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Download The Greater Montréal: A Hub for the Digital Creativity Sector Highlights 2020 Old Port, Grande-Roue and downtown Montréal © Loïc Romer Digital creativity hinges on three sub-sectors Visual effects (VFX) Video games Digital experiences1 and animation includes companies that create includes companies that create includes companies that use interactive audiovisual game immersive and interactive animation techniques to create products whose content is experiences effects for movie and television programmed and displayed on a in public environments as well as productions, as well as screen, where players control narrative experiences in physical or companies that create animated the action using a gaming virtual spaces, including virtual and movie and television productions peripheral for entertainment or augmented reality (excluding competition digital media, creative agencies, broadcasters, etc.) Note: 1- As the digital experiences sub-sector is still relatively sparsely documented, it has been excluded from certain analyses 2 Source: Adapted definition by Xn Québec (2019), “Premier profil de l’industrie de la créativité numérique du Québec”; KPMG Analysis 01 A Fast-Growing Sector Where Greater Montréal Stands Out Downtown Montréal © Henry MacDonald Job growth in excess of 10% per year Changes in number of employees in Québec’s digital creativity sector 2009 to 2019, number of employees and CAGR1 in % 18,900 VFX/Animation (CAGR = +28%) CAGR 15,000 15,500 5,900 +11% 13,588 13,579 3,159 4,000 11,172 2,738 3,579 9,743 9,027 1,428 993 8,129 887 6,469 6,818 635 Video games (CAGR = +8%) 561 13,000 492 11,841 11,500 10,850 10,000 8,750 9,744 7,494 8,140 5,977 6,257 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Note: 1- CAGR: Compound annual growth rate Source: BCTQ (annual reports); ESAC (2019) “Canadian Video Game Sector Profile 2019”; Alliance Numérique (2014) “Perpétuons le miracle québécois : l’avenir de l’industrie du 4 jeu vidéo au Québec”; KPMG (2018) “Industries créatives : réussir dans un environnement en mutation rapide”; Xn Québec; KPMG Analysis Growth driven by the arrival of foreign companies Examples of foreign investment and job announcements 2015 to 2019, by number of jobs announced (partial list) NA Google (Stadia) Video games Video games Visual effects and animation Digital experiences 50 adglobe Video games NA Bethesda 50 CyberConnect2 500 Electronic Arts NA MegaZebra 30 NetEase Video games Video games Video games Video games Video games 100 Ludia NA Mino 1000 Ubisoft 60 Altagram NA 2K Mobile games Mobile games Video games Video games Video games 2015 2016 2017 2018 2019 150 Framestore 300 On Entertainment 250 Double Negative 130 Digital Domain 150 Outpost VFX Visual effects Animation Visual effects Visual effects Visual effects 500 Cinesite 20 Mathematic 400 Reel FX 100 Caribara 250 MPC Technicolor Visual effects Visual effects and animation Animation Animation Visual effects 300 ON Animation Studio 180 Pixomondo 100 ReDefine Visual effects Visual effects Visual effects 300 Scanline VFX NA Redpill VR Visual effects Digital experiences NA Subpac Digital experiences Legend: 50 = number of jobs announced for the investment project Source: KPMG study on the digital creativity sector in Greater Montréal, conducted for Montréal International (August 2020) Content 01 02 96% $75,000 $1.8B Share of exports for all video Average annual salary in the Economic spin-offs in Québec game company revenues digital creativity sector (including video games, VFX and animation) Source: KPMG estimates based on Alliance Numérique (2014) “Perpétuons le miracle québécois : l’avenir de l’industrie du jeu vidéo au Québec,” ESAC (2019) “The Canadian Video Game Industry 2019,” BCTQ (2020 company survey), PwC (2014) “Étude d’évaluation du potentiel du secteur des effets visuels au Québec,” results adjusted to inflation based on ISQ (February 27, 2020) “Taux d’inflation dans les provinces et dans certaines villes” Greater Montréal: 17,200 jobs make it Québec’s centre of digital creativity Distribution of digital creativity studios and jobs 2019, number of companies and jobs, distributed by % 17,200 Montréal (91%) Montréal 250 (72%) 18,900 345 jobs in companies in Québec Québec 95 (28%) 1,700 (9%) Rest of Québec Rest of Québec Source: BCTQ; TechnoCompétences “Profil de la main-d’œuvre dans l’industrie du jeu électronique au Québec en 2016”; ESAC (2019) “The Canadian Video Game Industry 2019”; 7 KPMG study on the digital creativity sector in Greater Montréal, conducted for Montréal International (August 2020) A hub that stands out internationally: Montréal is one of the world’s top 10 major centres Professional specializing in video games for a Professionals specializing in VFX and animation for a selection of metro areas1 selection of metro areas 2020, by number of jobs (LinkedIn profiles) 2020, by number of jobs (LinkedIn profiles) Los Angeles 25,408 Los Angeles 42,743 San Francisco 16,082 New York City 16,808 Seattle 14,847 London 14,317 Montréal 8,661 Mumbai 9,246 London 7,922 Vancouver 7,717 New York City 7,181 Paris 7,290 Vancouver 6,953 San Francisco 6,802 Paris 5,375 Montréal 6,301 Toronto 4,418 Toronto 6,293 Austin 3,944 Bangalore 4,401 Note: 1- Russia (5,774 professionals) and Ukraine (6,311 professionals) were excluded from the ranking because results were not availanble by metro area. Results for China and Japan were also excluded because the number of users may be biased due to the platform’s lower rate of use in these regions. These changes do not affect Greater Montréal’s position. 8 Source: Montréal International analysis, based on data from LinkedIn Talent Insights dated June 24, 2020 A complete ecosystem developed around a talent pool Support for the sector Clusters, associations, professional groups Universities, colleges and schools Events and showcases and sectoral committees École NAD-UQAC, ISART Digital, ▪ Hub Montréal ▪ Québec Film and Television Council Cégep du Vieux Montréal, etc. ▪ MEGAMIGS ▪ La Guilde du jeu vidéo du Québec ▪ Marché de la réalité virtuelle de Montréal ▪ Xn Québec ▪ Effects Montréal ▪ Pixelles ▪ Printemps numérique (Montreal Digital ▪ TECHNOCompétences Spring) ▪ Festival Montréal Joue ▪ Montréal International Video games ▪ Behaviour Incubators and accelerators ▪ Ubisoft Other partners and ▪ La Piscine Production and ▪ Budge Studio distribution centres ▪ Centre d’entreprises et ▪ Compulsion Games ▪ GamePlay Space d’innovation de Montréal development ▪ Red Barrels ▪ SAT (CEIM) ▪ Ludia ▪ Centre PHI ▪ Co LABO VFX ▪ Etc. Digital ▪ Zú and animation ▪ Ubisoft La forge experiences ▪ Rodeo FX Research laboratories, ▪ Ubisoft ▪ Moment Factory ▪ Atomic Fiction centres and chairs Entrepreneurs ▪ Felix & Paul ▪ Hybride ▪ Hexagram ▪ Triotech Middleware and ▪ Alchemy 24 ▪ NSERC/Ubisoft ▪ Thinkwell software ▪ Digital Dimension Industrial Research ▪ Lune Rouge ▪ Unity ▪ Etc. Creative Chair in Believable ▪ Etc. ▪ Autodesk talent Virtual Character ▪ Unreal Engine Experiences 9 Source: KPMG study on the digital creativity sector in Greater Montréal, conducted for Montréal International (August 2020) 02 Foreign Workers Play an Indispensable Role in Companies’ Growth Square Victoria © Montréal International 2,010 foreign workers surveyed among 26 companies Distribution of respondent companies and skilled Distribution of skilled temporary foreign workers as temporary foreign workers hired by sub-sector part of the total workforce of companies that hire 2020, by number of companies and workers, them n = 26 companies 2020, by %, n = 26 companies 2,010 26 Skilled temporary companies foreign workers 100% 76% Other employees 45% Jeux vidéo 62% VFX / 27% 54% Animation 24% Digital experiences 11% Skilled temporary <1% foreign workers Companies Skilled temporary foreign workers Source: KPMG study on the digital creativity sector in Greater Montréal, conducted for Montréal International (August 2020); Surveys of businesses and workers, and interviews 11 conducted by KPMG A top-notch pool of workers made up of experienced and qualified people Distribution of skilled temporary foreign workers by Distribution of skilled temporary foreign workers by work experience for the position held highest level of education completed 2020, n = 254 workers, by % 2020, n = 253 workers, by % 33% Total = 51% Training 4% 30% College & technical diploma 6% Undergraduate degree 3% Total = 82% 16% 13% Undergraduate (e.g., B.A.) 35% 8% Graduate (e.g., M.A.., Ph.D. 47% No 1 to 5 years 5 to 10 10 to 15 15 years Other/Don’t know 4% experience years years or more Source: KPMG study on the digital creativity sector in Greater Montréal, conducted for Montréal International (August 2020); Surveys of businesses and workers, and interviews 12 conducted by KPMG Leverage effect on company activities Main reasons for hiring skilled temporary foreign workers Beyond numbers, the strategic contribution of 2020, n = 26 companies, % that ascribed greater importance skilled temporary foreign workers translates into: A question of… ▪ Access to leading-edge expertise, skills and specializations Number 71% ▪ Integration of best practices ▪ Access to an international network Specialization 42% ▪ Cultural diversity of work teams ▪ Better knowledge of international markets Experience 39% ▪ Increased competitiveness and opportunities for innovation Skills 32% Source: KPMG study on the digital creativity sector in Greater Montréal, conducted for Montréal International (August 2020); Surveys of businesses and workers, and interviews 13 conducted by KPMG Greater Montréal has
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