Canadian content creators do not have the same access to venture capital financing as their U.S. counterparts, and must think strategically about partnerships, acquisitions and mergers to grow their businesses, according to a new industry study by Duopoly’s Catherine Tait.
Strengthening the Business: Capitalizing Canada’s Content Business was released today at the Canadian Media Producers Association’s annual Prime Time in Ottawa conference. The report received funding support from the Ontario Media Development Corporation, and the Canada Media Fund. It discusses how traditional content entrepreneurs can attract increased investor activity by learning the basic “rules of the road” and reassessing the management tools used by their companies.
“In order for Canadian content businesses to reach their maximum growth potential, they must develop and constantly refine a concerted corporate strategy,” says Catherine Tait. “Companies need to set business objectives and execute them—everything from thinking about expanding into additional markets, finding new revenue streams, or entering into new lines of business.”
The study does a comparative analysis of the current investment climate for media deals in the U.S. and Canada. VC investment is more limited in Canada than the U.S. because investors are largely interested in technology-based media opportunities, even if they are content players. But companies like DHX, eOne and 9 Story are highlighted as recent Canadian examples of success that have made acquisitions in other production financing territories like the U.S, U.K and Europe.
“What Catherine’s study offers is a unique perspective of Canadian challenges in the global marketplace. She offers best practices from dozens of production companies and financiers to provide guidance and offer potential solutions for small and medium-sized companies to grow their business,” says Reynolds Mastin, President and CEO, CMPA.”