Frost & Sullivan - Singapore - At the Heart of Asia's Digital Media Growth

Singapore: At the Heart of Asia’s Digital Media Growth

A Presentation

Vikas Sharma, PMP®Vikas Sharma, PMP®

Principal Consultant,

Frost & Sullivan Public Sector Practice

5th December, 2012

Singapore: At The Heart of Asia’s Digital Media Growth

Coverage Scope

MEDIA &

ENTERTAINMENT

Free-to-view Video

Pay-to-view Video

Mobile Content

e-Publishing

Online Publishing

Frost & Sullivan’s Study on ICT in M&E Sector

2

Frost & Sullivan’s Content Value Chain

Creation Processing Aggregation Distribution

GamesDigital

Advertising & Enablers

Digital Music

Frost & Sullivan’s M&E Sector Study


Value Chain Analysis & Market Structure

Pay-to-view

Video Global Trends shaping the Industry

Competitor Analysis & Best Practices

Revenue Sizing(local vs international)

For Each Vertical Focus Area of Study

Free-to-view Video

Digital Music

3

Manpower Sizing & Skill Gaps Analysis

Value Added & IT Costs incurred

Key Industry Developments in the Base years

Drivers & Restraints shaping local industry

R&D Spending; Infrastructure needs/plans

3-year Industry Forecasts (Rev/Manpower/IT spending)

Estimation of Global Reach for Singapore Content

Key Takeaways for Policy Consideration

Mobile Content

Digital Advertising

& Enablers

Gaming

e-Publishing

Online Publishing

M&E Sector’s Performance


Overall Revenues

CAGR: 12%

2.322.53

2.89

3.20

3.49

4

*Estimated in 2010 version of study

1.80

2.06

2.32

2005 2006 2007 2008 2009 2010* 2011*

Media & Entertainment Sector Revenue (S$ Billions)

6,259

7,6377,973

8,4338,946



Overall ICT Manpower

CAGR: 10%

5

5,524 5,557

6,259

2005 2006 2007 2008 2009 2010* 2011*

Media & Entertainment Sector Employment

*Estimated in 2010 version of study



112.2

81.2

Value Added per Employee

M&E sector outperforms the overall economy

6

*For base year of last study, i.e. 2009

M&E Overall Economy

Value Added Per Employee (2009) (S$ '000)

113.9



Overall IT Spending

CAGR: 15%

7

90.5 84.2 79.9 93.5

27.7 31.565.1

68.514.2 16.9

21.0

65.190.5 92.5

65.4

2006 2007 2008 2009

IT Costs (S$ Millions)

Hardware & Capital Equipment Software IT & Technical Services Telecom



Local vs International Revenues

International

55%

Local

45%

Local Revenues = revenues of local players from selling in

domestic market (SG)

International Revenues = revenues of local players from

selling in overseas markets

8

*For base year of last study, i.e. 2009

55%

Revenues of locally-based M&E players over-weighted towards international revenues, showing significant overseas

demand and outward focus

Drivers for Singapore’s Growth as a Digital Media Hub

Strong Overall Enabling Infrastructure1

Pervasive and ultra-high speed broadband network


9

Entrenched hub for Data Center operations in South East Asia

‘Whole of Government’ effort to develop a ‘One-Stop’ world-class Media Hub


Strategic Location & Business Friendly Environment

2


Burgeoning opportunity for global players in Asia:

with it’s billions-strong consumer base and

Singapore ranked world’s MOST business friendly economy by World Bank

study –

10

Makes Singapore the ideal gateway for global players to target Asian markets; and vice versa

consumer base and increasing disposable

incomes, and high technology adoption rates

(ease of securing credit, ease of starting business,

protection of investors, logistics facilities etc)


High level of Technology Adoption

3

Singapore ranked 2nd in the world in terms of technology adoption and

readiness among individuals/biz/govt.

Ranked ahead of regional rivals: Taiwan (6th), HK (12th), Australia

(17th), Japan (19th), Malaysia (28th)


11

Singapore ranked in the top 5 in the world for 5 consecutive years now

Ranked 1st by Readiness and 4th by Adoption among individuals, business and govt. agencies

Makes Singapore the preferred location for regional/global players to test-bed innovative technologies/services before broader roll-out


Availability of High-Quality Digital Media Education4

Interactive and Digital Media Institute (IDMI)

Institute of Media Innovation (IMI)


12

Centre for Interactive MediaInteractive & Digital Media

Collaboratory

School of Interactive & Digital Media (SIDM)

Interactive and Digital Media Centre (iMC)

School of Media and Info-communications Technology

Technology Research Centre


Local Companies Expanding Outward

Foreign Companies Setting up Local Base

A Vibrant Ecosystem of Media & Entertainment Companies

13

A Vibrant Ecosystem of Media & Entertainment Companies


14

Follow Frost & Sullivan on Facebook, LinkedIn, SlideShare, and Twitter

http://www.facebook.com/FrostandSullivan

http://www.linkedin.com/companies/4506

15

http://twitter.com/frost_sullivan

http://www.slideshare.net/FrostandSullivan

Thank You

www.frost.com

Frost & Sullivan, the Growth Partnership Company, partners with clients to

accelerate their growth. The company's TEAM Research, Growth Consulting and

Growth Team Membership empower clients to create a growth-focused culture

that generates, evaluates and implements effective growth strategies. Frost &

Sullivan employs over 45 years of experience in partnering with Global 1000

companies, emerging businesses and the investment community from 40 offices

on six continents. For more information about Frost & Sullivan’s Growth

Partnerships, visit http://www.frost.com

Vikas Sharma, PMP®Principal Consultant

Public Sector Practice (APAC)

+65 91446844

16

Jessie Loh

Manager

Corporate Communications

Frost & Sullivan Asia pacific

65 6890 0942

[email protected]

Donna Jeremiah

Director

Corporate Communications

Frost & Sullivan Asia Pacific

+61 (02) 8247 8927

[email protected]

+65 91446844

[email protected]