Strategic shift key to capitalizing Canada’s content business, new study
OTTAWA, February 4, 2016—Canadian content creators do not have the same access to venture capital (VC) financing as their U.S. counterparts, and must think strategically about partnerships, acquisitions and mergers to grow their businesses, according to a new industry study by Duopoly’s Catherine Tait.
Strengthening the Business: Capitalizing Canada’s Content Business was released today at the Canadian Media Producers Association’s annual Prime Time in Ottawa conference. The report received funding support from the Ontario Media Development Corporation (OMDC), and the Canada Media Fund (CMF). It discusses how traditional content entrepreneurs can attract increased investor activity by learning the basic “rules of the road” and reassessing the management tools used by their companies.
“In order for Canadian content businesses to reach their maximum growth potential, they must develop and constantly refine a concerted corporate strategy,” says Catherine Tait. “Companies need to set business objectives and execute upon them—everything from thinking about expanding into global markets, finding new revenue streams or entering into new lines of business.”
The study does a comparative analysis of the current investment climate for media deals in the U.S. and Canada. VC investment is more limited in Canada than the U.S. because investors are largely interested in technology-based media opportunities, even if they are content players. But companies like DHX, eOne and 9 Story are highlighted as recent Canadian examples of success that have made acquisitions in other production financing territories like the U.S, U.K and Europe.
“What Catherine’s study offers is a unique perspective of Canadian challenges in the global marketplace. She offers best practices from dozens of production companies and financiers to provide guidance and offer potential solutions for small and medium-sized companies to grow their businesses,” says Reynolds Mastin, President and CEO, CMPA.”
As a special feature at Prime Time, business plans from three Canadian companies were pre-selected to participate in a special interactive workshop to put this report to the test. The panel, led by Catherine with other industry experts, will test the viability of their plans and look for hidden opportunities for growth. The selected companies are; Bandwidth Digital Releasing — exploring new feature film distribution models for Indigenous and First Nations communities not currently served; Arcana, a successful IP developer looking to leverage their large library of graphic novels; and Relish Interactive — a company that focuses on creating game changing digital content and products for ambitious startups and innovative brands.
A full copy of the report can be viewed here.
ABOUT THE CMPA
The Canadian Media Producers Association is the national advocacy organization for independent producers, representing hundreds of companies engaged in the development, production and distribution of English-language content made for television, cinema and digital media channels. We work to promote the continued success of the Canadian production sector and to ensure a bright future for the diverse content made by our members for both domestic and international audiences. cmpa.ca
ABOUT THE OMDC
The Ontario Media Development Corporation (OMDC) is the central catalyst for creative industries in the province. The OMDC promotes investment in, and leverages original content creation for, the six industries that form part of Ontario’s entertainment and creative cluster: film and television, magazine and book publishing, interactive digital media, and music.
ABOUT THE CANADA MEDIA FUND
The Canada Media Fund (CMF) fosters, develops, finances and promotes the production of Canadian content and applications for all audiovisual media platforms. The CMF guides Canadian content towards a competitive global environment by fostering industry innovation, rewarding success, enabling a diversity of voice and promoting access to content through public and private sector partnerships. The CMF receives financial contributions from the Government of Canada and Canada’s cable, satellite and IPTV distributors. Please visit www.cmf-fmc.ca.
For more information:
Manager, Media Relations & Communications
Canadian Media Producers Association (CMPA)