Digital-content industry to receive funding assistance
The Software Industry Promotion Agency (Sipa) has signed memorandum of understanding (MoU) with the Market for Alternative Investment (MAI), Bangkok ACM Siggraph and the Thailand Animation & Computer Graphic Association (TACGA), to provide sources of funding for local digital content businesses.
The aim is to develop the digital content industry until it achieves Bt40 billion in value by 2008. Sipa is aiming to have the digital sector account for 25 to 30 per cent of the local software industry, which it expects to be worth Bt160 billion in 2008. The move is part of a government strategy to boost Thailand's digital content industry to Hollywood standards by 2008. Chanitr Charnchainarong, MAI's president, said under the three-year MoU agreement, MAI will play the role of facilitator to assist digital content businesses to find sources of funds. MAI itself has Bt1 billion prepared to invest in those with strong potential, and that includes digital content businesses. "Bt1 billion will be matched with other sources of funding for digital content businesses that have potential. We are not intending to invest alone in each project," Chanitr said. The amount of investment will be considered case by case by MAI together with the investors. The criteria are an appropriate business model and the possibilities. It will supply funds through the TACGA, instead of providing funds for each company, Chanitr said. Digital content entrepreneurs have to work as clusters in order to create an impact and suggest realistic development projects as well as attract investors. Digital content mainly involves computer graphics, computer art, and animation and multimedia development, starting from short series, long film series, mobile games, high-end websites, special effects, advertisements, as well as 2D and 3D cartoons. Sipa's president Manoo Ordeedolchest said that the current local digital content industry is valued at about Bt10 billion a year. To encourage the industry to meet its goals, a seed-money strategy is required. The MoU is designed to fill in the missing investment area because most local digital content companies are small and do not appeal to foreign venture capitalists who look for projects starting from about Bt200 million. Lak Taechawanchai, chair of TACGA, said the association was established two months ago to strengthen the local digital content industry. Now there are about 40 companies as members from more than 100 digital content companies. The association is working on drafting a white paper to propose to Sipa's digital content sub-committee the establishment of an incentive policy to attract more entrepreneurs to the industry.
Asina Pornwasin The Nation
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