Industry Analysis & Industry Trends
The Internet Publishing and Broadcasting industry has expanded rapidly over the past five years as consumers increasingly migrate to the internet on a greater number of devices. The greater convenience and lower cost of using the internet to both provide and consume services has resulted in this migration. The explosion of smartphones throughout the population has provided an added boost as consumers are constantly connected. The majority of industry revenue is generated from activities that are digital equivalents of services previously provided in newspapers, such as advertising and print news. The expansion of major players in the online advertising market is forecast to drive revenue growth at a compound annual rate of 7.2% over the five years through 2015-16, to reach $1.6 billion... purchase to read more
Industry Report - Industry Investment Chapter
The industry exhibits a moderate level of capital intensity. For every dollar allocated for wages, an estimated $0.24 is allocated towards capital investment. In this calculation, depreciation is used as a proxy for capital while wages are used as a proxy for labour costs. Capital intensity varies on the size of each firm, with the larger players expending more on capital equipment such as servers and computing infrastructure costs.
Capital intensity has trended upwards over the past five years, partly due to the growth of the major players that have increasingly invested in capital equipment. The industry is knowledge-intensive, but advances in ICT technology and the need to have strong computing capacity also boost capital intensity... purchase to read more