CONTRASTS IN CLUSTERING CANADIAN NEW MEDIA John Britton
CONTRASTS IN CLUSTERING: CANADIAN NEW MEDIA John Britton Department of Geography University of Toronto
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 2
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BACKGROUND • Began in mid 1980 s but 1990 s 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 7
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? 8
ANTECEDENT FACTORS • Film production • Television networks • Corporate functions 9
AN INDUSTRY OF SMALL-SCALE FIRMS? Ultra-small, entrepreneurial firms are the norm Exceptions: • Well established firms in animation have eg Nelvana grown • 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 10
DIFFERENT STYLES OF ENTREPRENEURSHIP Vancouver: 1991, Electronic Arts acquired Distinctive Software started in (1980 s) by Don 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? 11
MAINSTREAM NEW MEDIA 1 Projects • • • Fee-for-service business model - project-based Assets limited to human capital risk Most financing is from private sources • 2 • Labour • • 2000 firms contracted in scale more freelancers very important for very small firms: -- 60% of employees in BC and GTA, 33% in PQ Labour flexibility circulation of knowledge 12
REGIONAL VS GLOBAL LINKS 1 Technical knowledge diffusion centres 2 Market Relations: Games developers – international market Other Entertainment – regional differences Business market – regional differences 3 Production relationships 4 International corporate Investments 13
REGIONAL VS GLOBAL LINKS [II] 3 Production relationships – strongly regional Collaboration (co-bidding, co-production) - an adaptation stronger in Toronto Outsourcing – capacity reasons - to acquire complementary assets strongest in Toronto 14
REGIONAL VS GLOBAL LINKS [III] 4 International 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 MC 2 -Microids (Montreal) • 2004 THQ acquired Relic Entertainment (Vancouver) • 2003 MC 2 acquired Microids (Montreal) • 2003 Jamdat acquired MC 2 -Microids (Montreal) • 2002 EA acquired Black Box (Vancouver) • 2002 Take Two (Rockstar) acquired Barking Dog (Vancouver) 15
NEW MEDIA IN PUBLIC VIEW 1 Contrasts in associational development – New media associations: multiple aims - variable results – umbrella organizations - New Media BC, Alliance numéri. QC vs – specialized voices in Toronto – NMBA and AIMS 2 Contrasts in public initiatives – Montreal’s 4 -point cluster strategy vs – Weak public sector support in Vancouver and Toronto 16
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