TIGA comments on Google/BCG Report

The importance of the internet industry as a contributor to the UK’s Gross Domestic Product has been highlighted in an article published in the Financial Times (October 28th). Research carried out by the Boston Consulting Group, who were commissioned by Google, found that‘domestic online shopping, broadband access and net exports of digital goods and services made up 7.2 per cent of UK GDP' . Video game developers are important exporters of digital content. Mind Candy, creators of the‘Moshi Monsters’ online game, is played by almost 30 million children in 150 countries.

Commenting on today’s article, Dr Richard Wilson, TIGA CEO, said:

“These findings demonstrate once again the valuable contribution the video games industry makes to the UK export market.  TIGA’s research shows that over 90 per cent of UK games developers export their products (games), compared to just one third of small and medium-sized enterprises generally.  Additionally, on average, 62 per cent of a developers’ turnover is generated from the export of games.   Firebrand Games in Glasgow generates 100 per cent of its turnover through the export of games, while Leamington Spa based developer, Blitz Games Studios earns 90 per cent of its income through exporting games, mainly to the USA.

“We need to continue to promote export oriented, high skilled, knowledge based business sectors of the economy, such as the video games industry. At present, some of our key competitors, including Canada and some states in the USA, have a cost advantage against UK developers because their governments provide them with tax breaks for games production. The UK Government should introduce Games Tax Relief to enable the UK games industry to compete on a level playing field in world markets. Measures such as Games Tax Relief and enhanced Research and Development tax credits would strengthen the competitiveness of the video games industry.”

Jason Kingsley, TIGA Chairman and CEO and Creative Director of Rebellion, said:

“The UK video games development sector’s contribution to the UK economy is often overlooked by policy makers, particularly in respect of exports. My own business, Rebellion, currently generates about 90 per cent of its turnover through exports. Just as the Coalition Government provides sector specific tax break to the film industry, so it should help our industry achieve its export potential through the introduction of Games Tax Relief.”

Ends

http://www.ft.com/cms/s/0/a7b635f8-e200-11df-a064-00144feabdc0.html

According to a survey of 525 small and medium-sized enterprises by Lloyds TSB, just one third are exporting.  See“Small businesses shun exports”, Financial Times, June 2nd 2010.

Notes to editors:

The report was commissioned by Google and the research undertaken by the Boston Consulting Group. The report is entitled,‘The Connected Kingdom: How the Internet Is Transforming the U.K. Economy’ and can be accessed from the following link: http://www.connectedkingdom.co.uk/the-report

About TIGA:

TIGA is the trade association representing the UK’s games industry. The majority of our members are either independent games developers or in-house publisher owned developers. We also have games publishers, outsourcing companies, technology businesses and universities amongst our membership. TIGA was awarded‘Trade Association of the Year’ and the‘Member Recruitment Award’ at the Trade Association Forum Best Practice Awards 2010. TIGA has also been named as a finalist in the 2010 Chartered Management Institute (CMI) National Management and Leadership Awards in the category of‘The Outstanding Organisation of the Year Award (SME)’.

TIGA's vision is to make the UK the best place in the world to do games business.  We focus on three sets of activities: political representation, generating media coverage and developing services that enhance the competitiveness of our members.  This means that TIGA members are effectively represented in the corridors of power, their voice is heard in the media and they receive benefits that make a material difference to their businesses, including a reduction in costs and improved commercial opportunities.

For further information, please contact Eva Field, TIGA PR Manager on: 07814 039 983, or email eva@tiga.org


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