2. 2
Contents
Foreword Peter Kawalek
Manufacturing confidence Felicity Goodey
Creating space, creative space Kalam Ali
Realising convergence: Lessons from the Canadian experience Peter Lyman, Kristian Roberts and Stephen Hignell
MediaCity: A new entrepreneurial era Fred Hasson
Changing the game Damian Hodgson
Funding the barbarians at the gate Kalam Ali
Manufacturing confidence revisited Richard Phillips
Contributors
Kalam Ali is an experienced investment banker and corporate financier with a background in technology investment banking and
corporate finance.
Felicity Goodey is a former BBC journalist and chair of the Central Salford Urban Regeneration Company. She led the team which
created The Lowry, Britain’s national millennium project for the arts, an international theatre and gallery complex, which attracted to
the area more than £450 million of private sector investment and helped create 5,700 new jobs.
Fred Hasson is the founder of Tiga (Independent Developers Trade association) for whom he was CEO for seven years and of the
European Games Developers Federation where he was Chairman for five years.
Stephen Hignell is a consultant in Nordicity’s London office and a seasoned project and business development manager with
significant experience in both public and private sector projects.
Dr Damian Hodgson is a senior lecturer in Organisational Analysis at Manchester Business School and convenor of the MP3
(Managing Projects, Programmes and Portfolios) network at MBS.
Professor Peter Kawalek (Manchester Business School) works with students on topics related to new media and information
systems. He has worked at various levels. He has experience to board level in media industries, and works extensively with
government, including Department of the Taoiseach, Department of Communities and Local Government and the NHS.
Peter Lyman is senior partner with Nordicity, and one of its founding principals.
Dr Richard Phillips is lecturer in Comparative Organisational Analysis at Manchester Business School, where he teaches on the Full-
time MBA as well as doctoral research programme.
Kristian Roberts is a manager at Nordicity and a recognised expert in digital content industries in Canada and internationally.
3. 3
Foreword
by Peter Kawalek
Media is at the heart of MediaCity. But us what was true and what was not new institutions have shaken the
what is it and why build a whole city true. Just having written one conferred confidence of established institutions,
around it? If one thinks about media in expertise and status. Just having read particularly the way in which older
a conventional way, media simply means one could make you a lecturer. Students institutions charge the masses for their
any number of things we experience could not afford books, both in terms ability to participate in it. Yet rather than
through a ‘screen’- be it a computer, of the purchase price and the effort to replace the fundamental technology
mobile/smart phone, radio, television set read. The lecturer could. So, hey presto, and institution of the book, these
or even the printed page. Even in the age he had a job for life. The lifetime of the new institutions tend to repackage
of the internet where the computer and book, that is. it, finding new ways to embody that
mobile phone are becoming the screens knowledge and experience as well
of choice, particularly for the younger Great institutions could be formed as new institutions around which to
generation, our love affair with media is around books; parliaments, universities disseminate and consume it. What is
still firmly rooted in the telly. If deprived and churches. The first two of these Amazon’s Kindle if not this?
of it, watching TV tends to be the ‘media’ sought to manufacture knowledge. The
we would most miss. third admitted only to being its guardian. And this is media today. It is a great
A major function of churches became, if co-existence and fighting for position of
It is our love of television and all that you think about it, version control. Which different forms of knowledge, experience
it entails that so much informs our is the right version? What do we send and ways of participating in it. Media
literacy and association with media. to the printer? What do we keep for the today is about an age of remarkable
Yet if you think about media in this committee? Because of books, religion contest and conflict. In 1962, Marshall
way, you inherit all the baggage that became an act of faith rather than an McLuhan predicted the move towards
this entails media is about someone exploration of horizons. People could say a global village marked by constant
making programmes, someone to you, if you don’t believe verse x and conflict over ideas. We need only reflect
broadcasting programmes, someone chapter y, then you are not true. After all, upon the events of today to appreciate
paying for programmes, someone it is written down. the aptness of his observations about
cozying up on the sofa after work to the trajectory of media. Has Wikileaks
watch programmes, etc. For most With the electronic age came new not challenged the values and
people media is a particular institution institutions. The BBC, 20th Century Fox, legitimacy with which governments and
they participate in in some way, shape Disney and EMI. These institutions organisations define the right to access
or form. Were we to think of a name created new kinds of contest in society what should be known and not known
that captured our experiences with that over what we know and experience about the world? Have social networks
institution, the BBC may well be it. And about our world. Rather than replace like Facebook and Twitter not helped to
if we continue to think of media in this earlier institutions, these new media fuel the revolutionaries on the streets
way, we miss the bigger picture of what institutions often build themselves of Egypt and inspired similar uprising
media is about. Continue in this vein, upon those of the old and reproduced across the Middle East?
and the vision of MediaCity will struggle its patterns. The BBC uses scriptwriters
to project itself as anything other than to produce scripts around which These are powerful reminders of the
what others might think of as simply a whole institution of actors and impact that comes when you allow
BBC-City. production teams mobilise to amplify simple change in who writes the text,
its content to a mass audience. This is who paints the image, who captures
Yet this is not the only way to think not fundamentally different from the the idea, and then open up access to,
about media. Media might also be choreography with which the church and participation in, the dance that
thought of as the art and science of used scribes to produce the scriptures, surrounds its production and circulation.
knowledge around which different and then built institutions around the These are powerful reminders of what
institutions form to shape how ideas good book with priests and a whole media ultimately is about. And as
are captured and disseminated. On range of other actors engaged in forms MediaCity looks to define itself through
this reading, media is far more than of ritual performances that equally its vision of what it believes media is
television and the BBC. It is a vast served to amplify the dissemination and about, it is a reminder to think more
multiplicity of institutions all competing consumption of their knowledge. carefully about what it is, and about who
for our attention and seeking to shape is to be involved in that choreography.
what we come to pay attention to in Yet with the rise of any new institution,
our world, how we experience it, what the old institutions usually feel their
we come to understand about it, and position shifting and their confidence
ultimately, how we act upon it. undermined. And right when we grew
comfortable with a particular form of
Just think about it. The printed word what media looks and feels like, along
gave us the ‘right’ word. There were came the internet and a new swathe
official versions of things. Books told of digital institutions were born. Sure,
4. 4
Manufacturing confidence
by Felicity Goodey
Felicity Goodey charts the history of an than the adjoining city of Manchester two anchor investments that got the
inspiring transformational journey that and had long provided much of the first phase away were the first multi-
still has a long way to go. actual labour for all of its neighbour’s screen cinema in the North of England,
once great industries, Salford really did and only the second in the country, and
One of the great attributes of the North get the rotten end of the deal. a hotel called the Copthorne Hotel. It
West, and particularly the Greater was revolutionary. Nobody had done it
Manchester area, is its ingenuity and So here was Salford, an impoverished before and meanwhile on their doorstep
confidence. The history of MediaCity is local authority with this enormous Manchester was still languishing and
really the history of efforts to find that and derelict port and a horrible, highly Liverpool was in a right old mess.
confidence, the people to lead a vision contaminated canal, reputedly the most
for change, and sustain its momentum contaminated waterway in Europe, Salford ploughed its own furrow and
over time. wondering what to do about it. The rapidly, but in isolation, created Salford
waterways were in such a poor state Quays, a destination where people lived
The region used to be at the centre that you couldn’t sell it to anyone, you and where people worked. Modern
of Britain’s economic might with all could only give it away for free. Even offices and service industries moved in,
the innovation in manufacturing and then, no one was interested. Rather, one as we moved away from manufacturing
productivity that came with the first enterprising developer actually asked into the service sector. But the problem
industrial revolution. These were the Salford to pay them £500,000 for the was that this early investment made
days that made Liverpool one of Britain’s privilege of taking it off their hands so little difference to the local population.
busiest ports, importing all the raw he could fill the waterways and turn Most of the jobs were going, not to
materials that fuelled the insatiable the docks into, what else, a car park. Salford people, but to commuters from
demand from manufacturers in But even this was impossible, as an Cheshire, Derbyshire, and elsewhere.
Manchester. These were the days that Act of Parliament has mandated the Local people, trained for a world of
turned Trafford Park into the largest waterway remains since it now forms manufacturing, had neither the skills
industrial estate in Europe on the back Cheshire’s main drain. And draining nor, in many cases, the aspiration to
of a monumental effort to build a canal it was. Thankfully, there were people, acquire new skills to take advantage
system that brought access to the sea like Salford’s council leader of the ‘70’s of the service sector jobs that were
36 miles closer to Manchester. These Les Hough and his Chief Executive being developed here. After years of
were the days when Salford was the Port Roger Rees, with the will to search for a unemployment, lack of aspiration, as
of Manchester, reflecting the fact that better situation and the confidence to much as lack of skills, was a major barrier
the Manchester Ship Canal didn’t quite do something themselves rather than to regeneration not only in Salford but in
make it all the way to Manchester. But wait for someone else to solve their many other parts of the North.
that was then. problems. Were it not for these people
who had the confidence to reinvent Once more Salford City Council, by
Eventually, industrial output would a place no one wanted to associate now with a new Leader, Bill Hinds
require bigger container vessels that with, the MediaCity site of today would and Chief Executive John Willis, took a
could not get up the canal system. never have happened. Herein lies a huge leap of faith. They decided they
Eventually the pattern of world trade lesson. To achieve transformation, needed something that would be a
would change and shift the powers of you need leadership and you need catalyst for transformational change.
industrial might not only away from courageous people. While it may be But the Council recognised local
the region, but away from the country hard to find, often in people from the authority mistakes of the past. In the
as a whole. And eventually, the Port of most unexpected places, finding it is 1960s terraced houses had been pulled
Manchester would die. Yet unlike the nonetheless an absolute prerequisite to down and replaced with tower blocks.
Liverpool port which boasts more Grade successful regeneration. Communities were destroyed and the
I Listed Buildings than any other place result was a social disaster. The same
in the country outside of London, the When you find it, you also need to thing happened all over the country.
Port of Manchester left Salford with support that leadership and confidence. New housing replaced the tower
no redeeming features, no marvellous In the case of the Port of Salford in the blocks but still there was no change
buildings, virtually nothing that could 1970s, turning it into the Salford Quays in the social wellbeing of the area. As
be reclaimed at a later date and easily of today would take a huge amount the Leader, Bill Hinds, said, “We need a
built upon. Eventually there was of bravery to find the money to back it. catalyst, we need something which will
nothing left of the Port of Manchester The Council stuck its collective neck out transform aspiration and attitude, not
but widespread contamination and and was absolutely correct. The rest of just the attitude of people on the outside
dereliction right in the middle of an the world, struggling with recession, looking in, but more importantly, we
already impoverished city. Adding insult thought they were completely barmy. need to transform the attitude and the
to injury, what was once the Port of An initial investment of £45 million of aspirations of the people themselves;
Manchester was renamed the Port of public money brought in £450 million of the local residents of Salford”. Without
Salford! For a city that is actually older investment over the next ten years. The aspiration it is almost impossible to get
5. 5
people to change tack. You can put all participate in the success of the Lowry. history to it. Just across the border, in
the skills training in the world together, And without them, the relatively modest the City of Manchester, the BBC had
but if people do not believe it will make subsidy of £1 million pounds a year from for some time been talking about
any difference to them, why should Salford to get the project off its feet decentralisation. The pressure on the
they be bothered to take advantage of would not be enough to keep the vision BBC came from back bench MPs who
it. Salford recognised that to change alive. were getting sick and tired of the fact
aspirations, it was no good building that although the licence fee is in effect
something ordinary. Only something Today, the Lowry hosts everything a National Tax they perceived the BBC
of international quality and distinction from the world’s most famous ballet to be entirely London and South East
would send the message to everyone companies, drama companies and opera centred; why should the North pay
that Salford people can also have the companies right the way through to the licence fee anymore? As the time
very best. Peter Kay and sing the Sound of Music. for licence fee renegotiations was fast
Now in its 11th year, the centre is totally approaching the BBC decided it needed
Salford officers looked around the world financially stable and makes 95% of its to look at decentralisation seriously.
for inspiration. They saw the power of own income. The Lowry alone has, on an Its first option was to consider the
arts-based projects in Baltimore and the investment of £127 million, brought in redevelopment of existing premises in
powerful effect this had on regeneration. to date, directly and indirectly, £1 billion Manchester, the Network Production
Guided once again by the architect who pounds of private sector investment; Centre, my old home, a horrible building
had created the vision for Salford Quays, not a bad return. Yet behind those in need of redevelopment! Manchester
Peter Hunter, they decided to create an figures is a very simple secret, a vision thought this was a done-deal so when
international arts and entertainment to build something that is able to root I began to take interest in the BBC
complex in the middle of one of the itself in and transform the ambitions opportunity I got my knuckles wrapped
most deprived communities in this and confidence of the community that and was told to go away. Then the BBC
country. In 1989 Peter Hunter and participates in that project. This is the moved the goalposts.
Peter Henry, the erstwhile Industrial success of the Lowry. And one of the
Development Officer for Salford came greatest experiences of my life was in The new BBC Director General, Mark
to me and said, “We’ve got an idea.” the bar one evening listening to three Thompson, saw something else
They showed me an artist’s impression, local ladies solemnly comparing the happening in the world. He saw
based on the regenerated Quays as far relative merits of the three greatest that digital technology would not
as it had gone. Only about half the docks ballet companies in the world. In 1989 only change the way we broadcast
had been developed. Several complete had you asked those ladies had they but change everything we do,
piers were still empty. On the end of one ever been to the ballet, they would have communications, leisure, entertainment,
of them, pier 8, Peter Hunter had super- laughed at you and said why would we education, healthcare, government etc.
imposed an image of the Royal Albert want to go to a ballet and there aren’t He realised that unless the BBC changed
Hall. My reaction was “You have got to be any here anyway. What a long way it would be in serious trouble, and as a
joking. An Opera House on the Quays?.” Salford has come. former broadcaster, who also had a stake
They said, “And why not?” in a commercial broadcast production
The Lowry was a turning point company, I recognised that too. By this
To keep such vision going would require for Salford. It started to engender time the BBC had five potential sites
seriously hard work. For many, the confidence in a place that has long had in mind, two of which were in Central
immediate reaction to an international very little going for it. And the power of Salford, and when the BBC came to us to
arts and entertainment complex for confidence is its infectiousness. One of discuss them the gloves were off and we
Salford was that we had all collectively the best headlines we ever got through were plunged into a real competition.
taken leave of our senses. Why not build Lowry was in the Financial Times, of
a little local theatre? That would be nice. all places, under the headline “New If you are in a battle and want to win
Or a community arts centre? That would York, Paris, Madrid, Salford.” That is just you need to know what the client wants.
be good and much less expensive. But the kind of headline you want when Fortunately the BBC introduced me to
Salford’s response was would either you are trying to transform a place. It Professor Mike Joroff who is a work place
make any difference? It would be just concerned the visit of the Paris opera/ planner, but ‘work place’ not in terms
the same as putting in another road, or ballet company to Salford, the first time of offices but in terms of cities. He is
another row of houses, or another estate; in 40 years that this company had ever from MIT, Massachusetts and he invited
would that make any difference, would performed outside a national capital; me to join forces with the Cambridge/
that transform anything? The real crux and they came to us. MIT Group who were looking round
of the matter lay in finding a way to Manufacturing confidence is what all the world at examples of where the
embed the project within a community. great projects must be about. That is next big drivers for western economies
This was the lesson that Salford’s then what the community wants. Salford were going to come from. 21st century
deputy chief executive, Tony Struthers, people are proud of where they come cities such as Arabianranta Helsinki,
a town planner by profession and a from, proud of the fact that they have Crossroads Copenhagen, Digital Mile
man who later became President of the battled through huge adversities, but Zaragoza, Internet City Dubai, DMC
RTPI, would take from the Baltimore we want transformation for the future. Seoul, one north Singapore, and of
experience. Anything less than MediaCity is simply a continuation in course MIT itself represented beacons
something ambitious, an international that effort. of where the future was heading. These
arts and entertainment centre of were not business parks, not science
excellence, would not have a chance Yet MediaCity has its own challenges to parks but urban landscapes, 24-hour
of inspiring the residents of Salford to get over. The idea itself has a particular cities being developed on the outskirts of
6. 6
already well-established cities, designed attractive destinations, places which We should not forget this point.
as places that attract and retain creative enjoy rich culture, attractive landscapes, Ultimately, instead of just building a
people. They are specially designed and beautiful public spaces. Salford new home for the BBC, as our rivals were
places where people live, play, work, is no longer competing with Hull or proposing, we are taking the BBC as an
learn, and research; they are destinations Leeds or Birmingham or London; we are opportunity and trying to use that as a
in themselves. Some are driven by big competing with Amsterdam, Paris, Seoul, catalyst to unlock a globally significant
media; some by design, some by big and Singapore for the kind of talent MediaCity. There is still a lot to do but
science. In conversation with Mike Joroff that you need to drive these industries. with a developer like Peel Holding’s boss
one evening about these world-class And why should they come to us? We John Whittacker Mediacity has found
developments, typically 150 to 250 plus have got to offer great housing, great once again a man of courage and vision
acres, I said, “Do you think we could be education, great places to live, distinctive to drive it forward.
world class?” He looked down his nose at places with character. ‘More Salford, less
me and replied, “Well I don’t know about anywhere’, a place in which local people
that, but I think you could be globally are ready to welcome newcomers like
significant”. And that will do us, we will the BBC because they are comfortable
be globally significant! that this new investment will also
benefit them and their families.
And this is what we were proposing with Achieving this distinctiveness is much
MediaCity. Digital new technologies of what has driven MediaCity to date.
will revolutionise everything we do and There is everything here in phase 1 that
that means we have to put in the right you would find in a city offices, houses
infrastructure and create attractive and apartments, hotels, crèches, shops
places. If you want to transform your and supermarkets, and a tram right to
economy, you have to attract and retain the doorstep of the BBC. And we are only
creative people. That means creating the first 37 acres of a 200-acre site.
7. 7
Creating space, creative space
by Kalam Ali
It will take more than simply building venues, art galleries, coffee shops touting for marketing and promoting new ideas
office space for entrepreneurs to make free wifi, numerous developer meetups - to a larger community of ‘followers’. In
MediaCity a success, argues Kalam Ali. many of which are sponsored (free beer short, the development of the web has
and pizza) - and venture capital funds given to entrepreneurship the possibility
Much has been discussed about setting up offices locally has earned it of building innovative digital media
ecosytems that support innovative the nickname ‘silicon roundabout’. In products more cheaply, the possibility
product development and the success recognition of the vibrant networking, of finding other like-minded people to
of technology clusters such as Silicon clustering and knowledge sharing work with (via wikis, blogs, news articles,
Valley in the US. Everyone wants to taking place in this area the Technology podcasts, as well as tools for organising
know how to create these ecosystems Strategy Board recently announced events), and a possibility of finding an
and most of the time, people conclude a £1m funding competition for local initial market to prove their concepts.
that the secrets are so complex that companies touting this area as the ‘Tech
it’s impossible to re-create the magic City’. That said, another factor also playing
formulas behind past successes. Yet if a key role in driving this growth in
you looked more closely at the situation While much of these developments look entrepreneurship is access to physical
right now in London where I live, you simply like the evolution of a variety of space. Yet the physical spaces that
cannot but notice something interesting formal and informal networking events appear to support this growth in
is happening to the entrepreneurial in a cheaper side of the city there seems entrepreneurship are not simply about
ecosystem. This makes me think it might to be something driving the appetite for providing traditional ‘office space’.
be better to simply pay more attention these events. They are not developments Rather, on any given day in London, what
to what is already beginning to happen driven by some central plan, but a one can observe is people using public
locally, rather than fixate on where we process of spontaneous and continuous spaces, such as wi-fi enabled cafes, and
think the grass is greener. self-organisation. The web is playing transforming them into spontaneous
a central role in these developments. ‘co-working hubs’ - as places to work
In the digital space in London there has Online communities are no longer a in and as well as informal (and formal)
been a noticeable upsurge in visibility replacement for meeting up in real life, meeting spaces for a variety of business
around entrepreneurial activities in but are becoming the tools for finding, and social purposes. In short, what
the last couple of years. Despite the organising and connecting to other we are witnessing is a process where
financial crisis, numerous groups of people with interesting ideas, in real life. a combination of virtual tools and
budding entrepreneurs have begun to open physical spaces are increasingly
emerge. For instance, East London has The web has been offering becoming the modern office space of
increasingly become the place to be if entrepreneurs new opportunities to the digital entrepreneur.
you’re a budding web, tech and media build businesses with the emergence
company. The emergence of co-working of free web services that increase While it might not be possible to copy
‘hubs’ offering flexible and affordable efficiency and cut costs, as well as routes the ecosystem surrounding Silicon Valley
work space with hi speed internet set to market previously controlled by larger that does not mean you cannot create
against a backdrop of numerous digital gatekeepers. Social networks such as an ecosystem that works here.
creative agencies, tech startups, record Facebook and Twitter have also begun to
labels, film companies, entertainment give individuals a relatively free channel
8. 8
In Britain, part of the challenge was revitalised in six months becoming We are in a period of widespread
of creating an environment for ‘a mixture of playful pop-up shops and experimentation and innovation in
entrepreneurship to flourish seems to independent businesses with more long- digital platforms. As this continues
boil down to the fact that when we term ambitions’ 1. to expand it becomes increasingly
build places for enterprise to happen, important to understand emerging
Spacemakers recently listed some
the remit of most infrastructure business models, disruptive innovation,
noteworthy features of their strategy:
development organisations and their the new mechanics for media
funders is too narrowly conceived. The • build trust through personal distribution and provide relevant and
game is more about building spaces outreach and engagements mediated timely support to those companies and
that can be rented to particular groups through open online networks as well as individuals innovating in these areas.
who get to use it as their own private regular open meetings and collaborative Some companies will fail, that’s normal
spaces. This is simply not conducive to events; in any ecosystem, but we want to see
creating an ecosystem for entrepreneurs • re-use existing assets, recognise lessons learnt applied quickly and best
and a culture of enterprise. While places potential of the space and involve local practice adopted across an industry. This
like MediaCity clearly wish to sell offices communities; tends to spread better in robust and
to groups who want their own space, • engage in co-production and not just well connected ecosystems - where the
it seems like its success also depends top-down consultation. process of learning, adapting, innovating
upon fostering an environment in and growing are all embodied into the
which entrepreneurship flourishes to This resulted in a successful campaign local culture and day to day activities.
supply larger organisations, in the fast that transformed the market, bringing
growing sectors it is targeting, with the it to life and adding much needed Proximity to and access to established
innovation and talent that supports value to local communities whilst also players and large companies also plays
their ambitions. Consequently, large demonstrating to its property developers a key part in this process as seasoned
ecosystem projects like MediaCity may better ways of encouraging local industry executives guide, mentor and
find inspiration in what is happening at commerce. This included weekly themed connect earlier stage initiatives to their
the other end of the spectrum where events co-organised with the various larger counterparts seeking to harness
ideas and smart people come together arts collectives, pop up shops and the these innovations.
creating the next wave of success stories. current residents which created the ‘glue’
that brought together new tenants with From a corporate finance perspective
Much of the demand for new types of old, both benefitting from the increased a successful self organising ecosystem
spaces to support creative entrepreneurs footfall drawn to this hub of activity. as described here creates growth
is increasingly being supplied by opportunities which scale well and
members of the same community. For Themed hackdays, a popular activity in inspire more successes. This will attract
instance, intermediary organisations digital industries, achieves something talent, investment, expansion capital
such as ‘Spacemakers.org.uk’ have similar where entrepreneurs, tech and create strong conditions for M&A
begun tackling these issues through startups and freelancers come together activity, which in turn creates even more
development projects in areas where in an experimental event hosted by a sustainable feedback loops - such as
empty spaces are underutilised despite business where the expertise of the the next generation of leaders who
the value they afford local communities. innovators is drawn upon to find creative contribute further to its success.
Like larger public infrastructure projects, solutions to a business problem in an
the effort begins with repurposing informal, relaxed atmosphere.
unused or diminishing spaces. However,
these projects are not about building For larger ventures like MediaCity, some
to an economic plan and then looking of these lessons may offer useful ways
to find people for which that plan of expanding the digital media and tech
fits. Rather, the game is about actively cluster in Salford. In particular, activities
looking for ways to harness the strength that encourage collaboration between
and motivation that already exists within entrepreneurs and industry, such as
the local community by finding new ‘hackdays’, mentoring and project
ways to enhance network connections finance, for example, would help create
between newcomers and residents. feedback loops and networks which
As with the wi-fi enabled cafe that reward effective information exchange
spontaneously becomes the co-working and networking, which in turn stimulate
hub for many creative entrepreneurs, a greater entrepreneurial activity. The
central aim of the development project backdrop to this would also require an
is to find ways of incorporating both exercise in branding or instilling a sense
online and offline tools for channeling a of belief and urgency that Mediacity (or
constant flow of relationships into that any other similar infrastructure project)
space. Consider the case of the Brixton is not only useful office space but also a
Village Project, an indoor market which defining moment for digital industries in
was close to empty and is now a hub this region.
of cultural, entrepreneurial activities
and social exchanges in South London.
The NY Times recently ran a story on it
describing how a mostly empty market
1
http://travel.nytimes.com/2010/08/08/travel/08headsup.html
9. 9
Realising convergence:
Lessons from the Canadian experience
by Peter Lyman, Kristian Roberts and Stephen Hignell
Peter Lyman, Kristian Roberts and Stephen 2. A single production company (or BBC competing online for news-bound
Hignell from Nordicity, one of Canada’s two companies working within a co- eyeballs), the globalisation of media
leading strategy consulting firms for the production agreement) in this example, further heightens competition. With the
creative industries, explain why policy the two companies work together heightened level of competition creating
steps to stimulate convergent activity from the initial stages of development a deep level of engagement with
need to be handled carefully. through the distribution of the final users/viewers that can move between
product, both have equitable access to platforms, this can be the key to gaining
Among the wash of jargon that seems talent and both products are considered (or maintaining) market share.
to pop up faster in the digital age than to be part of an overall experience.
weeds growing in an un-kept garden, As the above examples show,
one of the most resilient terms to arise ‘convergence’ can occur at a variety of
in the creative industries has been levels. So why does a convergent creative
‘convergence.’ Indeed, this loose concept product stand a better chance of success
that ‘things are coming together’ has in this environment? The assumption
appeared to underwrite policy and is that extending the users’ experience
funding decisions around the world. over multiple platforms with a variety
Like most jargon (eg globalisation), of ways to interact with the material
convergence lacks precise definition, (e.g. linear audiovisual content and
but has real – if nebulous – effects on interactive game content) will have
the field of endeavours to which it is a number of desirable effects. These
applied. This short essay will provide benefits include (but are not limited to)
a working definition of ‘convergence’ a deeper relationship with the user/view,
and examine efforts to realise tangible more aggregated television viewers (and
benefits from convergent activity in the thus more advertising revenue), and
creative industries. In so doing, it will increased direct unit sales (eg of DVDs or
draw upon the Canadian experience of other merchandise).
with convergence to highlight lessons
for consideration by MediaCityUK. From our perspective, the push towards
convergence seems to be driven (at least
One can define convergence (insofar in part) by the on-going digitalisation of
as it relates to the creative industries) all forms of media for consumption on a
as the ‘conjoining of previously distinct screen – in other words, by a shift in the
media in the financing, development, devices that consumers use to access
production and distribution of creative content. From the growth of ebooks,
content.’ Notably, this definition extends (projected to grow at a compound
well beyond the notion of convergence annual rate of 23.3% through 2014) 2
being primarily a distribution issue. to the increasing web and app-based
Indeed, for reasons that will be presence of magazines, all media are
elaborated upon below, practical converging towards a common digital
convergence must touch all stages setting. Indeed, PricewaterhouseCoopers
of content creation. Let us draw two estimates that by 2014 one third of
hypothetical examples to make this all global entertainment and media
distinction clear spending will be on digital products 3.
Among more industrialised jurisdictions,
1. A producer of a television programme that ratio is expected to be even higher.
contracts an interactive media producer
to develop an accompanying product in Related to this digital revolution is the
this example, the interactive producer is increasingly global nature of media
brought in at the end of the production distribution. With services like iTunes and
cycle, has limited access to talent, other digital download services, it has
and is generally considered to be a become much easier to sell one’s creative
means of marketing the TV property product in distant lands. This lower
that is peripheral to the core creative barrier to market entry has resulted
experience. in an increased level of competition
within traditional media (eg television,
sound recording, etc). When combined
with increased competition between
media (eg both the Economist and
2
PricewaterhouseCoopers, Global Entertainment and Media Outlook, 2010-2014.
3
Ibid.
10. 10
International policy examples
This convergence of media has created between their approaches (as described
an impetus for governments around the in the table below), all initiatives are
world to develop initiatives to help their aimed at stimulating co-located creative
creative industries cope with the highly industries to productively build off one
disruptive effects of the digitising media. another.
While there are numerous differences
Jurisdiction Development Approach
Seoul, South Korea Digital MediaCity A state-of-the-art digital media
entertainment (M&E) cluster, located
in Sangam-dong over 569,925m2 at the
centre of metropolitan Seoul.
A live/work/study/play space including
‘green parks, music cafes, vitalised streets
and comfortable housing facilities’
Focussed on ‘the new development
and improvement of businesses that
enhances the capabilities of the existing
large cities . . . not about painting on a
clean slate but remodelling Seoul.’
Planned completion in 2015.
Dubai, UAE Dubai MediaCity A tax-free media zone located in Dubai.
Purports an ‘open and flexible
environment’ including an ‘international
media production zone’ aimed at
creating a cluster environment for media
production companies from across the
industry value chain, and from across
the world, to interact and collaborate
effectively.
Singapore Mediapolis Singapore’s first digital media hub where
creative talents live, work and play in a
synergistic environment.
19 hectares of innovation and R&D
facilities including green screen
capabilities, digital production and
broadcast studios.
It will also offer broadband connectivity to
enable efficient processing, management
and distribution of digital media content
and services.
Slated to be fully completed by 2020.
Zaragoza, Spain Digital Mile Occupies the space between an old train
station and a new one.
Co-location of housing, business, art
and education with access to advanced
telecommunication infrastructure.
Contains several ‘digital public spaces’.
While the promise of convergence is - which is, after all, where convergence is right resources at the right time. In short,
indeed real, so too are the challenges most obviously observed. However, for a enabling convergence requires a flexible
that accompany it. As alluded to convergent product to realise its promise, policy approach.
above, most of the talk of convergence one must also address the financing,
(understandably) is focussed on the development and production of media
distribution and consumption of media such that all parties have access to the
11. 11
Lessons from the Canadian experience
The recent launch of the Canada products and by mandating a production, post-production) and can
Media Fund (CMF) exemplifies multiplatform distribution model, even extend the production cycle beyond
the difficulty of a heavy-handed Canadian television and interactive the final distribution of the product (eg
approach to convergence. In 2008, the producers would immediately be with patches, new levels, new characters,
Government of Canada expressed its stimulated to converge their activities. etc). Furthermore, soon after the CMF’s
desire to stimulate innovation in the However, it is here that policy makers inception, producers pointed out that
‘screen-based industries’ by combining have missed the middle of the production not all television programs actually
existing funding programmes into a chain (ie development and production). benefit from a convergent digital property.
converged funding programme. The
resulting CMF has two major streams For example, whereas television As a result of these difficulties
an aptly-named ‘convergent stream’, producers tend to require access to (including some producers avoiding the
and an ‘experimental stream.’ For this talent (ie actors, director, etc.) for a programme entirely), the first two years
paper, we will focus on the convergent short duration towards the end of a of the CMF have been tumultuous and
stream’ which ‘supports multi-platform production cycle (i.e. during principal the desired outcomes have yet to be
Canadian projects they provide content photography), interactive producers realised. Indeed, only 2% of all funding
on at least two distribution platforms, tend to require access to that talent that was delivered through the CMF’s
one of which is television.’4 once the majority of the project convergent stream in its first year was
has been completed. Indeed, most spent on original digital media products
The critical (and flawed) assumption interactive products lack the defined and only 37% of projects funded have
made by policy makers is that, by three-stage development cycle of a any convergent products at all (excluding
supporting the financing of convergent television production (ie pre-production, websites and streaming content). So, the
4
It should be noted that a website or similar ‘brochureware’ is not deemed to be distribution on a non-television platform.
12. 12
key lesson to be drawn from the CMF is what relevance does MaRS have for film/
that one cannot mandate convergence, TV convergence with interactive media.
and that combining funding To answer that, we must first point out
mechanisms is not sufficient impetus that MaRS was intended to primarily
to change the underlying production house life sciences and biotechnology
incongruities of the television and firms with a nod to digital media – but
interactive communities in Canada. now digital media firms make up over
80% of the resident companies. The key
Like the CMF, the Province of Ontario lesson here is not to try to predict how
(regional government) has taken your support mechanisms and services
policy steps to stimulate convergent will be used. Rather, as with the IP Fund,
activity through an innovative funding the lesson is to identify a key activity and
mechanism. To that end, in 2009-10 the stimulate that activity (without a view
Province launched a pilot fund called to the end product). This wide-angle
the Intellectual Property Development lens approach may be appropriate for
Fund (IP Fund), aimed at supporting MediaCityUK.
‘eligible early stage development
activities to bring screen-based content
A summary of lessons learnt
properties closer to production or market
ready stage.’ Rather than targeting the If one accepts the premise that
distribution of content ‘on more than convergence is occurring and that it
one platform,’ the IP fund targeted a is desirable, policymakers should be
particular type of activity research and considering means to stimulate activity
development. that will allow local firms to exist at
the forefront of this type of content
By rebating a portion of the early stage development. From the above examples,
development costs of a ‘screen-based one can conclude that if MediaCityUK is
product’ the IP fund does not directly to effect an increased level of convergent
stimulate convergence per se, but rather creative product, it should consider the
enables the types of activities (e.g. new following lessons from the Canadian
prototypes, new business and marketing experience
plans, market research) necessary to
reap a financial reward from convergent POLICYMAKERS
media properties (which remains a SHOULD BE CONSIDERING
somewhat elusive goal). If convergence
is a natural consequence of changing
MEANS TO STIMULATE
consumer habits and heightening ACTIVITY THAT WILL ALLOW
global competition, this focus on the LOCAL FIRMS TO EXIST
‘fuzzy front end’ of screen-based media
seems quite appropriate. With this
AT THE FOREFRONT OF THIS
approach, the IP Fund was widely lauded KIND OF CONTENT
by Ontario’s creative industries. The IP DEVELOPMENT
Fund thereby shows the importance
of targeting core innovation activities
• It is difficult - and even perhaps
-rather than trying to predict a desirable
counter-productive - to mandate
outcome of that innovation.
convergent activity;
Given that MediaCityUK is looking • Flexible programs with broad
to effect some change by co-locating definitions of eligible content (e.g.
firms, it may be helpful to draw on ‘screen-based content’) have met with
the experience of a Canadian co- greater success;
location facility. To that end, Toronto’s • It is important to target a particular
MaRS Discovery District (MaRS) offers type (or types) of activity to promote,
some key lessons in the stimulation such as front-end research and
of convergence of previously distinct development;
industries. While MaRS is not dedicated
solely to the creative industries it does • Do not try to predict how your
maintain a strong presence in ‘digital programs/facilities will be used - remain
media.’ MaRS offers low(er) cost facility flexible and keep goals (creative) industry
space to small entrepreneurs and agnostic.
supports these tenants with a range
of services including speakers series’,
facilitated access to key market data and
mentoring (among others). Given its
broad scope, one might reasonably ask
13. 13
MediaCity: a new entrepreneurial era?
by Fred Hasson
It is the pirouetting kite surfer, not the PSBs. Rather then the growth of new values to save us from the difficulties
mega tanker, that enterprise policy enterprise, much of the Act simply led of fostering a genuine growth in new
makers and implementers need to be to the growth of new employment enterprise. Furthermore, while the BBC
focussed on, argues Fred Hasson. contracts. It should not be forgotten that will soon begin to occupy its anchor
much of the thinking behind MediaCity position at MediaCity, we also cannot
The concept of MediaCity UK was emerged out of this period, a variation rely upon television to be the engine
construed at a time when all things on the theme of well-established of growth in new enterprise. Indeed,
looked bright. The dot com bubble didn’t government interests to grow enterprise the challenge of MediaCity lies in
stop the wheels of economic growth while also getting value for money. the problem that we can no longer
from turning. The importance of the rely upon the established areas of
creative industries was, like property The MediaCity initiative also fits squarely media - film, television, and music - to
prices, only going in one direction up. with another key pragmatic feature provide that growth engine of new
And pushing the BBC out of expensive of current thinking on enterprise. For creative enterprise. While it is true that
London premises looked like a good the government, much of its efforts to established markets are still where the
way to get more value for money out of support new enterprise have tended majority of economic activities are based,
our principle public service broadcaster to fit a mould where public monies are each of these areas is experiencing
(PSB). The idea of turning the Beeb into utilised in capital investment projects. In their own signs of decline. Even in
an ‘anchor’ tenant at a place designed to one form or another, these projects are the computer games space, one of
be the home of Europe’s largest media supposed to provide a physical home for the principle growth segments in the
enterprise zone should be recognised for new economic activities and associated creative industries, the writing is on the
what it is - a continuation of some well- supports. For instance, the growth of wall for many of the traditional forms
trodden aspects of government thinking new business ‘incubators’ in Britain in of console-based gaming with their
on how to spur the growth of new recent years has tended to have a strong blockbuster development budgets and
enterprise. Indeed, at a British Screen bias towards providing a physical space large development teams. In other
Advisory Council (BSAC) conference for new enterprise to flourish. words, MediaCity is a microcosm of
in February 2011, Ed Vaisey, the current the broader UK challenge of growing
DCMS Minister, placed great emphasis This aspect of the government’s thinking new enterprise to ‘re-balance’ the
on the government’s interest to build is understandable, particularly given economy. It personifies the challenge
upon the successful model used in the what had been happening in the UK of finding a new model with new
past to create the independent TV sector. property markets for the last two thinking about how to spur new forms
In other words, as we seek to understand decades. Essentially, by using public of economic activities during a time of
what the government has in store for its monies to redevelop derelict land industrial transformation and economic
plans for ensuring a sustainable future and filling it with new shiny premises stagnation. And it encapsulates the
for the film and creative industries, all where you could be relatively sure of challenge of managing a situation
the signs are that we should expect occupancy rates, you not only help where traditional markets still outweigh
more of the same. Accordingly, it helps to gentrify those previously deprived the uncertainty of emerging markets,
to begin this discussion with a little places, but you provide the government yet where short-term economic gains
background into what that thinking is with one assurance that the risks of depend upon forms of certainty that
all about. failure in growing new enterprise can are certainly undergoing declines in the
be mitigated by the increase in the future.
Part of the government’s thinking underlying value of those properties -
behind MediaCity is broadcasting something that seemed to be more or At present, the greatest prospect for
specific in nature. Using the BBC as a less assured in the UK. While the rhetoric new enterprise at MediaCity lie in
tool to spur the growth of (independent) of regional development may provide the emerging media markets. These
‘enterprise’ has long been one of Britain’s the legitimacy for efforts to push more markets are all about new forms of
successes in finding a form of industrial of the BBC out of London, we should not interactive/social media, mashing
policy that is not about the state ‘picking forget that such moves are a necessary together traditionally separate forms of
winners’. Initially this was achieved consequence of a model looking to media, communication, education and
through imposing a 25% quota on the harvest the value of past development entertainment, through new content
public service broadcasters, the 1990 projects while the gettin’ is good. creating and content distribution
Broadcasting Act mandating a level of technologies. These markets are all
acquisition of content from independent Unfortunately, the unfolding of events about new enterprises that labour to
TV producers. A space for new enterprise since the current financial crisis erupted explore a wide space of opportunities
was born, at least in a principle. in 2007/08 has washed away the good and find new routes to market. They
Unfortunately, given that new enterprise ol’ days and many of the assumptions are emerging markets that established
does not simply emerge from nowhere, that made the original concept of players are too jaded, risk averse, or
much of this ecology was initially filled MediaCity seem like a clever idea. We otherwise inflexible to follow. And they
by people who were once inside the can no longer rely upon high property are markets that nonetheless face the
14. 14
age-old struggle of how to fund the
development and exploitation of these
new opportunities. These are the real
contexts that modern enterprise faces.
My concern with current thinking is
that the government still clings to what
worked in the past at a time when there
is simply no contemporary legislative
opportunity, 20 years on, to set the
emerging ‘digital’ media sector alight.
Accordingly, the litmus test for progress
in thinking about growth, enterprise
and MediaCity is one defined by the
extent to which it moves beyond the
aim of getting the BBC and other large
tenants to occupy new shiny buildings.
While this may be critical in assuring
the viability of a property development
project, it has little obvious connection to
the aim of enterprise and in contributing
to Britain’s ability to re-group itself to
claim a piece of these emerging pies.
MY CONCERN WITH
CURRENT THINKING IS
THAT THE GOVERNMENT
STILL CLINGS TO WHAT
WORKED IN THE PAST
Thinking differently about enterprise
Clearly, MediaCity is a capital Secondly, it stands to reason that outside depend upon a system of public grants
investment project that must, as part of the public service broadcasters, many and subsidies administered through
of its raison d’être, strive to attract large if not most major media companies layers of bureaucracy. And in so far that
multinational media tenants to pay for would only look to MediaCity if they these enterprises did not simply exist
its shiny new facilities. Yet this need could tap into a unique ecology of pre-MediaCity, that ecology of enterprise
is not divorced from a concern with creative talent and business experience must somehow be ‘created’, both in a
growing new enterprises. Rather, it is capable of supplying world-class consolidating sense of attracting this
dependent upon them and for two basic products and services at competitive talent from elsewhere around the
reasons: prices. We should not forget that many country, and internationally, as well
of the new media opportunities are not as in the sense of building an ecology
Firstly, for most international media originated by the multinationals. They that drives the growth of genuinely
multinationals, the UK will never be are acquired by them. In the digital new talent into the future. In short, the
their main market. While an important ecosystem, the Disney’s of this world are formula for MediaCity success on its
national market, it is simply too small there to pay $600m for a website that own occupancy criteria is fundamentally
compared with the likes of the US or cost an entrepreneur less than $600k about success of enterprises that really
the prospects of emerging markets in to build and prove the concept of. It is should never be burning their cash on
China, India and elsewhere. Coupled this pirouetting kite surfer, not the mega shiny office space.
with the relatively strong pound and tanker, that is what efforts to promote
high cost of production, Britain is simply media enterprise must stay focused on. Two key concerns inform this shift
not a natural home for many media in mental processing the issue of
multinationals to use as a major supply Building enterprises that make others enterprise and what it really means,
base (which is why many US information want to be a part of them, as buyers of and the question about what enterprise
technology companies for instance products, services, or company stock, is needs in order to thrive. Let me tackle
would rather choose places like Ireland what MediaCity must be relentlessly each in turn.
over the UK as their regional base for focused upon. These are the enterprises
supplying the European market). Given that excite investors hoping to get into Enterprise is a term that means many
all the kicking and screaming the BBC the action early on before eventually things to different people. In Brighton
has put into a relatively small move exiting through trade sale, or in more where I live, it might refer to the cafes,
from London to Salford, it is hard not to rare situations, public floatation. These bars, hairdressers or any other of the
imagine the barrier is even greater for are the enterprises that overcome innumerable niche life-style businesses
other media giants. the so-called ‘equity-gap’ and do not that occupy the North Laines alongside
15. 15
that occupy the North Laines alongside How well has Britain faired with For instance, when we think about
the budding technology companies the this project? Unfortunately, the Google, we often think immediately
city is known for. However, when the government’s own evaluation of these about ‘Silicon Valley’ and any number
Prime Minister talks about enterprise, programmes suggest interventions of features that seem to be associated
and more recently about the ‘enemies do not actually go to ‘high growth’ with its success, yet are difficult to
of enterprise’, what he is talking about enterprises. For instance, the National reproduce on this side of the pond.
is what the government’s effort to Audit Office concluded in December Similarly, when budding entrepreneurs
promote growth through ‘enterprise’ 2009 that of the 28 separate VC funds in think about enterprise, they often think
really boils down to. operation at the time, not only were all about where they need to be in order
broadly created with similar, open-ended to pursue their ambitions. Whether or
All the signals are that government objectives, but that these funds as a not the entrepreneur in question sees
thinking on the matter has not whole were failing to actually go to high themselves as part of a new ‘creative
fundamentally shifted. Thinking on growth businesses, failing to generate a class’, they nonetheless have some
enterprise has long tended to treat the net positive return for the government, concept about what ‘the place to be’
notion as interchangeable with that of and thus making these interventions looks like.
entrepreneurship, or more commonly, highly expensive business support that
as a reference to a small (and medium- did not provide any clear value for money. It is no accident that urban planning
sized) business - the ‘SME’ in policy It seems like all the effort to conform gurus like Richard Florida have picked up
speak. Enterprise is tantamount to to a fundamentalist interpretation of on the role that place plays in spawning
interventions designed to support the EU and WTO competition rules only creativity and innovation out of people.
broadest range of ‘enterprise’ possible, means we still attempt to pick winners, Indeed, the location of MediaCity is
distinguishing only between ‘large’ but do so in ways that tend to support already supposedly positioned in one
businesses and ‘those that still have losers. How can we hope to have of the leading centres of creativity in
room to grow’. growth and build businesses capable of the country. Unfortunately, the mere
capitalising on new opportunities when fact that MediaCity has been built
Sure, while setting up a hairdresser does government thinking on enterprise is somewhere that tops the league tables
represent enterprise compared with just simply a muddled excuse for support in terms of some ‘creativity index’ does
looking for a job in one, it is nonetheless mechanisms that are not fit for purpose? little to guarantee that enterprise will
a million light years away from what Where is the leadership on enterprise come and grow if only you build your
awaits budding entrepreneurs in the when all the talk revolves around a field of dreams in the right post code.
digital economy as in any other area language hell bent upon defending Indeed, if the BBC’s own previous record
where the foundations for Britain’s itself against any whiff of criticism of of cautious creativity is anything to go
future economy could lie. It seems that industrial patronage or social exclusion by, simply ensuring a couple of anchor
the only way in which government and thus forces government action to be tenants are present also does not
thinking can entertain these differences a ‘one size fits all approach’ open to the guarantee that enterprise will flourish.
in enterprise is through another broadest range of ‘enterprise’ possible?
common policy distinction ‘high growth’. So what makes MediaCity the place to
Despite not wanting to ‘pick winners’, be? Some broadband infrastructure
this is actually what many government
BUILDING ENTERPRISES that is still far inferior to competitors
inventions are all about. THAT MAKE OTHERS WANT in Scandinavia and East Asia? Some
TO BE A PART OF THEM, Media Enterprise Centre still looking
Alongside policies intended to for a clear sense of its service offering
AS BUYERS OF PRODUCTS,
support every SME in the country, the and value to enterprise? A clear and
government reserves many of its most SERVICES OR COMPANY convincing answer to the question of
powerful support mechanisms to STOCK, IS WHAT MEDIACITY enterprise growth is yet to emerge. As
only those enterprises qualifying for MUST BE RELENTLESSLY MediaCity look to build confidence in its
various ‘access to finance’ schemes. vision of the future, I suggest it go back
Now, whether we are talking about the FOCUSSED UPON to basics. Think about what enterprise
many venture capital funds that have is really about and focus on things
public monies invested directly into The fact of the matter is no one knows that help to accommodate its diversity.
companies or other private VC funds, or what the winners of tomorrow look Current thinking pretends this diversity
various tax-incentive schemes, such as like at the moment. The fact of the does not exist. It does so in order to
the Enterprise Investment Scheme (EIS) matter is ‘the market’ has just as much apportion support to entrepreneurs
or Venture-Capital Trusts (VCTs) both difficulty in picking winners as ‘the as one would assign patients to the
of which give tax reliefs to incentivise state’. So who should be the recipients doctors with the shortest queue. It is a
private investment into small businesses, of enterprise support? One suggestion form of thinking that constantly seeks
we are talking about the qualification is that the focus of thinking about to grow entrepreneurs through some
that is essentially about ‘high growth enterprise needs to change. Enterprise standardised assembly line and referral
potential’. Let us speak plainly about is not simply the stand-alone business, service that may seem like an ‘efficient’
these schemes, they are interventions but the relationships with things way of spending money, and may even
whose success fundamentally depends these businesses need to thrive. When keep the public sector’s value for money
upon spotting and supporting a number thinking about what these things may vultures at bay, but never delivers the
of high growth businesses. be, we are invariably drawn to some growth that is the ultimate criterion of
notion of the ecology that reproduces success.
that business and the people in it.
16. 16
New thinking new actions
Notwithstanding the concerns raised to promote the zone’s initial offering. course, one might think that this is what
above, I believe that MediaCity could be This leads to the chicken and egg the anchor tenants are supposed to do.
the place to be, and that the blueprint problem. How do you entice a broader My point is that EMBAFs are not simply a
for creating a real and lasting media range of enterprises when the initial complimentary approach, they are actually
enterprise hub around MediaCity should offering is based around a few anchor a better tool for the MediaCity project.
look and feel ‘something’ like this companies and activities? But if you
don’t entice this range of enterprises, you Large media firms tend to attract smaller
1. Identification of the media enterprise don’t entice more large anchor tenants companies that want to get work from
space (as opposed to office space) that from outside broadcasting and media them. The drive to co-locate is thus
MediaCity is going to operate in. education. only as ‘sticky’ as the sourcing policies
of those large firms. This changes, and
MediaCity will clearly start life as A key lever of inward investment needs the reason to be at MediaCity changes
a ‘television’ production hub with to be people and relationships that for those firms as well. Now, large firms
associated skills development activities enterprises want to access, particularly know they are usually in the driver’s seat
coupled with some seedling ventures those that help broker access to the of negotiations and will always look
into other areas like computer gaming. things all businesses requires access to for more and more concessions from
But given the fact that one of the key markets, access to money, and access their locations in one way or another.
anchors to the potential success of to other forms of technical and busi- The result, keeping large firms happy to
MediaCity is the significant availability ness expertise. These are things that stay in one place is always an expensive
of venture capital and loan funds MediaCity does not have a monopoly on proposition somewhere in the fine print.
the region has a 10-year window of and thus must build partnerships with And what do we get? Given the diversity
opportunity to make something of, in order to strengthen its offering. Given of opportunities in the media space, your
MediaCity must seek to attract the that a major potential resource is the large anchor firm still only attracts a
enterprises that make investors excited. availability of alternative funding op- relatively biased sample of the potential
tions to the commissioners at the BBC, opportunity space. Furthermore,
Without wanting to be overly relationships that help enterprises access large firms are large because they are
prescriptive, in the digital space, the those options represent one obvious area good at keeping as much money as
exciting enterprises generally fall into to incentivise new partnership building. possible flowing to them and not to
the following categories someone else. As such the companies
A KEY LEVER OF INWARD they attract are not really about growth.
• those that dis-intermediate existing INVESTMENT NEEDS TO Rather, they are usually looking to lower
value chains across all media; their costs to make a little more money
• those that create tools and
BE PEOPLE AND out of their current deals. And if they
technology that can simplify the RELATIONSHIPS THAT can do this well, they can take more
processes of building interactive content ENTERPRISES WANT TO deals away from others, cornering the
for any or all interactive platforms; ecosystem and becoming the preferred
• those that create innovative content
ACCESS supplier to the media giant. Is this the
based applications; Attracting enterprises by virtue of the kind of firm MediaCity wants to attract?
• those that create tools and possibility of alternative opportunities to Is this the eco-system of the future?
technology that can track users’ needs fund new media ventures is essentially
and habits; the world of corporate finance where In contrast, EMBAFs scan their world
• those building applications that combinations of (proven) entrepreneurs, looking to detect opportunities before
allow consumers to better communicate business mentors and assessors, and other gets their hands on them first.
and do new things; business angel/financiers (‘EMBAFs’ In media, this usually means they look
• those that develop and find new for short) come together to help cover for companies doing things that the
ways of developing technical or content gaps in the knowledge, experience large firms are not pursuing. In short,
based IP. and funding as well as help shape EMBAFs work to scan the opportunity
a new awareness of media spaces space not already captured by the
The question is how does MediaCity find and opportunities that a particular large firms. This is critical to MediaCity
and approach enterprises in this space entrepreneurial team may be poised to becoming something more than a TV
wherever they may be around Britain, go after. hub. Furthermore, EMBAFs spend their
Europe or internationally. This takes us own time and money doing this. They
to the next element of the blueprint. EMBAFs are growth-seeking beasts, only get this back by using whatever
usually looking to work with investment resources they have access to, and
2. A new form of high growth enterprise groups, to identify and support those targeting those resources to companies
zone run with different kind of market enterprises the community believe to be that are looking for growth, not reducing
principles of enough potential to work with. Were costs. These kinds of companies should
MediaCity to draw upon EMBAFs around be critical to MediaCity. And that’s
All businesses are built upon the country if not also internationally, really the power of the EMBAF. They
relationships needed to foster their it would have a key lever for identifying make the task of building the enterprise
development. Currently, enticing and attracting a better stock of community around MediaCity far easier
businesses to come to the region is entrepreneurs from around the globe, and cheaper to kickstart than offering
based upon the sales pitch of those paid not just from around the North West. Of incentives that Media Giants will want
17. 17
as compensation for bringing their Yet let us not forget the legacy of past and at each stage of investment, in
business to Salford. investment agendas still alive and well foreign companies relative to their
that should come to see MediaCity as a domestic counterparts. For start-up
How to progress this front? Clearly, key part of their activities. For instance, and expansion stage investments
you have to offer EMBAMFs resources not long before the last General Election, in particular, the average size of UK
that are actually useful to growing Lord Mandelson got the government venture capital investment which goes
businesses. There are basically two to think about ways to start picking into a foreign company has been six to
complimentary ways of going about it. winners. This emerged in the guise of seven times greater than comparable
Firstly, MediaCity can facilitate a process a £900m Special Investment Fund (SIF), investment in UK companies over the
of identifying resources that are useful which offered money to grow projects in 1998-2007 period. Couple this with the
and can be used as an incentive for targeted sectors. At present, only a tiny fact that many professional investors are
EMBAFs to think about opportunities bit of this is coming to MediaCity. There not particularly media savvy, what hopes
that makes sense for the project. needs to be an important follow-up can we really have that much of the
Furthermore, you can underwrite the to this. How MediaCity might seek to government’s efforts to overcome the
costs they incur in searching for growth use EMBAFs could be one way to help equity gap actually apply to the digital
companies. There are likely to be clever consolidate a new appeal for funding to media space? MediaCity represents
ways to do this that avoid common accelerate the range of projects the zone an obvious champion to raise these
attempts turn these individuals into is able to engage with. concerns and lead the way towards an
salaried employees or members of alternative approach.
some prestigious committee. For LARGE FIRMS ARE LARGE
instance, helping them bid for new BECAUSE THEY ARE GOOD And why should MediaCity concern itself
forms of government funding into ‘social AT KEEPING AS MUCH with such things? How else will it raise
enterprise’. This would help use public funds to build new facilities and services
money to pump-prime the building MONEY AS POSSIBLE of interest to media enterprises? As
of EMBAF relationships with both the FLOWING TO THEM AND the government invariably focuses on
providers of space and services specific NOT TO SOMEONE ELSE things that suit its own policy interests,
to MediaCity, as well as providers of such as motions to cut red tape and
capital and other forms of important Another potentially relevant initiative give SMEs more possibility for winning
resources available within the region. that is also more or less targeting government contracts, the government
Progress on both of these fronts is what the same sectors and industries as will perceive its support of MediaCity as
can help turn the power of the market the SIF, including creative industries, going no further than helping force the
into the agents of MediaCity. is the UK Industry Investment Fund BBC’s hand.
(UKIIF). This is a £325m VC fund with
This takes us to the final part of the the government acting as an investor In championing a new thinking on
blueprint. Championing a vision for how to the tune of £150m, with private VC enterprise, MediaCity is essentially
support for enterprise can look and work funds contributing £175m. There is little working to set a new agenda from
much differently than it has in the past, to report on the successes or failures of which its own requests for enterprise
effectively helping to carve out a new this project having only been afloat for funding are to be defined against. A
space for what the role of Government a year. However, the critical issue is how view which makes EMBAFs central to
and its regional agencies is all about. these funds are structured and operated the methodology not only fits with the
given the concerns raised by the ‘market’ and ‘social enterprise’ ethos of
3. The role of Government and regional National Audit Office and other studies the day, but also fits with the interest not
support agencies (by NESTA for instance) on the problems to recreate the plethora of bureaucratic
of publicly backed VCs to growing new agencies that always seem to want
EMBAFs already work with private enterprises. These initiatives are all their salaries paid for to administer. It
investors, but what we now need is to experiments in a debate that has raged creates a vehicle through which other
invent new arrangements to enable within government circles for at least a groups, such as educational institutions,
them to work with a project of building decade-the so-called ‘equity gap’ debate can work with entrepreneurs and
a broader media ecology. The role of about the need to fill the £100k-£2m EBAMFs to provide a combination of
government and its support agencies funding gap for supporting new and technical (in the case of science and
will always be critical to getting the growing businesses. In this area, the engineering based departments) as well
‘market’ to act as part of a larger project. government has recently begun to move as commercial (in the case of business
And given the limits on what MediaCity, away from investing its own money into and management based departments)
at present, can offer to enterprise, companies, towards a model of investing supports to businesses. It creates the
MediaCity stakeholders will be directly in members of UK VC industry. possibly to get around the filters that all
important in changing the government’s The risk of this manoeuvre is that it bets government officials have for ‘sectors’
mind on how best to create the Britain’s future on those enterprises and requesting special or supplementary
incentives for activating broader sectors that the VC industry is already funds unique to them, opening the door
participation and enterprise community- comfortable in dealing with. to reforms that are about fixing what
building efforts. As highlighted above, is clearly broken forms of old thinking
the social enterprise agenda is likely We already know, thanks to the about enterprise and old policies for
to be one avenue for exploring these work of the British Venture Capital supporting new enterprise in high
possibilities alongside the expressed Association, that the UK VC industry growth areas.
need for better ways to offer business chooses to invest not only more money
supports to enterprise. in foreign companies, but also invests For me at least, this is an exciting vision
more money per company, on average, of what MediaCity could be about.
