01INTRO_ING.QXP 30/1/09 10:10 Página 1 01INTRO_ING.QXP 30/1/09 10:10 Página 2 01INTRO_ING.QXP 30/1/09 10:10 Página 3 White Paper on Digital Content in Spain 2008 01INTRO_ING.QXP 30/1/09 10:10 Página 4 01INTRO_ING.QXP 30/1/09 10:10 Página 5 White Paper on Digital Content in Spain 2008 01INTRO_ING.QXP 30/1/09 10:10 Página 6 PREPARED BY: Oliver Wyman WITH THE ADVICE AND COLLABORATION OF: red.es ONTSI (Spanish Telecommunications and Information Society Observatory ) PUBLISHER: © red.es Edificio Bronce Plaza Manuel Gómez Moreno, s/n 28020 Madrid All rights reserved al: M-33383-2008 Depósito Legal: M-2816-2009 All rights reserved Copy and distribution by any means is permitted provided that acknowledgement Design and layout: Scan96, s.l. of authorship is maintained, no commercial use is made of the work and it is not modified in any way. 01INTRO_ING.QXP 30/1/09 10:10 Página 7 Contents FORWARD 9 01. INTRODUCTION 11 02. VIDEO GAMES SECTOR 17 2.1. Description of the sector 18 2.2. Situation of the video games market 19 2.3. Analysis of international best practices and main trends 30 2.4. Challenges and opportunities within the sector 33 03. MUSIC SECTOR 37 3.1. Description of the sector 38 3.2. Situation of the music market 39 3.3. Analysis of international best practices and main trends 42 3.4. Challenges and opportunities within the sector 45 04. AUDIO-VISUAL SECTOR 47 TELEVISION SECTOR 48 4.1. Description of the sector 48 4.2. Situation of the audio-visual market 49 4.3. Analysis of international best practices and main trends 54 4.4. Challenges and opportunities within the sector 59 RADIO SECTOR 60 4.5. Description of the sector 60 4.6. The road to digital radio 62 4.7. Digital broadcasting 62 4.8. “Online” digital radio 63 4.9. International examples 63 05. PUBLISHING SECTOR 65 5.1. Description of the sector 66 5.2. Situation of the publishing market 68 5.3. Analysis of international best practices and main trends 81 5.4. Challenges and opportunities within the sector 84 01INTRO_ING.QXP 30/1/09 10:10 Página 8 06. ADVERTISING SECTOR 85 6.1. Description of the sector 86 6.2. Situation of the advertising market 87 6.3. Analysis of international best practices and main trends 93 6.4. Challenges and opportunities within the sector 98 07. FILM INDUSTRY 99 7.1. Description of the sector 100 7.2. Situation of the film market 101 7.3. Analysis of international best practices and main trends 109 7.4. Challenges and opportunities within the sector 112 08. THE NETWORKED SOCIETY 113 8.1. Introduction 114 8.2. Video repositories 115 8.3. Collaborative websites (Wikis) 118 8.4. Blogs 120 8.5. Class notes and monograph exchange websites 125 8.6. Social networks 126 8.7. Digital cartography on the Internet 132 8.8. Consumption of digital content 133 09. CONCLUSIONS 137 10. NOTE ON METHODOLOGY 141 11. GLOSSARY 143 12. BIBLIOGRAPHY 147 13. TABLES AND FIGURES 165 01INTRO_ING.QXP 30/1/09 10:10 Página 9 • Digital content is playing an increasingly important Forward role in stimulating and developing modern economies and societies. The digital content industry, a sector that has been growing steadily in recent years both in Spain and the rest of the world, has been attracting enormous interest from the population as a whole and particularly from entrepreneurs and other agents (creators, producers, editors, distribution companies, aggregators and operators), both because of the industry's short term growth potential and the enormous impact it has on citizens' habits and attitudes to leisure, work and daily life in general. In Spain, where nearly two thirds of the population already access digital content, new ways of using and marketing network content are creating new business opportunities and social initiatives hitherto beyond the scope of traditional models. This new wide-ranging outlook for digital culture continues to open up new spaces for communication and transfer of information that are directly transposed into greater wealth and well-being for all citizens. Aware of this importance, enterprises all over the world are adapting their business logic to what has become a new paradigm for the exchange of information, service offerings and customer relations. At the same time, governments and public institutions need to set their sights on creating the suitable conditions for the development of these new services linked to the digital content revolution. In this context, digital content is an extremely important strategic, economic and social asset for the Spanish government both due to its ability to create wealth in a knowledge economy context and as an agent for the development of the Information Society. For this reason the Avanza Plan includes specific measures for promoting initiatives that 01INTRO_ING.QXP 30/1/09 10:10 Página 10 • White Paper on Digital Content in Spain, 2008 facilitate the development of the digital content The aim of this White Paper on Digital Content is to industry in Spain. By the end of the 2007-2009 provide enterprises, institutions and citizens with a period alone more than €1 billion will have been reference tool and an opportunity to reflect on the spent on this particular objective of the Avanza current situation and future prospects of each Plan. Furthermore, Avanza includes measures that sector of the digital content industry in Spain. The have enabled Spain to take a giant leap forward in Paper will no doubt be a valuable source of objective fields such as digital education, healthcare and information for all interested agents, and will be public services in the past three years. Finally, it is continued with future editions. equally important to create a framework of co- operation, collaboration and communication that will enable in-depth analysis of the current situation in the digital content industry and can be used as an aid to develop new business models. • 10 01INTRO_ING.QXP 30/1/09 10:10 Página 11 01 • Introduction Context In the current context of convergence and digitisation of the content industry, we need to reflect on the importance of digital content, both from the perspective of its contribution towards the creation of wealth and jobs within the Spanish economy, and its role as the driving force for the development of the Information Society in Spain and in the rest of the world. In light of the strategic importance of the digital content industry, the White Paper on Digital Content in Spain, 2008 has been drawn up on the initiative of the Ministry of Industry, Tourism and Commerce. The Ministry hopes this White Paper will become a source of objective information for enterprises, associations, public administrations and other agents with an interest in digital content. Within the overall framework of the industry's current transition process towards full digitisation of its commercial services, this report analyses the content industry as a whole (not only the digital side), as it is essential to understand the initial situation in order to adequately comprehend the transformation processes of the sectors involved One of the most significant factors in this context is the growing importance of digital content created by citizens, enterprises, public administrations and educational institutions, all of which make a fundamental contribution to the development of the Information Society. The Paper analyses this subject and highlights its importance in the section dealing with what has been called the Networked Society. 01INTRO_ING.QXP 30/1/09 10:10 Página 12 • White Paper on Digital Content in Spain, 2008 Objectives • Films • Networked Society The White Paper has three main objectives: The document seeks to establish a relationship First, to provide all the different agents involved in between the sectors in order to provide an the digital content sector in Spain with an analysis integrated, comprehensive view of the digital of the current situation and provide them with content industry in Spain. objective and reliable information on which to base their strategic decisions. This objective is The analyses of all the sectors dealt with in the particularly important in an environment in which White Paper have been given a similar structure and disparity and, at times, lack of homogenous include the following sections: methods and sources give rise to debates regarding the data and analyses used. • Description of the sector. This section describes the scope and boundaries of each sector. Each The second objective of the document is to identify link assessed in the value chain is described and digital content trends in Spain, using as a the main agents involved in each of these are benchmark the international best practices of the identified. main, comparable EU countries and other relevant countries. This comparison has enabled us to • Market situation. This section provides an identify both the strong points and the areas with analysis of the current supply and demand scope for improvement within the digital content situation in the sector and describes its industry in Spain, together with the success stories evolution over recent years. A specific mention from other countries that can be satisfactorily is made regarding the level of participation of extrapolated to Spain. Spanish agents in the supply and demand of digital content. Lastly, the document contains an outline of the main challenges facing the digital content industry, • Analysis of international best practices and main reinforcing the Administration's support of the trends. This section analyses the markets in the industry. main comparable EU countries in order to understand Spain's relative position and identify Structure and understand success stories in other countries that can be applied in Spain.