We’ve talked about the growing immigration rates and we’ve talked about Toronto becoming the hub for company HQ’s. This week we’re focusing on an industry that is growing exponentially in Toronto - film, television, digital streaming, and content generation. The industry is absolutely booming right now and it’s mainly because of Netflix.
Streaming is becoming more and more popular with many choosing to forego cable subscriptions, and instead choosing to sign up with streaming services. Over 50% of Ontario homes now have a Netflix subscription.
Since 2015, Netflix has increased their spending by about 30%. This year they spent $15 billion on content creation and the CEO has said they plan on continuing to increase their spending moving forward - but Netflix isn’t alone. There are other streaming services, like Amazon Prime, HBO, and with Disney entering the field, the competition is stiff. People are having to pick the services with their favourite content, signing up to 1, 2, maybe 3 of them. Because of this, these companies are racing to pour out content and get as many eyeballs on them as possible.
You may be wondering, “what does this have to do with Toronto real estate?”
Because there is such a booming demand for content creation, more studio space and outdoor locations are required. The top 2 areas for production are, of course, Los Angeles and New York. Number 3 is Toronto. More and more big blockbuster productions, like Pacific Rim and Star Trek Discovery, are being filmed here. Shows are being filmed in Toronto as well, like Handmaid’s Tale, Orphan Black, and Hannibal, which means there’s a lot of talent, on and off screen, that need a roof over their heads.
With their $0.76 to our dollar, US productions’ money can go a lot further in Toronto than other US locations. And with the demand of new content, studio spaces are filling up completely and we’re prepared and equipped to handle the overflow.
The amazing thing about Netflix is that, because of the success of their feature films and shows, actors are easily making $1 million per episode. At this point, they’re basically creating collections of mini-movies and making these episodes can cost $10-20 million each!
Growing Industry = More Jobs
With all this new content being created at such a fast pace, they require more services, which means more jobs. In Ontario alone, they figure about 37,000 jobs are created by the film industry. With how quickly the industry is growing, it could mean another 10,000 well-paid jobs coming to Ontario.
Over $2 billion in production is going to be spent in Toronto this year. We’ve got talented and well-paid people coming into the city to create the content and they need places to stay. As we’ve discussed multiple times, we have a scarcity of available space in Toronto, so now is the time to invest in Toronto real estate.
If you’re interested in building generational wealth and financial freedom, email at email@example.com or you can give me a call/text me at (416) 996-5181. We’ll work together and show you why Toronto is the place to invest.