UNITED
      STATES


SECURITIES
      AND EXCHANGE COMMISSION


WASHINGTON,
      D.C. 20549





FORM
      10-QSB




(Mark
      One)




x
            Quarterly
                report under Section 13 or 15(d) of The Securities Exchange Act Of
                1934





For
      the
      quarterly period ended March 31, 2007





o
            Transition
                report under Section 13 or 15(d) of The Securities Exchange Act Of
                1934





For
      the
      transition period from _______ to  _______





Commission
      file number 0-22315





DIGITAL
      CREATIVE DEVELOPMENT CORPORATION


(Exact
      Name of Small Business Issuer as Specified in Its Charter)





Utah
            34-1413104(State
                or other jurisdiction of
            (I.R.S.
                EmployerIncorporation
                or organization)
            Identification
                No)




720
      Fifth Avenue 10 th Floor, New York, New York 10019


(Address
      of principal executive offices)





(212)
      247-0581


(Issuer's
      telephone number, including area code)





Indicate
      by check mark whether the registrant (1) has filed all reports required to
      be
      filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
      the
      preceding 12 months (or for such shorter period that the registrant was required
      to file such reports), and (2) has been subject to such filing requirements
      for
      the past 90 days.


Yes o No  x





Indicate
      by check mark whether the registrant is a shell company (as defined in Rule
      12b-2 of the Exchange Act)


Yes o No  x





As
      of
      September 27, 2007, 53,864,165 shares of Common Stock, $.01 par value, were
      outstanding.




Transitional
      Small Business Disclosure Format (Check one): Yes o No x










**DIGITAL
      CREATIVE DEVELOPMENT CORPORATION AND SUBSIDIARY**


**FOR
      THE THREE MONTHS ENDED**


**MARCH
      31, 2007**





**INDEX**





**Part
                I - FINANCIAL INFORMATION**Item
                1.
            INTERIM
                FINANCIAL STATEMENTS
            
            3Consolidated
                Balance Sheets as of March 31, 2007 (Unaudited) and June 30,
                2006
            
            F-1Consolidated
                (Unaudited) Statements of Operations and Comprehensive Income for
                the nine
                months and three months ended March 31, 2007 and 2006.
            
            F-2Consolidated
                (Unaudited) Statement of Stockholders’ Equity for the nine months ended
                March 31, 2007
            
            F-3Consolidated
                Statements of Cash Flow for the nine months ended March 31, 2007
                and
                2006.
            
            F-4Notes
                to Interim Financial Statements
            
            F-5Item
                2.
            MANAGEMENT'S
                DISCUSSION AND ANALYSIS AND PLAN OF OPERATION
            
            4Item
                3.
            QUANTITATIVE
                AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
            
            6Item
                4.
            CONTROLS
                AND PROCEDURES
            
            7**Part
                II - OTHER INFORMATION**Item
                6.
            EXHIBITS
                AND REPORTS ON FORM 8-K
            
            7Signatures.
            
            8Certifications





2





**Part
      I - FINANCIAL INFORMATION**





**Item
      1** .





**INTERIM
      FINANCIAL STATEMENTS**




3


**DIGITAL
                  CREATIVE DEVELOPMENT CORPORATION AND
                  SUBSIDIARY****CONSOLIDATED
                  BALANCE SHEETS****MARCH
                  31 , 2007 AND JUNE 30, 2006****March
                  31, 2007**
              
              **June
                  30, 2006****(Unaudited)**
              
              **(Audited)****(in
                  thousands)****ASSETS****CURRENT
                  ASSETS**Cash
                  and cash equivalents
              
              $
              1.9
              
              $
              73.4Marketable
                  securities
              
              
              1,041.6
              
              
              1,302.0**TOTAL
                  CURRENT ASSETS**
              
              
              1,043.5
              
              
              1,375.4.**OTHER
                  ASSETS**Marketable
                  securities and non-marketable securities and advances, net of $
                  300,000at
                  March 31 , 2007 and June 30, 2006
              
              
              7,310.7
              
              
              9,565.1**TOTAL
                  ASSETS**
              
              **$**
              **8,354.2**
              
              **$**
              **10,940.5****LIABILITIES
                  AND STOCKHOLDERS' EQUITY****CURRENT
                  LIABILITIES**Accrued
                  expenses and other liabilities
              
              $
              677.6
              
              $
              599.9Current
                  portion of notes payable--related parties
              
              
              821.6
              
              
              914.1**TOTAL
                  CURRENT LIABILITIES**
              
              
              1,499.2
              
              
              1,514.0**STOCKHOLDERS'
                  EQUITY**Preferred
                  Stock 2,000,000 Shares AuthorizedSeries
                  A Convertible, Par Value $ 1 ; 2,200 Shares Issued andOutstanding;
                  Involuntary Liquidation Preference of $ 1 Per SharePlus
                  Accrued and Unpaid Dividends
              
              
              2.2
              
              
              2.2Series
                  C, Par Value $ 100 ; 9,900 Shares Issued andOutstanding;
                  Involuntary Liquidation Preference of $ 100 Per SharePlus
                  Accrued and Unpaid Dividends
              
              
              852.7
              
              
              852.7Series
                  D, Par Value $ 100 ; 4,000 Shares Issued andOutstanding;
                  Involuntary Liquidation Preference of $ 100 Per SharePlus
                  Accrued and Unpaid Dividends
              
              
              400.0
              
              
              400.0Common
                  Stock, Par Value $ .01; Authorized 75,000,000 Shares; Issued and
                  Outstanding:50,689,165
                  Shares at March 31, 2007 and 51,689,165 Shares at June 30, 2006
              
              
              506.9
              
              
              516.9Additional
                  paid in capital
              
              
              38,380.1
              
              
              38,370.1Accumulated
                  other comprehensive income
              
              
              5,351.1
              
              
              7,692.7Accumulated
                  deficit
              
              
              (38,638.0
              )
              
              (38,408.1
              )**TOTAL
                  STOCKHOLDERS' EQUITY**
              
              
              6,855.0
              
              
              9,426.5**TOTAL
                  LIABILITIES AND STOCKHOLDERS' EQUITY**
              
              **$**
              **8,354.2**
              
              **$**
              **10,940.5**


**See
        accompanying Notes to Consolidated Financial Statements**
  F-1


**DIGITAL
                  CREATIVE DEVELOPMENT CORPORATION AND
                  SUBSIDIARY****CONSOLIDATED
                  STATEMENTS OF OPERATIONS AND COMPREHENSIVE
                  INCOME****(Unaudited)****For
                  the Nine Months Ended March 31 ,**
              
              **For
                  the Three Months Ended March 31,****2007**
              
              **2006**
              
              **2007**
              
              **2006****(in
                  thousands)**
              
              **(in
                  thousands)****REVENUE**
              
              $
              -
              
              $
              0.2
              
              $
              -
              
              $
              -**OPERATING
                  EXPENSES**General
                  and administrative expenses
              
              
              218.9
              
              
              185.8
              
              
              81.1
              
              
              60.5**LOSS
                  FROM OPERATIONS**
              
              
              (218.9
              )
              
              (185.6
              )
              
              (81.1
              )
              
              (60.5
              )**OTHER
                  INCOME (EXPENSE)**Interest
                  expense, net and other
              
              
              (109.0
              )
              
              (97.7
              )
              
              (42.9
              )
              
              (23.4
              )Realized
                  gains net of unrealized gain on investments
              
              
              235.5
              
              
              49.3
              
              
              120.5
              
              
              19.3Other
                  settlements
              
              
              (137.5
              )
              
              
              
              
              -**TOTAL
                  OTHER INCOME (EXPENSE)**
              
              
              (11.0
              )
              
              (48.4
              )
              
              77.6
              
              
              (4.1
              )**NET
                  LOSS**
              
              **$**
              **(229.9**
              **)**
              **$**
              **(234.0**
              **)**
              **$**
              **(3.5**
              **)**
              **$**
              **(64.6**
              **)****UNDECLARED
                  PREFERRED STOCK DIVIDENDS**
              
              
              (109.1
              )
              
              (109.1
              )
              
              (36.4
              )
              
              (36.4
              )**Net
                  Loss available to common shareholders**
              
              **$**
              **(339.0**
              **)**
              **$**
              **(343.1**
              **)**
              **$**
              **(39.9**
              **)**
              **$**
              **(101.0**
              **)****WEIGHTED
                  AVERAGE NUMBER OF OUTSTANDING SHARES FOR****BASIC
                  AND DILUTED EARNINGS PER SHARE**
              
              
              50,689.2
              
              
              51,677.2
              
              
              50,689.2
              
              
              51,689.2**BASIC
                  AND DILUTED INCOME (LOSS) PER SHARE**
              
              $
              (0.007
              )
              $
              (0.007
              )
              $
              (0.001
              )
              $
              (0.002
              )**NET
                  INCOME (LOSS)**
              
              $
              (229.9
              )
              $
              (234.0
              )
              $
              (3.5
              )
              $
              (64.6
              )**Other
                  comprehensive operations****Gain
                  (loss) on marketable securities**
              
              
              (2,341.6
              )
              
              (954.6
              )
              
              (473.7
              )
              
              917.6**Comprehensive
                  net income (loss)**
              
              $
              (2,571.5
              )
              $
              (1,188.6
              )
              $
              (477.2
              )
              $
              853.0


**See
        accompanying Notes to Consolidated Financial Statements**
  F-2


**DIGITAL
                  CREATIVE DEVELOPMENT CORPORATION AND
                  SUBSIDIARY****CONSOLIDATED
                  STATEMENTS OF STOCKHOLDERS' EQUITY****FOR
                  THE NINE MONTHS ENDED MARCH 31, 2007****(Unaudited)****(in
                  thousands)****Accumulated****Preferred
                  Stock**
              
              
              
              **Additional**
              
              **Other****SeriesA**
              
              **SeriesC**
              
              **SeriesD**
              
              **Common**
                    **Stock**
              
              **Paid-in**
                    **Capital**
              
              **Comprehensive**
                    **Operations**
              
              **Accumulated**
                    **Deficit**
              
              **Total****Balance
                  at June 30, 2006 (Audited)**
              
              **$**
              **2.2**
              
              **$**
              **852.7**
              
              **$**
              **400.0**
              
              **$**
              **516.9**
              
              **$**
              **38,370.1**
              
              **$**
              **7,692.7**
              
              **$**
              **(38,408.1**
              **)**
              **$**
              **9,426.5**Unrealized
                  loss on investments
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              (2,341.6
              )
              
              
              
              
              (2,341.6
              )Cancellation of
                  common shares
              
              
              
              
              
              
              
              
              
              
              
              (10.0
              )
              
              10.0
              
              
              
              
              
              
              
              
              -Net
                  loss
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              (229.9
              )
              
              (229.9
              )**Balance
                  at March 31, 2007**
              
              **$**
              **2.2**
              
              **$**
              **852.7**
              
              **$**
              **400.0**
              
              **$**
              **506.9**
              
              **$**
              **38,380.1**
              
              **$**
              **5,351.1**
              
              **$**
              **(38,638.0**
              **)**
              **$**
              **6,855.0**


**See
        accompanying Notes to Consolidated Financial Statements**
  F-3


**DIGITAL
                  CREATIVE DEVELOPMENT CORPORATION AND
                  SUBSIDIARY****CONSOLIDATED
                  STATEMENTS OF CASH FLOWS****(Unaudited)****For
                  the Nine Months Ended March 31,****2007**
              
              **2006****(in
                  thousands)**CASH
                  FLOWS FROM OPERATING ACTIVITES:Net
                  loss
              
              $
              (229.9
              )
              $
              (234.0
              )Adjustments
                  to reconcile net loss to net cash used in operating
                  activities:Realized
                  (gain) on investments net of unrealized gains on
                  investments
              
              
              (235.5
              )
              
              (49.3
              )Issuance
                  of stock for services
              
              
              -
              
              
              5.6Changes
                  in assets and liabilities:Increase
                  in accounts payable, accrued expenses and other
                  liabilities
              
              
              126.2
              
              
              68.6NET
                  CASH USED IN OPERATING ACTIVITIES
              
              
              (339.2
              )
              
              (209.1
              )CASH
                  FLOWS FROM INVESTING ACTIVITES:Proceeds
                  from sale of investments
              
              
              360.2
              
              
              175.4NET
                  CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES
              
              
              360.2
              
              
              175.4CASH
                  FLOWS FROM FINANCING ACTIVITES:Proceeds
                  from issuance of notes payable--related parties
              
              
              120.0
              
              
              -Payments
                  of note payable
              
              
              (212.5
              )
              
              (50.3
              )NET
                  CASH PROVIDED BY FINANCING ACTIVITIES
              
              
              (92.5
              )
              
              (50.3
              )NET
                  CHANGE IN CASH AND CASH EQUIVALENTS
              
              $
              (71.5
              )
              $
              (84.0
              )CASH
                  AND EQUIVALENTS, beginning of year
              
              
              73.4
              
              
              111.5CASH
                  AND EQUIVALENTS, end of year
              
              $
              1.9
              
              $
              27.5Cash
                  payments for:Interest
                  expense
              
              $
              -
              
              $
              -Income
                  taxes
              
              $
              -
              
              $
              -**Supplemental
                  disclosure of noncash transactions:**None
              
              $
              -
              
              $
              -


**See
        accompanying Notes to Consolidated Financial Statements**


F-4




**DIGITAL
      CREATIVE DEVELOPMENT CORPORATION AND SUBSIDIARY**


**NOTES
      TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS**


**March
      31, 2007**


**(Unaudited** )





**NOTE
      1- BASIS OF PRESENTATION**




The
      consolidated financial statements include the accounts of Digital Creative
      Development Corporation and its wholly owned subsidiary (collectively, the
      "Company").





The
      accompanying condensed consolidated financial statements are unaudited and
      have
      been prepared by the Company in accordance with the rules and regulations of
      the
      Securities and Exchange Commission relating to interim financial statements.
      These condensed financial statements do not include all disclosures provided
      in
      the Company's annual financial statements. The condensed financial statements
      should be read in conjunction with the financial statements and notes thereto
      for the year ended June 30, 2006 contained in the Company's Form 10-KSB filed
      with the Securities and Exchange Commission. All adjustments of a normal
      recurring nature, which, in the opinion of management, are necessary to present
      a fair statement of results for the periods have been made. Results of
      operations are not necessarily indicative of the results to be expected for
      the
      full year.




**NOTE
      2- PRINCIPLES OF CONSOLIDATION**





The
      consolidated financial statements include the accounts of Digital Creative
      Development Corporation and its wholly owned subsidiary, (collectively the
      "Company"). The wholly owned subsidiary at March 31, 2007 and June 30, 2006
      is
      Digital Creative Development Company (Delaware). The Company currently has
      no
      active business. However, the Company is involved in acquiring and investing
      in
      software and high technology companies, with a focus on acquiring controlling
      interests and had entered into the software technology industry through its
      investment in International Microcomputer Software, Inc. (n/k/a Broadcaster,
      Inc.). Broadcaster was a leading provider of stock house plans over the Internet
      with the largest selection of plans for consumers and builders. Broadcaster
      also
      sold a variety of related content and services over the Internet. In addition,
      Broadcaster was a developer and publisher of software solutions which is
      marketed and sold to individuals and small business users through an array
      of
      distribution channels. On June 2, 2006 IMSI (n/k/a Broadcaster, Inc.) closed
      its
      acquisition of AccessMedia Networks, Inc. The combined company operates under
      the name Broadcaster, Inc., and operates an Internet entertainment network
      (See
“Subsequent Events”).




F-5




**DIGITAL
      CREATIVE DEVELOPMENT CORPORATION AND SUBSIDIARY**


**NOTES
      TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS**


**March
      31, 2007**


**(Unaudited** )




**NOTE
      3- MARKETABLE SECURITIES**




The
      Company had investments and advances in certain marketable and non-marketable
      debt and equity securities at March 31, 2007 and June 30, 2006 as follows:




(in
                thousands)March
                31, 2007
            
            June
                30,
              2006Marketable
                Securities - current:Broadcaster
                (formerly IMSI)
            
            $
            380.4
            
            $
            380.4Other
                marketable securities
            
            
            -
            
            
            -380.4
            
            
            380.4Unrealized
                gain on marketable securities - Current portion
            
            
            661.2
            
            
            921.6Total
            
            $
            1,041.6
            
            $
            1,302.0Marketable
                Securities - non-current:Broadcaster
                (formerly IMSI)
            
            $
            2,669.6
            
            $
            2,794.3Access
                Propeller Holdings , Inc.
            
            
            300.0
            
            
            300.0Sub
                total
            
            
            2,969.6
            
            
            3,094.3Unrealized
                gain on marketable securities - Non-Current portion
            
            
            4,641.1
            
            
            6,770.8Less:
                allowance for impairments
            
            
            (300.0
            )
            
            (300.0
            )Total
            
            $
            7,310.7
            
            $
            9,565.1




The
      shares of Broadcaster, Inc. owned by the Company are "restricted securities"
      as
      defined in Rule 144 under the Securities Act of 1933. Under Rule 144, the
      Company can publicly sell, within any three month period, a number of shares
      not
      to exceed one percent of Broadcaster, Inc.'s then outstanding shares of common
      stock. In the event that Broadcaster, Inc. becomes listed on the NASDAQ or
      on a
      national securities exchange, the maximum amount that can be sold will be the
      greater of one percent of the outstanding shares and the average weekly trading
      volume of Broadcaster, Inc.'s common stock for the four weeks preceding the
      Company's filing of a notice of sale with the SEC. Further, in connection with
      the merger with AccessMedia Networks, Inc., the Board of Directors of the
      Company approved the execution of a Lock-Up Agreement with Broadcaster which
      provided that the Company may transfer up to two (2%) percent of its holdings
      of
      Broadcaster in each sixty (60) day period following the Closing Date as defined
      in the merger agreement. That agreement expired on June 2, 2007. Since these
      shares are restricted, the shares which can be sold within one year are shown
      as
      a current asset and the balance of the shares are shown in other assets on
      the
      balance sheet. A total of 200,000 shares of Broadcaster, Inc. common stock
      secures the Company's 15% $325,000 Promissory Note which Broadcaster, Inc.
      sold
      to Multi Mag Corporation in January 2005 and approximately 373,935 shares of
      Broadcaster, Inc. common stock secure the $345,000 Notes to investors. These
      shares reflect the 1 for 2 reverse stock split of Broadcaster’s shares effected
      on June 25, 2007.




F-6




**DIGITAL
      CREATIVE DEVELOPMENT CORPORATION AND SUBSIDIARY**


**NOTES
      TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS**


**March
      31, 2007**


**(Unaudited)**





**NOTE
      4- ACCOUNTS PAYABLE AND ACCRUED EXPENSES**





Accrued
      expenses consist basically of accrued legal and other professional fees and
      general administrative expenses of the Company.





**NOTE
      5- NOTES PAYABLE - RELATED PARTIES**





At
      March
      31, 2007 and June 30, 2006 the Company’s long term debt consisted of the
      following:




(in
                thousands)March
                31, 2007
            
            June
                30,
              2006Secured
                Promissory Note with Interest at 15%
            
            $
            325.0
            
            $
            325.0$345,000
                Secured Promissory Notes with Interest at 10%, net of
                discount
            
            
            345.0
            
            
            345.0Notes
                payable to certain former executives and related parties
            
            
            134.5
            
            
            140.7Debt
                due to former employees in conjunction with settlement
                agreement
            
            
            17.1
            
            
            103.4821.6
            
            
            914.1Less:
                Current portion
            
            
            821.6
            
            
            914.1Long-term
                portion
            
            $
            -
            
            $
            -




F-7




**DIGITAL
      CREATIVE DEVELOPMENT CORPORATION AND SUBSIDIARY**


**NOTES
      TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS**


**March
      31, 2007**


**(Unaudited)**





On
      February 21, 2006 the principals of CineBlast filed a legal action seeking
      payment of the outstanding balances ($103,350), plus the amount of the debt
      reduced by a formula in an original agreement ($21,400), and legal fees. On
      April 25, 2006 the court dismissed the action against the Company. On August
      7,
      2006 the court denied the Plaintiff’s motion to reargue. In September 2006 the
      Company received notice that it was served with another legal action from the
      principals of CineBlast. On November 15, 2006 the parties entered into a
      settlement agreement to satisfy the remaining liability over a period of
      approximately six months. As of the filing date, the matter is settled and
      there
      are no further obligations to the principals of CineBlast.




All
      but
      three of the noteholders whose notes total $195,000 have extended their notes
      from December 31, 2005 to May 31, 2006. Additionally in May 2006 the same group
      of investors agreed to further extend the maturity dates of these notes to
      December 31, 2006. Subsequently, these noteholders have agreed to further extend
      the maturity dates of these notes to May 31, 2007 and additionally to December
      31, 2007. The remaining three noteholders have not agreed to extend and those
      notes are now currently in default.





On
      December 14, 2005, the Secured Promissory Note payable to Multi-Mag was extended
      to May 31, 2006 upon the payment of accrued interest from June 18, 2005 thru
      December 23, 2005 in the amount of $22,600. On May 31, 2006, the Company and
      Multi-Mag executed Amendment #4 to the Note. This amendment provides that the
      maturity date on the Note was extended to December 31, 2006 upon the payment
      of
      accrued interest from December 23, 2005 through May 31, 2006 in the amount
      of
      $21,263. On May 30, 2007, the Company and Multi-Mag executed Amendment # 5
      to the Note. This amendment extended the maturity date of the Note to December
      31, 2007 upon the payment of accrued interest from June 1, 2006 through May
      31,
      2007 in the amount of $48,750 payable no later than July 15, 2007. This amount
      was paid on August 8, 2007 and any defaults were waived by
      Multi-Mag.




On
      July
      10, 2006, the Company, in a private placement transaction, borrowed $90,000
      from
      an unrelated party, the proceeds of which were used to satisfy a liability
      of
      the Company. The Note with the unrelated party bears interest at 12% and was
      due
      July 31, 2006. During November and December 2006, the Company repaid $27,650
      representing a partial payment of the principal and interest due. On December
      21,2006 the maturity date of the note was extended to January 31, 2007. On
      March
      14, 2007, the remaining principal balance of $65,000 and accrued interest of
      $3,750 was paid, retiring the liability.




F-8




**DIGITAL
      CREATIVE DEVELOPMENT CORPORATION AND SUBSIDIARY**


**NOTES
      TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS**


**March
      31, 2007**


**(Unaudited)**




**NOTE
      6- COMMITMENTS AND CONTINGENCIES**





The
      Company is involved in various claims and legal actions arising in the ordinary
      course of business. In the opinion of management, the ultimate disposition
      of
      these matters will not have a material adverse effect on the Company's
      consolidated results of operations or financial position.




**NOTE
      7- SUBSEQUENT EVENTS**





The
      Company has sold 295,300 shares of International Microcomputer Software, Inc.
      (n/k/a “Broadcaster, Inc.”) from June 30, 2006 through June 25, 2007. The
      proceeds of approximately $385,300 have been used for general working capital
      purposes. These shares were sold before the 1 for 2 stock split of Broadcaster’s
      shares effected on June 25, 2007. Additionally, 125,800 shares of Broadcaster
      were sold from June 25,2007 to August 31, 2007; the proceeds of approximately
      $268,800 were used for general working capital purposes.




From
      time
      to time, the Company may continue to sell a certain amount of its holdings
      in
      Broadcaster, Inc. The proceeds of these sales are anticipated to be principally
      used by the Company for general working capital purposes.




In
      October, 2005, the Company made a contingent award to each of its
      current directors, Gary Herman and Skuli Thorvaldsson, as well as an award
      to a
      former director and significant shareholder, Bruce Galloway, options to purchase
      7,440,000 shares of common stock at exercise prices ranging from of $.0732
      per
      share to $0.1385 and expiring through June 2015. These options, awarded for
      services rendered in connection with past services, including the restructuring
      of the Company in fiscal year 2002; director services; and other services,
      were
      valued at approximately $798,500.





The
      Company’s Board of Directors has approved this compensation for services
      rendered to the Company by Messrs. Herman and Thorvaldsson contingent upon
      the
      receipt of a fairness opinion from an independent advisory firm and approval
      of
      such fairness opinion by the Board of Directors. The Board of Directors has
      not
      reviewed or approved the opinion of the independent advisory firm. If such
      compensation is granted in full, the value of the related awards will
      approximate $798,500 and be charged to earnings at that time. Further, the
      Company finalized compensation agreements for Messrs. Herman and Thorvaldsson
      which include amounts to be paid for past services to the Company for the
      calendar years 2002, 2003, 2004, 2005 and 2006.




F-9




**DIGITAL
      CREATIVE DEVELOPMENT CORPORATION AND SUBSIDIARY**


**NOTES
      TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS**


**December
      31, 2006**


**(Unaudited)**





On
      December 16, 2005, International Microcomputer Software, Inc. (n/k/a
      Broadcaster, Inc.) filed a Form S-4 with the Securities & Exchange
      Commission for the proposed merger with AccessMedia Networks, Inc.  On
      December 14, 2005 the board of the Company approved the execution of a Voting
      Agreement and Irrevocable Proxy in support of the transaction.  Based on
      the proposed transaction, the Company's ownership stake in Broadcaster was
      reduced from approximately 25% to 11% as a result of the issuance of shares
      of
      common stock of Broadcaster to the shareholders of AccessMedia Networks. If
      Broadcaster achieved certain performance milestones, the shareholders of Access
      Media would be issued additional shares of Broadcaster which would further
      reduce the Company's ownership percentage. On June 2, 2006 Broadcaster closed
      its acquisition of AccessMedia Networks, Inc. The combined company operates
      under the name Broadcaster, Inc., and trades under the ticker symbol BCAS on
      the
      OTC Bulletin Board (OTCBB). In the first calendar quarter of 2007, an additional
      29.4 million shares of common stock of BCAS were issued to former shareholders
      of Access Media reducing the Company’s ownership in BCAS to approximately 6.5%.





On
      June
      25, 2007, Broadcaster effected a 1 for 2 reverse stock split. As of September
      25, 2007, the closing bid price of common stock of Broadcaster as quoted on
      the
      OTC Bulletin Board was $ 2.30.




In
      connection with the transaction, the Board of Directors of the Company approved
      the execution of a Lock-Up Agreement. This lock-up agreement provided that
      the
      Company may transfer up to two (2%) percent of its holdings of Broadcaster
      in
      each sixty (60) day period following the Closing Date as defined in the merger
      agreement. A transfer is defined as a sale, offer, pledge, contract to sell,
      make any short sale of, grant any option for the purchase of, or enter into
      any
      hedging or similar transaction with the same economic effect as a sale, or
      otherwise transfer or dispose of, directly or indirectly. The transfer
      provisions of the lock-up may be waived at the good faith determination of
      Baytree Capital Associates, LLC, the investment banking firm to BCAS. This
      agreement expired June 2 ,2007. From time to time, the Company has sold and
      may
      sell a certain amount of its holdings in Broadcaster. The proceeds of any such
      sales are anticipated to be used by the Company principally for general working
      capital purposes.




F-10




**ITEM
      2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF
      OPERATION**





Statements
      contained in this Quarterly Report on Form 10-QSB, other than the historical
      financial information, constitute "forward-looking statements" within the
      meaning of the Private Securities Litigation Reform Act of 1995. All such
      forward-looking statements involve known and unknown risks, uncertainties or
      other factors which may cause actual results, performance or achievement of
      the
      Company to be materially different from any future results, performance or
      achievement expressed or implied by such forward-looking statements. Factors
      that might cause such a difference include, but are not limited to, risks and
      uncertainties related to the substantial capital requirements, development
      of
      effective internal processes and systems, the ability to attract and retain
      high
      quality employees, changing overall economy and other risks described herein
      and
      in the Company's June 30, 2006 Annual Report on Form 10-KSB.





**PLAN
      OF OPERATION**





Digital
      Creative Development Corporation (the “Company”) is principally involved in
      acquiring and investing in software and high technology companies, with a focus
      on acquiring controlling interests. At present, the Company does not have an
      operating business except for its interest in Broadcaster, Inc., (OTCBB- BCAS).
      The Company has since begun to search for candidates with which to enter into
      business combinations or strategic transactions.





The
      Company intends to locate and enter into a transaction with an existing, public
      or privately-held company that in management's view, has growth potential (a
      "Target Business"). A transaction with a Target Business may be structured
      as a
      merger, consolidation, exchange of the Company's common stock for stock or
      assets of the Target Business or any other form, which will result in the
      combined enterprise remaining a publicly-held corporation.





Acquisitions
      or business combinations may not be available at the times or on terms
      acceptable to the Company, or at all. In addition, acquiring, or combining
      with,
      a business involves many risks, including:





·
            unforeseen
                obligations or liabilities;





·
            difficulty
                assimilating the acquired operations and
                personnel;





·
            risks
                of entering markets in which we have little or no direct prior
                experience;





·
            potential
                impairment of relationships with employees or customers as a result
                of
                changes in management; and





·
            Potential
                dilutive issuances of equity, large and immediate write-offs, the
                incurrence of debt, and amortization of goodwill or other intangible
                assets.





The
      Company cannot make assurances that we will make any acquisitions or business
      combinations or that we will be able to obtain additional financing for such
      acquisitions or combinations, if necessary. If any acquisitions or combinations
      are made, we cannot make assurances that we will be able to successfully
      integrate the acquired or combined business into our operations or that the
      acquired or combined business will perform as expected.




4




Furthermore,
      Federal and state tax laws and regulations have a significant impact upon the
      structuring of transactions. Management will evaluate the possible tax
      consequences of any prospective transaction and will endeavor to structure
      a
      transaction so as to achieve the most favorable tax treatment. There can be
      no
      assurance that the Internal Revenue Service or relevant state tax authorities
      will ultimately assent to our tax treatment of a particular consummated
      transaction. To the extent the Internal Revenue Service or any relevant state
      tax authorities ultimately prevail in recharacterizing the tax treatment of
      a
      transaction, there may be adverse tax consequences to us, a target business
      and
      their respective stockholders. Tax considerations as well as other relevant
      factors will be evaluated in determining the precise structure of a particular
      transaction, which could be effected through various forms of a merger,
      consolidation or stock or asset acquisition.





Pending
      negotiation and consummation of a transaction, the Company anticipates that
      it
      will have, aside from carrying on its search for a transaction partner, no
      business activities, and, thus, no source of revenue. Should the Company incur
      any significant liabilities prior to a combination with a Target Business,
      it
      may not be able to satisfy, without additional financing, such liabilities
      as
      are incurred.




RESULTS
      OF OPERATIONS





Three
      Month Period Ended March 31, 2007 Compared To The Three Month Period Ended
      March
      31, 2006





Net
      loss
      decreased to $3.500 in the three month period ended March 31, 2007
      from $64.600 in the comparable 2006 period, principally due to higher gains
      on
      sales of investments which totaled $120,500 in the current period an increase
      from $19,300 in the 2006 period. General and administrative expenses increased
      34% to $81,100 in the current period from $60,500 due to higher professional
      fees, including legal, administrative and accounting services. Interest and
      other expenses increased 83% and totaled $42,900 in the 2007 period compared
      with $23,400 for the comparable 2006 period.





Nine
      Month Period Ended March 31, 2007 Compared To The Nine Month Period Ended March
      31, 2006





Net
      loss
      of $229,900 in the nine month period ended March
      31, 2007 approximated the net loss of $234,000 in
      the
      comparable 2006 period as a cash settlement of $137,500 satisfying a liability
      arising from the Company’s previous restaurant operations was offset by higher
      realized gains on sales of investments in the 2007 period. General and
      administrative expenses increased 18% to $218,900 in the current period from
      $185,800 in the prior period due to higher professional fees, including legal,
      administrative and accounting services. Gains on sales of investments totaled
      $235,500 in the 2007 nine month period, representing an increase of $186,200
      from the comparable 2006 nine month period.





LIQUIDITY
      AND CAPITAL RESOURCES





The
      Company’s current liabilities exceeded its current assets by approximately
      $465,700 at March 31, 2007, compared to current liabilities exceeding its
      current assets by $139,000 at June 30, 2006, principally due to the reduced
      market value of the Company’s investment in Broadcaster. The Company’s total
      investments at March 31, 2007 were
      $8.4
      million compared to $10.9 million at June 30, 2006, reflecting the decrease
      in
      market value of the Company’s holdings in Broadcaster, Inc.




5




Since
      the
      Company is inactive, except for its interest in Broadcaster, and it is not
      contemplated that Broadcaster will declare and pay dividends on its common
      stock, the Company depends upon sales of its shares of Broadcaster, Inc common
      stock, which are quoted on the OTCBB in order to meet its expenses, unless
      the
      Company could obtain funding from third parties, of which there can be no
      assurance. The Company has sold 295,300 shares of International Microcomputer
      Software, Inc. (n/k/a “Broadcaster, Inc.”) from June 30, 2006 through May
      31,2007. The proceeds of approximately $385,300 have been used for general
      working capital purposes. For
      the
      nine month period ended March 31, 2007, the Company sold 275,300 shares of
      Broadcaster, utilizing the total proceeds of $360,200 for general working
      capital purposes. These shares were sold before the 1 for 2 stock
      split of Broadcaster’s shares effected on June 25, 2007. Additionally, 125,800
      shares of Broadcaster were sold from June 25, 2007 to August 31, 2007; the
      proceeds of approximately $268,800 were used for general working capital
      purposes.




The
      amount of proceeds available to the Company from the sale of shares of
      Broadcaster, Inc depends upon the market for Broadcaster, Inc. shares, which
      is
      subject to volatility in price and market volume.





The
      proceeds of any such sales are anticipated to be principally used by the Company
      for general working capital purposes. The Company anticipates that its working
      capital needs will be financed by sales of Broadcaster shares until and unless
      the Company acquires a profitable operating business or makes other
      investments.




**ITEM
      3.**  **QUANTITATIVE
      AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**





The
      Company’s equity investments are concentrated in relatively few investees,
      principally Broadcaster, Inc. At March 31, 2007, almost 100% of the total fair
      value of equity investments was concentrated in Broadcaster, Inc.





The
      Company’s present preferred strategy is to hold equity investments for trading
      purposes and for long-term strategic purposes. Thus, the Company’s management is
      not necessarily troubled by short term equity price volatility with respect
      to
      its investments provided that the underlying business, economic and management
      characteristics of the investees remain favorable.





The
      carrying values of investments subject to equity price risks are based on quoted
      market prices or management’s estimates of fair value as of the balance sheet
      dates. Market prices are subject to fluctuation and, consequently, the amount
      realized in the subsequent sale of an investment may significantly differ from
      the reported market value. Fluctuation in the market price of a security may
      result from perceived changes in the underlying economic characteristics of
      the
      investee, the relative price of alternative investments and general market
      conditions. Furthermore, amounts realized in the sale of a particular security
      may be affected by the relative quantity of the security being sold.





Insofar
      as the Company’s liabilities are concerned, all loans to the Company have been
      made with fixed interest rates, and, accordingly, the market risk to the Company
      prior to the maturity of those instruments is minimal.





6




**ITEM
      4. CONTROLS AND PROCEDURES**





**Evaluation
      of Disclosure Controls and Procedures**





The
      Company's chief executive officer in conjunction with the chief financial
      officer, after evaluating the effectiveness of the Company's "disclosure
      controls and procedures" (as defined in Rule 13a-15(e) under the Securities
      Exchange Act of 1934, as amended) as of a date (the "Evaluation Date") within
      90
      days before the filing date of this quarterly report, has concluded that the
      Company's disclosure controls and procedures are effective in ensuring that
      material information required to be disclosed is included in the reports that
      it
      files with the Securities and Exchange Commission.




**Changes
      in Internal Controls**





There
      were no significant changes in the Company's internal controls or, to the
      knowledge of the management of the Company, in other factors that could
      significantly affect those controls subsequent to the Evaluation
      Date.





**PART
      II. OTHER INFORMATION**





**Item
      1.** **** **Legal
      Proceedings.**





The
      Company is, from time to time, the subject of litigation, claims and assessments
      arising out of matters occurring during the normal operation of the Company's
      business. In the opinion of management, the liability, if any, under such
      current litigation, claims and assessments, that are material, have been
      properly accrued.





**Item
      2.** **** **Unregistered
      Sales of Equity Securities and Uses of Proceeds.**





None.





**Item
      3. Defaults upon Senior Securities**





None.





**Item
      4.** **** **Submission
      of Matters to a Vote of Security Holders** .





None.





**Item
      5.** **** **Other
      Information.**





None.





**Item
      6.** **** **Exhibits
      And Reports On Form 8-K**




(a)
            Exhibits:
                None.





31
            Certification
                pursuant to Rule 13a-14(a) of the Exchange Act32
            Certification
                pursuant to Rule 13a-14(b) of the Exchange Act and 18 U.S.C. Section
                1350,
                as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of
                2002




(b)
      Reports on Form 8-K





None





7




**SIGNATURES**





In
      accordance with the requirements of the Exchange Act, the Registrant caused
      this
      report to be signed on its behalf by the undersigned, thereunto duly
      authorized.


DIGITAL
                CREATIVE DIGITAL CORPORATIONDated:
                October 9, 2007
            By:
            Gary
              HermanName:
                Gary Herman
              Title:
                President


By:
            Vincent
              De LorenzoName:
                Vincent De Lorenzo
              Title:
                Chief Financial Officer




8