Fund to help boost NZ's fast growing interactive media industry sought

Monday, 19 August 2019

The Government is investing $3.2 million in University of Canterbury as part of the Entrepreneurial Universities Fund to accelerate research and public use of immersive gaming applications.

Interactive media groups have welcomed a report saying the fast-growing $143 million industry needs support.

With growth of 39 per cent in the last six years, it's one of the fastest growing parts of the country's digital economy, t says the New Zealand Game Developers' Association (NZGDA)..

And in a report, released on Monday, it recommends an interactive commission and an interactive innovation fund be established to boost the gaming industry.

In New Zealand 76 per cent of people play video games, and 98 per cent of households have a video game device, a new report says.

Wrestler director Ben Forman said there was definitely a gap in the funding for interactive media in New Zealand.

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'We've got the Film Commission which works really well for film in New Zealand and NZ on Air works well for TV … but at the interactive end gaming seems like this weird no-man's land. '

The report says the country needs to match commitment in the sector shown by governments in Canada, the UK, France and Germany.

In Canada, incentives of 20 to 40 per cent are offered for interactive media production. As a result, the country is the third-largest employer of interactive game developers in the world, the report says.

The UK Games Fund supports the industry in Britain with grants, especially for early stage development and talent development.

In France, one of the largest publishers of video games in the world, the government helps at both the early development stage and during full production - up to 30 per cent of production costs can be reclaimed via tax rebates.

The report says a dedicated development organisation or commissionIt could grow talent, employment and exports, and administer the proposed interactive innovation fund.

Funding could aid the production of original, interactive projects for education, wellbeing or commercial purposes.

Interactive media, including video games, educational games, cross reality experiences like augmented reality and mobile apps, is the world's largest and fastest growing media. It has a $258 billion total market predicted for 2021.

In New Zealand, the interactive and entertainment games revenues for the end of the 2018 financial year totalled $143 million, but the report says revenue from exports could reach $1 billion by 2024 if current growth rates continue.

The interactive entertainment sector is expected to create 150 new jobs this year and, if the growth continues, it could employ 974 extra full time equivalent positions by 2024.

Forman agreed the country needed an interactive commission to boost the industry. Internationally, the gaming sector was surpassing the film industry.

'It's massively advantageous for New Zealand to get behind this.'

Artistic and story-based games were being influenced by the film industry and the expertise from Weta Workshop, he said.

'New Zealand is really uniquely placed to not only create great world-class content, but to do it with a great culture behind it and values.'

'We're in a great space right now and I put a lot of it down to our Government … there's a real culture of doing great work.'

Immersive Space Programme chief executive Finn Beattie said when they started up a few years ago they struggled due to a lack of support.

Many companies had difficulty making themselves heard.

A commission and funding would be positive, but Beattie said for many the time spent creating applications for funding might not be worth the time lost.

'We're a small company and sometimes it makes more sense just to get on with it.'

At the report's launch economic development minister Phil Twyford said the Government wanted to see the sector continue to grow.

'It also fits the profile of the kind of industries we need to foster to achieve a productive, sustainable and inclusive economy – it is low emission, export driven and scalable. It also offers a range of social and cultural benefits in fields like health and education.'