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A Primer on Creative Industries

and Digital Content Goods and Services


in the Philippines

by

Cesar S. Tolentino

December 29, 2010


A Primer on Creative Industries and on Digital Content Goods and Services in the Philippines

ANALYST BRIEFING

To request an Analyst Briefing of this report, or on the Digital Content Industries in general,
kindly e-mail powerhausconsultancy@gmail.com or contact:

Catherine Joy Valdez


+63.922.897.8542

DISCLAIMER
Any recommendations, suggestions or opinions contained in this publication reflect the
results of extensive research and analysis conducted by Powerhaus Outsourcing Solutions
and Consultancy, Inc. (POSC). POSC assumes that the published materials that were used in
this research were accurate and reliable. No person should act solely on the basis of the
contents of this publication without first obtaining specific, independent professional
advice. POSC will not be liable for any loss, damage, cost or expense incurred or arising by
reason of any person using or relying solely on the information in this publication.

This report contains forward looking insights on the Philippine digital content industries
based on published information for projections of future industry performance.

TERMS OF USE

Copying of any portion of this document, in part or in whole, is strictly prohibited without
the written consent of POSC.

Copyright © December 29, 2010

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A Primer on Creative Industries and on Digital Content Goods and Services in the Philippines

TABLE OF CONTENTS

Creative Industries, Definitions............................................................................................................... 4


The Scope of Creative Industries ............................................................................................................ 6
Global Demand for, and Trade in, Creative Goods and Services ............................................................ 7
Economic Value of Creative Industries in Selected Countries ................................................................ 9
Creative Industries in the Philippines ................................................................................................... 12
Digital Content Goods and Services in the Philippines ......................................................................... 15

List of Tables

Table 1. Average Annual Growth Rate of Creative Industries, by Sub-Group (2002 – 2008) 7

Table 2. Breakdown in Growth of Creative Industries, Goods vs. Services (2002 – 2008) 7

Table 3. Top Countries in Terms of GDP Contribution by Its Creative Industry Sector 10

Table 4. Breakdown of the Philippines’ Creative Industries, Goods vs. Services (2002 – 2008) 12

Table 5. Rank of the Philippines’ Creative Industry Segments, by Goods Categories (2005) 12

Table 6. Rank of the Philippines’ Creative Industry Segments, by Services Categories (2008) 13

Table 7. Rank of the Philippines’ Digital Content Services, by Categories (2005) 15

List of Figures

Figure 1. Diagram Showing the Scope of ‘Creative Industries’ 6

Figure 2. Breakdown of the Value for the Philippines’ Creative Industries, for Goods (2005) 13

Figure 3. Breakdown of the Value for the Philippines’ Creative Industries, for Services (2008) 14

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A Primer on Creative Industries and on Digital Content Goods and Services in the Philippines

Creative Industries, Definitions


‘Creative industries’ are defined by United Nations Conference on Trade and Development
(UNCTAD) as ‘the cycle of creation, production and distribution of goods and services that use
intellectual capital as their primary input.’1 Such a definition encompasses ‘folk art, festivals, music,
books, paintings and performing arts to more technology-intensive subsectors such as the film
industry, broadcasting, digital animation and video games, and more service-oriented fields such as
architectural and advertising services.’2 This definition has been adopted by the World Trade
Organization (WTO) and its trade advisory body, the International Trade Centre (ITC).3

Another definition proposed which has been used by the WTO and ITC is that formulated by the
United Kingdom’s Department for Culture, Media and Sports (DCMS), which states that ‘creative
industries’ are ‘those industries which have their origin in individual creativity, skill and talent and
which have a potential for wealth and job creation through the generation and exploitation of
intellectual property.’ In this definition, ‘creative industries’ encompass ‘advertising, architecture,
the art and antiques market, crafts, design, designer fashion, film and video, interactive leisure
software, music, the performing arts, publishing, software and computer services, television and
radio.’4

The major difference between the two definitions is the inclusion of software development and
services in the DCMS definition, a sector that is not included in the UNCTAD definition.

The UNCTAD definition has been used extensively to guide the monitoring of global trade and the
establishment of trade treaties, governing ‘creative industries’. On the other hand, the DCMS
definition has been used extensively as a guide for countries in the formulation of their economic
development plans that are centred on, or that leverage from, their respective creative industries.
An example is Taiwan’s first Cultural & Creative Industries Development Policy, which was legislated
in 7 January 2010, and which was inspired by the UK government’s own creative industries initiative.
Taiwan’s creative industries policy covers 15 sub-sectors, with focus on 6 flagship sectors – product
design, digital content, craft, music and performing arts, movies/film, and broadcasting/television.5

The Philippines is currently pursuing several initiatives to formulate a definition of ‘creative


industries’ that reflect the unique structure of its economy and culture. To this date, there have
been at least three separate organizations pursuing initiatives with this objective in mind:

1. The Philippine Services Coalition (PSC) is a ‘partnership of concerned stakeholders from the
government, the private sector, and the academe’ which was established ‘through funding
and technical assistance from the Asia Trust Fund (ATF) of the European Commission (EC)
and the International Trade Centre (ITC).’ The PSC’s mandate is to ‘develop and enhance
Philippine trade in services’ by working with the Public-Private Sector Task Force on the
Development of Globally Competitive Philippine Services Industries towards the formulation
of action plans that will assist the Department of Foreign Affairs (DFA) in helping achieve the
objectives in then President Arroyo’s 10-point agenda, and support the successful
implementation of the Philippine Export Development Plan 2005 – 2007 (PEDP). Although
the programs of the PSC relating to the PEDP ended in 2007, the DFA (which acts as the
1
‘Goods’ in this context and when used in this report refers both to tangible (example: music CDs) and
intangible goods (example: digital recordings).
2
‘Creative Economy Report 2008,’ UNCTAD. 2008
3
http://www.intracen.org/creativeindustries/ retrieved 25 December 2010
4
‘Creative Industries Mapping Document,’ DCMS. 2001
5
‘Taiwan Creative Industries Sector Report,’ UK Trade and Investments. March 2010

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Secretariat of the PSC through the Office of the Undersecretary for International Economic
Relations, OUIER) is still conducting activities of the PSC to sustain its programs.6

2. The National Competitiveness Council (NCC) ‘was formed in October 2006 as a Public-Private
Task Force on Philippine Competitiveness by virtue of Presidential Executive Order No. 571,
to address the improvement of the country’s competitiveness from the bottom third of
competitiveness rankings to the top third by 2010.’7 The NCC is currently conducting a series
of consultation sessions with stakeholders from the Philippine creative industries sectors,
notably the Cultural Center of the Philippines (CCP) and private sector resource persons, for
the formulation of a creative industries-driven economic development plan.8 With the
passing of 2010, however, the NCC is re-evaluating its initiatives to establish new goals for
the next decade.

3. The Creative Industries Task Force (CITF) under the Center for International Trade
Expositions and Missions (CITEM) was formed in 2005 to assist the Department of Trade and
Industry (DTI) and the Cultural Center of the Philippines (CCP) in the formulation of an
international promotional plan that will result in a shift from a primarily services-driven
economy to a creativity-driven economy.9,10 The CITF is currently coordinating with an
initiative of the CCP and the National Commission for Culture and the Arts (NCCA) to map
the Philippine creative industries.11

To this date, all three organizations are still working on their initiatives and, in spite of sharing
information on such initiatives, no definitive output has been published.

6
http://www.philippineservicescoalition.com/about.htm retrieved 25 December 2010
7
http://www.competitive.org.ph/ retrieved 25 December 2010
8
“Philippines improves its competitiveness ranking,”GMA News.tv, 14 July 2008.
http://www.gmanews.tv/story/106843/Philippines-improves-its-competitivess-ranking retrieved 25 December
2010
9
“Mich Dulce: Hats Off!,” Philstar.com, 28 February 2010.
http://www.philstar.com/Article.aspx?articleId=553484&publicationSubCategoryId=90 retrieved 25 December
2010
10
“RP promotes creative industries to take advantage of global trend,” GMA News.tv, 12 January 2009.
http://www.gmanews.tv/story/143790/RP-promotes-creative-industries-to-take-advantage-of-global-trend
retrieved 25 December 2010
11
“It’s Time for the Business of Creativity,” ECCP (European Chamber of Commerce in the Philippines), 2009.
http://www.eccp.com/infocus.php?id=291 retrieved 25 December 2010

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The Scope of Creative Industries

For the purposes of this Primer, the definition published by UNCTAD will be adopted as the
Philippine definition of ‘creative industries.’ This includes the UNCTAD definition of what industries
are included under the scope of ‘creative industries.’

The technical definition for the UNCTAD scope of ‘creative industries is stated thus as ‘any economic
activity producing symbolic goods with a heavy reliance on intellectual property and for as wide a
market as possible.’12 The scope thus of this definition covers the following industry ‘clusters’:

Figure 1. Diagram Showing the Scope of ‘Creative Industries’13

NOTE: In the wider UNCTAD definition of ‘creative industries’ that use the WIPO14 copyright model
(where focus is placed on intellectual property as the embodiment of creativity), ‘software’ goods
and services are included. In the tighter definition that use the concentric circles model (where focus
is placed on the amount of cultural content in a particular product or service), ‘software’ goods and
services are noted as having the least amount of cultural content and is thus not included.

The wider UNCTAD definition of ‘creative industries’ is virtually of the same scope as the DCMS
definition.

12
2004 definition of UNCTAD as reported in the ‘Creative Economy Report 2008,’ UNCTAD, 2008
13
‘Creative Economy Report 2008,’ UNCTAD, 2008.
14
World Intellectual Property Organization

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Global Demand for, and Trade in, Creative Goods and Services

In terms of exports, UNCTAD reported that the global demand for creative goods and services
amounted to almost US$576 Billion in 2005, growing by almost 15.6% annually (average) since 2000
– when exports amounted to almost US$324 Billion.15 A more recent report by UNCTAD16 placed the
2008 export estimate to almost US$592 Billion, a positive growth from 2005 in spite of the prevailing
global financial crisis during the same period that resulted in a 12% contraction in international
trade.17 The experience of 2007-2008 demonstrated the resilience of creative industries, and the
trade of creative goods and services, to weather global economic storms. This has resulted in
renewed interest in the trade of creative goods and services in recent years, as the world prepares
for the eventuality of another global economic crisis.

Using the UNCTAD proposed sub-groups (Heritage, Arts, Media and Functional Creations) the global
trade of creative goods and services can be summarized in Table 1.

Table 1. Average Annual Growth Rate of Creative Industries, by Sub-Group (2002 – 2008)18
Sub-Group 2002 Value of Exports 2008 Value of Exports Average Annual
(US$ Billions) (US$ Billions) Growth Rate (%)
Total* 267.175 592.079 16.6%
Heritage 25.007 43.629 12.4%
Arts 25.109 55.876 20.4%
Media 43.960 75.503 12.0%
Functional Creations 194.263 454.813 22.4%
* Using the wider definition of ‘creative industries,’ to include Software goods and services.

The above table shows that the trade of Functional Creations (design goods, new media goods,
advertising and related services, architecture and related services, research and development
services, and personal, cultural and recreational services) has shown the highest growth rate among
the sub-groups. Even the lowest performing sub-group (Media) has grown an average of 12% during
the period of 2002 to 2008, when the world economy grew only by 2.9% annually from 2001 to
2008.

In terms of breakdown among goods and services, Table 2 below shows growth is most notable
among services vis-a-vis goods – growing at least twice as fast.

Table 2. Breakdown in Growth of Creative Industries, Goods vs. Services (2002 – 2008)19
Goods vs. Services 2002 Value of Exports 2008 Value of Exports Average Annual
(US$ Billions) (US$ Billions) Growth Rate (%)
Total* 267.175 592.079 16.6%
Goods 209.948 406.992 15.6%
Services 62.227 185.087 32.9%
* Using the wider definition of ‘creative industries,’ to include Software goods and services.

15
‘Creative Economy Report 2008,’ UNCTAD. 2008
16
“Creative Economy Report 2010: Creative Industries Are Stimulating Economic Recovery,” Dexigner, 19
December 2010. http://www.dexigner.com/news/22073 retrieved 25 December 2010
17
‘Creative Economy Report 2010,’ UNCTAD. 2010. p. xxiii.
18
‘Creative Economy Report 2010,’ UNCTAD. 2010. p. 126.
19
‘Creative Economy Report 2010,’ UNCTAD. 2010. p. 126.

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As a result of the performance of creative industries in world trade during the global financial crisis,
and the notable growth of creative services, as well as the growth in Arts and Functional Creations
sub-groups, there is increasing interest among countries in formulating economic development plans
that are centred on, or leverage from, creative industries. Aside from leading efforts by the UK,
Japan and Taiwan, developed countries such as the US and Singapore, and developing countries such
as those in the ASEAN region, are pursuing initiatives to craft creative industry-led economic
development plans for the next decade.

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Economic Value of Creative Industries in Selected Countries

Quantifying the economic value of creative industries has posed a continuing challenge to economic
planners. UNCTAD proposed four methods of measuring the economic value of creative industries:20

1. Employment. This method is hindered by a lack of internationally-accepted and adopted


definitions of what is a ‘creative worker’. In some cases, newly emerging forms of creative
businesses are so new that employment in such businesses is often not included in ‘creative
workers’ immediately. Furthermore, differences in methods of capturing employment
statistics (some are collected through dedicated labour surveys for the creative industry
sectors, and in others statistics are collected as part of a general census) pose a challenge in
collating global statistics or in conducting country-to-country comparisons. For the most
part, the use of employment as a measure of creative industries – often through the use of
international standards on job classification as proposed by the International Labour
Organization (ILO) – is a widely accepted method.

2. Time Use. Pioneered by Australia, the use of time use for creative activities (both economic
and non-economic activities) is regarded as one of the more robust methods for quantifying
the value of creative industries. However, the method is labour-intensive to apply, and very
few countries have so far been able to utilize this method.

3. Trade and Value Added. Although capable of producing reliable estimates on value of goods
and services from creative industries, the use of trade activities for measuring the value of
creative industries has so far provided a less-than-accurate estimate. The estimates are
always underestimated, as non-trade activities such as the flow of royalties are not captured
by the trade method. The method remains internationally accepted, however, and is a
standard used often by UNCTAD and most international organizations such as the WTO for
measuring the value of creative industries.

4. Copyright and Intellectual Property Rights. Proposed by the WIPO, this method relies on the
measure of employment and economic activity in industries that are classified under
‘creative industries,’ and expressing such measures as a percentage contribution to a
country’s GDP. This method utilizes industrial taxonomies as defined by the International
Standard Industrial Classification, or ISIC. Efforts for collecting statistical information using
this method are currently ongoing in several developed countries. However, the high costs
of conducting such studies are prohibitive in developing countries and have mostly been
used for monitoring purposes only.

For this report, the method used when citing the value of creative industries is that of Trade and
Value Added. Statistics cited from reports conducted by the WTO and ITC, and by UNCTAD, use this
method.

In other publications, the Copyright and Intellectual Property Rights method is used. Expressed as a
percentage contribution to a country’s GDP21, this method of measuring the value of creative
industries is most frequently cited in the international press. The British Council’s Creative Industries
initiative uses this method.
20
‘Creative Economy Report 2010,’ UNCTAD. 2010. pp. 100 – 101.
21
Gross Domestic Product - the market value of all final goods and services made within the borders of a
country in a year.

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As a proxy to the value reported using the Copyright and Intellectual Property Rights method, this
report utilizes the value of creative industries using the Trade and Value Added method – and then
expresses such a value as a percentage of the GDP.

Various countries’ GDP contributions of their respective creative industries are shown in Table 3
below.

Table 3. Top Countries in Terms of GDP Contribution by Its Creative Industry Sector22, 23, 24
Country Industry Size GDP GDP Contribution (%) Reference Year
25 26
(US$ Billions, est.) (US$ Billions)
Thailand 32.7 272.4 12.0% 2008
US 1,581.3 14,119.0 11.2% 2009
Hungary 8.6 129.0 6.7% 2009
UK 170.4 2,662.6 6.4% 2008
Indonesia 32.2 510.5 6.3% 2008
Russia 75.1 1,231.9 6.1% 2009
Korea 54.0 931.4 5.8% 2008
Singapore 10.8 193.3 5.6% 2008
Jamaica 0.8 14.7 5.1% 2009
Philippines 7.9 160.5 4.9% 2009
Mexico 42.0 874.9 4.8% 2009
Lebanon 1.5 34.4 4.5% 2009
Canada 60.1 1,336.1 4.5% 2009
Croatia 2.8 63.0 4.4% 2009
Hong Kong 8.6 215.4 4.0% 2008
Latvia 1.0 26.2 4.0% 2009
Bulgaria 1.8 47.1 3.9% 2009
New Zealand 3.6 117.8 3.1% 2008
Other Countries of Interest
Japan 88.4 3,842.3 2.3% 1998
Malaysia 3.3 221.8 1.5% 2008

22
2008 figures are based on the article “From Manufacturing Hubs to Creative Hubs,” Periscope (Synovate
Business Consulting), December 2009.
http://www.synovate.com/businessconsulting/insights/periscope/issues/200912/ retrieved 25 December
2010
23
2009 figures are based on the article “Creative industries 4.5 percent of Lebanon GDP,” The Daily Star, 24
December 2010.
http://dailystar.com.lb/article.asp?edition_id=1&categ_id=3&article_id=122872#axzz19DDtbose retrieved 25
December 2010
24
1998 figure for Japan is based on the report ‘National Studies on Assessing the Economic Contribution of the
Copyright-Based Industries (Creative Industries Series No. 2),’ World Intellectual Property Organization (WIPO),
2009.
25
The Industry Size figures were computed by multiplying the Nominal GDP with the estimated percentage
GDP contribution.
26
Nominal GDP figures. 2009 GDP figures obtained from the report ‘The World Bank: World Development
Indicators database,’ World Bank, 27 September 2010. 2008 figures obtained from The World Data & Statistics
page
(http://econ.worldbank.org/WBSITE/EXTERNAL/DATASTATISTICS/0,,contentMDK:20394802~menuPK:1192714
~pagePK:64133150~piPK:64133175~theSitePK:239419~isCURL:Y,00.html retrieved 25 December 2010)

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As Table 3 above shows, the Philippines is one of the leading countries in terms of the GDP
contribution of its creative industries. The Philippines is also among the top ASEAN countries, next to
Thailand, Indonesia and Singapore.

In terms of economic value, the Philippines’ creative industries sector is one of the most prominent
in the world as shown in the table above.

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Creative Industries in the Philippines

Using the same definition of ‘creative industries’ as that used by UNCTAD’s expanded definition (to
include software goods and services), we can quantify the value of the Philippines’ creative
industries as follows:

Table 4. Breakdown of the Philippines’ Creative Industries, Goods vs. Services (2002 – 2008)27

Goods vs. Services 2002 Value of Exports 2008 Value of Exports Average Annual
(US$ Millions) (US$ Millions) Growth Rate (%)
Total* 7 620 1,459.5%
Goods <1.0 580 96,500.0%
Services 7 40 78.6%
* Using the wider definition of ‘creative industries,’ to include software goods and services.

Table 4 above demonstrates the Philippines’ remarkable growth in the trade of creative goods and
services in the last decade, a growth that has recently generated interest from various stakeholders
and sectors – to a point where there are now several initiatives to further develop the creative
industries in order to help drive economic growth in the country’s economy for the next decade.

In terms of goods, the Philippines is most notable for exports in the following product categories:

Table 5. Rank of the Philippines’ Creative Industry Segments, by Goods Categories (2005)28

Goods Category 2005 Value of Exports Rank in Category Among Rank in Category
(US$ Millions) Developing Economies Among All Economies
Sculpture 102 5th Not in top 10
Wickerware 95 2nd 2nd
Newspapers 67 4th Not in top 10
Celebration (Fiestas, etc.) 57 5th 10th
Digital records 3 10th Not in top 10
Paperware < 1.0 8th Not in top 10

NOTE: The Philippines is currently not significantly trading in other creative goods categories. 2008
data for the trade in creative goods is not currently available from UNCTAD.

Among the goods categories shown in Table 5 above, the Philippines is most notable for
Celebrations and Wickerware. This indicates that, for the most part, the Philippines appears to be
globally competitive in the handicrafts and cultural event segments. And although the Philippines is
also active in the art segment (sculpture), the country is not as competitive globally. There is thus
potential for the Philippines to further improve its global positioning for the handicrafts, cultural
events, and art segments.

27
Creative Economy Report 2010,’ UNCTAD. 2010.
28
Creative Economy Report 2008,’ UNCTAD. 2008.

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Figure 2. Breakdown of the Value for the Philippines’ Creative Industries, for Goods (2005)29

Wickerware
29%

Newspapers
Sculpture 21%
32%

Celebration
Other Goods 17%
0%
Paperware Digital Records
0% 1%

In terms of contribution to the total value of creative goods, Figure 1 above shows that Sculpture,
Wickerware, Newspapers, and Celebrations are the top segments for the Philippines. This also shows
that there is room to expand for Digital Records and Paperware, as well as in other goods categories
(namely Carpets, Yarn, Other Arts and Crafts, Film, Graphic Design, Fashion Design, Glassware,
Interior Design, Jewellery, Toys, Records, Printed Music, Video Games, Books, Other Publishing,
Painting, Photography, Antiques, and Other Visual Arts).

In terms of services, the Philippines is most notable for exports in the following categories:

Table 6. Rank of the Philippines’ Creative Industry Segments, by Services Categories (2008)30

Services Category 2008 Value of Exports Rank in Category Among Rank in Category
(US$ Millions) Developing Economies Among All Economies
Research and 19 5th Not in top 10
Development Services
Personal, Cultural and 21 Not in top 10 Not in top 10
Recreational Services
Audiovisual and Related 8 9th Not in top 10
Services
Other Personal, Cultural 13 Not in top 10 Not in top 10
and Recreational Services

Among the services categories shown in Table 6 above, the Philippines is most notable for R&D and
Audiovisual services. This indicates that there is potential for the Philippines to further improve its
global competitiveness in these two segments.

29
Creative Economy Report 2008,’ UNCTAD. 2008.
30
Creative Economy Report 2010,’ UNCTAD. 2010.

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Figure 3. Breakdown of the Value for the Philippines’ Creative Industries, for Services (2008)31

R&D
35%

Personal,
Audiovisual
Cultural and
13%
Recreational
31%
Others
21%

In terms of contribution to the total value of services, Figure 2 above shows that Personal, Cultural
and Recreational, and R&D services are the top segments for the Philippines. This also shows that
there is room to expand for Audiovisual services, as well as in Other Services.

Tables 5 and 6 indicate that, although the Philippines has seen remarkable growth in the trade of
creative goods and services over the last decade, the country has to strive some more in order to
further improve its global competitiveness and positioning – particularly on creative services.

31
Creative Economy Report 2010,’ UNCTAD. 2010.

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Digital Content Goods and Services in the Philippines

The scope of digital content goods and services includes the following segments:

1. Publishing – includes digital comics


2. Audiovisuals – including animation and online broadcast materials (from film, television and
radio broadcasts)
3. Design – including interior, graphic, and fashion design
4. New Media – including software goods and services, and videogames (also called
entertainment software, and includes educational games and advergames)
5. Creative Services – Architectural, advertising, and other cultural content services that utilize
an online delivery system

As indicated in Table 5, the Philippines is currently not aggressively exporting creative goods (also
called creative goods). Table 6 also shows that, for services, the Philippines has a lot more room to
expand for the export of creative services.

Among the product segments, the Philippines has yet to develop an action plan to expand its share
of global demand. However, some discussions are being taken up for improving the access to the
world market for Philippine goods in the Film, Fashion Design, Interior Design, Digital Records, Video
Games, Photography, and Other Visual Art categories.32 Currently, the Philippines generates less
than US$0.1 Million in export revenues for each of these creative product categories (except for
Digital Records, where the Philippines exported approximately US$3 Million in revenues in 2005 and
was the 10th largest exporter among the developing countries in the world).33

Among the service segments, the Philippines is currently formulating an initiative to expand its
global market for Audiovisuals, Design, New Media and Other Creative Services. This initiative is
being spearheaded by the Philippine Services Coalition under the Department of Foreign Affairs
(DFA),34 and by the Department of Trade and Investments (DTI) via its events management affiliate,
CITEM.35 It is expected that the output of their planning activities will eventually become public as
early as 2011.

Table 7. Rank of the Philippines’ Digital Content Services, by Categories (2005)36

Digital Content 2005 Value of Exports Rank in Category Among Rank in Category
Service Categories (US$ Millions) Developing Economies Among All Economies
Visual Arts 107 10th Not in top 10
Design < 1.0 Not in top 10 Not in top 10
New Media < 1.0 Not in top 10 Not in top 10
Other Creative Services < 1.0 Not in top 10 Not in top 10

32
Based on an interview with CITEM and the Department of Trade and Industry (DTI).
33
Creative Economy Report 2008,’ UNCTAD. 2008.
34
Based on an interview with the Office of the Undersecretary for International Economic Relations (DFA-
OUIER).
35
Based on an interview with James Romana, Chief – Creative Industry Division (CITEM).
36
Creative Economy Report 2008,’ UNCTAD. 2008.

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Another private sector initiative is that being spearheaded by research firm, Powerhaus Outsourcing
Solutions and Consultancy (POSC) – a competitive intelligence research firm. Working closely with
CITEM and the Animation Council of the Philippines (ACPI), Game Developers Association of the
Philippines (GDAP) and a coalition of comic book industry organizations, POSC is formulating an
action plan towards catalyzing the export trade of digital content goods and services in 2011. The
output of this initiative is intended for implementation during the 2011 e-Services Conference, “the
largest IT-Enabled Services (ITES) sourcing event in Southeast Asia.”37 The 2011 e-Services
Conference is tentatively scheduled for July 2011.

With the velocity building up for a national development program towards expanding the trade of
digital content goods and services, the Philippines is now poised to get a larger share of the global
market.

37
E-Services website. http://www.e-servicesphils.com/esp2010/ retrieved 25 December 2010

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About the Author


Cesar Tolentino has been a consultant in IT-Enabled Services (ITES) since 1998. He began his career
with providing strategic advisory to one of the earliest call centers in the Philippines, eTelecare.
This was followed by a series of consulting engagements in many of today's top call centers in
the Philippines – NetRep International (now Aegis PeopleSupport), Contact World (now
Sitel-Client Logic), Ambergris Solutions (now Telus), Sykes, Advanced Contact Solutions, Daksh
(now IBM Daksh), Convergys, Teletech and ePLDT Ventus (now SPI Ventus). Mr. Tolentino has
leveraged his knowledge and experience with outsourcing to enter into consulting engagements
with other Business Process Outsourcing (BPO) companies including Accenture, IBM Business
Solutions, Proview Global, Salmat Group, Chevron Philippines, Six Continent Hotels (now Hotel
Intercontinental), and Amtec Human Capital.

While part of academic institution, University of Asia and the Pacific (UA&P), and consulting
company XMG Asia-Pacific, Mr. Tolentino strengthened his strategic advisory services in the areas of
IT and Telecom, providing important support to the strategic growth plans of companies such as
Oracle, Info-Alchemy, Wideout, Broadband Philippines, PLDT, Smart, Pacific Internet, as well as
organizations in related industries such as Level-Up Games, Slycesoft Games, The Game
Developers Association of the Philippines (GDAP), Philippine Software Industry Association
(PSIA), European IT Service Center (EITSC), Colliers International, Canadian Embassy, Frontstate,
Lingua Franca, FutureGov, and Digital Media Exchange.

Mr. Tolentino has a Bachelor's Degree in Chemical Engineering from the University of the
Philippines-Diliman, and a Masters of Science in Business Administration from the same
institution. He has had more than fifteen years experience as a consultant and research
analyst, five of which was spent in the game and entertainment industry.

About POSC
Powerhaus Outsourcing Solutions and Consultancy, Inc. Is a pioneer research and consulting firm in
the field of competitive intelligence (CI). Since 2005, POSC has provided reliable, relevant, and
actionable information that is used for business decision-making. POSC is a pure CI firm that
provides clients with research and analysis, training, strategic consultancy, advisory and CI
outsourcing services. Clients are able to pre-empt their destinies by using proleptic information to
guide their decisions.

Powerhaus Outsourcing Solutions and Consultancy, Inc. Page 17

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