Networking Digital Media Companies

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    Get Connected:

    Networking Digital Media

    CompaniesAuthor: Kieran OHea

    Version: 1.0

    Date: 21st

    May 2003

    According to a recent analysis carried out for InterTradeIreland1, the digital media sector North and

    South can be worth more than 1 billion Euros by 2007 on the condition that certain market inhibitors

    are overcome2. Meeting this condition is largely dependent on the provision of bandwidth, the

    availability of business skills and the development of the market place.

    On the bandwidth front, the message from Irish telecom operators is Get Connected Broadband Is

    Here. Following many years of campaigning by industry commentators, regulators and users,

    services are finally being rolled out across the country. For digital media companies however, getting

    access to high-capacity bandwidth may prove to be only half the connectivity battle. In fact for them,

    getting connected to each other may turn out to be just as important as getting connected to

    broadband.

    While the technical infrastructure is no longer an inhibitor to business in the digital media sector, the

    business environment itself still lacks maturity and shows little sign of improvement withoutstructured intervention. The provision of technical skills is catered for but business skills are lacking.

    At the same time, small digital companies are finding it difficult to compete and will have to

    collaborate in order to survive.

    1Digital Media Overview: Author K. OHea, August 2002.

    2See list of inhibitors on page 5.

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    The creation of human networks comprising digital media companies, investors, experts and advisers

    will help overcome these shortcomings and encourage the growth of a vibrant market place. The

    benefits of networking are that they can connect the various actors together in different ways in

    order to achieve a number of important objectives:

    1. COLLABORATIVE NETWORKS:Digital media companies networking with digital media companies

    This will foster peer-to-peer collaboration, joint bids, joint marketing, joint applications for finance

    and sub-contracting.

    2. CROSS-BORDER COLLABORATION: Mixed network of companies from Northern Ireland and theRepublic

    This will help strengthen North-South links, promote peer-to-peer collaboration, help ensure

    continuity of supply and lead to North-South consortia collaborating on bids.

    3. BUSINESS DEVELOPMENT: Digital media companies with management experts

    This will help digital media practitioners to learn about setting up and running companies, developing

    business plans and adopting quality procedures and best practice.

    4. DEAL-MAKING: Digital media companies with legal experts

    This will provide companies with advice on contract law, how to negotiate the best deals, how to act

    in their best interests and to protect their intellectual property.

    5. MARKETING: Digital media companies with marketing experts

    This will help companies to learn about distribution channels, identifying opportunities in the

    marketplace and how to organise collaborative marketing campaigns.

    6. RAISING FINANCE: Digital media companies with venture capitalists

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    This will bring companies in to contact with investors, teach them how to time their application for

    investment, how to become investor ready and how to improve investor relations.

    7. STATE SUPPORT: Digital media companies with state agencies

    Companies will learn how to access state agencies, how to learn which agencies are appropriate for

    their needs and what types of support are available.

    8. NEW BUSINESS: Digital media companies with prospective clients

    Potential clients will describe their needs to digital media companies, who will in turn learn about the

    clients concerns about continuity of supply, and about the benefits of collaborative proposals.

    The proposed way in which the above steps can be taken is to obtain the co-operation of a group of

    digital media companies in the North, preferably a group that is already collaborating in some way,

    and a similar group in the South. This will provide a valid peer-to-peer network of companies to act as

    a pilot group. It will also provide a representative sample of companies with which to address

    Objectives 1 and 2 above.

    A series of meetings of the pilot group will be held over a period of time, for example 4 meetings over

    12 months. The intervening period between each meeting should be long enough to determine any

    improvements achieved in the interim period, but not so long that continuity is broken.

    The meetings could be structured as half-day or full-day events with three elements:

    1) Presentations and clinics by experts addressing Objectives 3-8 above.2) Reflection from the participants on developments in the market place.3) Networking sessions.

    Participants should have continuous access throughout the 12 month programme to support

    including contact lists which will facilitate ongoing networking in the period between meetings.

    The programme includes a mechanism for measuring the success of the pilot. This would include

    satisfaction polls and keeping contact with the participants for a specified period after the completion

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    of the pilot to gauge how they are putting their experience into practice and what types of

    networking have prevailed and flourished in their day-to-day business.

    Pending the success of the first pilot, further pilots could run in year 2 or be run in parallel in year 1, if

    the success of the first pilot became evident at an early stage and if demand for participation

    exceeded the number of places available.

    Another possible outcome of the pilot programme would be the creation of a permanent networking

    structure or trade association representing the interests of the digital media sector North and South.

    To be meaningful, this would need to be created and administered by the sector itself and not by

    InterTradeIreland, and would be supported by its members, although some form of subsidy from

    InterTradeIreland might be deemed appropriate.

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    INHIBITORS TO THE DEVELOPMENT OF A VIBRANT DIGITAL MEDIA SECTOR

    To reach the 1 billion Euros annual turnover forecast for 2007, it is essential that a robust

    environment for the creation, production and distribution of digital content is created. To do this, the

    following inhibitors to growth in the digital media sector must be addressed, namely:

    1) Failure to define the digital opportunity.2) The intangible nature of digital media.3) The broad scope of digital activities and influences.4) Failure to create sustainable business models.5) High production costs.6) Hesitancy on the part of the investment community.7) Lack of champions in the public and private sector.8) Failure by the sector to articulate its offerings.9) Poor knowledge of funding schemes.10) Failure to properly exploit intellectual property rights.11) Under developed use of networking.12) Immaturity and lack of basic business sense.