Canadian Magazine Dispute : A Cultural And Financial Preservation Controversy

750 Words Mar 10th, 2016 3 Pages
The formally-titled Canadian Magazine Dispute, whose relations date back to Canada’s protectionism efforts in the 1920’s, was a cultural and financial preservation controversy that developed from a publication dispute into a world debate. In the 1990’s, Time Warner Inc. began distributing a split-run version of Sports Illustrated in Canada, subverting their 30-year long split-run magazine ban through electronic transmission (Rinamen, 1996). The magazines were, in fact, published in the US with most of their ‘Canadianizing’ adjustments residing in the lucrative ads department, but then printed in Canada and subsequently distributed. A circumvention Canada considered culturally and financially threatening; not only was the Canadian content in the magazine largely negligible, but they could offer “a tax deduction to Canadian advertisers and attract valuable ad revenue that would otherwise have been directed to Canadian periodicals” (Globalization 101). Their presentiments were later realized in 1999 when a parliamentary task force found that more than 100 US magazines could use these same subversive tactics to establish successful split-run Canadian magazines (Globalization 101). The Canadian federal government deftly responded by imposing an 80% excise tax, amongst other obstacles, on split-run magazine advertising revenue whose content was less than 80% Canadian (Rinamen, 1996; Globalization 101). In so doing, Canada would also avoid setting any legal precedent in split-run…

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