Digital shift: The Canadian periodical publishers industry turns the page on traditional methods

Operating revenues in the Canadian periodical publishers industry saw modest growth in 2023, increasing 1.9% (+$19.3 million) from 2021, after a significant decline from 2019 to 2021 (-$175.0 million). Operating revenues in the industry were $1.0 billion for 2023. Industry revenues remained largely concentrated in 2023, with the majority stemming from Ontario (63.2%) and Quebec (17.6%).

Following a significant decline in operating expenses in 2021 (-16.8%) as periodical publishers cut costs, operating expenses for the industry grew 5.2% to $955.5 million in 2023. With growth in industry expenditures outpacing revenue growth, the operating profit margin fell to 6.3%.

In 2023, the largest component of sales for the periodical publishers industry was once again advertising—which accounted for 50.1% of total sales—followed by circulation sales, at 36.5%. Custom publishing sales continued to shrink, falling to 2.0% of total sales in 2023. Event, conference and trade show sales grew to 5.8% of total sales.

The periodical publishers industry continued to move toward more digital content, turning the page on traditional methods, as the share of revenues from digital products continued to grow in 2023. Advertising revenue attributed to digital products reached its highest value since comparable data became available, growing to 31.0% of total advertising revenue. Similarly, circulation revenue attributed to digital products also increased, reaching 22.0% of total circulation revenue in 2023.

The digital shift in the industry was also evident in the distribution of titles. In 2023, the majority of titles were published in both print and digital forms (63.0%), while the share of print-only titles (27.5%) continued to drop.

The COVID-19 pandemic disrupted distribution channels for print circulation, limiting access to free, complimentary and promotional copies. However, in 2023, this channel rebounded slightly as a share of total print circulation, increasing to 22.4% of total print counts. Controlled or requested circulation made up the largest proportion of print circulation for the third release in a row, accounting for 42.4% of total print counts in 2023.

Pressing on

Periodical publishers in Canada will need to keep adapting to the digital transformation and evolving economic conditions in the years ahead. With a growing focus on advertising revenue within the industry, the ongoing competition for advertising dollars, coupled with limited resources, will continue to shape the landscape of the industry.