Household name Encyclopedia Britannica, in print since it was first published in Scotland in 1768, announced earlier in March its plans to end physical print publications and focus on expanding its online and digital application presence. Their website features an ad for an iPad app under a banner promoting its “FINAL Print Edition,” a great metaphor for the transition media is undergoing.
The massive 32-volume print edition sold for $1400 as compared to an online subscription cost of around $70 per year – and the company has now launched a bevy of apps at low ($1.99-$4.99) monthly costs.
One of the reasons behind the transition is the demand for immediate and customizable information from end users, people with growing tech savvy using a host of electronic devices to access information with academic to professional to recreational motivation. This transition into a “new age” where consumers demand immediate and interactive content is being supported from a government standpoint with incentives programs like the OIDMTC and other provincial Digital Media Tax Credit programs.
Let’s look at the hypothetical Encyclopedia Britannica iPad 3 app: the product is content-based and cultural with the primary motivation to educate and inform (and in some cases entertain), with an individual end user in mind. The ideal app features a combination of text, image and sound and is interactive in that the user controls the flow of information. This is aligned with an ideal product for the OIDMTC. Add in 90% development in Ontario and a similar product is eligible to claim 40% of labour and marketing and distribution costs.
The best part of the credit is the portion dedicated to marketing and distribution – up to an incredibly generous $100,000. The M&D portion extends 24 months prior to product launch date and 12 months following and can be used to flesh out your budget in a number of key ways.
This kind of app is only an example of the types of products eligible under the term Interactive Digital Media – we can help sift through eligibility requirements to identify how to maximize incentive programs for your company. Send us a note to let us know what other OIDMTC information you would like to see on the blog.