KC 1 - Modeling the cultural industries (Throbsy, 2008)
• Discusses the de nition of cultural industries, the boundaries of cultural industries, and
examines six tools for economic analysis that can be applied to cultural industries
Q: Is it possible to nd a common group of industries on which all of the models agree?
Cultural Industries:
• Those industries that combine the creation, production and commercialization of contents which
are intangible or cultural in nature (UNESCO)
Characteristics
- Human input of creativity in the production
- Transmission symbolic messages: communicative purpose
- Intellectual property that can be attributed to a individual or group producing the good
Creative Industries:
• Those industries which have their origin in individual creativity, skill and talent and which have a
potential for wealth and job creation through the generation and exploitation of intellectual
property (DCMS 2001)
Characteristics
- Human creativity
- Goods and services
- Commercial use
Cultural goods: cultural value, transcends purely economic valuation
Creative goods: extends beyond cultural goods, do not need to satisfy criteria
—> valued by those who make and consume them for social and cultural reasons, NOT for their
utilitarian and materialistic functionality
Q: why do we make a distinction between these two?
- if simply an economic perspective is used as an estimate of contribution to de ne cultural
industries then only those industries with high growth, rates… will be included. So cultural, artistic
perspective is important cause a new group of industries will be included. This will have big
di erent policy implications depending upon the kind of economic analysis that is used.
29 million people in
CCI
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, Q: What would happen if the Concentric Circles Model was used instead of WIPO?
- The economical impact of the EY studies would drastically be reduced, because instead of
including all cultural industries that are involved directly and indirectly in creating,
manufacturing, producing and distributing copyrighted works, which is at the foundation of the
WIPO model, the CCM would include only those industries that are at the core of CCI. This
means that those located outside of the Concentric Circles (or core) are deemed to be
commercial and hence have a lower cultural value.
—> it would drastically change the outcomes presented by EY, estimates would be o if they take
only the core of CCI (e.g visual arts, books…)
• Models of the cultural industries (classi cation system)
• DCMS model
• Symbolic texts model
• UIS model
• Americans for the arts model
• WIPO model
• Concentric Circles model
• 6 economic approaches to analyzing the CI
1. Industrial organization theory
- Market concentration: seller and buyer concentration, product di erentiation
- Barriers to entry and exit (conditions)
- Degree of competition
- Standard economic variables: value production, levels of employment, business concentration
—> Relevant primarily to those models oriented towards the commercial production of cultural
goods and services. Tho, can also be useful to non-pro t arts in certain conditions like non-price
competition
2. Value chain analysis
- Production chain with value adding stages from initial idea, the production of goods or services,
their marketing and distribution, until consumption.
—> used by rms to analyze performance in di erent stages of the production cycle
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• Discusses the de nition of cultural industries, the boundaries of cultural industries, and
examines six tools for economic analysis that can be applied to cultural industries
Q: Is it possible to nd a common group of industries on which all of the models agree?
Cultural Industries:
• Those industries that combine the creation, production and commercialization of contents which
are intangible or cultural in nature (UNESCO)
Characteristics
- Human input of creativity in the production
- Transmission symbolic messages: communicative purpose
- Intellectual property that can be attributed to a individual or group producing the good
Creative Industries:
• Those industries which have their origin in individual creativity, skill and talent and which have a
potential for wealth and job creation through the generation and exploitation of intellectual
property (DCMS 2001)
Characteristics
- Human creativity
- Goods and services
- Commercial use
Cultural goods: cultural value, transcends purely economic valuation
Creative goods: extends beyond cultural goods, do not need to satisfy criteria
—> valued by those who make and consume them for social and cultural reasons, NOT for their
utilitarian and materialistic functionality
Q: why do we make a distinction between these two?
- if simply an economic perspective is used as an estimate of contribution to de ne cultural
industries then only those industries with high growth, rates… will be included. So cultural, artistic
perspective is important cause a new group of industries will be included. This will have big
di erent policy implications depending upon the kind of economic analysis that is used.
29 million people in
CCI
ff fi fi fi
, Q: What would happen if the Concentric Circles Model was used instead of WIPO?
- The economical impact of the EY studies would drastically be reduced, because instead of
including all cultural industries that are involved directly and indirectly in creating,
manufacturing, producing and distributing copyrighted works, which is at the foundation of the
WIPO model, the CCM would include only those industries that are at the core of CCI. This
means that those located outside of the Concentric Circles (or core) are deemed to be
commercial and hence have a lower cultural value.
—> it would drastically change the outcomes presented by EY, estimates would be o if they take
only the core of CCI (e.g visual arts, books…)
• Models of the cultural industries (classi cation system)
• DCMS model
• Symbolic texts model
• UIS model
• Americans for the arts model
• WIPO model
• Concentric Circles model
• 6 economic approaches to analyzing the CI
1. Industrial organization theory
- Market concentration: seller and buyer concentration, product di erentiation
- Barriers to entry and exit (conditions)
- Degree of competition
- Standard economic variables: value production, levels of employment, business concentration
—> Relevant primarily to those models oriented towards the commercial production of cultural
goods and services. Tho, can also be useful to non-pro t arts in certain conditions like non-price
competition
2. Value chain analysis
- Production chain with value adding stages from initial idea, the production of goods or services,
their marketing and distribution, until consumption.
—> used by rms to analyze performance in di erent stages of the production cycle
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