Production costs have gone up significantly in the last year due to two things: • The drop in the exchange rate following the EU Referendum increased Time Inc's annual paper bill (all of which is imported) by a seven figure sum overnight. The pound remains low. • One of the UK's largest printers went into administration last year and as a result of the laws of supply and demand, the remaining operators put their prices up. • The dramatic switch in advertising budgets from print to online over the last couple of years means a greater proportion of the production costs have to come from copy sales. (see below).