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The Dynamics of the Media and Content Industries: a Synthesis

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The Dynamics of the Media and Content Industries: a Synthesis The Dynamics of the Media and Content Industries: A Synthesis Jean Paul Simon 2012 Report EUR 25277 EN/7 European Commission Joint Research Centre Institute for Prospective Technological Studies Contact information Address: Edificio Expo. c/ Inca Garcilaso, 3. E-41092 Seville (Spain) E-mail: [email protected] Tel.: +34 954488318 Fax: +34 954488300 http://ipts.jrc.ec.europa.eu http://www.jrc.ec.europa.eu This publication is a Scientific and Policy Report by the Joint Research Centre of the European Commission. Legal Notice Neither the European Commission nor any person acting on behalf of the Commission is responsible for the use which might be made of this publication. Europe Direct is a service to help you find answers to your questions about the European Union Freephone number (*): 00 800 6 7 8 9 10 11 (*) Certain mobile telephone operators do not allow access to 00 800 numbers or these calls may be billed. A great deal of additional information on the European Union is available on the Internet. It can be accessed through the Europa server http://europa.eu/. JRC76471 EUR 25277 EN/7 ISBN 978-92-79-22547-5 (pdf) ISSN 1831-9424 (online) doi:10.2791/79297 Luxembourg: Publications Office of the European Union, 2012 © European Union, 2012 Reproduction is authorised provided the source is acknowledged. Printed in Spain The Dynamics of the Media and Content Sector: A Synthesis Shake (up), rattle (along), and roll (about)1 1 "Shake, rattle and roll", was first recorded by “blackface” artist Al Bernard in 1919. It was released by Edison under a Blue Amberol cylinder 4 minute format (1912-1929), a new cylinder medium--celluloid due to the rapid rate of technological development in the cylinder era. It was published by Jazz musician W C Handy, who tried to copyright the song under his name. Jesse Stone who wrote the hit for Big Joe Turner in 1954 was also involved earlier in the vaudeville scene: the song alludes to a scene in a minstrel show about playing dice (Tosches, 2001: illustrating the connection of minstrel singers with American folk music, country music, and the blues : 233-234). The same year Bill Haley & His Comets recorded the song. Elvis Presley recorded the song twice in 1955. 1 The Dynamics of the Media and Content Sector: A Synthesis Acknowledgements This report was written by Jean Paul Simon for the Information Society Unit at the Institute for Prospective Technological Studies (JRC-IPTS). The author would like to thank the numerous industry representatives, academics and staff from public authorities for their comments and reviews of earlier drafts. The author is grateful to Pierre-Jean Benghozi, Alain Busson, Patrice Chazerand, Jean Pierre Coustel, Claudio Feijoo, Bernard Guillou, Augusto Preta, Erik Lambert, David Waterman, and Steve Wildman for their support. The research on which this report is based was presented and discussed for validation at an international expert workshop attended by representatives from the European Commission and industry experts, all of whom offered many valuable comments and viewpoints. Finally, the skilful checking and editing of the text by Patricia Farrer (IPTS) is gratefully acknowledged. Although these contributions were substantial, the responsibility for this final version clearly remains with the author. 2 The Dynamics of the Media and Content Sector: A Synthesis Preface Media and Content Industries (MCI) carry out an array of heterogeneous economic activities, which encompass publishing (including music), sound, motion picture and video/TV production, programming, distribution and broadcasting industries, as well as diverse information services. The common thread in these activities is that they are all conducted by establishments primarily engaged in the creation and dissemination of information and cultural products. Also, the last decade witnessed a progressive intertwining of these activities amongst themselves and with the ICT sector, which increasingly provides the means for disseminating MCI products. At the same time, there was rapid change in the way these establishments worked and their business models (production and distribution processes, key players, organisation, etc.). Last, but not least, there was a substantial increase in the overall weight of MCI in the EU economy. While understanding and mastering the descriptive quantitative tools that we have to hand is important, it is even more essential to grasp the current dynamics in the various industries in the Media and Content sector, possibly in relation with those in the ICT sector, in order to adapt our metrics and analysis to the current and emerging transformations of these sectors. Therefore in 2009, IPTS launched a research project on the "Statistical, ecosystems and competitiveness analysis of the Media and Content Industries". This research initially included the preparation of a statistical report, a historical report and three subsector case studies, each supported by a dataset and technical annex. In 2010, IPTS decided to complement the initial case studies (cinema, music and newspaper) with two additional subsectors (book publishing and broadcasting) in order to provide a comprehensive view of the sector. In 2010, IPTS had already released a case study of the video games industry, a fast growing segment of the sector. This set of studies has two objectives: 1. To offer a quantitative statistical approach to the Media and Content Industries, including their extension or blurring boundaries due to: offline and online activities; innovative activities deriving from recently developed technological applications (i.e. P2P, WEB 20, social computing or other related current or emerging trends and technologies); specific sub-industries, companies or products that would not readily fit existing taxonomies. 2. To offer an industrial and economic analysis of the Media and Content Industries, and their dynamics. The case studies investigate the past and current ecosystems of these industries, looking beyond value chains or major actors to those aspects that are relevant to the understanding of the transformations themselves: emerging challengers, past and new threats and ways of responding, new business models, major investments, major failures or successes and their causes, technological changes affecting the industry, radical innovations if any, etc. The six reports2 are based on a review and synthesis of the available literature and (official 2 See http://is.jrc.ec.europa.eu/pages/ISG/MCI.html for the following reports: 1. Leurdijk, A; de Munck, S; van den Broek, T; van der Plas, A; Manshanden, W; Rietveld, E (2012) Statistical, Ecosystems and Competitiveness Analysis of the Media and Content Industries: A Quantitative Overview”. 3 The Dynamics of the Media and Content Sector: A Synthesis and unofficial) data of the MCI sector, desk research, and several workshops3. The results were reviewed by experts and at dedicated workshops. The reports aim to offer a reliable set of data and analysis, and also to contribute significantly to the debate about the economic health and development conditions that will support the future competitiveness of the European Media and Content Industries. In 2012, the IPTS launched a call on “Media and Content Industries: Changing regulation for changing industries”, with the following aims: - Describe impacts and lessons from digitalisation, - Draw synthetic lessons about the impacts of digitalisation and give an integrated view about the resulting transformations in the Media and Content Industries, differentiating these impacts within and outside Europe.” - Propose an overview of value creation in the media and content industries and identify emerging business models from the various subsectors”. - Debate main policy-related issues, consequences and ways forward”, with a main focus on copyright. - Compare/confront the economic, industrial and other observations gathered in those studies with the above mentioned European and other non-European policies and regulations. - Offer a series of policy options or recommendations. This report offers a synthesis of all the six case studies together as well as some new features based on further research, interviews and conferences. The report underlines the specific dynamics at work within the media and content industries after a succession of disruptive technological waves. This first report is complemented by a more detailed report on copyright issues: “Changing modes of asset management: IPR and copyright in the digital age”. Contract title: Media and Content Industries: Changing regulation for changing industries Contract number: 152 849 2012 A08 FR The contract was awarded by: Institute of Prospective Technological Studies (IPTS) of the Directorate General Joint Research Centre, European Commission Main contractor: JPS Public Policy Project leader: Jean Paul Simon IPTS MCI research team: Giuditta de Prato, Esteve Sanz. 2. Leurdijk, A., Nieuwenhuis., O., Statistical, Ecosystems and Competitiveness Analysis of the Media and Content Industries: The Music Industry (2012). 3. Leurdijk, A., Nieuwenhuis., O., Slot, M., Statistical, Ecosystems and Competitiveness Analysis of the Media and Content Industries: The Newspaper Publishing Industry (2012) 4. De Vinck, S., Lindmark, S., (2012). Statistical, Ecosystems and Competitiveness Analysis of the Media and Content Industries: The Film Sector (2012). 5. De Prato, G., Simon, J.P, Statistical, Ecosystems and Competitiveness Analysis of the Media and Content Industries: The
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