As Connecticut lifted its cap on tax credits for film and digital media production ”“ while likewise establishing minimum investments to claim them ”“ a fledgling digital-media group is bringing the industry together in Stamford to showcase its rapid emergence.
CT Digital Media is scheduled to hold its second annual business conference Nov. 11 at the University of Connecticut Stamford, featuring a keynote address by Stamford Mayor Dan Malloy and panels with managers from Bristol-based ESPN, Stamford-based World Wrestling Entertainment Inc. and the state film office, among others.
Several digital media companies are exhibiting at the conference as well, including Norwalk-based FanDistro, which operates a web site helping music artists connect with the fans; and Ripple100, a New Haven-based company that launched in September with a platform for companies to create viral marketing micro web sites online, costing as little as a dollar a day.
CT Digital Media was co-founded by Ephraim Cohen, who runs a marketing communications firm called Fortex Group L.L.C., and Eric Dale, an attorney in the Stamford office of Robinson & Cole. Both were looking for a way to expand their contacts in the industry, with no one group providing a target audience on that front.
“The Connecticut Technology Council, Connecticut Venture Group ”“ those are good, very strong organizations, but very horizontal,” Cohen said. “If you want to target a specific industry, you need to go vertical.”
CT Digital Media has relied for growth both on emerging social networking technologies like LinkedIn, Facebook and Meetup; as well as good old-fashioned word of mouth.
“That usually slows growth, but it keeps it at a higher quality level,” Cohen said.
Both CTC and CVG are sponsors of CT Digital Media, as are Cohen”™s Fortex Group and Dale”™s Robinson & Cole, as well as AT&T Inc. and the Soundview Club in Stamford.
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New York City, of course, has a hodgepodge of such organizations ”“ McGraw Hill Cos. hosts next March the 2010 Media Summit, which features a huge array of industry leaders.
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If with a more limited lineup, CT Digital Media panel discussions will address the growth of digital media companies in Connecticut, innovation in the industry and investor perspectives.
Cohen said gubernatorial candidate Malloy was selected to give the keynote due to the city”™s success attracting entities like the Connecticut Film Center L.L.C.
In September, Connecticut lawmakers removed a cap on the state”™s 30 percent tax credit for film, TV and digital media production, while requiring companies in some cases to exceed varying thresholds to obtain the credits.
The minimal investment for film and digital animation productions was doubled to $100,000. Any in-state expenditures up to $500,000 can receive a 10 percent tax credit; between $500,000 and $1 million qualifies an entity for a 15 percent credit; and beyond that the full 30 percent tax credit.
Companies that spend at least $3 million on infrastructure can take a 20 percent tax credit for related purchases.
As of February, industry insiders said that seven major industry players were considering establishing a Connecticut presence, including two each of the top visual effects and video game makers in the nation, as well as a feature-film animator.
Officials have discussed creating a business incubator for digital media startups, with Stamford an obvious potential locale, but for the time being no such facility has materialized.
