Interactive Media Competitiveness Study 3 rd Annual Interactive Media Economic Update Luncheon...

Interactive MediaCompetitiveness Study

3rd Annual Interactive Media Economic Update LuncheonSeptember 3, 2009

Industry Trends: Update Workforce Needs Regional Competitiveness

September 3, 2009PowerPower ofof PlayPlay

Interactive Media Economic Update Luncheon 2

Gaming

Casual

Core

Serious

Talent

Designers

Programmers

Game Developers

Graphics/ Artists

Distribution Network

Network Engineers

Research & Training

UW

Trade Schools

Community Colleges

DigiPen

Microsoft

TelCos/ Carriers

Mobile/PDA

ICT Infrastructure

PCs

Consoles

Handhelds

Servers & Networks

Advertising

RealNetworks

Virtual Worlds/ Social

Networks

Market Research

Publishers

Technical & Additional Talent

Audio

Video Musicians

Voice-over & acting

Other Colleges and Universities

Medical Applications

Automobiles

Military Aerospace

Manufacturing

Management

Research & Industry

Media Software

Nintendo

Financing

Legal/I.P.

Venture Capital

Professional Services

Management

Professional Associations

Government Programs

September 3, 2009 3

Gaming

Casual

Core

Serious

Talent

Designers

Programmers

Game Developers

Graphics/ Artists

Distribution Network

Network Engineers

Research & Training

UW

Trade Schools

Community Colleges

DigiPen

Microsoft

TelCos/ Carriers

Mobile/PDA

ICT Infrastructure

PCs

Consoles

Handhelds

Servers & Networks

Advertising

RealNetworks

Virtual Worlds/ Social

Networks

Market Research

Publishers

Technical & Additional Talent

Audio

Video Musicians

Voice-over & acting

Other Colleges and Universities

Manufacturing

Management

Nintendo

Financing

Legal/I.P.

Venture Capital

Professional Services

Management

Professional Associations

Government Programs

September 3, 2009 4

Jobs at Established IM Employers, Regionwide, 2006 - 2008

4,430

5,070

Seattle +33%

Seattle +33%

Remainder of Region +9%

Remainder of Region +9%

Puget Sound Region+14%

2007 study found growth from 2000 - 2006•More than 150 companies•More than 15,000 jobs•Jobs at existing establishments doubled from 2000 to 2006

– 12% growth per year (cagr)– Jobs at smaller companies

more than doubled from 2003 – 2006 (26% cagr)

•$4.2 Billion in revenues produced by regional companies in 2006

Since 2006 jobs have grown rapidly•14% among established firms (excl. Microsoft)•Total jobs in the region increased by 6% during the same two years

Industry Trends



Artists, Graphic Designers

Programmers, Software Engineers

Admin.Project Managers

50%-80% Firms Hiring

• Currently 170 job postings in region among 40 local firms

• 80% firms that post job information online are hiring

Workforce Needs



Growing a company comes with labor challenges:Talent (overall)Software expertsArtists

Workforce Needs



A broad array of skills and talents are required Diversity and adaptability trumps specialization

New hires often lack product-oriented and business focus Teamwork skills, task management, project execution, self-teaching “Traditional talent for the gaming industry has wrong skills” “Best talent are kids and we have to train them”

Rapid individual learning required while the product is live and functional Must learn to work fast “Like building 747 out of a flying kite”

Company cultures vary; most have intense and informal culture “Give up your social life and learn to sleep under your desk” “We end each day with a play session, ‘We kill each other for an hour

and then we all go home and come back the next day.’ ” Burn out is a concern

Workforce Needs



Engineers and programmers in greatest need and shortest supply

IM companies compete for talent with many industries Online programmers in demand everywhere The best and most popular software packages change quickly

Programming workforce must be able to learn rapidly and productively on the job

Can schools teach someone how to learn on their own? Can schools at least weed out people who can’t? What is the educational role of universities vs. trade schools? Do we need to start at early education to teach people how to teach

themselves?

Regional and web-conferences cited as a key means of learning new software effectively and efficiently

Workforce Needs



Technology specialists and artistic capabilities are not always found in the same person

IM companies compete for talent with other industries

Artists resist changing tool and techniques Story boarding skills needed; several

postings for writers Other skills taught: learning human

anatomy, drawing landscapes

Workforce Needs



Depth of companies Depth of talent Culture and quality of life

Cost of livingTalent attractors

Training opportunities Business climate and public support

Regional and State ICT infrastructure investments

Cost of doing businessState Incentive programs

Competitiveness



• USA has most game development companies of any country in the world.

• Vancouver, Tokyo, Seoul are other world hot spots

• Seattle region has second most Interactive Media companies of any region in the US.

• 10% of all USA companies located in Seattle

• USA has most game development companies of any country in the world.

• Vancouver, Tokyo, Seoul are other world hot spots

• Seattle region has second most Interactive Media companies of any region in the US.

• 10% of all USA companies located in Seattle

Competitiveness

Source: Gamedevmap.com, enterpriseSeattle

Top 10 Countries, Number of Firms

United States

Canada

Japan

South Korea

China

Sweden

Finland

Denmark

Ireland

Norway

Top 10 Regions in USA, Number of Firms

Los Angeles

Seattle

San Jose

Austin

San Francisco

Boston

Chicago

New York

Dallas

Atlanta



Competitive Regions

• 45,000 programmers and engineers

• 5th most of any region in USA

• Over 3x more concentrated in Seattle region than US

• 45,000 programmers and engineers


• Over 3x more concentrated in Seattle region than US

Concentration of Programmers and Engineers

(1.0 = US Aggregate)

Total Programmers and Engineers

Source: Bureau of Labor Statistics, 2008, MSA



Competitive Regions

• 1,350 multimedia artists and animators


• 4X more concentrated in Seattle region than US

• 1,350 multimedia artists and animators


• 4X more concentrated in Seattle region than US

Concentration of Artists and Animators

(1.0 = US Aggregate)

Total Multimedia Artists and Animators

Source: Bureau of Labor Statistics, MSA, 2008



38 states have colleges and higher education schools with curriculum for gaming

1.California 48

2.Florida 21

3.New York 19

4.Texas 19

5.Illinois 16

6.Pennsylvania 13

7.Washington 12

8.Georgia 8

9.AZ, CO, MD 7

Washington State Institutions

Institution City

Art Institute of Seattle Seattle

Bellevue Community College Bellevue

DigiPen Institute of Technology Redmond

Edmonds Community College Lynnwood

Lake Washington Technical College

Kirkland

Seattle Central Community College

Seattle

University of Washington Seattle; Bothell; Tacoma

Clover Park Technical College Lakewood

Hidden Edge 3D Tacoma

Shoreline Community College Shoreline

Cornish College Seattle

SQLSoft, Inc.Bellevue; Everett; Redmond; Olympia

Competitive Regions



Regional Considerations

Overall Prices (CPI) Transportation

Housing Property taxes

Taxes Income tax Sales tax Utility tax Gas tax

Schools Quality public schools Private school choices

Source: Council for Community & Economic Research, 2009



Regional Considerations

Labor costs Related to Cost of

Living Office and server

space Power and electricity Tax burden

Washington ranks favorably among studies on tax burden

Average Cost of Labor by MSA, Computer Programmers, 2008

Source: BLS



Concentration of Workforce Talent Quality of Life Competing Interactive Media Computer Multimedia Educational Cost of Cost of Regions Firms Programmers Artists Institutions Living Business

Seattle

San Jose

San Francisco

Los Angeles

Austin

Boston

Chicago New York Dallas

Atlanta Salt Lake City

Minneapolis

Top 3 4 – 6 7 – 9 10 - 12KEY:

Regional CompetitivenessCompetitive Regions

18

1

2

3

4

Public Support: Incentives Programs

Washington High Technology B&O tax credit program

Texas Moving Image Industry Incentive Program

New Mexico Film production tax credit

Arizona Motion picture production tax incentives

Michigan Film production incentive

Wisconsin Film tax credit

program

Tennessee Visual Content Act of 2006

Florida Entertainment industry financial incentive program

Louisiana LA Digital Media Act

Georgia Entertainment Industry Investment Act

New Jersey Edison Innovation Digital Media Tax

Credit Program

Massachusetts Film tax credit

Connecticut Digital Media and

Motion Picture Tax Credit

Maine Certified media production income tax credit and media wage reimbursement

Incentives

Seattle

San Francisco

Los Angeles

San Jose

Boston

Rhode Island Rhode Island Motion picture Motion picture

production production company tax company tax

creditscredits

New York

Dallas

Austin

Chicago

Indiana Media production expenditure tax credit

Atlanta

Salt Lake

Minn.



Incentives

StateCost of

Business

State Incentive Program

Employee Incentives

Local Production Incentives

Sales Incentives

Building Incentives

Equipment Incentives

R&D Incentives

Texas Yes X

Georgia Yes X X X

Utah No

Illinois No

Florida Yes X

Maryland No

Washington Yes X X X

New York No

Mass. Yes X X X

California No

Public Support: Incentives Programs

20

Seattle’s Comparative Advantages Strong cluster with growth momentum Leader in casual games Leader in distribution Strong concentration of programmers and

engineers Training institutions Quality of life appeals to talent

demographics Emerging focus on leveraging wireless

talent and technology



Interactive Media Competitiveness Study 3 rd Annual Interactive Media Economic Update Luncheon...

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