Culture Disrupted: Growth in Australia’s digital creative industries

The potential benefits, both economic and cultural, from a thriving export industry in digital content are tremendous. But the policies, incentives, investments and infrastructure that have historically supported our creative industries must accelerate their digital transformation if Australia is to compete in, or even lead, the new global creator economy, according to this thought leadership report written by The Action Exchange and published by AFRIntelligence in partnership with YouTube.

Key findings include:

● Australia punches above its weight as a cultural export powerhouse. The nation’s cultural and creative industries were worth a combined $115.8b in 2018-19, equal to 6% of the economy.

● Content creators are becoming cultural entrepreneurs. Many creators now earn all or most of their income creating digital content. These businesses are increasingly sophisticated content ecosystems with multiple online and offline revenue streams.

● The creator economy drives job growth. There are an estimated 50 million creators globally, and this number is expected to grow at a 10-20% compound rate annually over the next five years.

● Australian success is not a given. Digital content exports are forecast to grow exponentially, but more support is needed. A dedicated export market ecosystem and audience-building strategy would support the sector to flourish.

● The cultural economy needs to catch up. Businesses and institutions that support the creative industries—domestically and as an export sector—must transform to thrive. This shift has started, and those who successfully navigate the digital transition will profit from new markets and business models.

● Regulatory guardrails must be thoughtful and coordinated. Digital regulations in Australia have changed rapidly and will likely continue to do so in line with a fast-shifting online environment. It will be critical that regulation balances online safety considerations with the need to support the growing creator economy.

● The digital divide hinders growth. The creator economy can potentially have an outsized impact on Australia’s regional economies. Yet skills shortages and digital connectivity in remote areas remain a barrier.

Read the full thought leadership report here, or read The Australian Financial Review’s coverage here.