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BC DIGITAL MEDIA INDUSTRY: A CONTINUING GROWTH ENGINE FOR BC AND CANADA (2021)

2021
Education and Skills Training
Innovation, Technology and Productivity

Tax credits alone will not allow the industry to continue to grow, although BC’s focus since 2015 on tax credits has enabled BC to remain a player worldwide.

Education/Immigration

While some see the 95% of lower Mainland-based BC productions as “disadvantaged” due to the regional tax credit program, less than 5% of productions occur outside the lower Mainland. Skilled workforce retention; upskilling, reskilling & job entry remain crucial for growth and success. In the Okanagan and Prince George, the issue is severe. International students attending digital school are seldom legally able to stay in and work in Canada. The TFW and PNP programs must be revamped, along with Canada’s legislation allowing students to become permanent residents. In 2019 the Kelowna Chamber supported the BC Chamber policy calling for making the “BC PNP Tech Pilot Permanent”1

Optimizing Rural Tax Credits

This program would allow a growth in regional jobs, and create high paying, long term jobs in the Okanagan and elsewhere in BC where digital media companies are gaining a foothold. The Okanagan is home to nearly ten per cent of programmers and digital media artists (WorkSafeBC). If regional and location distant tax credits were optimized, then an additional 1000+ jobs could be realized in the Okanagan. A strong interior economy benefits the overall BC economy, particularly in pandemic-changing economic times.

Homegrown Digital Media Skills Training

Okanagan College and some of the smaller animation studio/education arms need to expand, along with the UBCO Media Studies program. School District 23 and in-migration from the lower mainland are also causing an expansion of education in all areas of digital animation. Regional and in-migrating talent will allow education to expand and local media companies to retain senior talent.

 

Background

The BC TV/Film industry has three main revenue generating sectors: Live Action; Video Effects (VFX); and Digital Animation. 2019 set records for BC film production; $4.1B was injected into the provincial economy. 2020 figures are not yet complete, but it looks like in fact, they will surpass 2019, remarkable the midst of the pandemic. Production stopped altogether in March 2020, but by June, had regained momentum.2 BC is currently North America’s third largest motion picture production hub.3

image-20230601000710-1

The impact of this industry is growing each year. Important stats4 include:

Film & TV/VFX & Animation Industry Impact (see table 1)

  • $3.2B annual income; 71,140 FTEs;
  • 40% of productions made in Canada are made in BC;
  • World’s #1 largest animation & visual effects cluster;
  • 100+ animation & VFX companies; and
  • Top 3 VFX schools in Canada located in BC.

image-20230601000739-2

Music & Sound Recording

  • $690M annual income; 6,600 jobs;
  • 13,400 people earn a portion of income through music-related work;
  • 200+ music festivals in BC;
  • 78% of festivals in BC expect increased attendance in 2021;
  • 79% of people in the music industry are self-employed;
  • 285 music businesses in BC;
  • 80 independent labels in BC; and
  • 200+ sound recording studios in BC.

Interactive & Digital Media (see table 3)

  • $2.3B annual income; 16,500 jobs;
  • 152 interactive entertainment companies in BC (up 19% from 2015);
  • 27% of Canadians employed by its video game industry are located in BC;
  • 1,300 digital media companies in BC;
  • 200+ members in BC’s augmented reality & virtual reality associations;
  • 500FTEs in AR/VR businesses; and
  • 14,740 of 16,500 tech workforce in BC are employed as computer programmers & interactive media developers.

image-20230601000754-3

 

THE CHAMBER RECOMMENDS

That the Provincial Government:

  1. In concert with federal government immigration programs, increase the focus on bringing in and retaining students and professionals who can work in the industry.
  2. Expand tax credits and incentives to support digital based companies and support reasonable development of the industry for productions in all regions of the province.
  3. Support increased education programs at secondary and post-secondary levels, including the diversity & Indigenous program; Export Development program; and SIGGRAPH (Business symposium).

 

 

    1 BC Chamber Policy & Positions Manual, page 89, https://bcchamber.org/wp-content/uploads/2020/07/2019-2020-Policy- Positions-Manual-2.pdf

    2 At the time of the shutdown in mid-March, there had been 44 productions filming simultaneously. “Production levels dropped to zero for the first time ever in mid-March due to COVID-19 and didn’t return until June. MOWs (movies of the week) came back to work first, with series coming back in July,” notes a Dec. 15 report from the Directors Guild of Canada BC “The compounding effect of interrupted shows returning, and delayed shows starting, led to an unprecedented surge in production, rising to 70 shows in prep or production.”

    3 Creative BC; https://www.creativebc.com/industry-sectors/interactive-and-digital-media/#overview Tax Credit data certified, The Hollywood Reporter

    4Ibid