Creative Industries

US Industry Overview

Contents

Introduction 2 Team Contacts 3 US Market Checklist 4 Opportunities for UK Companies 5 Sub Sector Information

Film & Television 6 Music 10 Video Games 13 Digital Media & Interactive Technologies 15 Design 17 Advertising & Marketing 18 Fine Art & Photography 21 Performing Arts 22 Publishing 23

Where to Learn More 25

Introduction

The is a large market, full of opportunities for UK companies but it is also complex and highly competitive.

With the mission of helping UK companies identify and UK companies interested in any of our services in the pursue new business opportunities, UK Trade & United States should ideally speak first with one of our Investment (UKTI) teams in the United States offer a UK-based International Trade Advisors (ITAs). variety of support to help companies achieve their Financial assistance and grants are not available from international potential, including trade missions, events, UKTI staff in the United States, but UK companies can and webinars, and customised consultancy services speak to ITAs about export support services like the (Overseas Market Introduction Service, OMIS). Tradeshow Access Programme, Passport to Export, Gateway to Global Growth, and the Export Marketing This brochure is intended to provide an overview of Research Scheme. Companies in Scotland, Wales, opportunities in the United States, help companies and Northern Ireland should contact Scottish consider and understand the challenges, and outline Development International, Business Wales, or Invest the steps required to succeed in this market. Northern Ireland, respectively.

Cover Photo © Getty Images

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Team Contacts

Leading Post: Los Angeles

Tim Crouch (Sector lead) Miriam Feygenson (Business Development Associate) Email: [email protected] Email: [email protected] Tel: +1 (310) 843 2944 Tel: +1 (310) 843 2941

Team Contact Names

Atlanta / Miami Ian Stewart, Morgan McCutchin, Los Angeles Tim Crouch, Miriam Feygenson Mauritz Plenby, TBC

Boston TBC, Joanna Manwell Richard Powell, Nicole Diaz, Patricia Bayley, Rob Cauvy

Chicago TBC, Emily Roden San Francisco Cindy Fabian, Frank William

Houston Haileigh Meyers, Caitlin McGill Washington DC Melinda Goforth, TBC

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U.S. Market Checklist

Due to a common language and culture, the United States can seem like a relatively easy market to access. However, it is also a large, crowded, and highly competitive economy. It can be easy to underestimate the requirements of a successful US strategy. Prospective exporters should consider carefully whether they are ready to do business in the United States.

The following questions can assist with a critical self-evaluation:

1. Is there a market in the United States for your 7. Do you understand the legal and accounting issues product, service, or content? If so, is the market associated with doing business in the United nascent, growing, or already saturated? These are States? For example, think about whether your key questions to ask and answer before committing sales contracts are appropriate, whether your the required time and expense towards developing intellectual property is protected, whether different your company’s business in the United States. technical standards and data privacy rules exist for your product or service, and whether you are 2. Is your company in a stable financial position and covered in the event of liability claims. Before ready to invest in expanding into new markets? taking any concrete steps in the United States, a Many UK companies underestimate the costs of consultation with a US attorney is usually setting up and time required to effectively succeed advisable. in the United States. It should not be considered a short-term process, and setting realistic 8. Does your company export to or do business in expectations (in terms of time and cost) are any other international markets? It is generally required. easier to begin a company’s overseas exports to markets that are geographically closer and have 3. How much manpower, time and financial resources more experience working with UK companies, such can you commit to your US strategy? as Ireland and other EU countries, before tackling the United States. 4. Have you formulated a market entry strategy? For example, do you want to sell online, via a 9. Do you have the capacity to exploit opportunities distributor, agent, partner, or do you need to set up fully? Can you build on any initial success and a US entity? meet increased customer demand? US businesses will be open to working with a foreign partner but 5. What is your Unique Selling Proposition (USP) for will expect you to meet their customer service the US market? Make sure that this is clear, standards, be present to support any issues, and concise, well-presented and accessible to your may want accessibility to discuss other future potential US customers. opportunities. They do not want to work with foreign companies that are ‘in it for the short term’. 6. Have you developed a compelling sales pitch and marketing materials, including a website, around 10. Have you evaluated the logistics required to export your USP? Have they been developed with a US in the United States? For example, are you audience in mind? UKTI DC have successfully prepared to invoice in US dollars, and have you used a Quad Chart as a means of marketing UK determined how you will receive payments? How companies to US government personnel. will you provide technical support? For physical products, have you identified customs duty rates and whether you will need a freight forwarder?

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Opportunities For UK Companies

Sub Sector US New Mid- Atlantic Southeast Mid West Gulf Southern Northern overall England Atlantic Coast (Miami / (Chicago) Coast CA CA / (Boston) (New (Washington Atlanta) (Houston) (Los Pacific York) DC) Angeles) Northwest (San Francisco)

Film S W S W W W W S W

TV S W S M M W W S W

Music S M S W M M M S M

Video S M M M W W M S S Games

Digital S S M W W M S S S Media

Design S W S W W S W M S

Advertising S W S W M S W S S

Fine Art M M S M W M W M M

Performing S M S M W S W M M Arts

Publishing S W S W W S W W S

Size of Opportunity S = Strong M = Moderate W = Weak

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Sub Sector Information

Film & Television

Overview

The United States, specifically the Los Angeles cluster known as Hollywood, has dominated the world’s film and TV sector for a century, permeating all markets and cultures around the world. India may produce a greater quantity of films, but no market comes close to the US in either profile or gross receipts. Though almost all film productions and many TV productions have migrated away from California to jurisdictions with generous incentive programmes, production and financing decisions are still made in Los Angeles and in New York, where much of the television broadcasting industry is based.

Film and television is a huge industry in the United States, Factual programming—often based on formats imported but piracy and changing consumer behaviour have from the UK—is also hugely popular, especially undeniably eaten away at traditional film and TV earnings competition shows and ‘reality’ programming. while production costs for major films and television series have steadily increased. As a result, studios prefer to Not surprisingly given the size and scope of the industry, gamble on proven properties like remakes, sequels, and the United States is a large and congested marketplace, material based on bestselling novels or popular comic full of individuals shopping services, talent, and ideas. UK books. Independent films do not often turn a profit at the talent and creativity enjoy an excellent reputation, but UK box office, and large studios are reluctant to finance them companies should be aware that US decision makers tend unless high-profile talent is attached. Independent to rely on professional intermediaries (e.g., managers and productions must usually look for unconventional sources agents) and personal relationships to restrict access and of financing. On the other hand, the success of series like filter excess demand for their attention. As a matter of Mad Men, Breaking Bad, Game of Thrones, and Downton strict policy, most larger US agencies and production Abbey demonstrate that there is an appetite for companies will not consider direct solicitations. Therefore, sophisticated, intricately scripted content on cable effective networking is critical – perhaps at one of the key television, in particular on networks like HBO and AMC. tradeshows/events, listed in the spreadsheet within this document.

Clusters Los Angeles is the motion picture industry’s global headquarters. The leading US film production companies are broken down into two recognised industry categories, “major” studios and “mini-major” studios. All of the six majors and five of the six mini majors are located in Southern California.They are:

Major Studio Location Parent Comments

The Walt Disney Burbank, CA None Includes ABC Television, ESPN, , Lucasfilm, Touchstone Company Pictures, Walt Disney Animation Studios, Marvel Studios

NBC Universal Universal City, CA Comcast Includes , NBC Television, , Universal Animation Studios, Illumination Entertainment, Working Title Films

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Major Studio Location Parent Comments

Paramount Pictures Los Angeles, CA Viacom Includes Paramount Vantage, Insurge Pictures, Nickelodeon Entertainment Movies, MTV Films. No longer owns a TV studio or broadcaster—CBS Studios and CBS Television are now separate companies owned mostly by National Amusements.

Sony Pictures Culver City, CA Sony Includes , Classics, Screen Entertainment Corporation Gems, TriStar Pictures, , Destination Films, Triumph Films, Stage 6 Films, Affirm Films.

Twenty-First Los Angeles, CA News Corp Includes Fox Searchlight Pictures and Fox Animation Studios. Century Fox Fox Television companies are sister companies owned by News Corp, rather than subsidiaries.

Warner Bros Burbank, CA none Includes , Castle Rock Entertainment, Turner Entertainment Co., Warner Bros. Animation, Warner Bros. Television, DC Entertainment.

Mini Major Location Parent Comments

DreamWorks Universal City, CA Reliance Original DreamWorks purchased by Paramount in 2005; An ADA Group; independent DreamWorks relaunched in 2008. Reliance Entertainme nt

DreamWorks Glendale, CA none Spun off from DreamWorks in 2004. Includes DreamWorks Animation Classics, Big Idea, PDI.

Lionsgate Santa Monica, CA none Includes Summit Entertainment, Roadside Attractions, Pantelion Entertainment Films.

Metro-Goldwyn- Beverly Hills, CA MGM Includes United Artists, MGM Animation. Former major studio Mayer (MGM) Holdings with a difficult recent history, including sale to Sony and bankruptcy.

Relativity Media West Hollywood, CA none Includes Rogue.

The Weinstein New York, NY none Includes Dimension Films, Our Stories Films, Third Rail Company Releasing

New York City is the leading US TV broadcasting hub, 's film cluster is the second largest after followed closely by Los Angeles. Of the four major US Hollywood, which such companies as Kaufman Studios, television networks, ABC and CBS are headquartered in Silvercup Studios, Steiner Studios, and The Weinstein New York, Fox is based in Los Angeles, and NBC is jointly Company. headquartered in New York and Los Angeles. New York is also the headquarters of numerous successful cable networks, including HBO, AMC, A&E Networks, MTV, Comedy Central, BBC America, and USA. Most of these also have Los Angeles operations. 7 gov.uk/ukti Last Revision: December 2014

With the National Geographic Channel and media giant Films themselves are now rarely produced in California, Discovery Communications, Washington, DC has a but in US states offering generous production incentives notable factual television cluster. Several trade and/or lower costs, including New York, Louisiana, New associations, including the Motion Picture Association of Mexico, Georgia, and Pennsylvania, and in other America (MPAA), are based in Washington. Atlanta is countries. This is somewhat less true of television home to the Turner Broadcasting family of companies productions, which are often still based in Los Angeles (owned by Time Warner), which includes the CNN, TBS, due to their longer production schedules. New York and and TNT networks. Miami has an important Spanish- Vancouver are also busy TV production locations. language TV production and broadcasting cluster, including Univision and Telemundo.

Key Events

The most critical film festivals in North America are Sundance in Utah in January, and Toronto in Canada in September. Other notable festivals include the Tribeca Film Festival in New York, the South By South West (SXSW) Film Festival and the Austin Film Festival in Texas, and the Telluride Film Festival in Colorado.

Outside of festivals, the most important industry events are the American Film Market in Los Angeles, where movies are bought and sold for international distribution, the KidScreen Summit in New York for family programming, the RealScreen Summit in Washington for factual and “reality” content, and NATPE (The National Association of Television Production Executives), an annual television market and conference in Miami Beach.

Major Associations

Academy of Motion Picture Arts & Sciences; www.oscars.org Academy of Television Arts & Sciences; www.emmys.tv American Film Institute (AFI); www.afi.com Association of Independent Video and Filmmakers (AIVF / FIVF); www.aivf.org Directors Guild of America (DGA); www.dga.org Film Independent; www.filmindependent.org Independent Film & Television Alliance (IFTA); www.ifta-online.org Motion Picture Association of America (MPAA); www.mpaa.org Motion Picture Editors Guild; www.editorsguild.com National Association of Television Program Executives (NATPE); www.natpe.org/natpe Producers Guild of America (PGA); www.producersguild.org Screen Actors Guild (SAG); www.sagaftra.org Writers Guild of America; www.wga.org

OMIS Activity

OMIS activity in support of UK film and television companies must take into account US market realities. For companies shopping content or talent, business development on behalf of small groups tends to work better than one- on-one services. Our contacts are not generally responsive to efforts by UK Trade & Investment to play the role of an agent shopping a production, format, or script.

Suggested OMIS activities can include:

 Group events, such as seminars and networking functions  Publicity  Introductions and meeting programmes for technologies that fit the strategic priorities of major studios (see “Digital Media,” below)

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Examples of recent OMIS activity:

 Market research into the development process for animation properties, based on interviews with executives, producers, and lawyers.  Market research into micro-budget film financing, based on interviews with producers and agents.  Annual TV industry networking reception in Los Angeles for a group of young creative executives from the UK, attracting high-level US development executives and even on-air talent.  TV/film industry networking receptions and dinners at KidScreen in New York and RealScreen in Washington for delegations of independent UK producers, attracting broadcasters, agents, and potential co-production partners.

Companies requiring simple lists of contacts should first refer to online resources, including IMDb Pro (www.imdb.com), TrackingB (www.trackingb.com), Studio System (www.studiosystem.com), and Done Deal Pro (www.donedealpro).

Los Angeles Post leads on this sub-sector for UK Trade & Investment in the United States.

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Music

Overview

The music industry in the United States is showing some encouraging signs after years of contraction. The use of digital services (e.g., Pandora, Shazam, iHeartRadio, Slacker, Sonos) is expanding, revenue streams are diversifying, and the live concert industry continues to grow (at a rate of 1.3% per year between 2008 and 2013, according to IBISWorld). However, the United States continues to lack a broadcast right for performance revenues.

British music has an impressive track record of US videogames, adverts, and motion picture trailers) and success dating back to the British Invasion, and is today brand partnerships are increasingly important sources of enjoying a renaissance with such acts as Adele, Muse, revenue and exposure. More than a few success stories Mumford and Sons, and One Direction. Nonetheless, it is have centred around a successful video that went viral on more difficult today for UK music to penetrate the US the Web, or a high-profile placement on a TV market than it was a few decades ago. For example, advertisement. Industry observers have said, “Television tastes in the US differ somewhat. Music from the UK is the new radio,” and while this could be an exaggeration, continues to be trendsetting particularly in the rock and it is undeniable that traditional broadcast radio tends to be dance genres, but in percentages, those genres claim unadventurous and difficult to access. There are, fewer listeners in the U.S. than they do in the UK. Many however, a small handful of public radio stations around U.S. music lovers gravitate toward urban (R&B/hip hop), the country that can still provide new artists with critical country, and Latin music. exposure. Such stations, which include KCRW (www.kcrw.org) in Los Angeles, KEXP in Seattle However, the bigger difficulties of accessing the US (www.kexp.org), and KCMP in Minneapolis market can perhaps be attributed to the changing nature (www.thecurrent.org), are influential among tastemakers of the music industry as a whole. In the past, record and reach far beyond their local audience because they labels would undertake the task of marketing an artist, are available on the Internet. leaving the artists to focus on being artists. In the case of a pop artist with broad commercial appeal, this model is For music-related products, trade shows are an important still available, but more often, artists must build a fan base way to reach customers. These include the International themselves, generating consumer interest before the Association Music Products Association (NAMM) traditional segments of the music industry (e.g., conference in Anaheim, California, each January; and the commercial radio, large record labels) take notice. In a Audio Engineering Society (AES) Convention in San market as large as the United States, it can be difficult and Francisco each autumn. Trade events are less important extraordinarily resource intensive for an artist or small for music itself, although the South by South West company to tour and promote themselves until they (SXSW) remains the largest music festival in the United achieve critical mass. States. SXSW can be overwhelming for unsigned acts Many recent UK successes in the United States have hoping to be discovered. The festival is more appropriate successfully exploited newer alternatives to traditional for acts already beginning to generate attention, and it distribution routes in the United States, like digital requires preparation and a clear media and marketing platforms and social media. In addition, synchronisation strategy. We advise that participation at SXSW be part of (i.e., licensing to visual media such as film, television, a larger U.S. effort, rather than a one-off activity.

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Clusters

New York has traditionally been the music industry capital of the United States. Three of the four major music labels (EMI/Capitol, Sony/BMG, and Warner Music Group) have their corporate headquarters in New York, as do numerous independents such as Beggars USA, Ryko, and Tommy Boy. The city also hosts the CMJ Music Marathon and boasts an abundance of famous live venues, including Madison Square Garden, Carnegie, Hall, Radio City Music Hall, Lincoln Center, and the Bowery Ballroom.

The music cluster in Los Angeles rivals New York. The Nashville, the third largest music cluster in the United largest major label, Universal Music Group, is based in States, is the most important centre for country music, Los Angeles, and the other majors all have large offices bluegrass, and Christian music. Other vibrant music and important divisions in Los Angeles, such as music scenes can be found in Austin (which hosts SXSW), New publisher Warner/Chappell (part of Warner Music Group). Orleans, Boston, Seattle, and San Francisco, to name a Los Angeles has its own assortment of famous live few. The dance music scene is healthiest in San venues and hundreds of independent labels and Francisco, New York, and Miami (home to the Winter management companies. Los Angeles should be the Music Conference). Miami is also a centre for Latin primary focus for those interested in licensing music to music, not just for the United States but also for much of film, television, videogames, and advertisements. Latin America. California as a whole should also be the primary focus for music companies interested in partnering with digital Rather than tackling the entirety of the United States, UK platforms and other technology companies. acts looking to tour should consider focusing on specific regions. It may be easier to build a following outside of the industry hubs, where it can be difficult to gain attention. In planning any tour or performance, acts should take account of onerous and expensive US visa procedures, which require several months to complete.

OMIS Activities

Suggested OMIS activities can include:

 Networking functions  Publicity and invitations for an event, such as a showcase  Missions and group events  Introductions and meeting programmes

Examples of recent OMIS activity:

 The Sync Mission: This organised trade delegation covers the placement of music in all visual media, including film, television, advertising, movie trailers, and videogames. UK Trade & Investment annually partners with the BPI and the MPA to bring 40-50 UK music companies to Los Angeles, where we organise an extensive programme of private industry seminars, presentations, site visits, and networking events with creative decision makers. The mission has been covered extensively by Music Week, Record of the Day, and BBC Radio, and it has a strong track record for helping participants secure business deals.

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 SXSW: There is no formal trade mission to the South By South West music festival, however UK Trade & Investment hosts an annual trade mission to SXSW Interactive for British technology companies. A variety of bespoke activities expose the delegation to capital sources, industry experts, and boundless networking opportunities. Mission activities tend to overlap with the SXSW Music Conference, offering multiple tech & music crossover opportunities.

 Appointments with music supervisors working in film, television, advertising, and videogames. This has been a popular OMIS commission, most effectively used as a follow up to the Sync Mission. Companies can commission this activity individually or in small groups, splitting the cost.

 US government and non-profit contacts for the purpose of establishing a musical arts programme for disadvantaged youths.

We generally recommend that a company with no US market experience participate in a group mission before commissioning an OMIS. In general we advise companies to seek a booking agent in order to arrange tour dates and a PR company to approach the press (we can provide a few suggestions for each).

Los Angeles Post leads on this sub-sector for UK Trade & Investment.

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Video Games

Overview

The strength of UK game development talent is unquestioned, but the majority of large international game publishers, who have traditionally controlled distribution, are headquartered in the United States or Japan. This geographical distance has historically posed challenges for independent UK developers seeking distribution for their titles. However, the videogames industry is in the midst of a significant shift.

Development costs for premium, or ‘AAA,’ console games In aggregate, the video game industry is one of the fastest continue to rise. Financing has become more difficult, and growing sectors in the U.S. economy, with total revenues a console game must be a huge hit to be successful. Thus of nearly $21 billion in 2012, according to the as in the film industry, publishers are investing in fewer Entertainment Software Association (ESA). The NPD and bigger titles. The console games industry has been Group reports that purchases of digital full games, digital shedding jobs, with some companies going out of add-on content, mobile apps, subscriptions and social business entirely. This consolidation has been coupled network games accounted for 40 percent of 2012 game with a boom in social and mobile games, which cost much sales, or $5.9 billion. PricewaterhouseCoopers estimates less to produce and appeal to a much broader the North American video game market will continue demographic. Casual games played on smartphones, growing by approximately five percent annually through tablets, and social media platforms have altered 2015. distribution patterns, allowing developers to sell directly to gamers (albeit in many cases through new gatekeepers like Apple and Facebook).

Clusters

California, Texas, Washington, New York and games,” which involve the application of game methods Massachusetts currently have the highest number of video and technologies to educational, health, management, game jobs. California alone accounts for approximately and policy purposes. Other US states (including including 41 percent of total industry employment nationwide, and Pennsylvania, Georgia, North Carolina, Florida, and has two clusters: one in the San Francisco Bay Area Louisiana) are trying to grow their own videogames (home to Electronic Arts, Sony Computer Entertainment of clusters by offering incentives for development. Major America, and Zynga) and one in Los Angeles (home to videogames industry events are on the West Coast, Activision Blizzard, Warner Bros. Interactive and Disney including the Game Developers Conference (GDC) in San Interactive). The Seattle area in Washington is home to Francisco late each winter, E3 in Los Angeles each June, Microsoft’s Xbox, Nintento of America, Electronic Arts’ and Casual Connect in Seattle or San Francisco each Pop Cap Games; New York is home to Take2 Interactive; July. and much of the Texas industry is clustered around Austin. Boston is particularly known as a hub for “serious

OMIS Activity

The majority of our OMIS work has centred around connecting UK developers with US publishers and gaming platforms.

Suggested OMIS activities can include:

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Examples of recent OMIS activity:

 Research into videogames market trends, based on interviews with leading industry executives.  Networking receptions at the Game Developers Conference (GDC) in San Francisco.  Appointments with US videogame publishers for a UK developer visiting GDC, and a bespoke meeting programme for a UK developer in Los Angeles.  Private roundtable-style meetings for UK developers at GDC with market leaders such as Apple and Microsoft.  Business development breakfasts at E3 with US videogame publishers.

San Francisco Post leads on this sub-sector for UK Trade & Investment.

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Digital Media & Interactive Technologies

Overview

Silicon Valley, near San Francisco, has famously led the digital revolution. First the Internet, then social media and mobile devices have transformed how people interact with one another and consume information.

Consumers today expect to be able to use a variety of as companies shift their spending toward online devices (computers, tablets, smart phones, gaming campaigns and learn to interact in new ways with potential consoles, TV set top boxes) to access any movies, TV customers, for example. In the world of media and shows, music, games, and books they want. Such entertainment, new giants like Netflix are emerging, and devices become more powerful with each successful the traditional studios have set up their own video-on- generation, and network speeds are steadily increasing. demand (VOD) services, like Hulu and Crackle, where With televisions that can access Web-based services and they experiment with both new content and new revenue the ability to move media across a variety of devices, the models. Independent producers can now launch a connected home is becoming a reality. Jupiter Research concept digitally, building consumer interest, until a projects that connected home service revenues will grow traditional media company becomes willing to make an from $20 billion in 2012 to $60 billion in 2017, and that investment. A series of popular webisodes, for example, over 80 percent of that growth will be driven by can lead to a feature film or television show. entertainment content. In fact, more and more consumers are “cutting the cord”—deciding not to pay for packaged The major media companies are avid for new cable or satellite television—and instead using Web- technologies that will improve or facilitate intellectual enabled devices to access the media they want. property protection, digital rights management, end-to-end digital content production and distribution, animation, 3D, Devices and platforms like Facebook, YouTube, and and the consumer experience on mobile devices. Major Twitter present new opportunities to communicate with studios like Warner Bros. and Disney maintain full-fledged consumers and distribute media. In fact, they are technology divisions devoted to both practical applications fundamentally altering almost every other industry. The and long-term R&D. advertising and marketing industry has been transformed

Clusters

Silicon Valley continues to be a global hub, where Southern California. Texas, known for a low-taxation and innovators like Apple, Google, Facebook, Netflix, and low-regulation business climate, is home to a growing Twitter are based. Microsoft is based in Redmond, near number of interactive media designers and developers, Seattle. In Southern California, traditional entertainment and to the South By South West Interactive (SXSWi) studios have grown extremely active in the digital and festival each March, the leading industry event of its kind. interactive arenas; digital media producers like Maker However, companies operating in digital and interactive Studios, Machinima, and Netflix’s content team are also media can be found almost anywhere in the United based there. Google’s YouTube and special effects and States. animation companies can be found in both Northern and

OMIS Activity

Suggested OMIS activities can include:

 Business development activities for missions or groups  Matchmaking and meeting programmes for companies with technologies relevant to the strategic priorities of major US players.

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Examples of recent OMIS activity:

 Annual trade mission to SXSWi in Austin, Texas, including a variety networking events and a “Doing Business in the United States” seminar.  UK Trade & Investment hosts an annual trade mission to SXSW Interactive for British technology companies looking to enter the US market, which includes a pre-departure training on pitching your company and a ―Doing Business in the United States seminar. The event in Austin includes a variety of bespoke activities to expose the delegation to capital sources, industry experts, and boundless networking opportunities. West Coast Interactive Mission: This trade mission to San Francisco and Los Angeles featured interactive technology, design, and development companies who wished to connect with content owners and media platforms. The programme has featured visits to Facebook, Apple, Warner Bros, Sony Pictures, Disney, Lionsgate, Evite, Current Media, Adobe, and agencies like IDEO, Astro Studios, and The Ant Farm. The mission also included two networking receptions and roundtables.  Appointments for an interactive film director as follow-up to the West Coast Interactive Mission.  A bespoke meeting programme with entertainment/media content owners for an interactive application developer.  A bespoke meeting programme for the developer of a content management system intended for media and entertainment marketing companies.

Please note that we may not be able to assist companies seeking early-stage investment from the United States. These requests will be assessed on a case-by-case basis.

Los Angeles Post leads on digital/interactive content and San Francisco Post leads on digital media technology for UK Trade & Investment.

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Design

Overview Britain has a reputation for ingenuity and creativity in companies, with big names like Microsoft, Nike, Samsung, design, especially in the disciplines of branding, and Sony near the top. graphics, multimedia/new media, packaging, commercial interiors, exhibitions/events, product, The design industry overall has been increasing its revenues in recent years, with freelancers benefitting in and industrial design. Please note that fashion, giftware, particular. Graphic design and as mentioned before, and interior design are handled by our Consumer & industrial design are healthy disciplines and areas of new Industrial Goods team. opportunities include green/sustainable design and

interactive (digital) design. Interior design and architecture Industrial designers are reported to be the most common have slowed down, due to the past decline in the real type of working artists, with nearly 40 percent of the total. estate market, although this is expected to slowly rise, According to a 2012 National Endowment for the Arts moving forwards. The hotel design industry was hardest (NEA) report, there are estimated to be over 40,000 hit during the past downturn, while institutional design industrial designers inside of the US, with Michigan, (i.e., recreational, educational, and religious buildings) Rhode Island, Wisconsin, Indiana, and Pennsylvania were less affected. being the top five states for industrial design — with all but one of the biggest metropolitan areas for design is located Like other creative disciplines, design is a highly in Michigan, which has the highest density of workers in competitive industry in the United States. US firms are the profession largely due to the auto industry. inundated with offers and requests for business on a daily

basis. The saturation of the marketplace makes it difficult US design patents which protect the visual characteristics to get attention with an unsolicited approach. US of a design, are at an all-time high. In 2012, an average of companies tend to rely on existing relationships, seven design patents were awarded for every 100,000 recommendations from trusted associates, and people in the US — up from just one per 100,000 during established reputations. the early 1900s. Much of those are awarded to

Another challenge is geography. Even an established US Key trade associations include Industrial Designers firm in one state may have difficulty landing business in Society of America (IDSA) (www.idsa.org), the American different state. Many successful UK design companies Society of Interior Designers (ASID) (www.asid.org), the US find that they must set up an office in the United States in Green Building Council (www.usgbc.org), and the order to manage clients effectively and grow their Sustainable Furnishings Council business. (www.sustainablefurnishings.org). New York Design Week (http://nycxdesign.com) is New York City's annual citywide celebration of design.

Clusters There are design studios everywhere in the United States, but New York is the acknowledged design capital. Chicago and the Mid West are another centre of design, while San Francisco is a leader in digital design. Los Angeles is also home to design schools, digital agencies, and automobile design studios. Other clusters include Atlanta, Dallas, and Miami.

OMIS Activity The key to tackling the US market is to build relationships, attend events, and establish one’s brand. UK Trade & Investment offers business development as part of group missions and funding for attendance at trade shows. Companies can access a database of all US design trade shows and conferences at www.tsnn.com.

Suggested OMIS activities can include:

 Business development activities for missions or groups  Market research  Introductions at trade shows

New York Post leads on this sub sector for UK Trade & Investment.

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Advertising & Marketing

Overview

Like various design disciplines, advertising, marketing, and brand management are very competitive in the United States. Digital, mobile, and social media advertising are the fastest growing segments. According to Outsell Research, spending on online advertising in the United States has overtaken print and television advertising. Ad:Tech (www.ad-tech.com) is a key industry event that serves the growth of digital agencies and new technologies for advertising.

Traditional advertising is attempting to adapt and evolve to The geographic challenges are similar to those found in changes in audiences and technology. For example, due the design industry. US companies seem reluctant to do to the rise of Digital Video Recorders (DVRs) like TiVo, it business with service providers based in UK unless they has become easy for television viewers to bypass are commissioning work for European markets. Most UK commercials, which is causing a shift toward branded agencies have found that gaining traction in the US content and product placement. Brands want to spend market requires either exploring a partnership or setting money on smaller and more targeted campaigns, resulting up a physical presence. in heightened interest in targeted (or “vertical”) advertising to qualified, key engaged audiences (such as those found on special interest sites) and in “guerrilla” marketing (viral campaigns on social media sites, for example) that attempts to engage audiences interactively, in real time.

Key industry associations include the American advertising volume placed by agencies nationwide. It may Association Advertising Agencies (AAAA) (www.aaa.org), be found on the Web at www.aaaa.org, and it offers a free the American Advertising Federation (AAF) (www.aaf.org), online database of US agencies, with full contact details, and the Interactive Advertising Bureau (IAB) at www.aaaagencysearch.com. (www.iab.net). Key publications include Advertising Age (www.aib.net), Ad Week (www.adweek.com), MediaPost The chart on the following page by Ad Age Datacenter (www.mediapost.com), and Brand Republic details US advertising expenditures by brand in 2012. It (www.brandrepublic.com). Based in New York, AAAA is may also be found here: the US trade association for advertising agencies, and its http://adage.com/article/news/meet-america-s-25-biggest- membership produces about 75 percent of the total advertisers/242969/.

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Clusters

With “Madison Avenue” as a well known synonym for the advertising industry, New York is the acknowledged hub. According to the New York Economic Development Corporation, “New York City is by far the nation’s advertising agency employment leader. Los Angeles is second, employing 43% of the number in New York City, followed by Chicago with 34% of New York City’s level.” Los Angeles has a particular focus on entertainment marketing agencies and San Francisco on digital and social media agencies. Miami has a cluster that serves the Latin market. New York and Washington DC are the two major hubs for public relations activity. Atlanta and San Francisco are the fastest growing hubs, measured by employment growth.

OMIS Activity

Suggested OMIS activities can include:

 Launch events for UK firms establishing a US office.  Introductions and meeting programmes for companies with new technologies relevant to the advertising industry.

Example of recent OMIS activity:

 Programme for a mission of UK companies to Ad:Tech in New York City.  Los Angeles meeting programme and identification of networking opportunities for a UK digital agency in conjunction with the opening of its US office.  San Francisco matchmaking programme for a creative agency.

New York Post leads on this sub sector for UK Trade & Investment.

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Fine Art & Photography

Overview

There is a relatively straightforward route to market for fine art in the United States. UK artists should seek to establish a presence at trade shows and work to raise awareness not only of their art, but of themselves as artists.

Personality generates coverage. A capable public Professional photographers typically have agents, and relations agency can often be helpful. Art galleries can be personal connections are also helpful. For professional found in well-to-do areas all over the United States, but photographers, the Licensing Show in Las Vegas, Visual New York City remains the most prestigious location for Connections in New York and Chicago, and events art exhibitions. BritWeek in Los Angeles (see events) organised by the PMA (see www.pmai.org) can be useful highlights British artists each year. networking venues.

OMIS Activity

UK Trade & Investment offers off-the-shelf resources and In addition to the market report, OMIS activities can information, as well as a standard report available for a include assistance with events. Unfortunately, UK Trade & fee via the OMIS service. This report offers UK artists Investment cannot act as an agent representing individual initial information and research on penetrating the U.S. artists. market. The report contains recommendations, a market overview (including information on the corporate art market), and information on the routes to market. In addition, the report offers information on gallery listings, trade organisations, publications, art shows, and customs guidance. The Consumer & Industrial Goods team in New York, who can provide further details on the market report.

The Consumer & Industrial Goods team in the New York post leads on this sub sector for UK Trade & Investment.

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Performing Arts

Overview The US performing arts industry includes about 9,000 companies with combined annual revenue of about $14 billion. The industry includes about 3,000 theater companies; 200 dinner theaters; 200 opera and 600 dance companies; 4,500 musical groups and artists, including 850 symphonies and chamber music organizations; and 30 circuses.

Key growth drivers include increases in the number of The most famous companies include The Metropolitan older people with more time to attend performances and Opera, the Public Theater, The Boston Symphony opportunities to reach new audiences through social Orchestra, and The San Francisco Ballet. The industry is media. fragmented, with local, regional, and state orchestras, dance, and theatre companies. Most companies are privately held or non profit. Two thirds of year-round performing arts companies have annual revenues under $500,000. The leading industry event is run by the Association of Performing Arts Presenters (APAP), whose annual show is in New York each January.

Useful US associations and links include:

 National Endowment for the Arts page on dance: http://arts.gov/artistic-fields/dance  National Endowment for the Arts list of grants available for performing arts projects: http://arts.gov/sites/default/files/2013-NEA-Guide.pdf  The New York State Presenters Network Presenter/Artists Partnership Project, which is intended to develop a touring roster of New York State performing artists and offer financial support: http://www.nyspresenters.org/uploads/1/2/8/0/12804293/new_york_state_presenters_artist_partnership_guidelines_2014-15.pdf

Clusters New York‘s Broadway rivals SoHo in London as the world‘s leading theatre district. New York is also home to world- class venues like Carnegie Hall, Radio City Music Hall, and the Lincoln Center, as well as renowned schools like Julliard. Chicago is home to the famous Chicago Ballet and has a vibrant theatre community. Other major cities like San Francisco, Boston, and Los Angeles have notable performing artist communities and educational institutions. Audience tastes vary by region.

Examples of recent OMIS activity:

 Press releases and a reception hosted by the Consul-General for a theatre company that brought a performance to Broadway, to promote their opening, solicit future partnerships, and woo the press.  A visit programme for the same theatre company the following year, in order to deepen the relationships initiated at the reception and advance potential partnerships with the goal of bringing a second production to Broadway.  A media reception for a company selling re-mastered DVDs of classic Sixties performances by famous musicians.

Before commissioning an OMIS, UK companies should consult with the British Council (www.britishcouncil.org/usa.htm), which maintains a database of US presenters, and regional sources of funding and support in the UK.

New York Post leads on this sub sector for UK Trade & Investment.

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Publishing

Overview

The United States presents a large but competitive market for UK publishers. Routes to market can appear complicated to companies unfamiliar with the United States, with no easy way for publishers to supply directly retailers such as Barnes & Noble. UK publishers typically need to supply the leading US wholesalers. This may involve working with distributors or other publishers, which often means significantly reduced profit margins, due to the number of intermediaries that handle books before they reach the customer.

Digital books (e-books) are changing distribution patterns has seen new vendors emerge in the US publishing radically, creating new opportunities for independent industry with online retailers such as Apple's iTunes publishers to reach readers and for authors to launch their bookstore, Amazon's bookstore for Kindle, and books in careers, or even self-publish. While e-publishers don’t the Android Market, all eating into the market share of typically pay advances, royalties for e-books are usually traditional retailers. Amazon sold more e-books than much higher than for print books (30-40 percent of list print books for the first time in 2010. Market research price, compared to 6-15 percent). E-books also offer suggests that half of all magazine and newspaper flexibility in formats, as well as the possibility of graphics, circulation will be via digital delivery by the end of 2015 sound, and video enhancements. There are, however, and that half of all reading in the United States will be drawbacks to consider as well, including marketing done without paper by 2015. challenges; limited budgets; less financial stability; and competing with an enormous number of amateur Meanwhile, traditional newspapers and magazines are publishers with limited experience and qualifications. For struggling to adapt to the easy availability of information those interested in e-publishing, there are numerous and news on the Internet. Book sales through retailers resources on the Web; two are also fell in 2010, and overall bookstore sales have been www.thewritersguidetoepublishing.com and treading water since 2003. Borders went out of business www.ebookcrossroads.com. in 2011, leaving Barnes & Noble as the only major bookstore retail chain in the United States. Independent Amongst eReader devices, Amazon’s Kindle (including bookstores are also disappearing and most used and the Kindle Fire) held a 55 percent market share at the end collectible book dealers are moving online. of 2012, followed by Barnes & Noble’s Nook with a 14 percent market share, and the iPad (which has a Kindle UK publishers should look to attend the major US application) with 12 percent (source: Bowker Mmarket publishing trade shows, such as Book Expo and the Research). The Kobo eReader, with a 3 percent market American Library Association Annual Conference, in order share in August 2013 (source: Forbes) and the Sony to meet intermediaries and buyers. Reader are not widely used. The growth in eRreaders

Clusters

New York is the hub of traditional publishing in the United Chicago is a hub in particular for independent publishing, States. Book publishing houses in New York range from with approximately 130 book publishers scattered across large companies such as Penguin Group USA, the greater Chicago area, publishing everything from non- HarperCollins, Random House, McGraw Hill, and Simon & fiction and poetry to children's books and graphic novels. Schuster to small niche houses like Soft Skull Press and Local industry association Chicago Publishes maintains a Scholastic. Although newspaper reading is steeply good list of publishing contacts in the Chicago area declining, New York is still home to four of the ten largest (www.publishingchicago.com/chicagos-publishers/). papers in the United States: The New York Times, The New York Daily News, The New York Post, and The Wall There are, of course, both digital and traditional publishers Street Journal. New York is also home to the corporate scattered all over the United States. Houghton Mifflin headquarters of magazine publishing giants Time Warner Harcourt, a major educational and trade publisher, is (Time, People, Sports Illustrated), Condé Nast headquartered in Boston, for example. Successful e- Publications (The New Yorker, Vanity Fair, Vogue), and publisher Smashmouth, considered an attractive option for The Hearst Corporation (Cosmopolitan, Esquire). self-publishing, is based near San Jose, California.

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OMIS Activity

Suggested OMIS activities can include:

 Identifying routes to market.  Arranging introductions and meeting programmes at major trade shows.  Market research into publisher-specific niche markets.

Examples of recent OMIS:

 Reaching out to authors and publishers to identify industry trends for a cartoon illustrator.  Contacting publishers and distributors to determine interest in UK autors and advising on routes to market.

Chicago Post leads on this sub sector for UK Trade & Investment.

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Where to Learn More

Social Media Links

Twitter Follow Creative and Media Sector Lead, Tim Crouch @UKTItim

Useful US publications

Immigration Guide https://www.gov.uk/government/publications/us-immigration-options-for-british-companies

Tax Considerations https://www.gov.uk/government/publications/tax-considerations-for-uk-technology- companies-doing-business-in-the-us

Establishing a Business Presence https://www.gov.uk/government/publications/establishing-a-business-presence-in-the-usa

Product Liability https://www.gov.uk/government/publications/us-product-liability-law

Preparing for a US Trade Show https://www.gov.uk/government/publications/preparing-for-a-successful-us-trade-show

Key industry links

DreamWorks Link 1

DreamWorks Animation Link 1

Lionsgate Entertainment Link 1

Metro-Goldwyn-Mayer (MGM) Link 1

Relativity Media Link 1

The Weinstein Company Link 1

Find your local UKTI contact

Make contact with an International http://www.uktiofficefinder.ukti.gov.uk/contactSearch.html?guid=none Trade Adviser in the UK

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Attend one of the major events in the US in 2014 and 2015

This is a guide to some key US market events in the creative & media industries; it is not an exhaustive list. UKTI = denotes events that are likely to be UKTI-sponsored or to include UKTI-sponsored activity.

Ongoing through December 2014 10 Sept, 2014 The Whiteboard Community Roadshow DMW – Future of Television Forum Location: various, Connecticut Location: New York, New York Creative Media Television / Media Organized by Independent Software, the roadshow Future of Television Forum brings together 300+ content explors Connecticut’s diverse startup communities by creators, broadcasters, cable execs, digital and mobile acting as a gateway for others across the state to get service providers, advertisers and ad-tech execs to focus better connected. Operating since April 2014, the on strategies to engage, empower, connect and monetize roadshow has been visiting a different area of Connecticut video audiences across platforms. Future of Television each month, profiling top and up-and-coming Forum (Sept. 10), now in its 11th year, is part of the 3-day entrepreneurs and startups, revealing the uniqueness of DMW Week NYC with over 1,000 attendees, which the place, and exploring how entrepreneurship is includes NY Games Conference (Sept. 8) and Digital changing its local economy and landscape. Music Forum (Sept. 9). Web: http://thewhiteboardct.com/roadshow/ Web: http://www.dmwvideo.com/ Contact: Patricia Bayley Contact: Richard Powell

8 Sept 2014 Oct 2014 DWM- NY Games Conference Pittsburgh Tech Top Awards Location: New York, New York Location: Pittsburgh, Pennsylvania Computer Games Pittsburgh Technology Council Tech Top Awards show. NY Games Conference (Sept. 8), now in its 7th year, is Also presented by the Pittsburgh Tech Council, it’s an part of the 3-day DMW Week NYC with over 1,000 evening exhibition and awards program for the top attendees, which includes Digital Music Forum (Sept. 9) Pittsburgh-based technology companies. and Future of Television Forum (Sept. 10). The 1-day NY Web: http://tech50.pghtech.org/ Games Conference on Sept. 8 brings together senior Contact: Patricia Bayley game, media and investment leaders focused on networking, meetings and deal-making. The conference Oct 2014 features two tracks with fireside chats, panels, demos and Connecticut Tech Top 40 Awards. presentations on digital game investment, creation, Location: Connecticut distribution, marketing and monetization, meeting areas Hosted by the Connecticut Tech Council, this annual for power networking and reception/after-party on the award highlights the top tech companies in Connecticut. evening of Sept. 8 Web: http://www.ct.org/signature-event/marcum-tech- Web: http://www.dmwgames.com/ top-40 Contact: Richard Powell Contact: Patricia Bayley

9 Sept, 2014 3-12 Oct 2014 DMW – Digital Music Forum New York Comic Con Location: New York, New York Location: New York, NY Music The New York Comic Con is an annual New York City fan Digital Music Forum (Sept. 9), now in its 12th year, is part convention dedicated to comics, graphic novels, anime, of the 3-day DMW Week NYC with over 1,000 attendees, manga, video games, toys, movies, and television. which includes NY Games Conference (Sept. 8) and Web: http://www.newyorkcomiccon.com/ Future of Television Forum (Sept. 10). The 1-day Digital Contact: Richard Powell Music Forum on Sept. 9 brings together senior music, technology, media and investment leaders for networking, meetings and deal-making. This year's event will be packed with great content, stellar people and a lot of companies that are new on the music-tech scene Web: http://www.dmw-music.com/ Contact: Richard Powell

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9-13 Oct 2014 Hamptons International Film Festival (HIFF) 20-23 Oct 2014 Location: Hamptons, Long Island, NY The international film festival was founded in 1993, and UKTI Digital Hollywood Fall has since taken place every year in East Hampton, New Location: Marina del Rey, California York. It is usually an annual five-day event in mid-October Film, Television, Digital Media and is held in theatre venues located in the Long Island Small, high-level conference covering all forms of digital area of New York. Approximately 18,000 visitors attend content and distribution. UKTI staff often attends. each festival and close to a hundred films are featured Web: www.digitalhollywood.com each year, including an annual representation of at least Contact: Tim Crouch twenty countries and an awards package worth over $200,000. HIFF was founded as a celebration of 21-25 Oct 2014 independent film in a variety of forms, and to provide a forum for independent filmmakers with differing global UKTI CMJ Music Marathon perspectives. The festival places a particular emphasis Location: New York, New York upon new filmmakers with a diversity of ideas, as a means Music to not only provide public exposure for festival content and Annual conference programme and more than one its creators, but to also inspire and enlighten audiences. thousand live performances across dozens of venues. Web: http://hamptonsfilmfest.org/ UKTI reception/event for UK attendees Contact: Richard Powell Web: www.cmj.com/marathon/ Contact: Richard Powell

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