Measuring Success: The Impact of the Interactive Digital Media Sector in Ontario

Key insights

6 takeaways

01
Ontario IDM companies generated 1.3 billion dollars in revenue in 2015 on expenditures of 954 million, implying a 25.0% profit margin.See it on page 5
02
The IDM industry generated 1.4 billion dollars of GDP in 2015, with 420 million dollars in taxes across all levels of government.See it on page 4
03
Access to public funding was rated the most significant barrier to growth, scoring 2.17 on a 0 to 4 scale.See it on page 34
04
The largest 12% of firms, those with 20 or more FTEs, account for 70% of industry employment.See it on page 5
05
Companies anticipate 44% overall employment growth over the next 12 to 24 months, equal to 4,810 FTEs.See it on page 24
06
Ninety percent of surveyed companies develop for mobile devices, and games are the most common experience type at 64%.See it on page 16

Summary

Commissioned by Interactive Ontario and prepared by Nordicity in February 2017, this study measures the Ontario interactive digital media (IDM) industry, drawing on an online survey of IDM companies conducted between August and September 2016, stakeholder interviews in the Junction Triangle (Toronto), London and Ottawa, and an economic impact model. The survey gathered 103 responses, about 12% of the 877 Ontario-based IDM companies with available contact information, and the authors state that margins of error cannot be calculated because the sample is a convenience sample.

The study reports that the industry generated 1.4 billion dollars in GDP in 2015, of which 1.2 billion was from IDM-related activities, and supported 16,900 FTEs in total. Direct employment was 10,900 FTEs. Ontario IDM companies generated 1.3 billion dollars in revenue in 2015 against expenditures of 954 million, an implied profit margin of 25.0%. The industry is composed mostly of small firms: 52% of companies have fewer than five FTEs, while the largest 12% employ 70% of the workforce.

Survey respondents identified access to public funding as the most significant barrier to growth, scoring it 2.17 on a 0 to 4 scale, followed by access to experienced talent in Ontario and access to business clients. Companies also expect to expand their salaried workforce by 44%, or 4,810 FTEs, over the next 12 to 24 months.