The methodology of the forum consisted of data of two surveys. The first survey was held in The Netherlands in 1999/2000 on the height of the hype. The second survey was held in Finland after the dot.com craze. As The Netherlands and Finland are comparable in the field of multimedia, the results of the Finnish survey were used to compare the experiences of the Dutch companies represented.

In 1999/2000, at the height of the dor.com euphoria, a survey was held among 41.000 companies in 21 sectors. Almost 2500 companies responded. This led to conclusion that there are 4500 Dutch companies with multimedia as core business. Those companies employ 16.000 people. 86% of these companies have maximally 5 people staff. This is 45% of the employment in the cluster.

Geographically the majority of companies is situated in the Dutch corridor between Haarlem, Amsterdam, Hilversum and Utrecht.

Source: Multimedia: beyond the pioneers’ phase by Dr Peter Leisink et al. GOC, 2000

The Finnish digital media industry (new media) was analysed very thoroughly towards the end of 1990s. Yet, there is little objective analysis done after the crash of the high expectations (so-called internet hype). This research aims to fill this gap.

The key objective of the analysis was to create a sound and precise description of the current situation in the Finnish digital media service creation markets. Furthermore, the analysis targeted to clarify issues related to the internationalization development in the industry. In practice the objectives were met by answering the following research questions:

1.  What kind of situation prevails currently in the Finnish digital media markets
2.  What kind of success factors are required from a company dedicated to creating digital media services?
3.  How can the digital media company grow and/or internationalize its operations?
4.  What actions can government organizations take to facilitate the digital media industry development in the most efficient manner?

The research was carried out by co-operation with LTTResearch Ltd. and Culminatum Oy Ltd during summer 2002 and spring 2003. The project was commissioned by the Ministry of Trade and Industry Finland. Project manager was Tommi Pelkonen. Findings are based on a survey of 76 leading Finnish digital media companies and interviews of 13 industry top managers.

• Digital media has stabilized its position as a professional service industry. Electronically provided services are an increasingly important part of any business activity. The importance of digital communication and transactions via digital devices and transmission networks is expected to grow steadily also in the future. Thus, there natural demand exists for digital media service companies.

• Hypergrowth is history: In 2002, the total turnover of the companies specialized in digital media service provision was approx. 160 m EUR Most of the companies were profitable. The industry turnover is expected to grow at 2-5 % / year up to 2006. Digital media has become similar to any other industry – there is, now longer, a "new" economy.

• Growth in the number of companies and personnel has stopped: The Finnish digital media industry employs currently ~2300 people in its 280 companies. There will be only 200-300 positions available during until year 2006.

• The industry has concentrated both regionally and by its turnover: A typical digital media company employs less than 10 persons. Yet, most of the industry turnover is created in the few largest companies. The Helsinki regions represents by far the most important area for the companies as a location for operations, as well as, as its potential for customers.

• Internationalization continues via networks: After the rapid expansion in the end of 1990s, the current trend for internationalization is to carry out action with caution. Instead of opening new foreign offices, Finnish companies tend to seek for opportunities via co-operative modes – joining into emerging international service networks.

• There is overcapacity in digital media-related education: The Finnish education organizations have increased very rapidly their offerings of digital media related training during the last few year. Currently the main threat for the students is to obtain an education with very little actual value in the slumping job markets.

• Specialization is the one of the key issues for success: It is crucial for the Finnish digital media companies to find out their core competence. They need to offer their clients and partners services that offer true value-added.

The following recommendations were made to digital media companies

• Focusing of finding own core competence is becoming increasingly important. There is less and less work for generalists.

• Identification and leveraging of own role within the industry value chain becomes more important in the future.

• Understanding customer needs is one of the most important issues for business success. Investments in relationships can bring the added revenue required for survival also during the current downturn.

To governmental organizations the following recommendations were made:

• Careful consideration and allocation is needed in education and training related investments.

• Possible support programs need to offer large enough investments to fewer targets and thus higher risk have to be taken. Spreading scarce resources will not bring back wished returns.

• Entrepreneurship needs to be better supported. This benefits also the digital media industry.

To digital media clients the recommendations were made:

• Business benefits have to be sought after when investing into digital media services.

• Major benefits can be obtained with digital media services – also during recession.

• Service development is a long-term process. Yet, risks have to be taken.