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Imagine your creative industries business in London

Jan 12, 2015

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  • 1. IMAGINE YOUR BUSINESS IN LONDON WHY LONDON FOR CREATIVE INDUSTRIES

2. A UNIQUE REPUTATIONTALENT London boasts some of the worlds most gifted designers, advertisers, film production specialists, games programmers and animators, artists, musicians and writersENVIRONMENT Industry diversity, combined with a rich cultural mix, makes London a unique environment for firms looking to be innovative within their respective fields while drawing on talent from other creative sectors London is strong in all of the sub sectors of the industry including: architecture, computer software, film and video, music, interactive leisure, design and fashion, TV and radio, performing arts, publishing, advertising, broadcasting and animation 3. LONDONS CREATIVE INDUSTRY IS THE CAPITALSSECOND LARGEST SECTOR,WORTH $32 BILLION PERYEAR, GENERATING 16% OF THE CITYS ANNUAL GROSSVALUE ADDED (GVA) 4. A GLOBAL HUB OFTRAINED CREATIVE MINDS: MORE THAN 429,000 PEOPLE WORK INLONDONS CREATIVE INDUSTRIES 5. A UNIQUE REPUTATIONACCESS London is the perfect base to reach a large customer base: 12 million in the London Metropolitan area, and 500 million in Europe (within 3 hours)INNOVATION London is also at the forefront of hybrid business models, combining elements of telecommunication, mobile, broadcast, social networking, gaming and advertising such as Last.fm, the pioneering online music service sold to CBS Corporation for $280 millionPOSITION London is considered to be one of the top three world leading technology and media centres second after New York, according to professionals in the technology, media and telecommunication sectors (Real Estate BNP Paribas 2012 TMT survey) 6. THE RIGHT ENVIRONMENTLegal / IP environment:Received particularly favourable ratings and responses with regard to the enforcement of data protection laws and the perceived fairness of the UK regulator (the Information Commissioners Office) in the Global Intellectual Property Index 2011, Taylor WessingDesign IP rights: the UK come 2nd after Germany; likely to improve due to the revamping of the Patents County Court to ease the cost burden of all intellectual property litigation, including design disputes. London now has a proportionate, specialist and efficient court procedure for design right infringement casesThe UK stays in 2nd place for the third time in a row, and is also 2nd for cost-effectiveness of enforcementWide array of legal firms specialising in IP / Patent legislationLondon as a place for companies to thrive & grow:Technology, Media and Telecommunication companies (TMT) are considering London are the place to grow: 54% plan London headcount increases by 2015, on average increasing staff numbers by one-third (BNP Paribas real estate study, Oct 2012)At 89% the results showed unanimously that organic growth will be the main driver behind the planned staff increases over the next three years. The relocation of existing staff into London from either the UK or abroad scored lowly at 7% 7. GOVERNMENT SUPPORT As of 2012, it was estimated that the film tax credit,helped generate over 1 billion of film productioninvestment in the UK in 2010/11. Corporation tax reliefs from April 2013 for the videogames, animation and high-end TV productionindustries from April 2013100m for ultra-fast broadband infrastructureimprovement 4G in London by end 2013 early 2014: will changethe mobile world with faster / bigger downloads onmobile phones / tablets TechCity acknowledgement by UKTI & creation ofTCIO is promoting the cluster growth In 2012, the Mayor of London has invested more than2.3 million in the British Fashion Council, FilmLondon and the London Design Festival to help boostcreative talent and attract inward investment 8. PROVEN TRACK RECORD INCREATIVE INDUSTRIES London has a proven track record in attracting more investments in thecreative Industries since 2003 than any of its major European competitorcities Number of Greenfield FDI projects in Creative Industries attracted into the locationsince 2003300250200150100 50 0Source: fDi Markets (www.fdimarkets.com) ; fDi Intelligence, from the Financial Times Ltd (2012) 9. NEW PRODUCT DEVELOPMENT& INNOVATION 10. NEW PRODUCT DEVELOPMENT London is an ideal location forcustomising products toEuropean markets, combining agood understanding of theEuropean culture and markets: London offers a globally inclusive location, with over 233 languages spoken in the capital It is estimated that 35-40% of Londoners were born outside the UK 11. INNOVATIONRCA INCUBATOR InnovationRCA Incubator launched by the Royal Academy ofArts, following collaboration projects with business school ofImperial College of London Brings together talented teams from design, business andtechnology backgrounds, helping them transform innovativeideas, products, service concepts and prototypes into viablebusiness propositions The incubator has three main objectives: To develop a new community of design entrepreneurs empowered to act as change agents in industry To pioneer new models for interdisciplinary incubation of design-led ventures To demonstrate the value of this approach through a flow of commercially successful projects11 12. ADVERTISING & PUBLICRELATIONS 13. ADVERTISING & PUBLIC RELATIONS Advertising generates 6.2 billion annually for the UK economy The UK leads the worlds ranking for advertising excellence and the UK hasthe third biggest advertising sector in the world after the USA and Japan London overwhelmingly chosen as the European hub for major agencies -around 70% of the industry is based in London. It is a young industry with 47% of the workforce under 34 UK advertising revenue grew by an estimated 3.8% and 2.6% in 2010 and2011, respectively, to a total of 16.18bn There are 13,640 advertising agencies in the UK, 3,855 in London Despite subdued business confidence in 2012 and careful spending, KeyNote & PwC both expect that the advertising industry will keep growing.Total UK advertising expenditure is expected to increase by 4.2% to16.86bn in 2012, a positive trend that is expected to continue for the next 5years 85 of top 100 interactive agencies are located in London demonstrateLondons leadership on digital media advertising 13 14. ADVERTISING AGENCIES IN CENTRALLONDON (WEST END) 15. E-COMMERCE 16. E-COMMERCE 88% of London residents use Internet, above the UK average of 84% in 2012 There are 875 million e-buyers globally and 84% of the worlds Internet users now shop onlineand Internet spending is expected to account for 40% of all retail sales by 2020 The UK has 37 million online shoppers, and the e-retail market is growing at 16% per year; it isthe fastest growing online retail market in Europe and is second only to the United Statesglobally, testament to the diverse range of businesses and great ideas that make up the UKmarketplace On average, each of us spends almost 2,000 per year online, generating total revenues ofover 50billion, and 12.0% of UK retail trade Londons edge in e-commerce: entrepreneurial spirit coupled with strong digital ecosystem andfinancial backing thanks to an ecosystem facilitating networking and growth: e-commerceexpo; VC & private investors London is a place for innovation and a location to build a successful business quickly: London-based Shutl currently offers delivery in under an hour to almost two-thirds of Britain Results from 2012 Start-up Genome report: London is the market place for e-commerce products (50% more likely to succeed than in theSilicon Valley) and project management software (twice as more likely to succeed than in theSV) London is the best place to attack existing markets with better products Deemed low risk compared to silicon Valley & NY16 17. E-COMMERCE EU MARKETCOMPARISON 2012Increaseonline OnlineForecast share ofSales all retail2011-12 businessUK 14.0% 13.2%Germany 13.0%10.0%Switzerland 16.0%9.9%Denmark 14.0%9.1%Norway17.0%9.1%France22.0%8.7%Sweden18.0%8.0%N/B/L 14.0%5.7%Spain 16.0%4.1%Poland24.0%3.8%Italy 18.0%1.6%Average16.1% 8.8%EuropeSource: CRR research commissioned by Kelkoo 17 18. RADIO & TV BROADCASTING 19. RADIO & TV BROADCASTING Over 59,000 people are employed in radio and TVbroadcasting in London (incl. 18,400 self employed) Watching online content through broadbandconnection is becoming highly prevalent throughoutthe London and UK demographic With 88% broadband coverage in Londonalone, data relating to online video streaming pointto the ever increasing need for ISPs and broadbandTV providers in London to enhance their videostreaming capabilities for the UK and Europeanmarket. This provides good opportunities forcompanies streaming programmes from outside ofthe UK There are over 50 broadcasting firms with a primarylisting on the London Stock Exchange. Two areFTSE 100 members - BSkyB and ITV. These twoblue chips account for 77% of the sectors marketcapitalisation, whilst the 43 AIM companies togetheraccount for just 5% 19 20. GAMES, APPLICATIONS &DIGITAL CONTENT 21. GAMES, APPLICATIONS &DIGITAL CONTENT London has a world-wide reputation as a place to undertake computer-generated imagery (CGI) work The UKs videogames and interactive entertainment industry is one of thebiggest in the world. The UK boasts 48 of the worlds most profitable games studios, all of whichhave a proven track record of developing, publishing and distributing first-class content. From Tomb Raider to Grand Theft Auto to Little BigPlanet, UK-made games rank among the most popular in the world Some 70% of the UK population enjoys playing games 19% of the computer games workforce is based in London, making the citythe main cluster in the UK; other easy to access cities with a concentrationof games developers include Guildford, Cambridge and Brighton London universities provide courses in games development to ensure flowof talent and the attractiveness of London as creative location 21 22. FILM INDUSTRY