The Greater Toronto Area. ICT: Interactive Digital Media

(1)

The Greater

Toronto Area

ICT:

Interactive Digital

Media

(2)

• The GTA consists of 25 municipalities,

including the City of Toronto and 4

regions.

• The area of the GTA is 7,124 Sq. Km. or

2,750 sq. miles.

• Population: 5.9M

• The GTA contributes 20% of Canada’s

GDP, at $323 billion

(3)

Greater Toronto

Why the GTA is the right choice!

• iDM Capital –

The GTA has a large pool of highly

skilled labour and a variety of government tax

incentives

• Cost Competitive –

Canada’s business center,

the Toronto Region, is one of the lowest cost

centers in the world with a variety of attractive

government incentives.

• Proximity –

Greater Toronto is central to North

American markets, lowering costs and smoothing

business transactions.

• Top Tier Talent –

A well-educated and creative

talent pool; Canada’s Largest Pool of Digital Media

and Software Talent.

• Quality of Life –

The Toronto Region is an

attractive location for any international business.

(4)

Diverse Economy:

Ensuring Stability & Resilience

• The GTA is a city of innovation and

ingenuity.

• A diverse economy will increase

collaboration, in turn, increasing the

competitiveness and profile of the

industry.

GTA: NORTH AMERICAN INDUSTRY RANKINGS

RANK

INDUSTRY

2

ND

_Automotive

2

ND

_{Food & Beverage}

3

RD

_{Financial Services}

3

RD

_{Film & Media}

3

RD

_ICT

3

RD

_Design

3

TH

_{Biotechnology}

Source: Toronto Region Research Alliance, 2007.

Services 57% Manufacturing 15% Utilities, Transportation & Warehousing 6% Construction 6% Wholesale & Retail Trade 16%

(5)

ICT CAPITAL

GTA: Canada’s ICT Capital

• GTA ICT Companies increased revenues by 15.63% in 2008

• GTA ICT Companies represent 44.72% of Branham Top 250’s

total revenues

29.1

29.4

34

26 28 30 32 34 2006 2007 2008

GTA ICT Revenues (Billions)

(6)

PLUS 40,000 additional

ICT specialists

in non-ICT sectors

Sector

Employment

Percent of

Employment

Manufacturing

28,000

15%

Development –

Systems

26,000

18%

Development –

Software

22,000

15%

Services

64,000

43%

No Classification

_8,000

_5%

Total

_148,000

_100%

GTA Labor Force 3.1 million

ICT Companies 3,362

Revenues $32.5 billion

Revenues from exports $6.2 billion

Source: Greater Toronto Information & Communications Technologies Industry Profile; E&B Data, 2004.

(7)

ICT CAPITAL

GTA - Strong iDM Cluster

Gaming

Film Production

Animation &

Special Effects

Education

iDM

(8)

ICT Cluster: Creating Synergies

GTA is positioned as one of

North America’s premier

ICT centres because of

our:

• Innovative projects

• Diverse & flexible economy

• Dynamic corporate presence

• Educated, technologically

savvy workforce

(9)

ICT CAPITAL

ICT/Digital Cluster: Gaming

• Canada is the 3rd largest game developer world wide

• Market expected to grow from $585 million to $1.3 billion by 2013

Ubisoft

• Will open a full development studio in Toronto,

• Half a billion CAD investment

• Will create 800 jobs over the next decade.

Transgaming

• Portability technology: single system to multiple

platforms

(10)

ICT/Digital Cluster: Animation & Special Effects

• The GTA is a centre for post production, special effects & emerging

technology

• 3-D and 2-D animation; visual and special effects

C.O.R.E. Digital Pictures

• Toronto-based creator of digital visual effects and animation for

feature film and television

• Staff of over 300 people

Starz Animation

• Canada's leading high-quality digital animation studio

• Provides major Hollywood studios and independent producers

alike with world-class computer-animated content for feature films,

DVDs, television series, commercials, visual effects and shorts.

Autodesk Maya

• High end 3-D: used in film, TV, computer, video games and

architectural visualization and design- Academy award (technical

achievement)

Nelvana

(11)

ICT CAPITAL

ICT/Digital Cluster: Film Production

• The GTA is the 3rd largest city region in film production in North America

• Contributes $1.1billion to local economy

Alliance Atlantis

• Revenues over $1billion

• Producers of CSI: Crime Scene Investigates

Deluxe Laboratories

• Film processing services to studios and film-makers

SDI Media

• World’s leading provider of dubbing and subtitling

(12)

Future Prospects of iDM in Canada

• Digital spending in Canada will rise from 20% of total

industry revenues in 2008 to 32% in 2013

• Dynamic in-game ads will boost Canadian video game

advertising, with 13.9% compound annual growth expected

from 2009 to 2013

• The video game sector in Canada will expand to over US$2

billion in 2013, a compound annual growth rate of 6.2%

• Canada has numerous tax incentives available for

companies that develop digital content

Source:

Tracey Jennings

Canadian Leader,

Entertainment and Media Practice

(13)

COST COMPETITIVE

Lower Corporate Taxes

2009

2010

2011

2012

2013

Federal

19.00

18.00

16.50

15.00

15.00 Ontario

14.00

12.00

11.50

11.00

10.00 Combined Federal &

Provincial

33.00

30.00

28.00

26.00

25.00

Source: PwC 2009 Ontario Budget

33.00 40.50 41.60 42.50 43.50 43.84 30 32 34 36 38 40 42 44 ONTA RIO Flor ida U.S. Ave rage New Yor k Indi ana Calif orni a

(14)

Competitive Health Costs

638 293 0 200 400 600 800 Th ou sa n d U S $ U.S. Ontario

Employer Health Costs for a Typical Firm (2006)

Typical firm defined as having approximately 99 employees

Source: MMK Consulting, 2006

(15)

Source: www.2ontario.com

TAX INCENTIVES

CRITERIA

HOW MUCH

Next Generation of

Jobs Fund - companies must help the environment, secure jobs for

Ontario, and help establish Ontario as a global leader in an emerging market.

- grants of up to 15% of total project cost (qualification is 100 new jobs created or $25M in capital investment)

Ontario Business Research Institute Tax Credit (OBRITC)

- must incur qualified expenditures in respect of scientific research and experimental development (SR&ED) under an eligible contract with an eligible research institute (ERI)

- 20% refundable tax credit for SR&ED expenditures incurred in Ontario under an eligible contract with an ERI.

- the maximum amount a corporation can claim is $4 million.

Ontario Innovation

Tax Credit - must carry on eligible SR&ED in Ontario - 10% refundable tax credit for qualifying - can be combined with OBRITC (above) for a total of 30%

Ontario Research and Development Expenditures Deduction

- must carry on eligible SR&ED in

Ontario - allows corporations to exclude from Ontario taxable income the portion of the federal investment tax credit that relates to qualifying SR&ED expenditures

through Ontario pool calculation on CT23 Schedule 161.

COST COMPETITIVE

Digital Media Incentives

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Source: www.2ontario.com

TAX INCENTIVES CRITERIA HOW MUCH

Ontario Computer Animation and Special Effects Tax Credit

- computer animation and special effect activities in film or TV production

- 20% refundable tax credit for eligible labour expenditures

Ontario Interactive Digital Media Tax Credit

- labour, marketing and distribution expenditures for the creation of interactive digital media products

- 40% of eligible expenditures; 30% for qualifying small corporations

Ontario Media Development

Corporation (OMDC) Interactive Digital Media Fund

-

labour expenditures and eligible marketing and distribution

expenses claimed with respect to interactive digital media products

- a non-refundable contribution of up to $100,000 to a maximum of 50% of the project budget to create a market-ready interactive digital media content

product. OMDC Video Game

Prototype Initiative - the creation of a prototype in order to secure a publisher or attract financing for a market-ready,

commercial video game product

- a repayable contribution of up to $500,000 to a maximum of 50% of eligible expenses for their prototype OMDC Ontario Sound

Recording Tax Credit - eligible production and marketing costs incurred by a qualifying corporation with respect to an eligible Canadian sound recording

- 20% refundable tax credit for eligible sound recording company with respect to an eligible Canadian sound recording by an emerging Canadian artist or

group

Digital Media Incentives

(17)

COST COMPETITIVE

Digital Media Companies in Ontario

Number of Gaming & Digital Media Companies in Ontario by Year

0 20 40 60 80 100 120 140 160 1975 1980 1985 1990 1995 2000 2005 2010

Year

Nu

m

b

e

r o

f Co

m

p

a

n

ie

s

Note: Gami ng Or i ented Di gi tal Medi a Compani es Ref er s to Compani es Cur r entl y Oper ati ng i n Ontar i o as of Apr i l 16th, 2007.

Hardware

Console Gaming

PC Games

Mobile Games

Web Games

Animation

Digital Effects

Software Tools

Handheld Games

(18)

Low-risk Business Environment

Canada moved up FOUR ranking spots in 2009

“Forbes’ Annual Best Countries for Business.”

1. Denmark

2. USA

3. Canada

4. Singapore

5. New Zealand

6. United Kingdom

7. Sweden

8. Australia

9. Hong Kong

10. Norway

Ranking is focused on:

• Degrees of trade and

monetary freedom

• Property rights

• Innovation

• Technology

• Red tape

• Investor protection

• Corruption

• Tax burden

• Market performance

Forbes notes, “this is not a tally

of economies with high gross

domestic product growth, or low

unemployment.

The goal is to

quantify for entrepreneurs

and investors the often-

qualified information about

dynamic economies and

what they would consider

desirable conditions for

business.

”

(19)

Source: Ontario Investment Service

• The GTA is within a 500 mile radius

(one-day drive or 1 hour flight)

where you can access

135 million

people

, compared to 70 million for

New York at a comparable distance.

• Through the

North American Free

Trade Agreement

(NAFTA),

Canada is assured long-term

access to the North American

market of over 440 million people,

with a combined GDP of more than

$16 trillion.

PROXIMITY

(20)

Pearson International Airport

-

The busiest Canadian airport with direct

flights operating to over 100 destinations.

-

$4.4 billion development program designed to

increase passenger capacity to 52 million

annually over the next 2 decades.

Gateway to international trade…

Cargo Services

-

Toronto Pearson is rated in the top 30

airports worldwide for cargo activity.

-

Pearson offers over 240 truck loading

doors;

-

1.2 million square feet of on-airport

warehouse space;

-

Capable of processing 1 million metric

tonnes of cargo annually.

With dedicated cargo apron space, a Cat III

airport with 5 runways to handle all aircraft

types and 24/7 customs clearance, Toronto

Pearson is the superior choice for cargo

services.

Source: Greater Toronto Airport Authority, http://gtaa.com/en/business_at_pearson/cargo_services/

(21)

PROXIMITY

Excellent Public Transit System

Metrolinx: Plan to build over 1,200 kilometres of rapid transit over 25

years— more than triple what exists now — so that over 80 per cent of

residents in the region will live within two km of rapid transit.

The Corridor is a VIA Rail passenger train service area

in the Canadian provinces of Quebec and Ontario.

The Corridor service area has the heaviest passenger

train frequency in Canada.

GO Transit is Canada's first, and Ontario's only,

interregional public transit system, linking Toronto with

the surrounding regions.

GO Transit carries more than 50 million passengers a

(22)

Highly Integrated

Telecommunications Network

The GTA boasts:

One of the most extensive telecommunication

networks in North America

A highly integrated telecommunications network

including:

-

the largest “free Calling” area in North America

(416/647/289/905)

-

100% Digital Telecom Infrastructure

-

high speed data services

-

Internet connectivity

-

private lines

(23)

TOP TIER TALENT

GTA Among the World’s Most Well-Educated

Total University (%) 30 25 22 21 18 18 15 14 14 US (1) Ontario Canada (4) Japan (9) Ireland (12) UK (14) Germany (17) France (20) Mexico (21) Total College (%) 25 22 17 10 10 10 9 8 2 Ontario Canada (1) Japan (2) Ireland (6) Germany (8) France (9) US (10) UK (15) Mexico (23)

For Select Markets, Ages 25-64

58% of Ontario’s

Population has a Post-

secondary Education:

• University: 25%

• College: 25%

(24)

World Class Education System

Located in

the GTA

Located

within 100

miles of the

GTA

University of Toronto Ryerson University York University

University of Ontario Institute of Technology

Ontario College of Art & Design (OCAD)

University of Waterloo Wilfred Laurier University University of Western Ontario

(Western)

McMaster University Guelph

Humber

Centennial College George Brown College Seneca College Sheridan Durham College Conestoga College Niagara College Fanshawe College UNIVERSITIES _COLLEGES

•

The GTA is home to world-class iDM educational institutions such as

Sheridan College’s Institute of Technology and Advanced Learning,

which is world famous for integrating technology and artistic vision and has been awarded Academy and Genie Awards

•

Seneca College has a Digital Media Centre, which focuses on the design

and management of digital graphics/audio for interactive multimedia applications, including internet

•

Studios such as Industrial Light and Magic, Pixel

Animation and Disney all regularly send talent scouts to

(25)

TOP TIER TALENT

Post-Secondary Interactive

Digital Media Programs

Source: Interactive Ontario, MEDT and OMDC

8% 9% 19% 35% 5% 8% 6% 4% 6% Game Animation

Computer College Programming University Computer Science College Software

University Software Media

Computer Engineering Other

124 programs offered that are relevant to gaming and

digital media careers

Total Enrolment Interactive

Digital Media

(College and University Programs)

2004 – 2005: 13,055 students

2005 – 2006: 14,000+ students

(26)

Strong Influx & Retention of Talent

1%

14 %

51%

6%

4 %

8 %

16 %

.01%

• Total Immigration: 235,826

• 34% of new immigrants have

at least one university degree

• 43% goes to Toronto

• Retention rate after 1 year:

Atlantic – 40%

Manitoba – 37%

Sask – 44%

BC – 72%

Quebec – 49%

Toronto – 88%

Calgary – 79%

(27)

TOP TIER TALENT

(28)

(29)

(30)

Source: 2006 Census, Statistics Canada

Openness to Diversity and Multiculturalism

• Over 100,000 immigrants annually

• Over 240 ethnic groups

• Over 120 languages and major dialects

• Over 169 countries of origin

• English is the dominant mother

tongue, followed by Chinese, Italian,

Portuguese, Punjabi and Spanish

• The UN has designated Toronto the

“world’s most multicultural city.”

• The top five visible minority groups in

the GTA are:

• South Asian 12.0 per cent of our

population;

• Chinese 11.4 per cent;

• Black 8.4 per cent;

• Filipino 4.1 per cent;

(31)

QUALITY OF LIFE

Low Cost of Living

Toronto ranked 54

th

_on

the Global Cost of Living

Rankings 2008/2009.

Cost of Living Survey 2008

127

125

112.7

111.3

109.4

100

98.3

92.5

88.1 London

Tokyo

Zurich

Milan

Paris

New York

Shanghai

Frankfurt

Toronto

(32)

Affordable Housing

Average Housing Prices in the GTA

Housing Type GTA

Detached Bungalow

(1,200 sq. ft.) $383,471

Executive Detached 2-Storey (2,000 sq. ft.) $548,296 Standard 2-Storey (1,500 sq. ft.) $426,256 Standard Townhouse (1,000 sq. ft.) $300,089 Senior Executive (3,000+ sq. ft.) $756,591 Standard Condo (900 sq. ft.) $261,094 Luxury Condo (1,400 sq. ft.) $395,489

(33)

QUALITY OF LIFE

Culture: Key to Attracting Creative Talent Pool

Royal Ontario Museum's new Michael

Lee-Chin Crystal extension

Over $1 billion in

public & private

sector funding raised

for over 50 arts

projects.

The Canadian Opera

Company’s new home

is a 2,000-seat jewel set in the heart of downtown Toronto

Ontario College of Art & Design (OCAD) is benefiting from its creative new addition

(34)

• Toronto: ranked 15

th

_{of 215 international}

cities in terms of quality of life (William H.

Mercer)

• Toronto: ranked 7

th

_{best place to live in}

North America by Places Rated Almanac (354

cities surveyed) based on cost of living, job

outlook, transportation, education, health

care, the arts etc.

• This same publication also ranked the GTA

the safest of its large North America

metropolitan counterparts.

2

• Toronto

has 5,000+ restaurants, a a symphony

orchestra, opera, ballet and theatre, major league

hockey, basketball and baseball, and 20,000

acres of ravines and parks.

1. William H. Mercer, World-Wide Quality of Life Survey, 2007

2. David Savageau & Ralph d’Agostino, Places Rated Almanac: Your Guide to the Best Places to Live in the United States & Canada, sixth edition, October 1999

High Quality of Life

With low crime, little threat from instability or

terrorism and highly developed infrastructure,

Canada has the most liveable destinations in the

world

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