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2007 Australia - Digital Media - Overview and Statistics

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Last updated: 4 Apr 2007 Update History

Report Status: Archived

Report Pages: 99

Analyst: Stephen McNamara

Publication Overview

This report provides high-level overviews and strategic analyses of the developments in digital media. It identifies business opportunities, points out the hype and the pitfalls, and it will be of assistance in making the right business decisions.

The subjects covered in the report include:

  • The Market in 2007
  • Global Internet Economy
  • Analyses of the Media Industry
  • Government Plans and Policies
  • Consumer and Business Market
  • Industry Business Models
  • Market Strategies
  • Revenue Opportunities
  • Advertising Statistics, Analyses, Overviews and Revenues

Executive Summary

In 2006 BuddeComm’s best seller was our new report on digital media developments.

This year we have produced four reports on this topic, an indication of the enormous developments that are taking place in this market.

Looking at the US market it is interesting to note that most investment money in the industry is flowing into the digital media rather than the telco market. The latter are struggling to upgrade their networks to keep up with the demand that the digital media are generating.

Government policies are also shifting focus. In the developed world governments are beginning to move their policy-making away from access regulations to the development of the digital media. They are struggling to move the many pilots and trials being conducted in the healthcare, education and energy sectors into full-blown commercial operations. Organisations in these sectors are renowned for being slow movers when it comes to making structural changes.

Broadband is producing a major mind-shift. Decision-makers are beginning to realise that broadband has little to do with high-speed Internet – that the key benefits rest in providing the infrastructure needed for e-health, tele-education, smart energy metering and so on.

This report gives an overview of all the major changes that are taking place in this environment, where a range of markets, industries and technologies are converging. We also discuss the impact change is making on these industries.

Key Highlights

  • Government policies are shifting away from regulating telecommunications access towards the development of digital media applications in e-health, education and energy saving.
  • These new applications, based on video communication and telepresence, require massive investments in broadband networks.
  • Entertainment will drive the initial phase of the digital media revolution. The telcos and ISPs had a head start in this market but they failed to cash in on it, and the media companies are in control again, using their traditional media to launch entertainment, news and sporting events that are then complemented with a range of digital media applications.
  • However the Internet media companies continue to lead the market. They are setting the time and the pace, and the rest of the market is struggling to keep up. They may kick and scream and sue, but in the end they will have to fall in line, as happened in the music industry.
  • The leaders are Google, YouTube, MySpace, Skype, Second Life, Flickr, Yahoo, MSN – and also, especially in the non-anglo countries, a number of local companies.
  • The digital media developments have also made a big impact on traditional business models, marketing and advertising. This is a new era, with people power, and companies will need to follow their customers.
  • Gone are the days when companies could adopt a ‘take-it-or-leave-it’ approach; they will have to come up with business models that suits their customers, not their own purposes.
  • In this initial stage advertising models will generate a large part of the revenue, followed by subscription fees to the Internet media companies for the premium services they offer on top of the free services.
  • Between 10% and 15% of the annual advertising spend is flowing from the traditional media over to the new media. This has already reached the $1 billion mark in Australia.
  • Local companies include: Sensis, Fairfax Digital, Seek, Legion, Blue Freeway, Destra, Hyro and Photon.

Online advertising revenue and forecasts

Year Revenue ($ million)
2003 200
2004 300
2005 620
2006 1,000
2007 (e) 1,400
2008 (e) 1,800
2009 (e) 2,300
2010 (e) 3,000
(Source: BuddeComm www.budde.com.au)

This report provides high-level overviews and strategic analyses of the developments in digital media. It identifies business opportunities, points out the hype and the pitfalls, and it will be of assistance in making the right business decisions. Further information provided:

  • Analysis of the traditional media industry – these companies will remain key players in the market, but they do need to change quite dramatically.
  • The government plans and policies – significant changes are taking place in the direction of digital media applications.
  • The digital consumer as opposed to the digital market – business and consumer issues are analysed.
  • Digital media advertising revenues will triple over the next four years – who are the key contenders and what their market shares are.

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BuddeComm's strategic business reports contain a combination of both primary and secondary research statistics, analyses written by our senior analysts supported by a network of experts, industry contacts and researchers from around the world as well as our own scenario forecasts.

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