Despite hundreds of millions of dollars in federal bailout money, the number of periodicals in Canada has fallen 9% in five years, says Blacklock's Reporter..The disclosure follows confirmation a separate $595-million newspaper bailout did not create jobs as promised..“Newspapers are increasingly having to compete with other industries, e.g., broadcasters, as well as with new competitors, e.g., social media,” says a Department of Canadian Heritage audit..“Moreover, advertising revenue is increasingly migrating online.”.The Periodical Fund pays a maximum $1.5-million annual subsidy to weekly newspaper and magazine publishers who apply for taxpayers’ aid. Figures showed the number of applicants over five years fell from 844 to 771 — a 9% decline..“The overall pool of potential beneficiaries for the Aid to Publishers declined over the evaluation period,” said the report..“According to interviews with program representatives, the predominant factor that explains this trend was the economic setbacks experienced by the industry.”.Heritage department staff who manage the program acknowledged grants did not save failing publishers..“The industry is facing major challenges due in part to declining advertising revenues and distribution in an increasingly digital marketplace,” said the report..Subsidies paid over the period cost taxpayers $389.9 million. Auditors acknowledged they could find no other democratic country that directly paid grants to publishers who applied for them..“The type of support provided through the Aid To Publishers component appears to be unique to Canada,” said the audit.. “The evaluation identified no other program that provided formula funding to eligible paid print magazines, print community newspapers, and digital periodicals.”.Periodical Fund grants to specific publishers over the past three years included:.• $6.4 million to Reader’s Digest;.• $4.9 million to Canadian Living;.• $4.1 million to Maclean’s magazine;.• $1.8 million to Toronto Life magazine;.• $476,852 to the Vancouver environmental advocacy website National Observer;.• $367,483 to the Toronto IT website The Logic;.• $338,513 to the United Church Observer; and.• $254,655 to the Victoria environmental advocacy website The Narwhal..The subsidy program is separate from a $595-million media bailout approved by Parliament in 2019. The bailout offers payroll rebates to media that apply for Canada Revenue Agency vetting..A 2021 heritage department briefing note acknowledged payroll rebates also failed to create jobs..“The decrease in advertising revenues caused by the COVID-19 pandemic led to service reductions and newspaper closures resulting in the loss of 2500 jobs,” said the note.
Despite hundreds of millions of dollars in federal bailout money, the number of periodicals in Canada has fallen 9% in five years, says Blacklock's Reporter..The disclosure follows confirmation a separate $595-million newspaper bailout did not create jobs as promised..“Newspapers are increasingly having to compete with other industries, e.g., broadcasters, as well as with new competitors, e.g., social media,” says a Department of Canadian Heritage audit..“Moreover, advertising revenue is increasingly migrating online.”.The Periodical Fund pays a maximum $1.5-million annual subsidy to weekly newspaper and magazine publishers who apply for taxpayers’ aid. Figures showed the number of applicants over five years fell from 844 to 771 — a 9% decline..“The overall pool of potential beneficiaries for the Aid to Publishers declined over the evaluation period,” said the report..“According to interviews with program representatives, the predominant factor that explains this trend was the economic setbacks experienced by the industry.”.Heritage department staff who manage the program acknowledged grants did not save failing publishers..“The industry is facing major challenges due in part to declining advertising revenues and distribution in an increasingly digital marketplace,” said the report..Subsidies paid over the period cost taxpayers $389.9 million. Auditors acknowledged they could find no other democratic country that directly paid grants to publishers who applied for them..“The type of support provided through the Aid To Publishers component appears to be unique to Canada,” said the audit.. “The evaluation identified no other program that provided formula funding to eligible paid print magazines, print community newspapers, and digital periodicals.”.Periodical Fund grants to specific publishers over the past three years included:.• $6.4 million to Reader’s Digest;.• $4.9 million to Canadian Living;.• $4.1 million to Maclean’s magazine;.• $1.8 million to Toronto Life magazine;.• $476,852 to the Vancouver environmental advocacy website National Observer;.• $367,483 to the Toronto IT website The Logic;.• $338,513 to the United Church Observer; and.• $254,655 to the Victoria environmental advocacy website The Narwhal..The subsidy program is separate from a $595-million media bailout approved by Parliament in 2019. The bailout offers payroll rebates to media that apply for Canada Revenue Agency vetting..A 2021 heritage department briefing note acknowledged payroll rebates also failed to create jobs..“The decrease in advertising revenues caused by the COVID-19 pandemic led to service reductions and newspaper closures resulting in the loss of 2500 jobs,” said the note.
