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