The Digital Content Industry in Spain
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1 The Digital Content Industry in Spain Annual Report EDITION
2 CONTENTS Digital Content Industry Video games sector Music sector Cinema and Videos Sector Audiovisual Sector Publishing Sector Digital Advertising Sector Driving Digital Content Trends and forecast
3 1. Digital Content Industry
4 Turnover in the digital content industry was 8,553 million Turnover in the digital content industry: evolution (M ) Despite this figure, which breaks with the growing trend of the last few years, the rapid growth in the digital content industry stands out. 11.5% 32.7% 8,863 8, % 8, % 21.4% 6, % 4,971 3,703 3, CAGR (%): 15% 4 Digital Content in Spain, 2011 Source: ONTSI (Spanish Observatory for Telecommunications and the Information Society)
5 The audiovisual sector is the industry driver, accounting for 43.6% of turnover Breakdown of sales* in the digital content industry by sector in 2011 Book and newspaper publishing and other publishing activities Sound recording and digital editing activities 2.2% Digital Content in Spain, 2011 ( * % of the total sales in the digital content industry) 8.3% Online advertising Video games 5.8% 8,553 M 10.5% WWW i 1.3% Other information services Radio and television programming and broadcasting activities (audiovisual) 43.6% 28.2% Cinema, video and television programme activities Source: ONTSI
6 In the cinema and video, music and audiovisual sectors the digitalisation rate is above the average of 52.8% Digitalisation rate by sector 2011 Publishing sector (% of the total sales for each sector) Music sector 89.6% 10.4% % digital % non digital 44.2% 55.8% % digital % non digital Cinema and video sector Audiovisual sector 26.8% 73.2% % digital % non digital 9.4% 9.5% 90.5% % digital % non digital 6 Digital Content in Spain, 2011 Source: ONTSI
7 Video games sector 2.
8 Sales of video games fell by 13.2% compared to 2010 Income from sales of video games (software) in Spain: evolution (and % of income from sales of video games) 24.8% % % % % CAGR (%): -2.8% Growth : -13.4% Digital Content in Spain, 2011 Source: ADESE
9 Music sector 3.
10 Digital music brought in a sales turnover of 190 million -1.3% 190 M M 2010 Downloadable music represented 35.6% of all digital business (20.5 percentage points more than in 2010). 10 Digital Content in Spain, 2011 Source: ONTSI
11 4. Cinema and Videos Sector
12 Digital business sales turnover in the cinema and video sector reached 2,412 million Cinema and video distribution 14.6% Distribution of TV programmes 0.1% Production of TV programmes 10.5% Cinema and video production 14.4% Cinema, video and television post-production 49.8% Cinema screenings 10.5% This sector is still second in terms of highest contributions to the total sales, contributing 28.2%. 12 Digital Content in Spain, 2011 Source: ONTSI
13 Audiovisual sector 5.
14 Sales in television activities reached 3,733 million Income from television activities in the audiovisual sector: (M ) In 2011 the audiovisual sector * was marked by the increase in the number of channels and audience fragmentation spreading over more channels -3% 4, , % 3,733.2 This % decrease in sales was caused by the fall in advertising, which had % a direct effect on freeview television % % % 0% % * For the purposes of calculating the digital sales figure for this sector, this study only takes into account the figure corresponding to television programming and broadcasting, whether paid or freeview, which has been carried out digitally since 2010 Source: CMT (Telecommunications Market Commission) Digital Content in Spain,
15 Publishing sector 6.
16 Digital business sales * in the publishing sector reached 708 million % 708 M 778 M According to data from the Observatorio de la Lectura y el Libro (Spanish Reading and Books Observatory) the percentage of digital readers has increased from 48.6% at the beginning of 2010 to 52.7% at the end of 2011 * Digital publishing in the publishing sector includes: books, phone or address directories and guides, newspapers, magazines and other publishing activities (such as the online versions of catalogues, photographs, illustrations, cards, postcards and posters, prints of artwork, advertising material, other printed material and the publishing of statistics and other information). 16 Digital Content in Spain, 2011 Source: ONTSI
17 7. Digital Advertising Sector WWW
18 Investment in Internet advertising rose to 899 million, a growth of 12.6% Investment in Internet advertising is the third highest, behind television and daily newspapers % WWW Www 12.6% % WWW % WWW WWW WWW % CAGR (%): 23.7% Growth : 190.0% 0 18 Digital Content in Spain, 2011 Source: Infoadex
19 8. Driving Digital
20 The Digital Agenda for Spain initiative The development of the Digital Agenda for Spain initiative was led by: The Ministry of Industry, Energy and Tourism The Ministry of Finance and Public Administrations The participation and collaboration of all partners involved. The Digital Agenda for Europe comes within the Europe 2020 Strategy, drawn up by the European Commission and published in March Digital Content in Spain, 2011 Source: prepared by ONTSI (Spanish Observatory for Telecommunications and the Information
21 Driving digital content in Spain Objective 2.3 Promoting the production and distribution of digital content over the Internet. Measures: Designing a Comprehensive Plan for the Digital Content Industry in Spain in Simplifying copyright rules for using content digitally. Simplifying conditions for reusing information from the Public Sector. Facilitating the development of companies focusing on the creation, production or distribution of digital content. Developing an Exports and Internationalisation Strategy for the Spanish digital content industry. 21 Digital Content in Spain, 2011 Promoting the creation and evolution of codes of conduct for digital content, together with the rest of the partners
22 Trends and forecasts 9.
23 Trends The future of the digital content industry in Spain will be marked by the following general trends: Rapid development of high-speed networks over the next few years and rollout of fourth generation mobile networks. Growing competition in access devices, for mobile telephones as well as for tablets, smart TVs and set top boxes. Need to create standards for these new distribution platforms, which will facilitate the development of applications and bring down costs for content providers. Content is what matters. The market will revolve around who has the distribution rights and the optimisation model for content distribution. 23 Edificio Bronce Plaza Manuel Gómez Moreno s/n Madrid. Spain
24 Thank you very much Edificio Bronce Plaza Manuel Gómez Moreno s/n Madrid. Spain Tel.: / 25 Fax:
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