of Statistics Canada data released by Hill Strategies Research Inc., in 2010, about four out
of five Canadians 15 years or older read magazines as a leisure activity (not for paid work or studies). Forty-two
percent of Canadians read magazines at least once a week, while another 27% read them once a month or more.19
According to the Print Measurement Bureau (PMB), Canadians who read magazines spend an average of 41
minutes per issue doing so.20
Magazine readers are increasingly accessing content via multiple devices, including laptops, smartphones and
tablets. In 2012, 9% percent of magazine readers in Canada reported purchasing a digital magazine in the previous
year, and 14% planned to purchase one in the coming year. Among surveyed Canadians who reported owning a
tablet, reading magazines (as well as newspapers or e-books) is the most preferred activity, with 38% of users
reporting reading these publications on a tablet. Tablet users are also more likely to purchase digital magazines than
e-books, digital newspapers or TV episodes on their devices. 21
4
January 2012 data commissioned
by the Periodical Marketers of
Canada showed that 71% of
magazine readers prefer print,
19% have no preference and 9%
prefer digital magazines.22 Indeed,
despite competition from the
growth in new digital media
offerings, PMB-measured print
magazines, on average, continue
to attract approximately 1 million
readers per title. PMB’s Fall 2012
Report found that Canadians
aged 12-34 read just as many
magazines as those in other age
groups. Even mobile device
owners continue to read print
magazines; over three-quarters of
them have read print magazines
in the past month, higher than the
Canadian average. 23
% Canadians aged 12+ who read a PMB-measured magazine in
the past 90 days, by age group
Source: PMB Spring 2013 data, cited in Magazines Canada, Put Magazines to Work for You 2013 , p. 14.
The number of print magazine subscriptions in Canada is falling, while at the same time consumption of digital
magazine media is growing. However, the increased interest in digital magazine consumption is not compensating for
the decline in print subscription sales. Data for the first half of 2013 released by the Alliance for Audited Media (AAM)
showed that the Top 10 Canadian magazines saw an overall 7% decrease in paid and verified circulations compared
with the same period in 2012. Sales of single copies were down 5.4%, while paid subscriptions declined 7.4%.
However some digital titles saw a jump in online subscriptions, the leader among these being Canadian House and
Home, which boasts 11,000 digital subscriptions.24
In 2009, approximately three-quarters of Canada’s consumer magazine titles were in English, while about a quarter
were in French. 25 Ontario has a handful of French-language magazines, which are characterized by low print runs
and very targeted readership. They include Liaison and Virages. While there are over 200 Canadian publications
(including newspapers) in languages other than English or French, less than a quarter of these are consumer or B2B
magazines. A high proportion of magazines in other languages are bilingual or even trilingual titles (English and/or
French, plus another language). 26
5
Trends and Issues
Growth rate and industry trends
Between 2013 and 2017, Canadian consumer magazine ad revenues are expected to stay more or less constant,
reaching a peak of US $1.0 billion in 2015 before decreasing slightly to US $998 million by the end of the five-year
period, as digital advertising grows in volume, while the print advertising market shrinks in tandem.27 Canadian
consumer magazine ad revenue is expected to experience a compound annual growth rate of 0.5%, posting lower
performance than the Canadian average of 5.0% market growth for all media types but outperforming the U.S. and
Western Europe within its own category.28
There were 11 print consumer magazine launches in Canada in 2011, while eight magazines closed, for a net gain of
three magazines. The new magazines were in categories including City/Regional General Interest,
Leisure/Recreation/Sports/Travel and Women’s. The previous year, there were nine launches and one closure, for a
net gain of eight magazines.29
Canadian trade magazine advertising revenue, both print and digital, is expected to experience very modest
compound annual growth of 0.1% over the next five years. Similar to the consumer magazine market, digital ad
revenues are expected to grow but at a rate which does not make up for print ad revenue losses. As a result, PwC
estimates that the national B2B magazine ad market, worth US $219 million in 2013, will decrease to US $211 million
by 2017. However, the national circulation market for trade magazines is expected to compensate by rising from US
$116 million in 2013 to US $122 million by 2017, leading to overall compound annual growth in the trade B2B market
of 1.7% over this period.30
Growth in the magazine market is concentrated on digital platforms. In Canada, digital advertising in online consumer
magazines rose more than fourfold between 2008 and 2012, reaching US $142 million in 2012. Spending on digital
ads is projected to rise to US $248 million by 2017, with the digital share of all Canadian consumer magazine
advertising growing from 14.6% in 2012 to 24.8% in 2017. 31
Applications and “digital stores” allowing readers to purchase and access digital magazine subscriptions and single
issues are proliferating as use of tablets and other devices grows. 32 In this emerging landscape, commentators within
the industry are urging Canadian publishers to move quickly to ensure they establish a strong digital presence. 33 In
July 2013, over 250 titles from members of Magazines Canada were available on a digital newsstand hosted by the
organization, up from approximately 175 titles in early 2012. 34 Sales of digital magazines represent 6.1% of the total
Canadian circulation market in 2013 and are predicted to rise to 17.4% by 2017. 35
Over the last three decades, demand for U.S. magazines in Canada has decreased significantly in favour of locally
produced publications; circulation of U.S. publications fell 41% between 1983 and 2010. 36 English-language
Canadian magazines also increased their presence on the newsstand; their market share has increased in the last 5
years, from 13.5% of total English-language issues sold in 2008 to 16.2% in 2013. 37
6
Global and domestic issues
The shift to a transmedia (content across a range of devices and platforms) environment offers opportunities as well
as challenges for cultural media content producers. Publishers of magazine media are taking advantage of
consumers’ appetite for transmedia content, extending their brands into new arenas to expand their audiences;
approaches include repurposing and building on magazine content, as well as developing entirely new content for
different platforms. Ontario magazine The Walrus recently launched a line of print books in partnership with Ontario
book publisher Coach House Press, and WalrusTV on Blue Ant Media’s eqhd cable channel. Cottage Life Magazine
is also branching out to TV with a planned launch in fall 2013, with the same production company. Conversely,
content producers working in other industries see the value in developing online digital magazine offerings, adding to
the competitive environment for traditional magazine publishers. U.S. book publisher Random House’s Canadian
office launched their online magazine Hazlitt in 2012 as part of an aggressive new digital strategy which also includes
a line of original e-books. 38
The Canadian magazine industry has been adjusting to changes in funding formulas introduced by the new Canada
Periodical Fund (CPF) from 2010-11. Under the previous program, publishers received direct postal subsidies that
reduced the cost of mailing through Canada Post to approximately 36%-70% of regular rates. 39 With the CPF,
magazine publishers receive support based on paid circulation levels and the program does not require the use of
Canada Post (that is, other delivery enterprises such as couriers may be used). Canada Post rate increases
nevertheless impact on a majority of publishers who continue to rely on the only fully integrated system currently
capable of reaching every Canadian household. However, publishers are gradually widening their use of alternate
distribution channels: while print circulation of Canadian magazines declined 10.7% between 2006 and 2011, the
volume of magazine distribution through mail subscriptions decreased even further, by 18%. Meanwhile, magazine
circulation by other forms, such as single-copy sales, bulk distribution, and newspaper inserts, increased 3.1% over
the same period.40
Government assistance 41
The Canada Periodical Fund launched in 2010-2011 by the Department of Canadian Heritage (DCH), offers funding
to eligible magazine publishers for content creation, distribution, online activities, and business development. It also
provides support for business innovation projects and collective initiatives that strengthen the Canadian magazine
sector. The June 2011 Federal Budget permanently committed an additional $15 million annually from DCH to the
Fund to make up for the withdrawal of postal subsidies by Canada Post in 2009. This commitment maintained federal
funding to the magazine industry at $75 million a year. 42
Ontario magazine publishers currently have access to public funding through the OMDC Magazine Fund. OMDC also
provides funding to trade and event organizations in the province’s magazine sector through the Industry
Development Program for events and activities that stimulate the growth of the industry. Magazine publishers that
develop 90% or more of an online magazine can also access the Ontario Interactive Digital Media Tax Credit.
The Ontario Arts Council provides financial support to eligible Ontario-based magazine publishers through its
Periodicals Program. Eligible publishers must be significantly devoted to Canadian fiction, poetry and/or critical
commentary on Canadian contemporary arts, culture and society.
Profile current as of August 23, 2013
7
Endnotes
TCI Management Consultants, A Strategic Study of the
Magazine Industry in Ontario, September 2008, p. 2.
2 ibid, p. 3.
3 Statistics Canada , “Periodical Publishing 2011,”
Catalogue no. 87F0005X, Table 1. Statistics Canada
includes activity from advertising periodicals,
newsletter publishing and other types of periodicals.
4 TCI Management Consultants, p. 3.
5 Statistics Canada, Table 1.
6 ibid.
7 Statistics Canada, Table 3.
8 ibid. Core sales revenues are those derived from
activities of producing and publishing periodicals and
do not include data for other revenue generated by
firms classified to this industry.
9 PricewaterhouseCoopers (PwC), Global Entertainment
and Media Outlook 2013-2017, June 2013, “Canada:
Consumer magazine publishing”.
10 PwC, “Canada: Business-to-business: Trade
magazines”.
11 Statistics Canada, Table 1.
12 Statistics Canada, Table 2.
13 Informetrica Limited et. al., Economic Contribution of
the Canadian Magazine Industry, December 2006, p.
4.
14 ibid, p. 25.
15 ibid, p.19, p. 21.
16 Magazines Canada, How Magazines Connect with
Consumers, June 2013, p. 5, p. 7.
17 Magazines Canada, Consumer Magazine Fact Book
2011, p. 7; PwC, Consumer Magazine Publishing:
Canada, June 2013.
18 Starch Research, Information Sources Study, March
2010, p. 8.
19 Hill Strategies, “Canadians’ Arts, Culture and Heritage
Activities in 2010,” Statistical Insights on the Arts, Vol.
10, No. 2, February 2012, p. 34.
20 PMB 2013 Spring Data, cited in Magazines Canada,
How Magazines Connect with Consumers, p. 9.
21 Magazines Canada, Digital Magazine Fact Book 2012,
p. 38.
22 Leger Marketing data in Periodical Marketers of
Canada Magazine Survey Report, February 2012, p.
25.
1
PMB data, cited in Canadian Magazines Canadiens,
“PMB 2012 Fall Report: Print Magazines Remain
Stable,” October 1, 2012.
24 Alliance for Audited Media (AAM), “Top 10 Canadian
Magazines by Paid & Verified Circulation,” June 2013;
AAM data cited in Steve Ladurantaye, “Canada’s
biggest magazines see subscription declines but life at
newsstands,” The Globe and Mail, August 6 2013.
25 Magazines Canada, Consumer Magazine Fact Book
2011, p. 6.
26 Canadian Rates & Advertising Data (Online Edition),
accessed March 1, 2012. Languages include: Punjabi,
Russian, Portuguese, Arabic, Inuktitut, Chinese, Farsi,
German, Greek, Italian, Korean, Polish, Romanian,
Spanish, Swedish, Ukranian, and Urdu.
27 PwC, “Canada: Consumer magazine publishing:
Advertising”.
28 PwC, “Global consumer magazine publishing:
Advertising”; “Entertainment and Media Market in
Canada”.
29 Magazines Canada, Consumer Magazine Factbook
2012, p. 8, p. 9.
30 PwC, “Canada: Business-to-business: Trade
magazines”.
31 PwC, “Canada: Consumer magazine publishing:
Advertising”.
32 “Three Useful Apps for the Publishing Industry,”
Canadian Magazines Canada, September 8, 2011.
33 Martin Seto, “2011 Year in Review – Trends and
Issues that magazine publishers must be aware of,”
Masthead Online Gadget Blog, January 11, 2012.
34 Magazines Canada Digital Newsstand, accessed
February 27, 2012 & July 30, 2013.
35 PwC, “Canada: Consumer magazine publishing:
Circulation”.
36 Magazines Canada data, cited in PwC, “Consumer
magazine publishing: Canada”.
37 Canadian Newsstand Boxscore data cited in Masthead
Online,“Canadian Boxcore (Part 1),” July 5, 2013.
23
8
Endnotes
Magazines Canada, Magazine 2011 Trends, p. 23;
“Random House launches online magazine Hazlitt,”
Masthead Online, August 24 2012; Adams, James,
“Walrus magazine branches out into television,” The
Globe and Mail, January 10, 2012; “Cottage Life
launches national TV channel this fall,” Blue Ant
Media Press Release, April 4, 2013.
39 “Report: Postage Costs for magazines up 38% since
2002,” Masthead Online, 16 June 2009.
40 “Canada Post losing Pub Mail volumes faster than
industry decline,” Masthead Online, January 27, 2011;
Magazines Canada Commentary on “The Future of
Postal Service in Canada,” a Conference Board of
Canada Study, July 2013.
41 The information included in this section is an overview
of some of the government assistance to the magazine
sector. This is not intended to be a comprehensive list
of government assistance available.
42 “Canada Periodical Fund to stay at $75 million: new
federal budget,” Masthead Online, March 23, 2011;
“Canada Periodical Fund grants to come later this
year, in two stages,” Masthead Online, June 9, 2011.
38
9