This member alert was just released by Magazines Canada:
To all members,
Magazines Canada opposes the introduction of "
Distance-Related Pricing" (DRP), and believes Canada Post should delay these plans indefinitely.
The FactsEach year, in June, Canada Post Corporation (CPC) decides the rates it will charge for magazine delivery the next year. For January 2009, CPC is planning to introduce "Distance-Related Pricing" (DRP) on all magazine rate levels including LCP. DRP exists currently only in the NDG category. The result: all magazines will pay more for the part of their circulation that is mailed out of province and nationally.
Based on the pattern set by CPC in the past 4 years, rates may increase by 4% in 2009. For magazines with significant "regional" and "national" distribution, the increases could be higher, perhaps as much as 8% for national copies as a result of DRP.
What is Distance-Related Pricing (DRP)?
Until now, the vast majority of magazines have been charged the same rate by CPC, regardless of the distance the magazine is shipped. This is just like mailing a letter. Today, it costs $0.52 to mail a letter, whether it is across town or across the country, and whether you mail it from Ottawa, Halifax or Prince George. With DRP, rates will increase depending on the distance a mailing is travelling. The proposed pricing structure would break down as follows:
Local: Distribution within a city/municipality
Regional: Distribution within a province (Exception: All distribution within Atlantic Canada originating from Atlantic Canada is "regional")
National: Distribution which crosses a provincial border
Earlier this year, CPC began showing the local, regional and national distribution breakdowns of your magazine on your Statement of Mailing. By reviewing your statement, you can determine how CPC is categorizing your magazine's distribution.
The actual rates CPC will charge in 2009 and the differentials between these rate categories are not yet known.
Magazines Canada's Position
Magazines Canada opposes the introduction of DRP and has asked Canada Post to delay these plans indefinitely. Our views are:
- This is a revenue grab; DRP is just another increase. We do not expect DRP to be revenue neutral -- rates for "local" are not likely to go down.
- DRP runs counter to Canada's cultural policy which seeks to provide access for all Canadians (no matter where they live) to Canadian magazine content.
- Both Canada Post's mandate and the Publications Assistance Program (PAP) are under review. CPC should not move unilaterally with substantial pricing policy changes prior to the completion, within the next year, of both these reviews.
What Can You Do?
1. Do the math. Consult your CPC Statement of Mailing to determine the breakdown of you distribution by local, regional and national.
2. Write to Canada Post and let them know your point of view. Contact:
Ms. Moya Greene
President and CEO
Canada Post Corporation
2701 Riverside Dr.Ottawa, ON
K1A 0B1
3. Copy your letter to the federal Minister responsible for Canada Post. Contact:
The Honourable Lawrence Cannon
Minister Responsible for Canada Post
Place de Ville, 330 Sparks Street
Ottawa, ON K1A 0N5
4. Send Magazines Canada a copy of your letter to the address below.
425 Adelaide Street West
Suite 700
Toronto, ON M5V 3C1
5. If you have any questions or comments, please email us!