Premier Chang: Government Earmarks NT$20 Billion for Digital Content Development

        On Aug. 8, 2007 , the Executive Yuan approved a draft “Reinforced Guidance Measures for Computer Animation and Digital Games” and “Digital Content Industry Development Act”. These two drafts, which were proposed by the Ministry of Economic Affairs, call for the infusion of NT$20 billion into the two industries within the next five years and target NT$600 billion in production value for the digital content industry in 2011.

Premier Chang Chun-hsiung pointed out that rapid global development has made digital content one of the most promising of emerging industries, and that the “twin stars” of this industry are computer animation and digital games. The government, therefore, has mapped out reinforced guidance measures aimed at boosting the production of computer animation and digital games in Taiwan to the level of Europe , America , and Japan .

Under the “Reinforced Guidance Measures for Computer Animation and Digital Games”, the National Development Fund will allocate NT$20 billion for a pre-commitment investment system under which money will be poured into the digital content, software, and cultural & creative industries. The aim is to attract international investment in 4 to 20 animated films and games per year and stimulate related investment of private capital. In addition, domestic market demand for locally produced animated films will be expanded through the offering of subsidies or incentives to encourage the domestic TV industry to allocate a certain amount of air time for the broadcasting of such films. This is expected to boost the ratio of air time devoted to Taiwan-made animated TV serials from 0.33% last year to 10% in 2011.

At the same time, the growth of core digital content industries (video games and computer animation) will be accelerated through the investment of NT$1.36 billion in the coming five years to subsidize the development of 60 game and animation products, leading to the creation of an estimated 2,000 jobs. The government will also provide incentives for creativity, guidance for creation, and encouragement for production with the aim of propelling the entry into the international market of 10 Taiwanese-concept animated films and game characters by 2011.

The draft “Digital Content Development Act” is expected to provide a more solid legal foundation for the development of the digital content industry in Taiwan . Once the Act is passed by the Legislative Yuan and implemented, it will add force for the industry’s expansion. The key points of the draft are as follows:

1.         Basic implementation measures: These include the establishment of academic departments or curricula related to the field of digital content, the promotion of a professional certification system, the introduction of certification systems from abroad, and the promotion of mutual recognition of domestic and overseas personnel certifications. They also encompass the promotion of technological development and authorization, assistance in the setting and extension of industry standards, the provision of matching development subsidies, the promotion of investment by government funds and the private sector, the encouragement of cross-industry alliances, and full manifestation of the high-tech industrial advantage.

2.         Encouragement of creation and utilization: The creation and utilization of digital content will be encouraged, and incentives will be provided for the combining of digital content with traditional cultural arts. The formation of industry clusters and virtual parks will be promoted, and a comprehensive assessment system that enjoys public confidence will be implemented. A legal rights authorization mechanism for copyright owners or copyright owner’s present location is unknown will be established and the value-added use of publicly owned digital archives will be promoted, along with the utilization of digital archive authorization earnings.

3.         Promotion of distribution and marketing: The development of digital convergence technology will be promoted to facilitate the flow and use of digital content among different transmission carriers. Plans and items for the development of the international market will be formulated, and subsidies for the broadcasting of Taiwan-made animated films will be provided.

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