New Directions for the Financing of Interactive Digital Media in Canada

In recent years, a number of studies have pointed out that Canadian companies excel in creative and technological development but have been hampered by an ability to capitalize. Firms that create digital media products and services have been challenged to get access to the financial tools they require to grow. Within this context, a study to examine the state of financing of the Canadian interactive digital media sector was identified as being particularly timely.

The findings reported in this study are based on a review of Canadian and international littérature on the financing challenges facing interactive digital media companies and 36 in-depth interviews with a range of stakeholders, which included Canadian companies, private equity investors, banks, agents, publishers and government funders and industry.

The goals of this study were:

  • to undertake a review of the state of financing of the Canadian interactive digital media in Canada with a particular focus on Ontario;
  • to assess the effectiveness of financial mechanisms supporting the sector particularly private sector mechanisms; and
  • to identify potential new financial vehicles of interest to the Ontario Media Development Corporation (OMDC), the Canada Media Fund (CMF) and other funders of interactive digital media.

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