Industry Analysis & Industry Trends
Players in the industry publish content online, targeting revenue streams from viewers and content generators (in the case of online directories and advertisers). Expanding broadband connectivity and increasing reliance on the internet by consumers and businesses have underpinned demand for the industry over the past decade. The rapid improvement in information technology networks over the past five years has created several growth opportunities for industry participants. In 2011-12, revenue dropped due to a dip in business confidence, which prompted commercial enterprises to reduce their budgets for advertisements, constraining industry revenue. Nevertheless, the ease of access to online news and directories has up-ended several traditional industries, which has benefited the industry... purchase to read more
Industry Report - Industry Investment Chapter
The industry exhibits a moderate level of capital intensity. For every dollar allocated for capital, an estimated $5.06 is allocated towards labour costs. 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