text_TITL pruh_TITL logoC Culture and Mass Media Economy 1 Creative and Cultural Industries in the world and in the Czech Republic 5. lesson Simona Škarabelová www.econ.muni.cz pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi Culture and Mass Media Economy 2 The economic importance of the arts nWhen did start discussion about the economic importance of the arts? nIn 1960s - by the Community Arts Movement. nHow were these discussions? nmost of them was anecdotal, there were significant gaps in the documentation of work. nIn which area became arts and cultural activities from early 1980s an increasing feature? nIn the area ofurban regeneration programmmes in Britain. nWhen was established Creative Industries Taskforce? nin 1997 in UK – New Labor Party by Tony Blaire n www.econ.muni.cz pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi Increasing role of cultural and creative industries n nWhen was the creative industries sector recognized as a major force in the fast-changing global economy by supranational organizations such as the European Commission, the World Bank, national and local governments?? nIn 1997 nToday world is era of extraordinary change and globalization. nCreativity and innovation are now driving the new - creative economy. n n www.econ.muni.cz pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi The new/creative economy nHave inside neconomic, npolitical, nsocial, ncultural and ntechnological issues nIs at the crossroads of the arts, business and technology. nIt is unique in that it relies on an unlimited global resource: human creativity. www.econ.muni.cz pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi Many stakeholders are involved in this process: n nthe public sector nwhich includes cultural institutions, e.g. museums, public service broadcasting organizations, etc.; nthe private sector nwhich covers a wide range of commercial operations in all fields of cultural production and distribution; nthe non-profit sector nincluding many theatre and dance companies, festivals, orchestras, which may receive government subsidies; nnon-governmental organizations n such as advocacy agencies, actors and musicians’ unions. www.econ.muni.cz pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi Integration to the policy agenda q2005, the United Kingdom’s Commission for Africa reported that there was a ‘real danger that a lack of attention to culture in policy making […] will overwhelm many of the collective mechanisms of survival which are part of Africa’s cultures’ (Commission for Africa 2005;130). qIn early May 2007, the European Commission announced its decision to adopt a strategy on the contribution of culture to economic growth and intercultural dialogue (European Commission, 2007). www.econ.muni.cz pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi Impacts of creativity: Culture is increasingly finding a route to the market, which is leading to radical transformations in the way people create, consume and enjoy cultural products. Globalisation and the convergence of multimedia and telecommunications technologies has transformed consumers from passive recipients of cultural messages into active co-creators of creative content. Digital distribution in industries such as design and music has transformed global markets and allowed new industries and consumers to emerge in developing regions such as Africa and Asia (OECD-2, 2005). Licensed digital distribution of recorded music rised from $653 million in 2005 to $4.9 billion in 2010, which represented a 49.5% compound annual increase (PWC, 2007). www.econ.muni.cz pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi Cultural industries nrelate to the creation, production and commercialisation of the products of human creativity, which are copied and reproduced by industrial processes and worldwide mass distribution. nThey are often protected by national and international copyright laws. nThey usually cover printing, publishing and multimedia, audiovisual, phonographic and cinematographic productions, crafts and design. n n Creative industries n encompass a broader range of activities than cultural industries including architecture, advertising, visual and performing arts. http://sitearm.files.wordpress.com/2011/06/its-a-creative-economy-slide.png www.econ.muni.cz pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi nThe entertainment and media industry growd from $1.3 trillion in 2005 to reach $1.8 trillion by 2010 (PWC, 2007). nAsia is expected to record the highest growth rate of all regions in the entertainment and media industry, increasing from $274 billion to $425 billion nChina will have the fastest growing industry in the world nIn 1990s, the creative economy in OECD countries grew at an annual rate twice that of service industries and four times that of manufacturing (Howkins, 2001). www.econ.muni.cz pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi nThe growth of the cultural and creative sector in the European Union from 1999 to 2003 was 12.3% higher than the growth of the overall economy (European Commission, 2006). nTurnover of the culture and creative sector in the EU, which comprises television, cinema, music, performing arts, and entertainment, generated €654 billion and contributed to 2.6% of the European Union’s GDP in 2003. nThe culture sector employed at least 5.8 million people in Europe in 2004, which is more than the total working population of Greece and Ireland put together. www.econ.muni.cz pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi HOW to measure the importance of cutural industries? 1.National satellite accounts, nwhich are being adopted by several Latin America countries. nInitial results are provided in next figure, nwhere it is shown that the contribution of culture (here understood as publishing, leisure/spare time), cultural services and sports) to the GDP for the Latin America countries was less than 3% in 2003. nWhile this figure seems to be lower than for European countries, varying definitions may explain these differences; for example, the European study incorporates gambling and casinos and internet transactions, which is not the case for Latin America countries. www.econ.muni.cz pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi Contribution of the value added of selected cultural industries to the GDP for Latine America countries in 2003 (in %) n www.econ.muni.cz pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi 2.Another way of assessing the creative economy is by examining what is referred to as the copyright industries. nThe World Intellectual Property Organization (WIPO, 2003) developed a framework that enables countries to estimate the size of their creative and information sector. nThe guide separates out this sector into four categories of industries, which are: nthe Core Copyright Industries, nthe Interdependent Copyright Industries, nthe Partial Copyright Industries, and nthe Non-Dedicated Support Industries. nThese industries differ by their level of involvement in creation, production and manufacturing in the literary, scientific and artistic domain. n www.econ.muni.cz pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi Contribution of copyright industries to the GDP and employment in % for several countries in 2001 n www.econ.muni.cz pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi 3. A final key source of data on the creative economy is information related to the consumption of cultural activities or products, which can be captured by statistics on household spending on recreation and culture. nThe inclusion of recreation covers domains beyond the common definition of creative industries, such as the purchase of leisure equipment for camping. n nThe percentage of GDP spent on household expenditure on recreation and culture for most OECD countries shows a positive correlation with per capita income (OECD, 2007). n nThe richer a country is, the more chance there is that the population will spend a higher percentage of their income on culture and leisure/spare time n However, there are some anomalies: in Ireland, considered a rich country, the population spends relatively little on recreation and culture, while the Czech Republic, considered a poorer country, spends a rather high share. www.econ.muni.cz pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi Household expenditure on recreation and culture as percentage of GDP in 2005 or latest year available (OECD, 2007) n www.econ.muni.cz pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi Sources of financing culture by cultural areas in 2010 (in thousand CZK) AREA Central government Local government Public Sector Total Direct household spending Non-financial and financial corporations Non-governmental institutions Private Sector Total European Structural Funds Other international institutions Rest of the world total RESOURCES TOTAL Cultural Heritage 4 709 475 11 580 864 16 290 339 3 813 000 2 210 867 295 367 6 319 234 251 542 48 248 299 790 22 909 363 Performirng Arts 840 122 3 753 326 4 593 448 7 328 505 2 609 173 155 712 10 093 390 66 306 28 295 94 601 14 781 439 Fine Arts 29 576 60 556 90 132 811 724 6 323 582 35 438 7 170 744 21 046 9 938 30 984 7 291 860 Periodic and aperiodic press 25 773 30 260 56 033 11 676 493 32 777 264 11 754 44 465 511 . 46 46 44 521 590 Audio-visual and Interactive Technology 550 172 1 283 077 1 833 249 20 552 426 31 889 585 822 578 53 264 589 66 804 . 66 804 55 164 642 Architecture . . . . 28 236 727 3 494 28 240 221 . . . 28 240 221 Advertising . . . 88 507 75 439 468 . 75 527 975 . . . 75 527 975 Art Education 8 769 7 240 480 7 249 249 920 054 40 061 10 242 970 357 . 14 14 8 219 620 Administration 1 524 579 1 444 552 2 969 131 . . 6 439 494 6 439 494 . . . 9 408 625 Unknown area 318 863 5 737 754 6 056 617 . . . . . . . 6 056 617 TOTAL 8 007 329 31 130 869 39 138 198 45 190 709 179 526 727 7 774 079 232 491 515 405 698 86 541 492 239 272 121 952 Culture and Mass Media Economy 17 www.econ.muni.cz pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi Sources of financing culture by cultural areas in Czech Republic in 2010 nFrom public sources ncultural heritage + performing arts nFrom private sources nadvertising + audio visual and interactive technologies nEuropean Structural Funds ncultural heritage nhighest number from all resources nadvertising Culture and Mass Media Economy 18 www.econ.muni.cz pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi http://www.youtube.com/watch?v=bKqRhGCoQI0 Thanks for attention Culture and Mass Media Economy 19