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E t G M ti th R l f ICT i
STATUS OF THE DIGITAL ARABICCONTENT INDUSTRY
Expert Group Meeting on the Role of ICT in Socio-Economic Development
Beirut 9-10 April 2013
16 April 2013 2
http://www.escwa.un.org/information/pubaction.asp?PubID=1236
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Content PREVIEW - ESCWA and Digital Arabic ContentGLOBAL TRENDS IN DIGITAL CONTENT RELATED INDUSTRIESA Definitions B Global statusB Global status
THE ECONOMIC ASPECTS OF DACA DAC present StatusB DAC market segmentation and structureC Estimation of the size of the DAC marketD Status of supply and demand E Identification of gapsF DAC and the ICT sector
DAC ECOSYSTEM/ENABLING ENVIRONMENT
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DAC ECOSYSTEM/ENABLING ENVIRONMENTA Sources of investmentsB Government roles and policyC Education and trainingD Partnership and collaboration issues
CONCLUSIONS & RECOMMENDATIONS
ESCWA and DAC# Date Reference Title in English Title in Arabic Language1 19 June 2003 E/ESCWA/ICTD/2003/
WG/2/21Expert Group Meeting on DAC Consolidation
اجتماع خبراء حول تعزيزالمحتوى الرقمي العربي A
2 23 April 2003 E/ESCWA/ICTD/2003/3 Enhancing and improving Arabic content on digital networks
تعزيز وتحسين المحتوى العربي في الشبكات الرقمية
A
3 3 Oct. 2003 E/ESCWA/ICTD/2003/10
Arab Content Initiative مبادرة المحتوى العربية A0
4 29 Aug. 2005 E/ESCWA/ICTD/2005/4 Digital Arabic Content: Opportunities, priorities and directions
الفرص واألولويات : المحتوى الرقمي العربيوالتوجهات
A
5 31 Oct. 2005 E/ESCWA/ICTD/2005/7 ICT Bulletin No. 4 )4(نشرة تكنولوجيا المعلومات واالتصاالت A6 29 June 2007 E/ESCWA/ICTD/2007/7 Virtual Workshop on Enhancing DAC
Industriesورشة عمل افتراضية حول تعزيز صناعة
المحتوى الرقمي العربيA
7 Dec. 2009 http://css.escwa.org.lb/ICTD/1107/1-2.pdf
Promotion of the Digital Arabic Content Industry through Incubation
الترويج لصناعة المحتوى الرقمي العربي من خالل الحاضنات التكنولوجية
E
822 March 2010
E/ESCWA/ICTD/2010/Technical Paper.1
A Survey on Digital Arabic Content: software, applications, and needs assessment
برمجياته وتطبيقاته : مسح للمحتوى الرقمي العربيوتقييم احتياجاته
A
922 March
E/ESCWA/ICTD/2010/Technical Paper.2
Models for Business Plan, Marketing and Multi-stakeholder Partnerships for the
i d
نماذج لبرامج األعمال وخطط التسويق والشراآات لصناعة المحتوى الرقمي العربي
A
416 April 2013
2010 DAC industry10 22 March
2010E/ESCWA/ICTD/2010/Technical Paper.3
Development Of Digital Arabic Content: Incubation Requirements And Training Needs
تطوير المحتوى الرقمي العربي من خالل االحتضان
A
11 May 2010 10-0206-May 2010-1000 Promotion of the digital Arabic content industry through incubation
مشروع تعزيز صناعة المحتوى الرقمي العربي في الحاضنات التكنولوجية
A,E
12 13 April 2011 E/ESCWA/ICTD/2011/Technical Paper.3
Mechanisms for community-driven interactive Arabic multimedia content
ليات لبناء محتوى عربي تفاعلي متعدد الوسائط آالبوابات اإللكترونية المجتمعية : للمجتمعات المحلية
A
13 March 2012 E/ESCWA/ICTD/2011/4 Regional Profile of the Information Society in Western Asia 2011
A,E 2011مالمح مجتمع المعلومات في غربي آسيا
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Global trends in digitalGlobal trends in digital content related industries
o Definitions
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o GLOBAL STATUS
Global trends in digital
o DEFINITIONS
Global trends in digital content related industries
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Global trends in content - definitions
The three converging landscapes:The three converging landscapes:o Creative industrieso Media content industrieso Digital content industries
– Digital Arabic Content (DAC) industries
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Creative industries
• Creative industries are the cycles of creation, productionand distribution of goods and services that use creativityand intellectual capital as primary inputs; constitute a setof knowledge-based activities, focused on but not limited toarts, potentially generating revenues from trade andintellectual property rights; comprise tangible products andintangible intellectual or artistic services with creativecontent, economic value and market objectives; stand atthe crossroads of the artisan, services and industrialsectors; and constitute a new dynamic sector in worldsectors; and constitute a new dynamic sector in worldtrade.
UNCTAD, creative Economy, 2010.
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Creative industries
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Media Content industries
• “The production (goods and services) of acandidate industry must primarily be intended tocandidate industry must primarily be intended toinform, educate and/or entertain humans throughmass communication media. These industries areengaged in the production, publishing and/or thedistribution of content (information, cultural andentertainment products), where contentcorresponds to an organized message intendedfor human beings”.
OECD Joint Research Centre, Statistical, Ecosystems and Competitiveness Analysis of the Media and Content Industries, 2012.
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Media Content industries
639O
ther information service
activities
602Television program
ming and
broadcasting activities
612W
ireless telecomm
unications
613Satellite telecom
munications
619other telecom
munications
601R
adio broadcasting
611W
ired telecomm
unications
592Sound recording and m
usic publishing activities
591M
otion picture, video and television program
me activities
581Publishing of books, periodicals and other publishing activities
620C
omputer program
ming,
consultancy and related activities
11
6391N
ews agency activities
6399O
ther information service activities
(not elsewhere classified)
5912M
otion picture, video and television program
me post-production
5913M
otion picture, video and television program
me distribution activities
5914M
otion picture projection activities
5911M
otion picture, video and television program
me production
5812Publishing of directories and m
ailing lists
5813Publishing of new
spapers, journals and periodicals
5819O
ther publishing activities
5811Book publishing
6202C
omputer consultancy and com
puter facilities m
anagement activities
6209O
ther information technology and
computer service activities
6201C
omputer program
ming activities
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Digital Content Industries
• Digital Content has many forms (text, image, video, animation,audio, maps, or e-applications) and is in use for many functions( i ti t ki it t t t i t(communication, news, networking, recruitment, entertainment,e-commerce, topic search, location based services, education,training, etc.).
• There are many tools and technologies to create and disseminatecontent. Online Digital content is the main driver for developmentof the Internet Ecosystem.
• Digital content is also penetrating broadcasting (TVs & Radio),Books, Music, Cinema, as we are becoming more and more adi it l ld Di it l t t h ld b l k d ithi thdigital world. Digital content should be looked upon within thecontext of the environment and mechanisms to create, store,communicate and present it. This is not limited to thetechnological, but also the legal, and cultural dimensions.
Connect Arab Summit 5-7 March 2012 Doha, Qatar
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Convergence of three landscapes
1990’s 2000’s
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2010’s 2020’s
LEGEND
Digital Arabic Content
Digital Arabic Content: Any content in Arabic represented in digital form on the Internet (or on CD, DVD and other formats). It includes web-sites, portals, ( f ) pand e-services, as well as audio and video content. It also includes software, databases, open source products supporting Arabic language functionalities and tools, such as, but not limited to, Arabized software interfaces such as word processors, Arabic language processing software such as speech and character recognition programs, search and translation engines, etc.
Digital Arabic Content Industry Is the collection of DAC related products and services generated, produced or distributed by organizations and enterprises of
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services generated, produced or distributed by organizations and enterprises of all sizes, as well as start-ups and individuals which enable access, use and exchange of Arabic content.
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Global trends in digital
o GLOBAL STATUS
Global trends in digital content related industries
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Tools required in digital content
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Value added chain for DAC production
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15 318.3
21.224.0
25.927.9
29.631.3 32.6 33.9
15.3
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
% Digital spending in MCI
The digital share of the entertainment andmedia market increased from 16.3 in 2006 to27.9 in 2011 and is expected to rise to 33.9in 2015
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The annual global device sales, in millions of units(Smartphone, tablet and e-reader) increased fromless than 50 million in 2006 to about 500 million in2011, and are expected to rise to about 1200 millionin 2015.
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29
35
47
11
16
2009 2010 2011 2012 2013 2014 2015
Mobile Apps spending $B
Mobile apps spending came to around $4B in 2009and expected to rise to $35B in 2015.
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Top 10 digital content companies 2012
POSITION COMPANY NAME SECTOR REVENUE$ million
1 G l S h 364001 Google Search 364002 China Mobile Telco 7580
3 Bloomberg Business information 7000
4 Reed Elsevier Business information 59305 Apple Diversified 54006 Yahoo Diversified 49907 WPP Advertising 4710
21
7 WPP Advertising 4710
8 Thomson Reuters Business information 47109 Tencent Diversified 4460
10 Microsoft Diversified 3930
The total revenue for the top 50 companied amounted to around $146B16 April 2013
o Status of DAC
THE ECONOMIC ASPECTS OF DAC
o Status of DACo DAC structure and segmentationo Supply and demand statuso Identification of gaps
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THE ECONOMIC ASPECTS OF DAC
o Status of DACo Structure and segmentation
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Assumptions • The Arab region’s market size is assumed to be proportional to the
percentage of available content generally held to be around 3% (inspired from region’s market for content as the ratio of Internet Arabic language users to the Internet total users of all languagesArabic language users to the Internet total users of all languages.
• The percentage of DAC from total content of the Arab region in both entertainment and media and consumer/end-user markets is 16% for 2011 and 20% for 2015;
• The percentage of Arabic content out of the total content used in the Arab region on the Internet is assumed to be 60%;
• The Arab region’s portion is assumed to be 3% of the global market for internet advertisingfor internet advertising.
• The resulting figures shown represent the estimated DAC market values for 2011 to be $18 B (20%), and the predicted value for 2015 to be $28 B (25%).
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Market estimates in $B of global content
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Deducted market estimates for content in the Arab region in $B
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Deducted market estimates for DAC in the Arab region in $B
5.3
28
11 2
5.3
7.32.4
3.9
3.5
18
Consumer/enduserAdvertisingInternetEntertainment &MediaTotal
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7.111.2
2011 2015
Estimated revenues from advertising, printing and TV in the Arab region in $B 2007-2013
Possible DAC revenues from advertising, printing and TV ONLY in 2011 could be about $1.7 B and future revenue for 2013 could be $2.2 B
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The DAC Sector
The DAC sector in the region presently consists of the following players:
• Government institutions or projects;P bli h d di t ib t f b k d B k• Publishers and distributors of books and eBooks;
• Newspaper and magazine publishers;• Electronic only newspaper and magazine publishers;• TV and films producers and distributors (dubbing and subtitles included);• Information, translation, video and audio interactive portals;• Web and mobile application designers dealing with content production;• Education companies dealing with learning and development activities,
including course authoring and learning systems;including course authoring and learning systems;• Games and entertainment;• Social networks;• Advertising.
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THE ECONOMIC ASPECTS OF DAC
o Supply and demand
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Observations on the DAC sector• Several content-related national initiatives have been launched in a number of
countries in the region. However, there are no clear national or government DAC strategies in most countries in the region, and hence no clear legislative or financial support;C i i d i ll l l hi h d l• Creativity and intellectual property are central assets which are not adequately protected in the region;
• Digital content relies heavily on broadband which is neither reliable nor affordable in practically all countries of the region;
• Susceptibility of digital content development to technology shifts due to frequent platform and format changes;
• Susceptibility of the national content market to influence by major players at the global and regional market levels;
• Public support is often necessary for local content creators;
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Public support is often necessary for local content creators;• Identifying key talent is a challenge;• The most necessary talents are creative skills, management and marketing;• Increasing fragmentation of the small creators due to rapid advances in technology,
while access to market can only be made through dominating major operators.
Comparative Analysis of Digital Content to Selected Indicators (2010)
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Arabic on the netArabic lies in position 7 in the top 10 languages used on the internet with a
# Rank Name1 115 Saudi Google
percentage of 18.8% of the Arab population and scoring the highest percentage in growth (over 2500%) amongst languages between 2000 and 2011
2 150 Egyptian Google3 340 Kooora4 383 Maktoob5 402 UAE Google6 498 7th Day
Arabic Websites according to Alexa Top 500
http://www.internetworldstats.com/stats7.htm
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g p
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THE ECONOMIC ASPECTS OF DAC
o Identification of gaps
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Broadband(1) Penetration
36
(2) Affordability: The cost of telecommunications in the region is also high when compared with OECD countries. In particular, broadband prices could be 5 to 20 times higher. The overall broadband penetration for the Arab region is 12%, coming second from the last in the list of regions.
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News Reading in the Arab region
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Social media in the Arab region
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Most common activities on the netin the Arab region
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Monetisation issues in the Arab region
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DAC ECOSYSTEM/ ENABLING ENVIRONMENTENVIRONMENT
A. Sources of investmentsB. Government roles and policyC. Education and trainingD Partnership and collaboration issues
41
D. Partnership and collaboration issues
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DAC ECOSYSTEM/ ENABLING ENVIRONMENT
A. Sources of investments
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Investment and funding
• DAC Industry is not at present competitive in attracting investment capital.• The Digital Content Industry is experiencing significant difficulties in
attracting development funding, venture capital, project financing andt i i t t i d t b t bli h d denterprise investment in order to be established and grow.
• To overcome this, efforts by stakeholders, in partnership with governments,are needed. One way is through the launching of an Investment ScopingForum, to bring together industry bodies and firms with investors and othermajor investment groups to examine the situation collaboratively andrecommend ways of removing impediments, stimulating growth andencouraging investment in the CAD sector.
• In considering sources of investment for DAC, regional funding mechanismsand foreign direct investment and business partnerships with foreigncompanies are sources which have the potential to provide, not only capital,but also technical and business skills, technology transfer, access to largerprojects and external markets.
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DAC ECOSYSTEM/ ENABLING ENVIRONMENT
B. Government roles and policy
44
p y
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Government role and policy
• Innovation and technology (e.g. enhancing R&D and innovation in content development, networks, software and new technologies);
• Value chain and business model issues (e g developing a competitive non• Value chain and business model issues (e.g. developing a competitive, non-discriminatory business environment);
• Enhancing the infrastructure (e.g. technology for digital content delivery, standards and interoperability);
• Business and regulatory environments that balance the interests of suppliers and users, in areas such as protection of intellectual property rights and digital rights management without disadvantaging innovative e-business models;
• Quality assurance through setting up standards for production and access of DAC;• Respecting IPRs and ensuring adherence to copyrights law and anti-piracy
regulations, and IPR;• Integration and coordination at the regional level;• Governments as producers and users of content (e.g. commercial re-use and pricing
of public sector information); and• Conceptualisation, classification and measurement issues
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DAC ECOSYSTEM/ ENABLING ENVIRONMENT
C. Education and training
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Education and training
• Digital content development is a high-tech, high-skill industry.industry.
• A key factor that will differentiate a company’s products and services will be its skills base.
• Most studies identify shortages of skills in areas of the digital content industry
• Shortages in training and education possibilities • Most digital content related skills are not obtained from
formal degree courses at universities or tertiary institutions.
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DAC ECOSYSTEM/ ENABLING ENVIRONMENT
D. Partnership and collaboration
48
pissues
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Partnerships and collaborations issue
• The digital content industry is ideally suited forpartnership and collaboration between content creators,producers and distributorsproducers and distributors.
• Governments should play a proactive and a matchmaking role in the DAC industry.
• Governments are not just enablers, but also as majorusers of DAC and have the responsibility of preservingthe Arabic language heritage as an essential core ofregional memory and cultureregional memory and culture.
• Government should also consider the setting up ofnational or regional fund for supporting partnershipprojects in DAC.
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PROPOSED DAC STRATEGY FRAMEWORK FOR GROWTH
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Trends
• Trend (1). Mobile devices and apps. Finally, unquestionably the number 1 client portal to the digital;
• Trend (2). Cloud platform battles will be in full force. More cloud application platforms are arriving, and many will be maturing — and gathering large ecosystems of developers and solutions around them;
• Trend (3). Social technologies will be "must have." In 2009–2011, social networks and technologies were looked on as nice to2011, social networks and technologies were looked on as nice to have and a second-tier competency by many enterprise IT suppliers—social technologies and practices will be acquired and integrated as core competencies.
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Region’s specifics• Arabic is more than a language. It defines the heritage and culture of more than 370
million and impacted the culture of over one billion Moslem population worldwide. It is probably the only language in the world that preserved its grammar and structure for over 14 centuries. Literature, science and theology books which were written centuries ago can be read, understood and referenced today. This means that one of the priority areas for DAC strategy should be devoted to the preservation of language and heritage.
• The key sub-sectors in DAC that have to be included in the formulation of a strategy are:
– Heritage and language preservation;– Automatic translation and associated computational linguistic tools;– Mobile applications;– E-learning and course authoring content;
W b d i d d l t– Web design and development;– Films and television;– Music;– e-Services for users and citizens– Games (mobile and web).
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Key themes
1. Leadership and Communications: it should include the government, major industry players and academia;
2. Investment and Funding: potential investors should be identified and should become aware of DAC market potentials A forum should beshould become aware of DAC market potentials. A forum should be established consisting of investors, content creators and producers to forge partnerships and joint projects. A funding mechanism and venture capital for DAC projects should be established;
3. Innovation and Creativity: encouragement of students and entrepreneurs through incubation and start-up funds;
4. Skills and Training: encourage universities and training institutes to design courses for content development;
5 R i li ti d t h i b d th ti l b d t5. Regionalization and outreach: going beyond the national borders to address the region and the Diasporas in other parts of the world.
Each theme should have a set of proposed actions which should be included in a roadmap with target dates and
timelines for implementation purposes.
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CONCLUSIONS
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Conclusions (1-3)
•Market potential: The present percentage of digitised Arabic content has witnessed a substantial growth in recent years but remains relatively modest. This should translate to a promising market potential for digitization;
•Language preferences: 90% of the region’s population prefer to access content in Arabic. Many surveys, particularly those which were carried out by Arab Media Outlook showed an overwhelming preference for reading newspapers, books and advertising in Arabic;
•Better infrastructure: Closing the digital divide for countries in the region should be a target which can only be achieved through larger penetration of
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should be a target which can only be achieved through larger penetration of affordable Internet connectivity, including broadband;
•Initiatives: There is a lack of national and regional initiatives at government, telecom operators, content creators and producer’s levels. Efforts, at present, are ad hoc and sporadic. The common market approach is not yet developed;
Conclusions (2-3)
•Mindset issues: The need to change the mindset of investors, regulators and government officials to be more involved in DAC development and promotion;
•Coordination: The multidisciplinary involvement of the eco-system of digital content and its interrelationship to ministries of telecommunication, culture, education, health, government administration, and others;
•Skills requirements: Lack of high-tech, high-skill base which is required for the development of a digital content industry in the region The skills required for
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development of a digital content industry in the region. The skills required for knowledge economies are not just limited to high-tech, but also include areas such as management, entrepreneurship and innovation;
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Conclusions (3-3)
•Availability of training and education: Even if ICT and other related skills needed for the digital content industries are not obtained from formal degree courses via universities or tertiary institutions, but usually on the job or training program, there is a major need in the region for specialized universities in advanced ICT technologies;
•Availability of skills on the side of users: Education and skills are also needed on the side of the user. The education system which would be a good source of basic digital competence to equip the younger generations facing serious challenges in the Arab region;
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•Basic literacy: Although the region’s demographic consists of a large percentage of youth who are enthusiastic about new technologies, there are over 100 million illiterates in the region constituting about 27% of the total population that require special attention when formulating a ubiquitous DAC strategy at national and regional levels.
RECOMMENDATIONS
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Recommendations (1-4) • Develop policies and strategies for DAC development at sectoral, national and
regional levels;
• Improve the penetration and affordability of broadband, particularly in less privileged areas and ensure that all schools have broadband access at all levels;privileged areas, and ensure that all schools have broadband access at all levels;
• Establish national and regional foundations for the DAC industry. These foundations should include mechanisms for financing projects and provide advice on partnerships, future directions and trends for the DAC industry.
• Monitor and benchmark progress through the suggested indicators, and advise on issues relating to the enhancement and promotion of digital content;
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• Support and fund research and development in computational linguistics with regional and global partnerships to produce tools and software for automatic translation and semantic analysis to ease the process of producing grammatically correct text for translated content and to improve the learning process of the Arabic language amongst the young generation in the region and beyond;
Recommendations (2-4) • Focus on building capacity in education systems which should start with
skills development for teachers and school masters. Development of teaching resources must be directed at utilizing open standards, so that market mechanisms for the development of teaching aids are enabled at themarket mechanisms for the development of teaching aids are enabled at the regional level. High level training for handling sophisticated content is also necessary to ensure the availability of skilled resources to handle DAC’s special requirements;
• Invest in a regional partnership to develop automated tools for optical character recognition (OCR) for Arabic that should provide users with reliable, robust and fast tools for applications such as converting paper
i di i l f i l i d i i i
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content into digital form, automatic translation and voice recognition. Support of governments and private sector investors for research institutions and universities through grants for development of hardware/ software solutions for handling Arabic content is considered essential;
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Recommendations (3-4)
• Encourage the establishment of content industries for e-Books and e-Learning in the Arabic language;
• Participate, in collaboration with countries in the region, in the launching of regional DAC awards for individuals, the business sector and government institutions, similar to what was started by ESCWA in 2007. Award programmes are essential incentives for young entrepreneurs and university students to compete with ideas and inventions and will provide incubators and
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students to compete with ideas and inventions and will provide incubators and investors with projects which they can host as start-ups for possible launching of new products and services in the DAC industry;
Recommendations (4-4)
• Encourage local/regional universities to partner with the industry, incubators and professional associations in designing academic and professional courses i di i l d l d i i h i l h iin digital content development and processing with particular emphasis on Arabic. Universities should also be encouraged to initiate joint research projects on digital content processing and computational linguistics topics;
• Launch an awareness campaign through media, directed at schools and the young, on the beauty and wealth of the Arabic language, its heritage and culture, and the importance of preserving it through the process of digitization;
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• Governments should consider the establishment of funds and encourage the banking sector in introducing venture capital support for start-ups and the creation of SME in DAC industry sector.
