6. Common characteristics in the digital content industry The digital content industry is made up of sectors – and companies – with much in common.
7. Common characteristics in the digital content industry 1. Creativity and intellectual property are central assets, both of which are difficult to value and sell to financiers.
8. Common characteristics in the digital content industry 2. The industry is heavily reliant on technology infrastructure, and requires regular and expensive refresh to remain competitive. “ We replace our boxes (hardware) up to every nine months.” - Focus group participant, Sydney
9. Common characteristics in the digital content industry 3. The industry is highly susceptible to technology shifts, including platform and format changes. “ This year is a critical one for us, with the Playstation 3 and Xbox 2 to be released. Console changes are both eagerly anticipated and slightly feared.” - Focus Group Participant, Melbourne
15. Common characteristics in the digital content industry 9. External financing is difficult to attract. Financiers see digital content as a relatively high-risk proposition. This is exacerbated by the small size of the Australian market and relatively small and immature risk-financing sector.