THE CULTURAL INDUSTRIES IN CARICOM TRADE AND DEVELOPMENT CHALLENGES Lead Consultant: Keith Nurse Research Team: Allison Demas Jo-anne Tull Bruce Paddington Winston O’Young Michael Gray Halcyone Hoagland Michele Reis Report prepared for the Caribbean Regional Negotiating Machinery November 2006 (Revised December 2007) Funded under EU PROINVEST CAR/5170 Table of Contents Foreword .......................................................................................................................... i Executive Summary ........................................................................................................ 1 Scope of Work ......................................................................................................................... 1 Trends in the Cultural Industries ............................................................................................... 4 Competitiveness and Industrial Upgrading ............................................................................... 5 The Caribbean Context ............................................................................................................ 6 Challenges and Opportunities .................................................................................................. 7 Key Recommendations ............................................................................................................ 8 Conclusion ............................................................................................................................. 11 CHAPTER ONE: Introduction ....................................................................................... 12 Report Outline and Methodology ............................................................................................ 12 Caribbean Cultural Industries in the Global Context ............................................................... 14 Review of Economic Performance of Caribbean Cultural Industries ....................................... 15 CHAPTER TWO: Cultural/Creative Industries and The Global Economy ................. 18 Defining the Cultural/Creative Industries ................................................................................ 18 Technological Change and New Business Models ................................................................. 21 Size and Structure of World Trade ......................................................................................... 22 Trade Policy Context .............................................................................................................. 24 Corporate Control ................................................................................................................... 25 Framework for Industrial Upgrading ....................................................................................... 26 CHAPTER THREE: The Music Industry ....................................................................... 28 Global Overview ..................................................................................................................... 28 Regional Assessment ............................................................................................................ 29 The Jamaican Market and International Sales of Reggae Music ............................................ 30 Trinidad and Tobago Music Recording Sector ........................................................................ 37 Trinidad Live Performance ..................................................................................................... 38 Barbados Live Performance Sector ........................................................................................ 40 Audiovisual Products in the Caribbean ................................................................................... 42 Broadcasting .......................................................................................................................... 43 Market Assessment ................................................................................................................ 45 Organisational Issues ............................................................................................................. 45 Organisational and Institutional Capacity in the Belize Music Industry .................................... 46 2 The Cultural Industries in CARICOM: Trade and Development Challenges Industrial and Innovation Issues ............................................................................................. 48 Strategic Analysis and Direction ............................................................................................. 50 Key Recommendations .......................................................................................................... 51 CHAPTER FOUR: The Audiovisual Industry ............................................................... 53 Global Overview ..................................................................................................................... 53 Economic Performance .......................................................................................................... 55 TV Broadcasting—Background .............................................................................................. 55 Liberalisation of the Sector ..................................................................................................... 56 Cable Television and Expansion of the Sector. ...................................................................... 56 Caribbean Content on Regional Television Stations ............................................................... 58 Employment in the Cable and Broadcasting Industry ............................................................. 59 Free Movement of Skills ......................................................................................................... 59 Free Movement of Equipment ................................................................................................ 60 On-Location Strategy and Foreign Exchange Earnings .......................................................... 60 Jamaica ............................................................................................................................................... 60 Trinidad and Tobago ........................................................................................................................... 62 Barbados ............................................................................................................................................. 64 OECS .................................................................................................................................................. 64 Industrial Policies ................................................................................................................... 65 Trinidad and Tobago ........................................................................................................................... 65 Jamaica ............................................................................................................................................... 67 Incentives ............................................................................................................................................ 68 Co-Production Treaties ....................................................................................................................... 69 Production Funds ................................................................................................................................ 70 Regional Assessment ............................................................................................................ 71 Trinidad and Tobago ........................................................................................................................... 72 Competitiveness Analysis ...................................................................................................... 73 Costs ................................................................................................................................................... 74 Marketing and Distribution ...................................................................................................... 75 Cinema distribution ................................................................................................................ 76 Festivals ................................................................................................................................. 76 Training .................................................................................................................................. 77 Jamaica ............................................................................................................................................... 77 Dominica .............................................................................................................................................. 77 Barbados ............................................................................................................................................. 77 Trinidad and Tobago ........................................................................................................................... 77 Trade Policy Issues ................................................................................................................ 78 Intra-regional Issues ...........................................................................................................................