Interactive Digital Media
Shaping the digital future
Over the years that Deloitte has conducted the Interactive Digital Media (IDM) Flash Study, we have witnessed the digital ecosystem evolve from nascence into the dynamic and vibrant scene that it is today.
Nowhere is this more evident than in the numerous start-ups that have evolved to companies with a regional or global presence. There is also a trend towards consolidation, as several larger companies have begun to acquire smaller ones in order to expand their digital capabilities.
Among the various IDM subsectors, “Enablers” appear to be the most promising, with Value Added (VA) growing five-fold over the period of 2008-2012 at a Compound Annual Growth Rate (CAGR) of 51%. Digital Advertising contributed to approximately 60% of the Enablers subsector VA in 2012, while Analytics grew at the fastest rate of 245%.
More importantly, perhaps, we found that Singapore is also well on its way to establishing itself as the regional hub in the digital space. Its “Singapore Brand” is pivotal for this, as investors tend to view Singaporean companies in a more favourable light in comparison to their peers in the region. Companies themselves, too, benefit from Singapore’s stringent Intellectual Property rights, conducive business climate, efficient tax structure, world-class infrastructure and industry linkages across the region.
Singapore’s IDM sector continues to face the twin challenges of rising costs and talent shortage. Several government-led initiatives such as the enhancement of IDM-related training in local universities and funding schemes to promote IDM start-ups, in conjunction with the existing tax advantages, serve to address these concerns.
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