Summary: The Canadian Magazine Dispute
The Canadian Magazine Dispute
Back in the mid-1990's, there was a major dispute between the Canadian federal government and U.S. magazine companies. Canada has a mass market for magazines. This is due to the country having magazines throughout Canada that are both foreign and domestic periodicals. There is a huge gap between foreign and domestic periodicals in Canada though. Foreign magazines make 89 percent of the countries magazine business. This leaves Canada with only 11 percent of magazines distribution in the entire country.
The major difference in the beginning, between foreign and domestic magazine, has been where the magazines were printed. If the magazine was printed in Canada, it was considered a domestic magazine. If the magazines …show more content…
A company by the name of Time Warner were able to produce split-run magazines. They were able to create the magazine in the U.S. and send the information via satellite to be printed within the Canadian border. The magazine was Sports Illustrated Canada, and it could be considered a Canadian domestic magazine mainly because it presented Canadian advertising. This way Canada could not charge them the taxes of a foreign magazine, but they also couldn't stop them at the border. Since the deciding factor for labeling a magazine foreign or domestic was where it was printed, the U.S. was able to execute this without breaking the …show more content…
magazines. It seemed to be more about money and not being completely dominated by foreign magazine companies. They also knew that the U.S. had possibly started a trend that others would be sure to follow. By printing magazines in Canada and no longer having to be considered foreign magazines, the taxes that were supposed to be imposed on the foreign magazine companies would no longer have to be paid. This means less money for the Canadian government and more money to the other magazine companies. The foreign companies could offer a better deal to advertisers on magazine advertisements.
With Canada only having 11 percent of the magazine business and foreign companies finding loopholes, the domestic companies started to fear that they would lose advertisement money and would have to solely depend on the sales of the magazines. So with the Canadian government and the domestic magazine companies partnering together, they tried to add more taxes to foreign magazine companies to make up the
Back in the mid-1990's, there was a major dispute between the Canadian federal government and U.S. magazine companies. Canada has a mass market for magazines. This is due to the country having magazines throughout Canada that are both foreign and domestic periodicals. There is a huge gap between foreign and domestic periodicals in Canada though. Foreign magazines make 89 percent of the countries magazine business. This leaves Canada with only 11 percent of magazines distribution in the entire country.
The major difference in the beginning, between foreign and domestic magazine, has been where the magazines were printed. If the magazine was printed in Canada, it was considered a domestic magazine. If the magazines …show more content…
A company by the name of Time Warner were able to produce split-run magazines. They were able to create the magazine in the U.S. and send the information via satellite to be printed within the Canadian border. The magazine was Sports Illustrated Canada, and it could be considered a Canadian domestic magazine mainly because it presented Canadian advertising. This way Canada could not charge them the taxes of a foreign magazine, but they also couldn't stop them at the border. Since the deciding factor for labeling a magazine foreign or domestic was where it was printed, the U.S. was able to execute this without breaking the …show more content…
magazines. It seemed to be more about money and not being completely dominated by foreign magazine companies. They also knew that the U.S. had possibly started a trend that others would be sure to follow. By printing magazines in Canada and no longer having to be considered foreign magazines, the taxes that were supposed to be imposed on the foreign magazine companies would no longer have to be paid. This means less money for the Canadian government and more money to the other magazine companies. The foreign companies could offer a better deal to advertisers on magazine advertisements.
With Canada only having 11 percent of the magazine business and foreign companies finding loopholes, the domestic companies started to fear that they would lose advertisement money and would have to solely depend on the sales of the magazines. So with the Canadian government and the domestic magazine companies partnering together, they tried to add more taxes to foreign magazine companies to make up the