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  • Post Time Posted October 01, 2018
The promise of a fall for prohibition of cannabis in Canada has spurred a significant amount of chaos throughout corporate Canada. Just as cannabis companies have gone public and seen their valuations sore, the ancillary businesses surrounding the industry have also been booming. 

Among the rise, is cannabis coverage media. The amount of media coverage the cannabis industry has received from the major news networks is phenomenal in itself, but many companies are now focusing entire business units, or even entire businesses, on entering the space. 

Two such examples include the Globe and Mail, and The Leaf. The Globe and Mail has been on the forefront of cannabis coverage since the beginning of a potential Canadian recreational market. It is now hoping to cash in on the business players that need its information. By offering a specific cannabis industry paid subscription service called CannabisPro, it hopes to be the go-to for industry professionals and those entering. The subscription service is being brought together by five business reporters, and will cost $2000 a year, with aims of 25% of its users being from outside of the country. The Leaf, is taking on the more typical revenue strategy of advertising dollars to fund itself. This however has dealt a massive blow when Health Canada decided to regulate marketing activities closer to tobacco rather than alcohol. The article was born from the industry boom, but Paul Samyn, the pioneer of it all, admits that just like in other industries, news sites are struggling with profit margins.

Despite not being federally legal yet, the United States is also presenting a number of cannabis specific media outlets. High Times, which was among the first, founded in the 1970s, fell well short of its money-raising targets, as many investors perhaps are unsure of the sustainability. That being said however, the company has begun a buying spree with what it has purchased, buying out Seattle-based DOPE media last week.

Just as with the sustainability of the valuations of the LP’s themselves, many are wondering if the boom in cannabis media companies can survive. There is no doubt that many will feel pain, and only the leanest, smartest, and most efficient ones will be around for the long haul. 

Source: https://www.cbc.ca/news/business/cannabis-media-business-1.4837766


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