British Columbia new media sector growing even as firms face funding woes

British Columbia’s new media industry has grown by 350% since the last time it was enumerated, according to a new study conducted by New Media BC. The industry association’s recently published report, new_media/in-bc.ca, notes that since a similar survey done by PricewaterhouseCoopers in 1998, the sector has grown from about 200 companies to over 700 in 2003. New Media BC head Jane Green says the news will likely surprise many among the general public used to news of technology business consolidation and the dot com bubble burst, and that government must pay attention in order to craft suitable policy. Funding sources difficult to accessFunding Type%ResponsesVenture Capital44%Government41%Seed30%Other Private28%Debt22%Public15%Other9%New Media BC, 2003 More than 14,000 people work in new media, according to the survey, with more than half of the companies less than six years old. While most sectoral activity is taking place on the Lower Mainland, or Vancouver area, more than 20% of companies are located elsewhere in the province. Green says, in fact, that she will be presenting the report in the Okanagan region where new businesses are hoping to form a new industry group. According to the survey, more than 82% of new media companies produce digital content; just under 20% are primarily involved with creating content pipes by acting as Internet service providers or hosting sites; and about 42% create the applications underlying new media such as software, Internet and ecommerce applications or consulting. The report is careful to make the distinctions between the different activities since New Media BC wants to stress a content focus for the industry. "We want to define new media as a content industry," Green says. "We really want to make that clear. We say that it bridges culture and technology and we really wanted to make it clear that it’s content." One figure likely to be much discussed is the fact that more than 80% of B.C.’s new media companies produce some kind of intellectual property. Green concedes, though, that much of the product and copyright activity takes place in the context of fee-for-service work. Most of the province’s new media content companies are small, young enterprises and most of those are involved primarily in web development and design. Companies with fewer than six employees account for 53% of the companies surveyed, with companies of 6-10 employees comprising 18% and 11-25 employees making up 13%. Reasons to stay in B.C.LifestyleLarge talent poolAccess to western U.S.Low dollarStrong sense of new media communityStrong ties to film industryAccess to Asian markets New Media BC, 2003Green says the study will be used in lobbying the provincial and federal governments, including Western Economic Development, which funded the project, for measures to help new media companies overcome the barriers to their growth. The vast majority of new media companies in B.C., 87%, are privately held and only 12% of all companies have received venture capital and just 10% have taken advantage of public funding. A lack of funding was cited by reporting companies as the most significant challenge facing new media firms in B.C., though Green says a welcome new tax credit recently introduced by the province hasn’t had time to help offset some of the financial challenges (CNM, Feb. 20/03).

British Columbia new media sector growing even as firms face funding woes

Broadcast | July 11, 2003

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