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Chapter 6 - Strategies to Promote Broadband Content Applications and Take-up
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Strategies to promote broadband content, applications and awareness (Section 6) Content
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6.1 Supporting and developing content industries
Broadband take-up and availability of compelling content are inextricably linked. The level of broadband take-up is likely to remain relatively low unless there is sufficient compelling content available. Since the majority of content is generated overseas it is essential to promote local content that reflects Australians' values, identity and character. It is also important that distribution channels work effectively with Australia's content industries.
All signs point to Australia's future as a high-tech nation being driven by on-demand interactivity in a broadband environment. Advanced broadband content is interactive, requires a broadband infrastructure for effective use and is integrated in its structure and functionality across media. While current technologies offer the end-user an array of delivery platforms, take-up is unlikely to expand unless consumers are presented with content that fully embraces the functionality that the infrastructure can provide.
Despite this knowledge, traditional media enterprises have been reticent to take the risks associated with developing broadband content - it is a high-risk medium and resource intensive, requiring large up-front investment with uncertain rates of return. Government investment in innovative broadband content is helping to bridge the gap between the current shortfalls in the market and growing demand for creative and intelligent product which caters to an Australian audience. Such support assists Australian practitioners to undertake the necessary research and development that will allow them to compete in what is increasingly an international market for broadband content.
Stage 2 of the Creative Industries Cluster Study has underlined the critical importance of distribution arrangements and access to overseas markets for the development of creative digital content industries. This is especially so for interactive games, an industry whose global market is already equal to, if not greater than, the film industry. Given the expected growth in interactive multi-player games, cost-effective access to broadband networks both within Australia and internationally will become critical for the local games industry's future growth and ability to capture international market share. Other barriers to growth for local digital content producers include difficulty in accessing equity funding and working capital, asymmetries in market power, resistance by incumbent industries and a lack of broadband penetration for online markets. Equally, intellectual property issues are critical to these industries, which are affected by the growing complexity in rights management and cross-territory licensing, and increasing transaction costs in rights management.
6.2 Digital Rights Management
Market and technical uncertainties surrounding the management of digital rights are inhibiting content owners from making rich content available to broadband networks. This uncertainty is constraining the take-up of broadband and therefore, the revenue growth that drives investment in broadband infrastructure. A low-investment pattern is established until a positive cycle between investment and take-up occurs. Appropriate digital rights management (DRM) systems will result in greater access to content and act as a major driver for increased broadband adoption.
Early adoption of global interoperable rights management standards by Australian content production and distribution industries would enable them to explore other channels, develop export markets, and compete with sophisticated content emanating from overseas markets, particularly the US.
There are several activities already in progress in digital rights management. For example, the Commonwealth Government made a number of significant amendments to copyright laws through the passage of the Copyright Amendment (Digital Agenda) Act 2000, which reflected the impact of digital and online technologies on copyright. Since then, the Department of Communications, Information Technology and the Arts (DCITA) has engaged a consortium led by the Australian Interactive Multimedia Industry Association (AIMIA) to develop a concise, practical and easy-to-use DRM Guide.
The DRM Guide will raise awareness of these changes among copyright creators and users. The DRM Guide will assist in the development of DRM solutions by providing a focus for communication and exchange on issues to advance trade in the content industries involving multimedia developers, online education and content creators.
6.3 Access to Government intellectual property
The Commonwealth owns the copyright in a range of intellectual property produced under its direction and control. The Commonwealth is generally the owner of copyright where material has been produced by its employees or has been commissioned or first published by the Commonwealth.
A more flexible approach for Government-produced content designed for broadband platforms could provide greater incentives for repurposing the content for other uses. For example, the Commonwealth would generally assert ownership of copyright on works that it has funded, such as the development of a piece of online educational material. A more flexible approach may enable the developers of this material to repurpose it for overseas markets or for other educational markets in addition to its original intent. This would provide the scope for digital content industries to leverage Government funding to explore growth in other sectors, both domestically and internationally.
6.4 Encouraging Take-up
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RECOMMENDATION Encouraging Take-up
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While the Australian economy generally would benefit from accelerated diffusion of broadband-related innovation, some Australian consumers, SMEs and even larger organisations lack awareness about the capabilities and benefits of broadband connectivity and associated applications. Industry associations are encouraged to develop initiatives for the dissemination of information about effective innovation, building on existing programs. . There are fundamental differences between the way businesses with a broadband connection access the internet, for example. They are much more likely than businesses with a narrowband connection to use it for both purchasing and sales. Live trials and demonstrations are well-accepted methods for the diffusion of innovation, allowing people to experience, touch and feel broadband applications, helping to establish a clear business case for broadband-powered e-business tools in SMEs and new business models such as the application service provider (ASP) model.
The OECD has identified effective diffusion of innovation as one of the key objectives for governments wishing to promote economic development and productivity growth in the 'new economy'.[1] This was the rationale for extending the Information Technology Online program in the Government's 'Backing Australia's Ability' initiative.
As a result, some initiatives are already in place to promote understanding of broadband and to encourage the development of innovative content. These initiatives should continue to emphasise the benefits of using broadband in key sectors. These should not focus on selling the technology but should provide decision makers with evidence about how using broadband will have a positive impact on business and on people's lives.
[1] The New Economy: Beyond the Hype; OECD 2001, p 22.