ms report summary
TRANSCRIPT
Profile of the Industry Sub-Sectors and Companies
This section of the report looks at the type of products and services the companies taking part in the survey produced and the sources of the company’s revenues from these activities.
Advertising is the largest market for digital
content. According to the Australian Film
Commission, it is estimated that advertising
expenditure is worth three billion dollars
annually to the Australian economy.
Activity RevenueAdvertising $3,000 MillionBox Office Returns $907 MillionMovie Rental Hire $452 MillionPay TV Subscription Fees $267 MillionOnline Charges $104 Million
Significant markets for the digital content industry and associated revenue
1. Advertising2. Communications and marketing3. Design Services4. Video Production5. Distribution Services6. Video Post-Production7. E-Commerce8. Audio Production9. Audio Post-Production10. Web Hosting11. Technical Service Provision12. Special Effects13. Animation
Ranking of survey responses
Both quantitative and qualitative research found companies in the digital content industry align and define themselves by their end customers.
“I guess we are technically a design company. But advertising is our bread and butter and we definitely see ourselves as part of that industry more than any other.”
-Interactive Multimedia Designer, Melbourne
Advertising is the largest single market for content.
Many companies in interactive multimedia even those that design and develop websites classified themselves in advertising because the website was part of a larger branding campaign.
This section of the report details key findings relating to company profiles.
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Central to the study was the need to clearly identify the type, nature and size of the companies that make up the Digital Content Industry.
Companies categorised themselves as follows
Profitability Percentage
Satisfactory 46%
Marginal 27%
Unprofitable 9%
Highly Profitable 8%
Profitability was highly dependent on the number of staff employed .
Customers were increasingly willing to pay for quality regardless of industry.
Indicator CharacteristicsTurnover Exceed $ 1 Million
Outputs More likely to be “Services”
Export As likely to be involved as not involved
Overseas Offices Less likely to have one
Main Products Advertisements and Print Publications
Number of years company has been in operation
Companies who survived long term had a capacity for reinvention.
Average number of full-time staff employed 22
Older established companies full-time staff employed 36
Companies operating less than six years, full-time staff employed 15
Number of Employees Increases with Age of Company
Number of full-time employees Digital Media Companies Less than 4 40%Less than 9 60 %Greater than 100 10 %
Number of part -time employees Digital Media Companies Less than 4 60%Less than 9 70 %
The ratio of full time staff to part time staff is approximately 2:1 Two full time staff for 1 part-time staff
Companies prefer to employ full-time contract staff rather than part-time staff
Many companies are focused on single projects especially in post-production and game sectors.
6% listed on the stock exchange
80% listed companies turnover over $10 million
New pressures if listed
58% do not expect a change in ownership
32% expect change in ownership
68% companies producing software expect change in ownership due to merger
One in seven companies expect an ownership change due to share market listing
Few companies expressed desire to list on the stock market or peruse a merger or acquisition
Majority of companies wanted to retain complete ownership.
The majority of companies in digital media content are associated with advertising.
Advertising is biggest revenue source in digital media
1. Evolved with changing technology trends
2. Have been in business more than 10 years
3. Employ skilled full-time contract staff over part-time staff