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Interactive AotearoaInteractive Interactive Aotearoa DRIVING GROWTH AND WELLBEING THROUGH INTERACTIVE MEDIA An analysis of the impact of interactive media and games on New Zealand’s economy and wellbeing _WETA WORKSHOP_INVADERS Acknowledgements The NZGDA would like to acknowledge Robyn Henderson, Stevie Jepson, the following contributors: Arek Wojasz from the Ministry of Business, Innovation and Employment Report Editor and New Zealand for review and policy input. Game Developers Association Secretary Stephen Knightly. The NZGDA Board, past and present, including Cassandra Gray, Michael Graeme Muller and Melissa Firth Vermeulen, James Everett, Ben from NZTech for advice, leadership Kenobi, Mario Wynands, Frances and reviewing the report. Valintine and Tim Ponting for Victoria Blood and Paula Browning industry analysis, consultation from WeCreate for creative industries and advice over many years. leadership and reviewing the report. Tim Thorpe Consulting for seven Vhari McWha and team from Sapere years of the independent New Zealand Research for economic modelling Game Developers Industry Survey. advice and literature review. The many CEOs, industry Baz MacDonald for interviewing and association chairpersons, MPs, writing case studies with so many Government agencies, teachers, businesses and creators. Tim Ponting, academics, business people Paul O'Leary and Robert Jeromson and creative entrepreneurs that for proofreading and editing. we spoke to for this report. _INTERACTIVE AOTEAROA Contents 05 19 43 INTRODUCTION PART ONE PART TWO The Interactive The Interactive The Economic Aotearoa Study Media Landscape Opportunity INTRODUCTION What is Interactive Media? Taking our Creative The New Zealand Game 20 Industries Global Developers Association 44 Creating a Global Impact 05 24 Interactive Media FOREWORD Export Opportunity Diverse Consumers New Zealand Government 45 29 06 The Mixed Reality Revolution Benefits of Executive Summary 50 Government Support 07 30 EdTech Export Opportunities Key Highlights 53 The New Zealand Landscape 10 32 esports Gaining Ground RECOMMENDATIONS 54 Increasing Regional Activity 12 38 02 57 75 101 PART THREE PART FOUR APPENDICES The Social and Growing our Cultural Opportunity Interactive Capability and Sector Celebrate our Identity Through Opportunities and Challenges APPENDIX 1 Interactive Media 76 Research Partners 58 102 RECOMMENDATIONS Realise the Education and Forge a Coordinated APPENDIX 2 Wellbeing Benefits Interactive Media Research Methodologies 65 Industry Plan 104 80 APPENDIX 3 Address the International Programmes Investment Gap 106 85 Grow the Creative Tech Talent Pool 95 Improve Data and Policy Insights 99 03 _INTERACTIVE AOTEAROA Thank you to our Project Partners Research Partners / sapere research group 04 INTRODUCTION: The New Zealand Game Developers Association _INTRODUCTION: Interactive media – video games, educational games, cross reality (virtual, augmented and mixed reality) experiences, mobile apps, interactive storytelling and other forms – is at the forefront of THEINTERACTIVE AOTEAROA STUDY New Zealand's digital economy. New Zealand’s interactive games sector has had an impressive 39 percent compound annual growth rate (CAGR) over the last six years. However, that growth is unlikely to continue without support and is small considering the size of the $258 billion potential market. Cassandra Gray Chairperson, NZGDA The New Zealand interactive industry is young, yet we already have many of the ingredients for more success which is evident through the accomplishments of the first generation of developers. While New Zealand has a tight- knit and supportive industry, to compete on a global stage it needs to match the commitment Self-publishing and exporting our own creative shown by industry and government in Canada, IP is a challenging business model, but the Finland, the United Kingdom, France and evidence in this report shows that New Zealand more recently Germany who have developed is succeeding at it. This is a new model for specific industry development policies. local investors and Government programmes. We can do this in a uniquely Kiwi way. The If supported in the right ways, the potential current generation of successful New Zealand for digital and social returns is immense. interactive studios succeeded by exporting Our aspirational, yet achievable, goal is to see their own original intellectual property (IP) to New Zealand become a billion dollar exporter the world and by being early adopters when of interactive media, sitting alongside our digital disruption hit the media industries. successful film and software sectors. We have Interactive design is a key competency in many of the right ingredients and look forward a digital economy that can be applied to to growing the next generation of developers, education, health and wellbeing, our culture and social entrepreneurs and innovative IP exporters. identity, as well as our creative industries. Our schools, universities and private training institutes are already producing creative, entrepreneurial students that don't see walls between coding, creative storytelling and business or social problem solving. 05 _INTERACTIVE AOTEAROA FOREWORD: New Zealand Government The Ministry of Business, Innovation and Employment (MBIE) aims to grow New Zealand for all, and create a productive, sustainable and inclusive economy for New Zealanders. Understanding the opportunities created by innovative technologies, working across government and with the wider digital community to make the most of these opportunities, Carolyn Tremain is vital to achieving this goal. The Ministry Chief Executive welcomes this report and the insight into the Ministry of Business, interactive media sector that it provides. Innovation & Employment As the nature of work changes at a remarkable speed, two things are proving to be vital to success: technological innovation and creativity. The interactive media sector is one of the best examples of this combination and its success is reflective of this. MBIE has worked to establish important This report highlights the significant economic, foundations for success in the tech sector, social, and educational opportunities that including the roll out of broadband infrastructure, interactive media offers New Zealand. The investment in Techweek, and support of the case studies of globally recognised New Digital Skills Forum and research into digital Zealand studios and creators are examples skills challenges in New Zealand. We are of how these opportunities can be seized committed to continuing to work with the tech through talent, creativity and dedication. sector, including the interactive media sector, and welcome this research as a way to further The Ministry recognises that success for this understand the landscape of interactive media sector is success for New Zealand as a whole. in New Zealand. The Ministry recognises the The sector offers high-value jobs, diversifies report as an important input into our work and grows our economy, and develops skills exploring the potential of this sector. vital to success in tomorrow’s workplace. The international nature of the sector results in higher exports and international investment into New Zealand. It also draws attention to New Zealand’s creativity, culture and stories. 06 Executive Summary _INTRODUCTION: The majority of the content and services we consume for education, work and entertainment today are delivered digitally, and increasingly, interactively. THEINTERACTIVE AOTEAROA STUDY Interactive media is one of the highest-potential Part One: The Interactive Media Landscape and fastest-growing parts of the digital economy. Interactive media is now the world’s largest and Combining creative content with software fastest-growing media sector. Growing at nine code produces powerful new experiences percent annually, the global market will be worth which engage audiences in more personalised, $258 billion in 2021. Mobile apps, gaming, virtual responsive and persuasive ways. Weightless reality, augmented reality, esports, edTech and exports of creative IP and services overcome New MedTech are at the forefront of these trends. Zealand’s tyranny of distance and open a huge global market for our knowledge-based industries. Part Two: New Zealand’s Opportunity The Interactive Aotearoa Study drew upon This study’s research identified our creative several data sources, research studies industries, in this case interactive entertainment and 50 qualitative interviews. It presents a and games, as the largest growth opportunity stocktake of interactive media globally and for interactive media exports and quality jobs. locally, and makes recommendations to grow the social, cultural and economic potential New Zealand’s interactive gaming sector has of interactive design in New Zealand. gained a small, but growing, share of this global _ASHEN_A44 07 _INTERACTIVE AOTEAROA market. The sector has grown at an impressive 39 percent annually for the last six years and 93 percent of its revenue comes from exports. New Zealand's fast-growing interactive games sector has If current high growth rates could be continued with coordinated support, New Zealand’s grown into a thriving creative tech interactive media earnings would be worth industry that attracts 93% of its $1.01 billion in FY2024. The jobs created revenues from global exports. would combine our strengths in creativity and technology, with 1.4 creative or design jobs created for every new technical role. to education, wellbeing
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