1. CONTRASTS IN CLUSTERING: CANADIAN NEW MEDIA John Britton Department of Geography University of Toronto

2. 2 DEFINITION of NEW MEDIA multimedia  interactive digital media  New Media An interrelated set of economic activities that produce digital, text, audio and interactive computer graphic material which may be accessed through the Internet, films, and related communication channels Distinctive locations

3. 3

4. 4

5. 5

6. 6

7. 7 BACKGROUND Began in mid 1980s but 1990s growth surge cut by bursting of the bubble economy Firms produce customized solutions for clients Innovation  Creativity + limited R&D input Entertainment and business markets are distinct but crossover activity is increasing

8. 8 AN INTEGRATIVE APPROACH TO RESEARCH Practical issues: Given that the maps show spatial differences of new media, what other regional differences are there? Interviews with samples of firms using the same survey instrument Conceptual framework: Cluster theory in an institutional framework  Do policy differences count? Is history important?

9. 9 ANTECEDENT FACTORS Film production Television networks Corporate functions

10. 10 AN INDUSTRY OF SMALL-SCALE FIRMS? Ultra-small, entrepreneurial firms are the norm Exceptions: Well established firms in animation have grown eg Nelvana Large firms from related activities have establishments in new media Some studios of games developers Electronic Arts [Vancouver] and Ubisoft [Montreal] are super large, each employs about 1,000

11. 11 DIFFERENT STYLES OF ENTREPRENEURSHIP Vancouver: 1991, Electronic Arts acquired Distinctive Software started in (1980s) by Don Mattrick Mattrick now President of EA Worldwide Studios (Van.) Montreal: 1997 Ubisoft received the joint financial support of provincial and federal ministries and the City of Montreal This was stimulated by a local lobbyist – a civic entrepreneur They are large: are they anchor firms?

12. 12 MAINSTREAM NEW MEDIA 1Projects Fee-for-service business model - project-based Assets limited to human capital  risk Most financing is from private sources 2Labour 2000  firms contracted in scale  more freelancers freelancers very important for very small firms: -- 60% of employees in BC and GTA, 33% in PQ Labour flexibility  circulation of knowledge

13. 13 REGIONAL VS GLOBAL LINKS 1Technical knowledge diffusion centres 2 Market Relations: Games developers – international market Other Entertainment – regional differences Business market – regional differences 3 Production relationships 4International corporate Investments

14. 14 REGIONAL VS GLOBAL LINKS [II] 3Production relationships – strongly regional Collaboration (co-bidding, co-production) - an adaptation stronger in Toronto Outsourcing – capacity reasons - to acquire complementary assets - strongest in Toronto

15. 15 REGIONAL VS GLOBAL LINKS [III] 4International corporate Investments Toronto 2004 IDT Entertainment acquired DKP 2004 Technicolor acquired Command Post and Toybox 2002 Roxio acquired MGI 2001 Documentum bought The Bulldog Group Games developers 2005 Vivendi Universal acquires Radical Entertainment (Vancouver) 2005 Ubisoft acquires MC2-Microids (Montreal) 2004 THQ acquired Relic Entertainment (Vancouver) 2003 MC2 acquired Microids (Montreal) 2003 Jamdat acquired MC2-Microids (Montreal) 2002 EA acquired Black Box (Vancouver) 2002 Take Two (Rockstar) acquired Barking Dog (Vancouver)

16. 16 NEW MEDIA IN PUBLIC VIEW 1Contrasts in associational development –New media associations: multiple aims - variable results –umbrella organizations - New Media BC, Alliance numériQC vs –specialized voices in Toronto – NMBA and AIMS 2Contrasts in public initiatives –Contrasts in public initiatives –Montreal’s 4-point cluster strategy vs –Weak public sector support in Vancouver and Toronto