Mapping the Creative Value Chains A study on the economy of culture in the digital age Final report Mapping the Creative Value Chains A study on the economy of culture in the digital age AUTHORS Isabelle De Voldere, IDEA Consult (Project coordinator) Jean-François Romainville, IDEA Consult Steven Knotter, IDEA Consult Eveline Durinck, IDEA Consult Evrim Engin, IDEA Consult Arthur Le Gall, KEA Philippe Kern, KEA Elisabetta Airaghi, KEA Teodora Pletosu, KEA Heritiana Ranaivoson, imec-SMIT-VUB Katharina Hoelck, imec-SMIT-VUB The research team would like to thank all the stakeholders that have contributed to the research by sharing their valuable expertise and insights during the interviews and online DISCUTO process. EUROPEAN COMMISSION Directorate-General for Education and Culture Directorate D – Culture and Creativity Unit D.1 – Cultural Policy Contact: DG EAC Unit D.1 E-mail: [email protected] European Commission B-1049 Brussels Disclaimer This document has been prepared for the European Commission; however, it reflects the views only of the authors, and the Commission cannot be held responsible for any use which may be made of the information contained therein. 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 (*) The information given is free, as are most calls (though some operators, phone boxes or hotels may charge you). More information on the European Union is available on the Internet (http://europa.eu). Luxembourg: Publications Office of the European Union, 2017 ISBN 978-92-79-66638-4 doi: 10.2766/868748 © European Union, 2017 Reproduction is authorised provided the source is acknowledged. Image(s) © image #284668712. Source: shutterstock.com Abstract Cultural and creative sectors (CCS) have become well established in both an economic and policy context as important assets in strengthening Europe’s economic structure and maintaining its competitiveness in the global economy. This study maps the different value chains for visual arts, performing arts, cultural heritage, artistic crafts, book publishing, music, film, TV and broadcasting as well as multimedia. The study also examines how the competitive position of CCS is affected by digitisation. From creation to consumption, all steps in the value chains have been influenced by new digital solutions. They have brought about new opportunities for innovative practices and new ways of interaction with audiences, but also challenges such as piracy and an increased pressure on existing models of remuneration and value creation. The study discusses aspects related to competitive dynamics, market imperfections, rights management, cultural diversity and other issues of importance to today's cultural and creative sectors. Based on the analysis and supported by an online crowdsourcing process with experts and stakeholders, the study puts forward recommendations to policy-makers on what is needed for the CCS in today's digital world. New actors have entered the market and boundaries between creative value chains and other value chains have become blurred. Innovative multidisciplinary approaches are needed to redefine the role of culture, arts and creativity in a complex society in transition. Key words: Cultural and creative sectors, creative value chains, digitisation, market relations, competitive dynamics, market imbalances Introduction sommaire Les secteurs culturels et créatifs (SCC) sont désormais reconnus, au sein des milieux politiques et économiques, comme des atouts majeurs pour le renforcement de la structure économique européenne et le maintien de sa compétitivité à l’échelle de l’économie mondiale. Cette étude cartographie les chaînes de valeur de neuf domaines culturels et créatifs : arts visuels, arts de la scène, patrimoine culturel, artisanat, édition, musique, film, diffusion à la radio et à la télévision, et multimédia. Cette étude analyse également comment la numérisation a influencé les positions et les dynamiques concurrentielles au sein des SCC. De la création et à la consommation, toutes les étapes de ces chaines de valeur ont été impactées par de nouvelles solutions digitales. Ces dernières offrent de nouvelles opportunités pour les pratiques innovantes ainsi que des façons d’interagir avec le public qui sont radicalement nouvelles. Dans le même temps, la numérisation engendre des défis considérables pour les SCC tels que l’augmentation du piratage ainsi que la pression croissante exercée sur les modèles existants de création et rémunération de la valeur. Cette étude aborde plusieurs volets importants d'actualité pour les SCC, tels que les imperfections du marché, la gestion des droits et la diversité culturelle. Sur base de ces analyses ainsi que du feedback reçu durant un processus d'interaction en ligne avec des experts et des représentants des milieux concernés, l'étude présente un certain nombre de recommandations aux décideurs politiques en vue de répondre aux besoins des SCC à l'ère du numérique. De nouveaux acteurs sont entrés dans le marché et les frontières entre les chaînes de valeur créatives et les autres chaînes de valeurs tendent à s'estomper. Des approches multidisciplinaires et innovantes s'avèrent désormais nécessaires afin de repenser le rôle de la culture, des arts et de la créativité dans une société complexe et en transition. Mots-clés: Secteurs culturels et créatifs, chaînes de valeur créatives, numérisation, relations de marché, dynamiques concurrentielles, déséquilibres du marché Mapping the creative value chains – a study on the economy of culture in the digital age 3 Mapping the creative value chains – a study on the economy of culture in the digital age 4 Table of Contents Executive summary 9 Introduction to the study 26 1/ Context and scope 27 1.1 CCS in Europe 27 1.2 Scope of the present study 28 2/ Digitisation and the organisation of creative value chains 29 3/ Aim of the study and structure 31 4/ Glossary 32 Creative Value Chains mapping 34 1/ The analysis of Creative Value Chains - approach 35 1.1 The concept of value chain analysis 35 1.2 Defining creative value chains 35 1.3 Methodology and value chain mapping structure 39 2/ Visual arts – a value chain analysis 40 2.1 Introduction to the visual arts sector: definition and importance in the EU economy 40 2.2 Creative value chain mapping and description 42 2.3 In-depth analysis of interrelations between actors 53 2.4 Other exogenous changes and relations with other sectors 58 3/ Performing Arts – a value chain analysis 60 3.1 Introduction to the performing arts sector: definition and importance in the EU economy 60 3.2 Creative value chain mapping and description 61 3.3 In-depth analysis of interrelations between actors 73 3.4 Other exogenous changes and relations with other sectors 82 4/ Cultural heritage – a value chain analysis 85 4.1 Introduction to the cultural heritage sector: definition and importance in the EU economy 85 4.2 Value chain mapping and description 88 4.3 In-depth analysis of interrelations between actors 100 5/ Artistic crafts – a value chain analysis 104 Mapping the Creative Value Chains – a study on the economy of culture in the digital age 5 5.1 Introduction to the Artistic crafts sector: definition and importance in the EU economy 104 5.1 Creative value chain mapping and description 105 5.2 In-depth analysis of interrelations between actors 112 5.3 Other exogenous changes and relations with other sectors 114 6/ Book publishing – a value chain analysis 116 6.1 Introduction to the book publishing sector: definition and importance in the EU economy 116 6.2 Creative value chain mapping and description 117 6.3 In-depth analysis of interrelations between actors 124 6.4 Other exogenous changes and relations with other sectors 131 7/ Music – a value chain analysis 133 7.1 Introduction to the music sector: definition and importance in the EU economy 133 7.2 Creative value chain mapping and description 134 7.3 In-depth analysis of interrelations between actors 144 7.4 Other exogenous changes and relations with other sectors 149 8/ Film – a value chain analysis 151 8.1 Introduction to the film sector: definition and importance in the EU economy 151 8.2 Creative value chain mapping and description 153 8.3 In-depth analysis of interrelations between actors 165 8.4 Other exogenous changes and relations with other sectors 172 9/ Television and radio broadcasting – a value chain analysis 175 9.1 Introduction to the television and radio broadcasting sector: definition and importance in the EU economy 175 9.2 Creative value chain mapping and description 176 9.3 In-depth analysis of interrelations between stakeholders 184 9.4 Other exogenous changes and relations with other sectors 190 10/ Multimedia – a value chain analysis 192 10.1 Introduction to the multimedia sector: definition and importance in the EU economy 192 10.2 Creative value chain mapping and description 193 10.3 In-depth analysis of interrelations between actors 201 10.4 Other exogenous changes and relations with other sectors 205 11/ Observations from the sectoral value chain analyses 208 11.1 Different degrees of impact of digitisation 208 Mapping the creative value chains – a study on the economy of culture in the digital age 6 11.2 Impact on market opportunities, economic behaviour and industrial organisation 210 11.3 Why digitisation has not dramatically reconfigured creative value chains (yet) 214 Thematic discussion papers 216 1/ Introduction 217 2/ Intertwining and convergence in creative