– TORONTO – Canada’s interactive digital media industry is thriving, particularly in three of the country’s largest provinces, according to a new report commissioned by the Canadian Interactive Alliance / Alliance Interactive Canadienne (CIAIC) and created by Nordicity.
The report, Canadian Interactive Industry Profile 2012 (CIIP), follows two previous editions of the Canadian Interactive Industry Profiles released in 2006 and 2008, but proposes a revised methodology that includes a more narrowed definition of the digital media industry to provide more of a focus on companies creating true “rich interactive experiences” (in terms of content creation), and those that supply services that directly enable other firms to create those experiences. ~~http://www.cmf-fmc.ca/uploads/reports/35-ciip.pdf
Interactive digital media companies in Canada appear to be poised for growth in the next year or two, says the report. Just over 80% of companies surveyed project at least 10% growth in revenue over the following 12 – 24 months and more than half (56%) project revenue growth of 25% or more over the same period.
At the same time, there are a number of barriers that could hinder future growth. Core IDM companies in Canada indicated that a seeming lack of affordable capital is the most significant limiting factor for company growth in the industry, followed by the availability of management and sales expertise and the availability of skilled labour in general.
Other key findings from the report include:
• Canadian IDM companies employed 26,700 full-time equivalents (FTE);
• Almost 57% of revenues generated in 2011 were directly related to export sales;
• Canada`s interactive digital media industry is concentrated in Ontario, British Columbia and Québec;
• From 2008 to 2011, the total revenues generated by the industry grew by a yearly average rate of 17%;
• $3.8 billion in total gross annual revenue was generated by these companies, with $2.5 billion directly attributed to IDM production;
• Games products produced the largest amount of revenue for core IDM companies in Canada (about 43% of total revenues for 2011); and
• Mobile devices were the most targeted platform, with 75% of companies creating core IDM products for mobile platforms.
“This report confirms that interactive digital media continues to be a highly significant contributor to Canada’s economy,” said Serge Landry, CEO of the CIAIC, in the report’s news release. “With over half of revenues derived from export sales, Canada is truly a global player in this sector.”
The CIAIC is a not-for-profit trade association formed in 2005 to serve as the voice of Canada’s interactive digital media industry. It’s membership is comprised of Canada’s seven existing provincial interactive digital media trade organizations: Alliance Numérique (Québec), Interactive Ontario, New Media Manitoba, SaskInteractive, DigiBC, Digital Alberta and the Interactive Media Association of PEI.
