Executive Summary
Finding Solutions

In January 1997, a broad cross-section of people involved in Ontario's digital media industry came together to form the Digital Media Champion Group. The group's work was coordinated by staff from the Ministry of Economic Development, Trade and Tourism and the Ministry of Citizenship, Culture and Recreation. The Champion Group's task was to assess the industry's competitive position, analyze its strengths and weaknesses and recommend a series of actions that will ensure the industry continues to grow.

To keep the industry strong and help it develop, the Champion Group recommended three key strategies:

1.Strengthen industry coordination and partnerships. The digital media industry must develop stronger relationships within the industry, so it can develop a market presence or "identity," encourage collaboration within the industry on key issues and speak with one voice. The industry must also develop effective working relationships with the other sectors it relies on to develop its products (i.e., the computer, telecommunications and creative/content industries). In addition, the digital media industry must nurture strategic partnerships with other sectors that are a market for its products as well as a means for it to develop a market niche, such as health or education. It must also develop strong partnerships with federal and provincial governments, whose policies and programs can directly affect the industry and its ability to grow. To build the industry, government should also consider providing some strategic support through, for example, financial incentives, marketing assistance and procurement policies.

2.Eliminate barriers to growth. Right now, the ability of the industry to grow is hampered by lack of financing, fierce competition for human resources, a regulatory environment that has not kept pace with technological change and lack of infrastructure.
          To get the financing it needs to grow, the industry must develop its business planning skills, educate investors about the benefits of investing in digital media and identify "angels" who are willing to invest in what is still a high-risk industry. The industry should also work to explore the potential for collaborative, public and private sector investment. Government and industry must work together to find ways that government can help ease the financing crunch, including tax credits and incentives for investors. This approach has been used successfully in other jurisdictions to support the digital media industry and in Ontario to support other industries, such as the film industry. Government incentives have the added advantage of promoting Ontario as a good place to do digital media business and attracting other companies that will build the skill base in the province.
          So that Ontario continues to develop people with the right mix of skills to work in digital media, government and industry must work closely to ensure that education programs remain strong and can produce enough graduates. To improve the skills of new graduates, the education system, with support from industry, should explore alternative methods of training.
          To allow the industry to compete on a level playing field with digital industries in other countries, the regulatory environment must ensure its requirements are not too onerous for those involved in distributing digital media products on the information highway. Rules designed to help the country maintain control over its airwaves should not limit Canada's or Ontario's ability to develop the products to travel that highway. In fact, the regulatory system should work to support and encourage Canada's digital media industry just as it now supports Canada's music, television, film and publishing industries. The regulatory system can play a strong role in encouraging companies to develop digital media products that use Canadian content and distribute those products at home and abroad.

3.Increase opportunities in domestic and international markets. Ontario companies already produce internationally recognized products, but they have not yet developed the marketing skills and distribution networks they need to compete internationally. Unlike Silicon Valley in California or Silicon Alley in New York, the Ontario industry has not yet developed an identity that would help it market its products. To play to win in the international digital media market, the industry must develop stronger marketing skills, better market information and intelligence and a more aggressive approach to distributing its products.
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