First Portrayal of Quebec's Digital Creativity Industry

Key insights

7 takeaways

01
The authors estimate the sector contributes at least $1.25 billion to Quebec's economy, with growth of nearly 50% compared to 2015, while noting the figure is a minimum.See it on page 32
02
Digital creativity companies are young, with 60% of surveyed firms created since 2010 and 19% launched in the last three years.See it on page 20
03
The share of firms reporting a net profit margin of 10% or more rose from 20% in 2015 to 42% in 2018.See it on page 29
04
Subsidies were used by 47% of firms, tax credits by 44% and self-financing by 38%.See it on page 24
05
Workforce management, particularly regarding recruitment, retention, and training of specialized labor, was the main issue raised by the vast majority of participants.See it on page 44
06
The interactive media subcategory of Statistics Canada grew 62% from 2010 to 2016, nearly double the audiovisual sector's 35% growth.See it on page 32
07
The authors argue that Quebec's digital creativity sector lacks reliable statistics, since it is not identified separately in national accounts.See it on page 31

Summary

The study, prepared by Groupe SAGE and La Fabrique de sens for Xn Québec with Alliance numérique and Coop La Guilde, profiles Quebec's digital creativity industry, defined as commercial activity producing content and experiences through computer tools and digital technologies. The authors solicited 270 member companies of the three associations, interviewed 67 founders or senior executives, and used a non-probability sample with a 25% response rate, treating the 270 companies as a proxy for the sector.

The authors report that 60% of firms were created since 2010 and that 35% of companies operate in only one sector, mainly video games and corporate communications. Half of the firms employ fewer than 10 people. Funding relied on subsidies (47%), tax credits (44%) and self-financing (38%), while venture capital was 11% and angel investors proper was around 10%.

Financially, more than a third of firms reported annual revenue between $1M and $5M in 2018, up from 21% in 2015. The share of firms with a net profit margin of 10% or more rose from 20% in 2015 to 42% in 2018. Respondents cited workforce recruitment, retention and training as the main issue, along with difficulty obtaining funding from agencies and investors who understand the sector poorly.