Interactive Digital

Media (IDM)
Examining the
Singapore growth wave

A study by Deloitte Consulting

2010
Message from Deloitte Consulting’s
“Telecom , Media, Technology”
Practice Leader
John E. Goeres
Managing Director (Principal)
Telecom, Media, Technology Practice
Deloitte Consulting SEA
Mobile: +65 8233 9412
jgoeres@deloitte.com
2
Over the past half-decade, Singapore has positioned itself well to monetize on the
trends in Interactive Digital Media (IDM), both domestically and regionally... as the
velocity in the migration to digital increases on a global basis.
A strong program of government initiatives (since 2005) has laid the foundation for
fertile growth in this sector.
The IDM Flash Report 2010 is the result of an on-going 3-year study to quantify and
qualify the trends in this sector. It provides needed benchmarks for both industry and
government to track vibrancy, growth, and opportunities in this convergent ecosystem.
Key findings (2007-2009) include:
• 20% CAGR growth in Value-added Revenue
• 15% CAGR growth in Employment
• Strong sub-sector performance in Mobile Media, Virtual Worlds and Games
• Higher proportions of both Local company and Small-Medium Enterprise
contribution
• Solid year-on-year growth, despite global economic conditions (15.1% IDM VA
Growth versus -3.1% Overall GDP)
• Double-digit growth projected through 2015 and beyond
We trust that you’ll find the study both insightful and valuable as a benchmark to track
changes and opportunities in this dynamic sector. We would be pleased to elaborate
on these findings and help your organization determine related opportunities as the
IDM “growth wave” accelerates.
Best sincerely,
Highlights: IDM Flash
Report 2010

Deloitte Consulting conducted the IDM Flash 2010
Report, highlighting the state of the Interactive Digital
Media (IDM) sector in Singapore. The objective of the
study is to monitor and benchmark key performance
indicators and qualify the long-term outlook and
opportunities in the sector.
talent to meet increasing industry growth demand.
Critical success factors in the longer-term include the
continued identification of niche products/services,
generating scale, and driving traction regionally (and
globally). Indicators point to strong sector growth for
the remainder of the decade.

Deloitte Consulting’s findings indicate the Singapore Background to IDM Flash Report 2010 study
IDM sector has grown and flourished, with all key This report is the outcome of extensive primary market
indicators displaying healthy growth (between research conducted by Deloitte Consulting using
2007–09), despite global economic conditions: a “bottoms-up” approach. Direct interviews were
• 20% CAGR in Value Added (VA) Revenue conducted with 110 respondents, representing 152
(to S$867 Million) companies from across all IDM subsectors. Performance
• 15% CAGR in Gross Revenue (to S$1.50 Billion) was tracked between 2007 and 2009. Unlike a
• 15% CAGR in Employment (to 8,117) “sampling” methodology, Deloitte’s approach covers
• 17% CAGR in Total Number of IDM Companies an estimated 20% of the companies within the IDM
(to 731) universe, contributing the vast majority of Valud-Added
Revenue (~ 80%) created in 2009.
A sustainable ecosystem is being established, fueled
by grassroot innovation and a vibrant mix of local & For the purpose of this study, the IDM sector is
foreign companies, Small-Medium-Large Enterprises, subdivided into four subsectors with three verticals (1)
and entrepreneurial Start-ups. Double-digit growth is Rich Media Publishing, (2) Mobile Media, (3) Virtual
expected for the sector through 2015 and beyond. Worlds and Games subsectors; and one horizontal, (4)
Current challenges include balancing the supply of IDM Common Services subsector.

Core IDM subsector and inclusions

Subsector Inclusions

Rich media publishing • Interactive television and film

• Interactive publishing
• Interactive online media
• Web 2.0
• Learning Media
Mobile media • Interactive mobile
• Pervasive computing and media

Virtual worlds and games • Games

• Simulation and animation
• Virtual worlds, Reality
• Telepresence
• Interactive Multisensory Interfaces (IMI) and immersive advertising

Common services • Business enablement

• Digital delivery
• Digital advertising

Interactive Digital Media (IDM) 3

 The Singapore Interactive Digital Media Sector —
Sustainable, Vibrant, and Flourishing
The Singapore IDM sector has witnessed impressive
growth since the inception of government programs
and sector tracking in 2005. The sector contributed
Singapore Dollars (SGD) 867M of VA to the economy
in 2009 and showed a promising growth of 20%
CAGR between 2007 and 2009. This growth also
demonstrated impressive resiliency against the global
economic backdrop. Total gross revenues grew by about
15% during this period (2007–09) and contributed an
estimated SGD 1.5 Billion in 2009.

Employment continued to grow at 15% CAGR to a total estimate of 8,117 employment in 2009, with an addition of 2,002 jobs since 2007.
High-level international comparisons also suggest that the performance of the Singapore IDM sector was in-line with the performance of
comparable sectors globally.

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Sustainability, the fundamental theme In the same period, many foreign establishments also
Sustainability has been the fundamental theme in the entered Singapore, resulting in a CAGR of about 13%.).
Singapore government’s development efforts of the IDM
sector. Creation of a world-class advanced infrastructure, Local companies (which comprise 80% of all IDM
nurturing and mentoring companies to be the leaders companies) contribute about 68% of the sector VA and
in their sectors, facilitating grassroot innovations, and 69% of employment. Foreign companies, which are
expanding reach to regional markets have been the key on average relatively larger in size, account for about
pillars of this multi-pronged program. 20% of IDM establishments, 32% of VA and 31% of
employment, respectively.
The current IDM ecosystem in Singapore has flourished
well, with a 17% CAGR in Total Number of IDM
companies (2007-2009), representing the addition of
197 new companies. A high proportion (84%) of these
additions represent local enterprises.

Relative to overall Singapore statistics, the IDM sector provides a higher proportion of Value-Added revenue contribution from local
companies, with (currently) a greater reliance on foreign talent. Relative to Singapore’s Information and Communications Technology (ICT)
sector, IDM provides a higher proportion of Value-Added Revenue and Employment contribution from Small-Medium Enterprise and Start-ups.

While the growth rate in VA is consistently strong among all IDM companies, local growth rates remain stronger in both the number of new
entrants and overall IDM employment. These distributions provide both strong and necessary diversification for sustained growth in the
coming years.

Interactive Digital Media (IDM) 5

 Grassroots Innovations fuelling sector growth Garena June 2010
Singapore’s IDM ecosystem growth is being fostered by
various new innovations and geographic reach. Many Registered Users:
Singapore IDM companies have expanded their services 45,000,000
April 2008
beyond the Asian shores, reaching out to the global
Concurrent Users:
market. A few interesting developments, which will set 500,000
Registered Users:
the stage for future growth include: 4,000,000
No. of staff:
Concurrent Users: 70
114,000
In just over two years, games No. of staff:
Offices:
Singapore, Taiwan,

company Garena has grown its 7

Office:
Vietnam,
Phillippines,
Malaysia,
user base from 4 million Singapore Kazakhstan

registered users at the start of its

R&D project in April 2008 to • Increasing adoption: Increasing adoption of
applications that are provided by Singapore IDM
over 45 million users as of June companies to key regional distributors including
StarHub, Maxis, and Telkomsel.
2010. Its Singapore office has • Attracting foreign investments: Local and foreign
already expanded to offices in six investments, including from China, are being secured
by a variety of start-ups, supported by their expansion
countries plans into regional markets.

• Increasing global reach: Many Singapore-based • Attracting foreign talent: The IDM sector is also
companies are expanding their international presence: attracting talent from across the globe, bringing
– Garena, an online game platform provider, reached requisite expertise into Singapore.
over 45,000,000 users in 210 countries
– buUuk, a mobile application provider, expanded
to over 75,000 restaurants in 78 cities, and their
mobile application has received over 170,000
downloads
– Mozat reached out to provide niche services to
Islamic markets in both the Middle-East and ASEAN

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Vibrancy driven by a diverse pool of local start- injection of capital, technology, and talent. Several
ups and SMEs with an influx of foreign MNCs large foreign companies have initiated their IDM-related
The IDM ecosystem is supported by a broad range activities in Singapore last year, including Ubisoft and
of enterprises ranging from local start-ups and Razer.
SMEs to foreign companies. This provides necessary
diversification for a vibrant sector. Singapore-born and Singapore-based IDM companies
have also received multiple international awards and
Initiatives supporting local Large enterprises, attracting recognitions. A few notable examples are:
global large best-in-class companies, while nurturing
local companies as future sector leaders has provided
a strong sector foundation for IDM growth. The mix
of large foreign enterprises provides a supplemental

Award Description Companies

Red Herring Top 100 Global award
Best of Innovations Award CES 2010
Nokia’s Calling All Innovators award
Global Telecom Business Award
iF Design Award China 2009
CNNgo.com
GMIC 2010 Innovation Award
Technology industry’s most prestigious awards in Mozat
the global business region 2C2P
Award for most innovative consumer electronics MoSoNex won for
(CE) products at the Consumer Electronics Show Social Networking
International Nokia Application Developer 2C2P
Competition
An international award for consumer application RedNano
innovation
Award for Best Computex Taipei Design Award Gajah won for eBook
reader
Voted as one of 11 must-have iPhone travel buUuK
applications by CNNGo.com, a division of CNN
Innovation Show is an annual showcase of 2C2P
cutting-edge mobile-internet-based innovations
from around the world

Interactive Digital Media (IDM) 7

 Convergence driving performance at the
subsector level
The phenomenon of convergence of Media, Telecom,
and Technology sector is expanding rapidly. Taking a
detailed look at the subsector level, the trend clearly
highlights its impact:
• Rich Media Publishing subsector:
– IPTV services : SyQic, provider of interactive TV • Virtual Worlds & Games sebsector:
services, has over 150,000 userbase in South East
Asia through partnerships with local telcos
• Mobile Media subsector:
– Mobile social networking : Mozat, provider of
mobile social network and community services,
reached over 13,000,000 users globally
– Localized online content services : buUuk, provider
of online Food & Beverage interactive content,
expanded across all South East Asian countries
– Edutainment : Playware Studios Asia Pte Ltd.,
provider of educational interactive applications is
providing content globally

Registered Users:
13,000,000

Countries Served:
June 2010
August 2008 50

No. of staff:
Registered Users:
55
2,500,000
Office:
Countries Served:
Singapore, China
20

No. of staff:
10

Office:
Singapore

Mozat has increased its registered users and staff by more than 5 times since the start of its R&D project in Aug 2008. Mozat has signed up
9 partner telcos & handset manufacturers, mostly in Islamic markets in the Middle East and ASEAN, with an addressable market of over 180
million subscribers.

8
The Rich Media Publishing subsector is currently the largest subsector in size, representing a share of about 39%
(SGD 336 M) in 2009. However, due to the relative maturity of this subsector, the growth rate (~16% CAGR) trails
other IDM subsectors

VA growth Employment Revenue

Growth '07-'09
(%) growth (%) growth (%)

Core IDM (1) 20% 15% 15%

Rich Media Publishing 16% 12% 14%

Mobile Media 24% 10% 27%

Virtual Worlds & Games 20% 16% 9%

Common Services 29% 28% 17%

Illustrative key in comparison to the

CORE IDM performance: Above Adverage Below

The Mobile Media subsector has the highest Value- businesses, representing 37% of total IDM companies).
Added and Gross Revenue growthat 24% and 27%, Most of the companies in this sector are classified under
respectively (2007-2009). Mobile Media subsector Simulation and Animation (i.e., 139 companies). A high
growth is largely driven by the increasing number of proportion of start-ups in animation and interactive
interactive mobile applications, mobile social media games development are helping drive this growth.
network applications, and a higher relative spending
on interactive mobile application downloads. In The horizontal Common Services subsector, as a key
addition, some interactive mobile companies have now enabler, shows strong and consistent growth trends,
successfully penetrated the international market. underpinning growth in the 3 primary vertical sectors
above.
The Virtual Worlds and Games subsector shows a
promising VA and Employment growth of more than
20% and 16%, respectively. This is primarily due to the
large number of establishments (with a total of 274

Interactive Digital Media (IDM) 9

 Moving forward Over to 2010
In terms of the future IDM outlook, the vast majority 2009 has been a year of braving through the economic
of IDM companies represented are positive on both downturn. A large number of companies expressed
their individual and overall sector performance. Deloitte greater prudence in coming times. Regardless,
Consulting estimates medium-term IDM sector growth Singapore’s IDM sector is quickly gaining traction
in the double-digit CAGR range, achieving an estimated and niche IDM services are gaining regional, if not
SGD1.7 B VA by 2015. global, presence and recognition. The global economic
downturn has had limited impact on the IDM sector in
It is expected that few specific opportunity areas will Singapore.
emerge (based on high contribution to VA and an
overall consistentgrowth rate): The long-term sector outlook continues to be strong,
1. Interactive publishing and interactive online media opportunities prevail, and we look forward to next years
services within Rich Media Publishing IDM performance indicators and sector insights.
2. Interactive mobile services within Mobile Media
3. Interactive games, simulation and animation services
within Virtual Worlds and Games

Going forward, near-term IDM talent shortages across

various levels and expertise (especially in technical
areas), emerge as one of the immediate challenges.
Critical success factors in the longer-term include:
• Continued identification of niche products/services,
• Generating ecosystem scale,
• Driving market traction regionally and globally.

Nevertheless, all indicators currently point to strong

sector growth for the remainder of the decade.

10
Acknowledgments

Deloitte Consulting would like to acknowledge the contributions of the numerous individuals and companies who
participated in this study. Their contributions proved to be invaluable.

For more information, please contact:

John E. Goeres Piyush Jain

Managing Director (Principal) Manager
Telecom, Media, Technology Telecom, Media, Technology
Deloitte Consulting SEA Deloitte Consulting SEA
Tel: +65 8233 9412 Tel: +91 982 012 7674
jgoeres@deloitte.com pijain@deloitte.com

With more than two decades of TMT experience, John Badhurunnisa Hameed Sultan
is the Managing Director for Deloitte Consulting’s Consultant
SouthEast Asia TMT practice. John’s primary focus is Telecom, Media, Technology
Strategy & Operations. He has a strong background in Deloitte Consulting SEA
strategic planning, mergers and acquisitions, product Tel: +60 163 146 978
management and marketing, finance, operations, IT, bsultan@deloitte.com
performance measurement, business intelligence, and
systems integration. Prior to Deloitte, John worked Ayuthia Amanda
in senior executive positions within large Consulting, Consultant
Telecom, and Broadcast conglomerates. Telecom, Media, Technology
Deloitte Consulting SEA
Albert Tan Tel: +62 811 999 480
Director, Strategy & Planning aamanda@deloitte.com
Telecom, Media, Technology
Deloitte Consulting SEA
Tel: +65 9154 4755
albtan@deloitte.com

Bringing 15 years focused TMT experience, Albert is

Director, Strategy for Deloitte Consulting’s SouthEast
Asia TMT practice. Albert specializes in Strategy &
Operations. He has a strong background in corporate
strategy & planning, M&A, strategic marketing, and
business analytics. Prior to Deloitte, Albert worked in
senior management positions in large consultancies &
Telecom carriers.

Interactive Digital Media (IDM) 11

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