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For those of you unfamiliar with the MIDMTC you can download a copy of the former guidelines here. In a nutshell, the tax credit supports New Media companies doing fee-for-service work and creating their own intellectual property (eg. mobile apps, games, web apps, etc.) to the tune of a 40% labour tax credit. This means that all hired Manitoba labour related to your project could add up to a significant savings for you.

Below is a list of all the improvements announced in the Manitoba 2013 Budget that we have been working on with the Province that will result in notable benefits for interactive digital media companies:

 

• The tax credit is equal to 40% of qualifying labour costs related to the production of eligible interactive digital media projects. The maximum tax credit for a project is $500,000.
  Nothing new to note here. These amounts correspond to what was available to our industry previously.

• The Interactive Digital Media Tax Credit, which was set to expire December 31, 2013, is extended to December 31, 2016.
  This was the first task: ensuring the MIDMTC was renewed (check).

• Companies may claim up to $100,000 in eligible marketing and distribution expenses that are directly attributable to that eligible project;
  HUGE improvement! This puts the MIDMTC on par with other provinces like Ontario and Nova Scotia, and ensures that when you’re developing a product you can maximize the promotion and distribution to help it sell successfully. Many will argue that Marketing is as important as (if not more important than) the product itself!

• Financial support from the Canada Media Fund that is recoupable or repayable will not be treated as “government assistance;”
  This is another significant improvement. Previously, if you received money from the Canada Media Fund (a resource that 3 New Media companies in Manitoba accessed last year to the tune of 1.5 million dollars) your labour tax credit would get clawed back. Now you can benefit from both the CMF and MIDMTC!

• An eligible product that is developed under contract for an arm’s-length purchaser does not need to demonstrate the product will be resold or licensed by that arm’s-length purchaser
  This was a huge sticking point for us before Tuesday. This new wording means that if you do fee-for-service work for another company, the end product does NOT need to be sold by your client. In other words, a client could come to you to develop an in-house interactive training tool for their staff, and you would still be able to apply the 40% tax credit to the labour expenses in your company.

• A broader interpretation of the sale requirement will provide the province with added flexibility in determining which types of commercialization projects will be eligible.
  This is also an important modification and compliments the update previously mentioned. It leaves open the possibility for existing and future business models that were previously undefined in the MIDMTC to be eligible. It's a recognition that our industry is creating new and innovative ways to generate business and the tax credit will be able to adapt and apply to these new models! 

The above modifications put us on par with some of the tax credits offered in other provinces and greatly incentivize clients looking to do work with Manitoba New Media companies. It also gives a prod to those of you developing your own products to "put a wiggle on it".

I also want to add that our meetings related to the tax credit with the Premier, and the Department of Innovation, Energy and Mines, have been extremely encouraging over the last year. The Province of Manitoba has shown they believe in this industry through both words and action. We're so grateful for the wonderful industry support we've received not only through this 2013 Budget, but for the past 7-years from all the Federal/Provincial departments like Innovation, Energy and Mines, Entrepreneurship, Training and Trade, Western Diversification, NRC IRAP, Manitoba Trade, and of course all of you!

Just a quick note that there will be an email in the next few weeks with an event date to explain the Manitoba Interactive Digital Media Tax Credit and new updates in more detail once the budget and guidelines are officially approved.

In the meantime pour yourself a cold beverage and relish the fact that you're doing work that Manitoba and the world values. It's a great time to be working with New Media!

Kevin Hnatiuk

Depending on what your goals are for the conference, we can potentially assist you in a variety of ways. With the support of our provincial and federal government partners there is the potential to assist with a portion of your conference registration costs, GDC Play exhibit costs, provide access to a business consultant to help you set up meetings on site and networking opportunities at Manitoban and Canadian invite-only events.

The Department of Foreign Affairs and International Trade Canada (DFAIT) will set up a Canada Business Lounge with private space available where they are planning a series of networking opportunities you could be a part of. There will also be a matchmaking program with international publishers: Big Fish, Capcom, China Mobile, Gamania Digital, Konami, MTV Networks, Sony Entertainment, Tencent and UserJoy!

Whether you are taking your first trip to GDC to explore the industry, or a veteran game design firm, all companies will be welcome to be a part of our delegation in some capacity. Our delegation will include companies from every stage of development, but depending on funding and the level of interest from Manitoba companies, it is possible that not all companies will receive financial or consulting support.

To potentially qualify for some or all of these activities, click on this link and fill out the application form by Tuesday, December 11th.

If you have any questions about the application or GDC in general please don't hesitate to contact us!

What is Starlite and its history with Project Whitecard?

Project Whitecard's motto is we're a company that uses game technology for purposes other than strictly entertainment. We've done projects with the Canadian Space Agency, First nations, and front line health care workers. A lot of people might not have heard about the projects we've done with the Canadian Space Agency like Robo Math, but it has been played by over 1,000,000 kids. Our projects have a huge impact! We're in a separate market outside of the traditional games industry, with the exception of Starlite. Starlite is more commercially oriented game than what we've done in the past.

We've been in business since 2008, and we currently have over 10 full time employees. Everybody here is working full time on Starlite since August 2012. There's all sorts of other people that are also involved with the project like NASA so there's close to 50 people that the project touches on a yearly basis. NASA's role is to contribute the subject matter experts and they also provide things like topographical data.

Starlite is an exciting quest and construction game that allows players to build rockets, spacecraft & bases, acquire gear, and earn badges as they progress. The game therefore has a sandbox focus (for continued expansion) and crafting components for casual play, crafting and trading elements for social play, and missions designed for more dedicated players that will award badges linked to Common Core Educational Standards (Mozilla Open Badge Initiative compatible). Starlite, to be released on iOS, will appeal to iPad owners, Minecraftians, space/simulation enthusiasts, large organizations of learners, and the casual, social game players.

Is Starlite being focused towards a mobile or desktop experience?

Starlite is focused primarily at being a mobile game. We're developing it in Unity, so we're not excluding other platforms, but we're primarily focused on iOS. I think the mobile market takes a lot of the guesswork out of the marketing for us. Targeting mobile at this point in time for something that is going to be "massively multiplayer" and online is a good way to deliver a product where people don't have a lot of preconceptions about it. If I were to do a PC MMORPG, there's a bunch of people that would have an opinion about it, but I care about having a safe development space for the kind of vision we have and target functionality. It may be that this game evolves to a $100,000,000 game, and we hope to build towards that.

How does Starlite fit into the marketplace?

The app store is the perfect place to launch this kind of product because NASA is already so successful there and we have an association with them. When NASA releases an app for the app store, it has easily half a million downloads in a few weeks, and we'll be right there next to them!

How long has Starlite been in development?

Starlite has had a full crew since about August 2012 but it's been in business development for about four and a half years in addition to all the other projects we've completed. We were focused on the Unreal engine for a number of years, and we've since changed partners, and are now using Unity as our development tool. We're also working with Wisdom Tools in Indiana as well. If you want to host a base on Mars yourself, you'll be able to run a server off your PC, and people will be able to connect to it through your mobile device. It's not unlike Minecraft, it's a great model for how things can be fun and not just focused on grinding. Would you be inspired by Minecraft to build a space colonization and exploration game? You can be inspired in very cool ways!

What local talent have you been able to access for Starlite?

In the initial concept art phase 4 years ago we worked with a couple of freelancers in Manitoba, but we generally hire people. We don't really work with other companies, but we hire skilled individuals from colleges and universities, and other places in Manitoba. We were able to work with Fortune Cat and get to know other developers in the community, which has been great for getting the word out when we need to find great people to work with. Our overall approach has been to hire people internally and keep growing the company.

We will also be working with VOI Networks to provide high speed networking on this project.

What advantages does Manitoba offer to Project Whitecard?

The province of Manitoba, New Media Manitoba, Boeing and the City of Winnipeg have given us advice over the past few years and without them we would have not gone this far. Three years ago, when we were wanting to grow the company we were looking for contracts, and it's hard to get the word out when you're small. But if you network with people, suddenly people will find out about you, and all of a sudden this contract was sent to us. Obviously somebody from one of these organizations referred us, and that's an awesome feeling.

I've lived in Toronto for 5 years and the cost of living here is lower, and you can't underestimate how big of a factor that is when you're setting up a business and a life. I joined an incubator, two of them in fact, and had subsidized rent for a year!

We have a 40% tax credit that we also use on all of our projects, and that's huge! That allows you to work on your own projects and develop your own business in addition to developing your own projects with clients. We grew from a company that in the first year made $10,000 and then incorporated and grew by a factor of 100 in 6 years! What other province could you start a business and eek out a living for $10,000? There's no where else you can do that!

When can people play the game?

You'll be able to get a taste of the game in December! We're really excited to show people what we've been working on!

Introducing Sarah

Earlier this year New Media Manitoba hired Sarah Zaharia as our Market Access Officer. Sarah's background is in working with companies that are export or near-export ready. She is interested in working closely with you to develop a plan customized to your businesses needs. We’d like you to think of Sarah as an extension of your company.

So how do you get Sarah's help?

We are currently doing a call-out to new media companies that want to access new markets, build on an export plan or improve their marketing and sales process. We are looking for digital media entrepreneurs and companies that have the capacity to grow their business and are ready for action!

This will be an intense working relationship so we can only select a maximum of 10 companies to receive our highest level of assistance.

This ain't no free ticket either.

If you are selected you will have to commit to doing the work. We want people that are serious about being successful, so long as you're a fun kind of serious. :)

To be considered, fill out the attached form and send us a link to your website by
Friday, August 24, 2012.

Application for Detailed Research Analysis
Download PDF

Selections will be made by a jury. If you are not selected this time around, we will be happy to help you in any way we can provided the assistance you're looking for falls withing our team's capabilities and is dependant on the current stage of your company's evolution. We are also looking for companies open to sharing their best practices and acting as mentors in the community.

Once you've submitted your application, you may be asked to particiapte in an interview process. Anyone who applies will be contacted once the jury makes its final decision on the initial intake.

If you have further questions about this initiative we invite you to contact Sarah directly via email at sarah@newmediamanitoba.com

What is ZenFri, and what do you do?

ZenFri is above all else a storytelling company. What makes us a little different is that we don't try to limit ourselves to any particular medium, we find the medium that will best tell the story we want to tell, and then build teams of specialists who can fill in what we don't know, driving our vision forward.

How long have you been in business, and what kind of people do you employ?

We've been around for just under two years, but the name ZenFri has been employed for projects created by my wife Danielle and I since university. Currently, only Danielle and I are employed in ZenFri and most projects to-date have used contractors and volunteers. But this is something we hope to change, and in fact will be changing with our recent funding from the CMF. We will be employing visual artists, animators, writers, programmers, modellers, marketers and video professionals.

Why and when did you choose to start creating mobile games?

When I first held an iPod Touch, say 4 years ago, I was struck with a flood of visual ideas almost like a waking dream, ideas of a whole new way to tell stories where the canvas is literally the earth itself. I didn't know at the time that this was called Augmented Reality, but I quickly learned and starting hunting down people who were crazy enough to work with me.

I mean even now AR doesn't do what I envision it doing, but that's what we're hoping to change. At first I tried to take the traditional indie route of making a small game, but as the technology began to develop at a breakneck pace, I saw little hints that others were beginning to think about the future along the same lines I was, only they had the advantage of money and experience. So, I dropped the smaller game and began this race to create a truly compelling AR experience, and to try and be the first to nail it.

How long has Clandestine: Anomaly been in development?

Over a year and a half. I mean I didn't really know what I was doing, I was just a guy with an idea; I had no team initially, and no hope to offer anybody money to work on it, so it took time to really get things moving.

It started with support from Regina's Talking Dog Studios which allowed me to look a little more legitimate and attract more people to the project. But, everyone basically worked for free up to this point, they bought into the vision, believed in me for some reason, and then we all worked together to get the needed funding.

How many people, including yourself, have been involved with the project and what did they contribute to the game?

Since around January / February of 2012 we've had over 30 people, close to 40 working across the country on this project, with maybe 1/3rd of the team here in Winnipeg. These people work in a lot of different capacities; we have people doing concept art and modelling, people creating press material and writing grants.

Some early, very early programming has been done, we have UI design work and I'm very fortunate to have around 4 writers, not including myself, working on this. We like to call it a coalition of Indie developers, you put a lot of little passionate indies together and you get a team the size of a mid-range studio, with all the fire and drive that comes with being the little guy.

What other Manitoba companies or freelancers were involved with the project and how did they contribute to the game?

Here in Manitoba we have Evodant Interactive who is going to guide and manage the three other tech companies/institutions whose skill and cutting edge tech, when combined together will, in theory, make something amazing. Evodant also offers talented Designers and Writers who will work on the project, though the scope of that is still being discussed.

We have Dark Spark Studios offering project management and producer support. Jetpack Media is guiding our marketing and communication strategy along with YerStory TransMedia who is working alongside story and marketing to produce video content.

Beyond that, we have a bunch of solo guys, like Matt Urban, a 3D artist; Barret Ens, a Professor at the University of Manitoba; Matt Klachefsky, grant writer; as well as writers John Titley, William Jordan and in the not-too-distance-future Brenna Masterton.

PO-MO while not formally on the project has offered spiritual support, which I think bears mentioning.

Why did you choose to develop the game in Manitoba?

I wasn't really thinking of gaming when I moved here. I moved here to live with my then girlfriend and now wife / collaborator / business partner, Danielle King. But, when it comes to gaming I'm glad I ended up here. We have a small, but dynamic industry. If I was in another city I dont think I could manage making movies, games and all the other stuff ZenFri does, because you really need to know an industry -- especially the people within it-- to gain any kind of traction.

Winnipeg is small enough that you can make your way around multiple industries relatively easily, but is large enough, and has enough talent that we can still compete on the world stage. It's not easy, but we can do it. I blame the winters, it's so cold for so long that people have to have something to do indoors, and so we are forced to become programmers and muscians just to keep our sanity... honestly I think that's what helps this city generate more talent across the entertainment and cultural industries than is really fair given our size.

What advantages does Manitoba offer over other provinces for game developers?

Well of course there is the tax credits, Yes! Winnipeg, and New Media Manitoba, all of these I feel are pretty key. But I also think there is this pent-up desire in this city to become world class, and we simply won't take no for an answer. People look at me, and at first don't take me seriously, so many people on my team - especially the pros - have stories of their first impressions of me, but what turns them around, I think, is an attraction to an idea and that if we succeed it will truly be ground breaking. I plan to build a world class studio in this city, and I feel Manitoba wants that and welcomes it with open arms. So long as I feel welcome, I'm game.

How has New Media Manitoba helped you and your company over the years?

With this last run at CMF funding, Louie Ghiz was instrumental in offering advice and connecting me to local talent. Originally the Winnipeg team was very small, I had tried to make a go of it here but it wasn't working, I couldn't find the right people, and some good people just kind of scoffed at the idea of putting some of personal risk into me and my idea. So I started looking outward until I talked with Louie. Now I really see Winnipeg as the base of operations for the project, and I'm going to try and bring all my leads here.