Upstart announces closure
March 1, 2023
Upstart Media today announced its intention to close due to the severe economic impacts of Covid-19 and Cyclone Gabrielle. The closure brings to an end almost twenty years of celebrating and amplifying Kiwi kids’ voices in the New Zealand media landscape.
In late 2021, Upstart Media’s flagship publication, Upstart Magazine, temporarily moved exclusively online while the business navigated the logistical and economic challenges presented by Covid-19. Over the course of 2022, a plan was put in place to resume printing in 2023.
In January 2023, several of Upstart’s key advertisers were impacted by the Auckland anniversary weekend floods, resulting in the withdrawal of planned advertising in the renewed Upstart Magazine publication. Then, in February 2023, the region from which Upstart Media operates (Hawke’s Bay) was devastated by Cyclone Gabrielle, further driving up production expenses.
Wendy Schollum, Upstart Media CEO, said: “Upstart Magazine has been a trusted publication in New Zealand homes and schools for over 18 years. This is a devastating blow for our committed and creative team, readers, young contributors, and the educators who have supported Upstart Magazine as an in-class resource for so long.”
In response to the situation, Upstart conducted an urgent review of its operations and considered all options to keep part or all of the business open. Ms Schollum said: “While there is clear ongoing demand from children and schools for Upstart’s content, most households cannot afford to bear the full cost of such a publication. As such, publishing in Aotearoa is dependent on advertising revenue to keep subscription fees at an accessible level for readers. Advertising has not returned to pre-covid levels and has been eroded further by the recent floods. Meanwhile, inflation and the recent cyclone have driven production and distribution costs up by 42%. As passionate as our team is, publishing Upstart Magazine in the current economic climate is no longer viable.”
Ms Schollum acknowledged past editor Toni Shanks, chief designer Suzanna Kong, illustrator Grant Brown, and digital co-ordinator Louisa Gannaway for their significant creative contributions which allowed Upstart Magazine to support Kiwi kids, and their educators, through the unprecedented Covid-19 lockdowns in 2020 and 2021. She concluded: “It has been a privilege to receive and celebrate the thoughts, ideas, and contributions of thousands of Kiwi kids’ over the past two decades. I would like to recognise the impact that this decision will have on our readers, suppliers, and the wider children’s industry. This is a very difficult time for the entire media industry.”
The decision to close the business is effective as of March 31, 2023.