Canadian entertainment industry set to reach over $600 million by 2026

Canada’s burgeoning entertainment industry is expected to be worth over $400 million in 2022, with projections suggesting it will increase by more than $200 million over the next four years. The forecast of a total value of over $600 million is being driven by the growth in paid app purchases and in-app purchases.

Riding the video game wave

These figures signify that Canada is ideally placed to capitalise on advances in the video game industry, which is experiencing a boom that is showing no signs of abating. The mobile gaming market is being driven by the increase in smartphone usage in Canada, which continues to grow, with the number of smartphone users rising from 29.88 million in 2019 to a projected 33 million by 2024. With revenue from the lucrative mobile games market set to grow by 7.5% annually between 2022 and 2027, the market volume is forecast to be over $3.5 billion by 2027.

The gaming sector is also a generator of jobs in Canada, with over 32,000 Canadians working for 937 gaming companies. The video game industry achieved a total revenue of $3.4 billion in 2021, which represents an increase of 20% in just two years.

Benefiting from government incentives

The industry has attracted video game developers to Canada via government incentives, with companies like Ubisoft Montreal, a studio of the French video game company Ubisoft. The company is behind video games such as the Assassin's Creed franchise and Prince of Persia: The Sands of Time. The city has been able to attract other video game companies such as Electronic Arts Inc. and Warner Bros. Interactive Entertainment.

The demographics in Canada make the video game sector particularly lucrative. Over 50% of the population identify as gamers, with the number of male players narrowly outnumbering females. The eSports industry has experienced exponential growth in Canada with around 1.5 million Canadians watching eSports players battle it out on games such as Counter-Strike: Global Offensive and League of Legends. The knock-on effect of this popularity has led to advertising spending on eSports in Canada rising from $4.6 million in 2020 to a projected total of $5.7 million in 2022.

A diverse entertainment industry

Another area of the entertainment industry in Canada which is benefiting from the growth in apps is the gambling industry. It is also an important element in the entertainment sector. The Canadian gambling sector has a market size of around $12.5 billion, which makes it the biggest contributor in the entertainment sector. It also provides over 135,000 full-time jobs to Canadians. The North American nation does not just have a wide range of land-based casinos, which provide players with the opportunity to play slots and a range of table games. There has also been growth in online gambling in Canada. Online gambling not only includes traditional casino games such as roulette and blackjack, but there is also a wide range of themed slot games on offer, from A Night with Cleo to Golden Buffalo. As each online casino usually has a sportsbook, Canadians are able to bet on the national sport of ice hockey and with Canada appearing at the soccer World Cup for the first time since 1986, there is sure to be plenty of interest in the tournament.

A vibrant film industry

Canadian actors have long been part of the North American film industry in a wide range of genres, from comedy actors such as Jim Carrey and Seth Rogan, action movie heroes such as Ryan Gosling and science-fiction actors, represented by 91-year-old William Shatner. While the big-name stars invariably appear in US films and TV shows, these Canadian actors have performed invaluable work promoting the sector in Canada as a country offering quality cinema.

Canadian cinema is a highly valuable sector in terms of revenue and jobs. According to PwC Canada, film and TV productions in Canada generate revenue of $5 billion and provide over 117,000 full-time jobs. Ontario, Quebec and British Columbia are the main drivers of production, accounting for over 90% of the total volume in Canada.

The strength of the Canadian film industry is demonstrated by the range of popular film festivals, which are known around the world, including the Toronto International Film Festival (TIFF), the Festival du nouveau cinéma, and the Fantasia Film Festival. The TIFF, which regularly attracts over 480,000 attendees each year, showcases the best of Canadian cinema, alongside films from around the world. The People’s Choice Award, which is presented to the most popular movie amongst festival attendees, has emerged as a weather vane for Oscar success, with a number of winners going on to secure a coveted Academy Award. Recent examples are Jojo Rabbit in 2019 and the US movie Nomadland in 2020.

The diversity on show at the TIFF is also reflected in Canadian cinema as a whole, which has embraced the heterogeneity of filmmakers. Alongside filmmakers such as David Cronenberg, who has recently returned with Crimes of the Future, the first film he has directed in eight years, the industry has also provided a voice to directors such as the Indian-born Canadian film director Deepa Mehta and Cree-Métis filmmaker Danis Goulet, the director of the North American science fiction film Night Raiders.

Streaming services showcasing Canadian talent

The streaming service Netflix has contributed to the popularity of Canadian TV and films by giving shows such as the Canadian sitcom Schitt's Creek access to a wider audience. The sitcom, created by Eugene and Daniel Levy, originally appeared on CBC Television, the Canadian television network. The streaming platform also showcases Netflix original TV shows such as Frontier and films including The Decline.

Netflix has also given a vote of confidence to the Canadian film and TV industry by opening a corporate office in Toronto, the first to appear in Canada. Choosing the capital city of the province of Ontario made perfect sense with two Netflix production hubs already in existence. The Pinewood Toronto Studios and Cinespace Studios played host to popular Netflix shows such as The Umbrella Academy and The Queen's Gambit.

The diverse entertainment industry in Canada is generating huge amounts of revenue and as technology is constantly improving, Canada is ideally placed to capitalise on developments which will continue to enhance the sector for many years to come.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes