TORONTO – Not-for-profit trade association Interactive Ontario is urging the Ontario government to include financial support for the province’s $1 billion interactive digital media industry in its next budget.
With interactive digital media comprising 1,000 companies in Ontario, Interactive Ontario says its recommendations made to government during pre-budget consultations, which include renewal of OMDC’s IDM Fund and improvements to the Ontario Interactive Digital Media Tax Credit, are vital to grow the industry.
“Interactive Ontario is eager to see the Government of Ontario maintain and enhance its record of success in the field of interactive media,” said Interactive Ontario president and CEO Donald Henderson in a statement. “Ontario is already a leader in this sector and with the right financial and policy supports, there is tremendous potential for increased growth.”
The strength of Ontario’s industry, which IO says boasts products garnering worldwide acclaim and blockbuster sales, is thanks in part to carefully considered programs, tax credits and funding mechanisms. To allow Ontario’s interactive digital media sector to continue to thrive, the Government of Ontario must continue to support and enhance these initiatives.
As part of the pre-budget consultation process IO has submitted comments to the Minister of Finance outlining recommendations. Priorities identified by IO include:
Ontario Interactive Digital Media Tax Credit
- Provision of resources to allow for timely payouts (currently, it can take 18-24 months for companies to receive refunds)
- Removal of the requirement that 90% of a project must be developed by the qualifying company, to encourage collaboration and co-production
- The ability for companies to file annually, rather than at project completion, in order to increase predictability of finances for companies and ease the burden on projects with long development times, as are common in the industry
Ontario Media Development Corporation’s IDM Fund
- This fund is a critical catalyst for growth in the sector, one of the most oversubscribed funds managed by the OMDC and to date has not yet been renewed
- IO recommends that the Government of Ontario maintain the IDM Fund, and increase the available funds in the IDM Fund to at least $5 million by 2014
Access to capital
- Introduction of regulations to allow for securities-based crowdfunding, as per Interactive Ontario’s past comments to the Ontario Securities Commission
- Allocation of one third of the Ontario Venture Capital Fund to VC funds targeting the digital media sector
