Cultural Times: The First Global Map of Cultural and Creative Industries

Cultural times
The first global

map of cultural and
creative industries
December 2015
The study was carried out by EY, under the supervision of Marc Lhermitte, Bruno Perrin and Solenne Blanc, with the participation
of Vincent Raufast, Hugo Alvarez, Joséphine Druesne, Mehdi Echiguer, Danielle Attias, Bonnie Olivier, Louisa Melbouci and Graeme
Harrison (Oxford Economics).
We would like to extend our gratitude to the 150 experts interviewed worldwide, whose contribution has been essential to our study
and all CISAC partners, for their time and availability all over this project.
With the initiative to set up a project aimed at analyzing the cultural and creative markets in the world, CISAC, the International
Confederation of Authors and Composers Societies, commissioned EY to conduct this study. The project is the first of its kind. CISAC
collaborated with the following partners and supporters in an effort to rally a large segment of the representative organizations in the
cultural and creative sectors for this unprecedented study.
Study supporters
“Globo” — Globo Comunicação e Participações S.A.
FCFA — Fonds Culturel Franco-Américain
Knowledge contributors
The World Bank
ICMP — International Confederation of Music Publishers
IFRRO — International Federation of Reproduction Rights Organizations
About CISAC
CISAC — the International Confederation of Societies of Authors and Composers — is the world’s leading network of authors’
societies. With 230 member societies in 120 countries, CISAC represents four million creators from all geographic areas and
artistic repertoires; music, audiovisual, drama, literature and visual arts. CISAC is presided over by electronic music pioneer
Jean-Michel Jarre and the organisation’s four vice-presidents are: Beninese singer Angélique Kidjo, Senegalese sculptor Ousmane
Sow, Indian poet, scriptwriter and lyricist Javed Akhtar and Argentinean film director Marcelo Piñeyro.
Founded in 1926, CISAC is a non-governmental, not-for-profit organisation with headquarters in France and regional offices in
Africa (Burkina Faso), Latin America (Chile), Asia-Pacific (China) and Europe (Hungary).
www.cisac.org | Twitter: @CISACNews | Facebook: CISACWorldwide.
Thanks
CISAC would like to thank for their personal contribution the members of the CISAC dedicated working group, as well as
executives from CISAC member societies, and our study supporters and knowledge contributors:
Yohan BEAUX (SACEM), Andrew BERTHOFF (SOCAN), James BOYD (IFRRO), Coco CARMONA (ICMP), Mitko CHATALBASHEV
(CISAC), Yassine DAMIL (SACEM), Graham DAVIES (PRS FOR MUSIC), Richard DAVISON (APRA AMCOS), Cristiane DELECRODE
(GLOBO), Juliette DELFAUD (SACEM), Héloïse FONTANEL (SACEM), Laurence FOURCHET (SOCAN), Neil GAFFNEY (ASCAP),
Marisa GANDELMAN (UBC), Dimiter GANTCHEV (WIPO), Claire GIRAUDIN (SACEM), Jenny GOODWIN (PRS FOR MUSIC), Andrew
HARRIS (APRA AMCOS), Bronwen HARTY (SAMRO), Ger HATTON (ICMP), Anita HUSS-EKERHULT (IFRRO), Laure KALTENBACH
(FORUM D’AVIGNON), Clarissa KEDE (GLOBO), Eglantine LANGEVIN (FCFA), Ophira LUBNITSKY (TALI), Blaise MISTLER (SACEM),
Martin MOLINUEVO (THE WORLD BANK), Silvina MUNICH (CISAC), Benjamin NG (CISAC), Eloïse NIKIEMA (CISAC), Alejandra
Norambuena Skira (FCFA), Gadi ORON (CISAC), Balamine OUATTARA (CISAC), Luis Felipe PALACIOS (SGAE), Frédéric PATISSIER
(IMV Conseil), Cécile ROY (CISAC), Damien SHIELS (THE WORLD BANK), Petra STEPHENSON (PRS FOR MUSIC), Olav STOKKMO
(IFRRO), Santiago SCHUSTER (CISAC), Julie TODISCO (FCFA), Liudmyla TSYMBAL (UACCR), and Miguel VOCES (SGAE).
Contents
8 10 Introduction
The global map of cultural and
Executive summary creative industries
14
1 Overview and megatrends
The economic value of cultural and creative
industries worldwide
30
2
Cultural and creative
industries in five regions
82
3 Outlook
Challenges of a more
creative world
90
4Cultural and creative
industries at a glance
94
5
Voices from the
cultural and creative
industries community
114
6 Detailed methodology
and sources
Forewords
4 Cultural times | The first global map of cultural and creative industries
UNESCO
Irina Bokova
Director-General of UNESCO
As we celebrate the 10th anniversary and clusters, improving the quality of life This calls for more data and stronger
of the UNESCO Convention on the and providing resources for imagining indicators on the role of culture for
Protection and Promotion of the diverse new futures. the development of societies. This is
Diversity of Cultural Expressions the spirit of many UNESCO initiatives,
In other words, in addition to its
ratified on 20 October 2005, this study such as the Culture for Development
economic benefits, the cultural and
commissioned by the International Indicators, the 2013 United Nations
creative industries generate non-
Confederation of Societies of Authors Creative Economy Report, as well as
monetary value that contribute
and Composers confirms the powerful the first Global Report to monitor the
significantly to achieving people-
argument advocated by UNESCO of the implementation of the 2005 Convention.
centered, inclusive and sustainable
contribution of the cultural and creative I welcome the publication of this new
development.
industries to sustainable development. global map of cultural and creative
Public policies are needed to support the industries as an important contribution
Capitalizing US$2,250b and nearly
diverse forms of creativity at the heart of to this global effort.
30 million jobs worldwide, the cultural
the cultural and creative industry sectors
and creative industries are major drivers
as well as to address new challenges
of the economies of developed as well
posed by digitization.
as developing countries. Indeed, they
are among the most rapidly growing Convention on the Protection and
sectors worldwide. It influences income Promotion of the Diversity of Cultural
generation, job creation and export Expressions is taking action to promote
earnings. It can forge a better future for the relevance is key principles of the
many countries around the globe. Convention in the digital age. This
constitutes a central challenge ahead
But that is not all there is to it. For
of us: balancing all interests and the
unlocking the potential of the cultural
varied ways in which diverse cultural
and creative industries also means
expressions are expressed, augmented
promoting the overall creativity of
and transmitted, whatever the means
societies, affirming the distinctive
and technologies used.
identities of the places where it flourishes
Cultural times | The first global map of cultural and creative industries 5
CISAC Presidency
Jean-Michel Jarre Angélique Kidjo Ousmane Sow

President Vice-President Vice-President
In our capacity as President and Vice in these countries is no less richer, yet
Presidents of CISAC (Confederation the creators themselves are often poor
of Authors and Composers Societies), and struggle to make a living from their
we are the ambassadors of millions of creativity and contribute to the domestic
creators around the world whose creative economy.
endeavors cover all repertoires — music,
We do hope that this study will be an
audiovisual, drama, literature and visual
eye opener for policy-makers around the
arts — and carry the torch of this cultural
world on the importance of providing
diversity that we cherish so much. We
their creative community with a strong
know, by experience, that art knows
legal apparatus to protect rights and
no boundary: it is the expression of
allow for a fair remuneration of creators.
the many different cultures on the five
Creators’ rights do not stand in the way
continents. At the same time, we are also
of the economy, quite the contrary.
very much aware of the fragility of the
status of creators in today’s world.
They help build sustainable economies, Javed Akhtar
they provide local jobs, they generate Vice-President
This study maps out the macro economy revenues and taxes, and they allow a
of creative industries in the world, whole class of people, many of them
continent by continent. This is the first young, to make a living from their talent.
time we have access to such a wealth of
And that’s the other point that we
data. These facts and figures make for
would like all of those who will read this
a very interesting tapestry. What first
study to take into account: never forget
caught our eyes was the great divide
that behind this massive aggregate of
between North and South. In developed
impressive figures, there are individual
economies, creative industries thrive
creators. Each and every one of them
because of a legal framework protecting
makes a unique contribution to the
the rights of creators, allowing for
overall economy in his or her country
industries to be built from the works of
in addition to providing the world with
thousands of creators.
creative works that touch the souls of
This is a situation that does not apply in their fellow human beings.
many developing countries. The culture
Marcelo Piñeyro
Vice-President
EY
Marc Lhermitte Solenne Blanc Bruno Perrin

Partner, EY Advisory Executive director, EY Advisory Partner, EY & Associés
Undeniably, culture and creativity have unique diversity of these industries. locomotive of the digital economy. In
been the cement that binds together And some challenges too. Consider, for 2013, they contributed US$200b to
not only hearts and souls, but entire instance: the digital economy. The major internet
societies and nations. In a world giants of the world have emerged
• Asia-Pacific is the world’s largest CCI
that faces frequent disruption and through and due to creative content,
market, generating a third of total
upheavals — economic, social, political obviously. CCI are also a significant driver
revenues, followed closely by Europe
and technological — creativity and culture for urban development: cultural heritage,
and North America. Latin America,
have been the common link through activities and events are accelerators of
and Africa and the Middle East rank
history, knitting together our past, growth and attractiveness. Creators are
fourth and fifth, respectively — but the
present and future. entrepreneurs too: in the US, they are
potential and opportunities in these
3.5 times more likely to be self-employed
But culture and creativity are actually two regions is striking.
than US workers overall.
much more than that. They are catalysts
• In Europe, CCI sectors typically
for development. They are an economy — CCI are undoubtedly strong pillars of the
employed more people aged 15-29
nearly 30 million people across the world global economy, but fragile if not taken
years than any other sector.
make a living out of them, generating care of. Governments worldwide are
total revenues of US$2,250b. • While some would have feared that awakening to the true economic value
digital economy would standardize of CCI, but challenges to their growth
The momentous impact of the
culture and creation, the impact of abound. CCI need more structuring,
cultural and creative industries (CCI),
digital is actually the opposite: the supportive policies and robust protection
however, is only partially understood
digital economy is accelerating the of creative content. To boost their
and appreciated. EY’s global map is a
diversity of culture and creation. economic potential, the balance between
groundbreaking initiative to bring to the
creation, access (distribution) and care
fore their economic and social power. • Although exceptions to the rule
of cultural heritage is a must. We hope
Initiatives of think tanks, such as the exist, the crucial role of women in
this unique report will support a better
Forum d’Avignon, bringing together CCI’s development must be better
understanding of these challenges, and
artists, industries and policy-makers have appreciated and rewarded.
how to address them effectively for the
helped understand the economic weight
Our research also highlights how CCI long-term development of creativity and
of CCIs.
play a decisive role for the economic culture.
Besides the economic weight of culture development of both mature and
and creativity, our report shows the emerging markets. They are already a
Executive summary
Cultural and creative industries (CCI) generate US$2,250b of

revenues and 29.5 million jobs worldwide
CCI revenues worldwide exceed those of telecom services (US$1,570b globally), and surpass India’s
GDP (US$1,900b). Within the total, the top three earners are television (US$477b), visual arts
(US$391b), and newspapers and magazines (US$354b). With 29.5 million jobs, CCI employ 1% of
the world’s active population. The top three employers are visual arts (6.73m), books (3.67m) and
music (3.98m).
The cultural and creative world is multipolar
Asia-Pacific accounts for US$743b in revenue (33% of global CCI sales) and 12.7m jobs (43% of CCI jobs
worldwide). The Asian market is driven by a large population, and the region is home to CCI leaders, such
as Tencent, CCTV and Yomiuri Shimbun. Europe and North America are the second and third largest CCI
markets. Today Latin America, and Africa including the Middle East rank fourth and fifth, respectively —
but CCI players see great development opportunities in these two regions. Though symbiotic, each world
region is developing a momentum of its own.
Cultural and creative content drives the digital economy
CCI are a locomotive of the online economy — contributing US$200b to global digital sales in 2013.
Cultural and creative content also powers sales of digital devices, which totaled US$530b in 2013. Digital
cultural goods are, by far, the biggest revenue source for the digital economy, generating US$66b of B2C
sales in 2013 and US$21.7b of advertising revenues for online media and free streaming websites.
Cultural production is young, inclusive and entrepreneurial
Creative activities contribute significantly to youth employment and careers in CCI are relatively open
to people of all ages and backgrounds. In Europe, CCI sectors typically employed more people aged
15–29 years than any other sector. Creative industries also tend to favor the participation of women
compared with more traditional industries. Statistics compiled by the UK Government showed that
women accounted for more than 50% of people employed in the music industry in 2014 (vs. 47% in
the active population overall). Moreover, creation is driven by small businesses or individuals, giving
rise to agile and innovative employers. More than half (53%) of Canadian gaming developers say they
are independent operators. In the US, artists are 3.5 times more likely to be self-employed than US
workers overall.
Culture boosts cities’ attractiveness
World-class cultural infrastructure is a catalyst for urban development: building a museum often offers
opportunities to engage in large urban development projects and to develop a new “city brand” around
cultural and creative industries. Such flagship projects boost a city’s attractiveness for tourists, talent and
highly skilled workers. Bilbao, in Spain’s Basque Country, is now an icon of culture-led urban regeneration:
construction of the Guggenheim Museum led to the creation of more than 1,000 full-time jobs, and
tourist visits have since multiplied eight-fold. Equally important, CCI make cities more livable, providing
the hubs and many of the activities around which citizens develop friendships, build a local identity and
find fulfillment.
The informal economy is a vast reservoir of jobs
Informal CCI sales in emerging countries were estimated to total US$33b in 2013 and to provide
1.2 million jobs. Performing arts are the biggest employers in the informal economy, providing unofficial
music and theater performances (street performances, festivals and concerts that do not pay authors’
rights, private performances at marriages and funerals, etc.), which are often free for audiences. In
Africa, these performances are sometimes funded by individual sponsors.
Leveraging a more creative world
• Promoting author’s rights: If we want authors and creators to continue creating culture and
promoting cultural diversity, they must be compensated fairly for the use of their works. The current
failure to properly reward creators is limiting CCI revenues, and holding back their growth and ability to
generate job creation.
• Looking for growth: As companies chase the scale needed to exploit their best content ideas across
global markets, consolidation is back in vogue. EY’s 2015 Media & Entertainment Capital Confidence
Barometer shows that 50% of CCI companies expect to pursue acquisitions in the next 12 months.
• Pursuing global expansion: Mature markets remain the most attractive for investment by CCI
companies and organizations. Nonetheless, China and India are the emerging markets of choice for
many executives, drawn primarily by their strong growth and massive long-term potential.
• Balancing online monetization: CCI players face two difficulties: trying to persuade consumers to
pay for something they may have been accessing for free, and extracting a fair share of the value
generated by cultural content, which has been largely captured by online intermediaries. The problem
of a value chain distorted in favor of internet intermediaries needs to be addressed by policy makers
across borders, so that the internet becomes a fair-trade place for creators and their works.
• Nurturing talent: Talent is the lifeblood of cultural and creative industries. According to urban
economist Richard Florida, the “creative class,” including designers, artists and high-skilled intellectual
workers, acts as an engine of innovation and urban development, structuring creative hubs and
networks for the economic, social and cultural development of their native cities and regions.
Introduction
The global map of cultural and
creative industries
An unprecedented initiative
The world has a shared history and • To understand the overall economic experience in cultural, creative, media
a rich, diverse cultural heritage. This role of CCI globally, by sector and and entertainment industries worldwide.
heritage is cherished globally as an by region The EY project team was supported by
asset that belongs to us all, yet gives our the firm’s global network of professionals,
• To put these analyses into perspective
societies their identity and binds them providing access, insights and expertise
against the past, current and future
together, nurturing a rich cultural and on this wide-ranging study.
economic situation
creative present and future. That is why
All estimates and qualitative trends
stakeholders of the creative and cultural • To show how, and to what extent,
detailed in this report arise from long-
world must do everything in their power CCI may be a driving force for global
standing collaboration:
to preserve this heritage and the diversity economic growth
of actual cultural content, amid a political • The study involved 150 interviews
• To produce a comprehensive report
and economic climate that is subject to to identify megatrends and regional
with examples of the diversity and
major upheavals. peculiarities.
complexity of CCI worldwide
The idea behind this report is that the • More than 300 sources were reviewed
This study encompasses a wide range
economic weight of cultural and creative to develop the economic assessment.
of creative activities combining the
industries (CCI) in mature and emerging
creation, production and distribution of • The valuation methodology and
economies is partially described,
cultural content. Unlike other studies, estimates were reviewed in depth
misunderstood and undervalued. This
we have included all activities related to by senior economists from Oxford
is why the International Confederation
the performing arts (including dance, Economics.
of Societies of Authors and Composers
opera, ballet and live music) and visual
(CISAC — the body representing • The study was overseen and
arts (museums, visual arts creation, art
authors’ societies worldwide) — decided coordinated by a working group
market and design activities). In addition,
to commission a global study of the of methodology and CCI experts
EY’s study is the first to separately
economic and social impact of CCI, (including CISAC, authors’
assess the economic value of each CCI
focusing especially upon revenues and societies, the World Intellectual
individually, and at a global level.
employment. The study has the following Property Organization (WIPO) and
objectives: The World Bank).
The result of in-depth
• To produce a comparative,
collaboration
quantitative and qualitative analysis
of cultural and creative industries The study was conducted by EY, which
has recognized involvement and
CCI analyzed in 11 sectors and 5 global regions

UNESCO defines cultural and creative reproduction, promotion, distribution or and activities of a cultural, artistic or
industries as activities “whose commercialization of goods, services heritage-related nature.”
principal purpose is production or
CCI: a wide range of cultural and creative activities in 11 sectors
Advertising Advertising agencies Music Sound recording and music Radio Radio broadcasting activities
publishing industry, live music
Architecture Architectural firms Movie Motion picture production, TV TV programming, production

post-production and and broadcasting including
distribution cable and satellite
Books Physical and digital books sales Newspapers Newspapers and magazine Visual arts Visual arts creation, museums,
(including scientific, technical and publishing industry (B2C and photographic and design
and medical books) magazines B2B, news agencies) activities
Gaming Video game publishers, Performing Performing arts activities:

developers and retailers; Arts dance, theatre, live music,
equipment sales opera, ballet, etc.
Composition of the five global regions
North America Europe

US and Canada European Union, non-EU European countries (Norway, Switzerland,
Iceland, Balkans, etc.), Turkey and Russia. Central Asian countries
(Kazakhstan, Uzbekistan, etc.) and Israel are not included
Latin America and Asia-Pacific

Caribbean Including Central Asia
and Caucasian countries
Mexico, South America, (Azerbaijan, Armenia
Central America and and Georgia)
Caribbean countries
Africa and
the Middle East
Africa, Gulf countries and
Middle East (including Israel)
Our assessment method (based on the most robust data available) provides regional estimates, for CCI sales and revenues,
calculated from regional data and based on strong economic and sociologic assumptions. Hence, this methodology
(see section 5) does not enable us to provide CCI sales and revenues at a country-level.
Measuring economic value by revenues and employment

The study quantifies the economic value goods and services sold through Underground economy
of CCI (in US$), providing an assessment unofficial distribution channels by
of CCI revenues (defined as Business- producers and retailers, are included The underground economy is defined as
to-Consumer — B2C, and Business-to- in our estimates. We have also “market-based production of goods and
Business — B2B, sales) and the number of included public license fees for the services, whether legal or illegal, that
people employed in CCI. audiovisual sector (TV and radio). escape detection in the official estimates
of GDP” (Smith, 1994). Applied to CCI,
• Cultural and creative employment: the underground economy involves the
Revenues and employment This was estimated in the number of exchange of cultural and creative goods
We measured the economic value of CCI jobs. We used the ILO (International and services that are hidden from official
with two metrics: Labor Organization) definition of view. It includes:
employment: “all persons … who during
• Cultural and creative industries a specified brief period, either one • Piracy: physical piracy, i.e., the activity
revenues (in 2013 current USD): The week or one day, were in the following of manufacturing unauthorized copies
study adopted an approach based categories: paid employment and self- (pirate copies) of protected material
on final consumer and business employment.” By doing so, we are able and dealing with such copies by way
markets (B2C and B2B), primarily at to include every person working in a of distribution and sale; and digital
retail prices (without indirect taxes). CCI (including non-permanent jobs, piracy, i.e., unauthorized internet
Informal sales, defined as cultural creators, authors and performers). distribution of protected works
• The informal economy: supply of report aims to highlight the impact of studies, industry reports and interviews
goods and services in exchange for CCI on other branches of the economy, with approximately 150 stakeholders
payment, but which is not covered we assessed the revenues generated and experts. Our approach and
or is insufficiently covered by formal by cultural content for digital players, assumptions have been validated by
arrangements defined as companies providing: Oxford Economics experts.
In our estimates of CCI revenues • Physical goods sold on the internet In most cases — and particularly for
and jobs, we included the informal (books, music, games and video) global estimates of markets and
economy, as defined above, and the employment — 2013 statistics were
• Digital cultural content (ebooks, music,
sale of unauthorized cultural goods and the most recent available.
video, games)
services (unauthorized book copies,
pirated recorded music, etc.). Because • Online media advertising (for online Double counting
the impact of digital piracy on CCI is a media and free streaming services)
loss of revenues, and not a monetary Totals for jobs and revenues have been
• Digital advertising creation estimated after the removal of double
transaction, we did not assess the global
impact of digital piracy on CCI sales CCIs’ economic contribution to the digital counting: the sum of sector figures
and revenues (this does not imply that economy is the sum of cultural-content- (employment and jobs) exceeds the
piracy is not a stream of revenues from generated revenues. consolidated figure in each region
illegal retailers). because some activities can be counted
in two CCI. For instance, live music
Methodology and assumptions
Digital economy revenues and employment are counted
Because reliable aggregated statistical in both music and performing arts.
We also consider the impact of CCI on data was unavailable, the team adopted To consolidate our regional figure, we
the digital economy. Digital players a “bottom-up” approach for this study. had to deduct every activity that is
(online retailers, streaming platforms, Estimates for each region were based on double counted.
etc.) are fueled by CCI content. As this national statistics, market research, CCI
Overview and
megatrends
The
economic
value of
cultural and
creative
industries
worldwide
In 2013, cultural and creative industries
worldwide generated revenues of US$2,250b
and employed 29 million people
The 11 CCI sectors are an integral, massive and universal cornerstone of the global economy. In 2013, they
generated US$2,250b of revenues (3% of world GDP) and 29.5 million jobs.
US$2,250b 29.5 million

Global CCI markets Global CCI employment
Within the 11 sectors, two patterns stand out:
• Mass, versus nimbleness: Visual arts (38% of CCI sales) relative to employee
and television are the heavyweights, numbers (only 22% of CCI jobs). On
accounting for more than a third of the other hand, with 46% of jobs but
the economic value generated by only 17% of revenues, music, movies,
CCI (39% of sales and 35% of jobs). the performing arts and books are
With just 6% of CCI workers and 4% of the biggest job generators. Yet,
CCI sales, radio and gaming are the labor-intensive CCI include a high
smallest CCI sectors, but are evolving proportion of non-permanent workers
in dynamic markets. and creators. In the music industry,
60% of workers are authors and
• Revenue versus labor intensity:
composers, which explains the high
Advertising, newspapers and
number of jobs compared with the
magazines, and architecture
revenue figure.
are CCI with greater revenues
Television tops the charts: CCI sectors by revenue (US$b) and jobs
CCI sectors Revenues Employment

(2013, US$b) (2013, number of jobs)
Television 477 3,527,000
Visual arts 391 6,732 000
Newspapers and magazines 354 2,865,000
Advertising 285 1,953,000
Architecture 222 1,668,000
Books 143 3,670,000
Performing arts 127 3,538,000
Gaming 99 605,000
Movies 77 2,484,000
Music 65 3,979,000
Radio 46 502,000
Total (before removing double counting) 2,285* 31,524,000*
Total (minus double-counting) 2,253 29,507,000
Source: Cultural times: the first global map of cultural and creative industries, EY, 2015
* Rounded figure
CCI by region: a complex and especially due to its contemporary and many Latin American writers
colorful canvas art, and French company Publicis is have achieved global acclaim. The
a key player in the global advertising regional CCI market is also gaining
• Asia-Pacific (APAC) is the world’s industry. Seven of the 10 most visited traction. Multi-media conglomerates,
biggest CCI market, generating museums in the world are European such as Grupo Globo in Brazil, Grupo
US$743b of revenues (33% of global (three in Paris, two in London) and Televisa in Mexico and Grupo Clarin in
CCI sales) and 12.7 million jobs 30 of the 69 UNESCO “Creative Argentina, own a spread of TV, radio
(43% of CCI jobs worldwide). The Cities” are European. The European and press interests, capturing large
market has the largest consumer cultural economy also relies on a audiences and producing distinctive
base. It is home to some CCI leaders — well-structured ecosystem with the TV programs.
Tencent, a key player in games and presence of big CCI players (WPP
• Africa and the Middle East achieves
instant messaging, had consolidated Group, Pearson, Axel Springer,
US$58b in revenues (3% of the
revenues of US$20b in 2013, Universal, Ubisoft and others).
total) and 2.4 million jobs (8% of
while Japan’s Yomiuri Shimbun,
• North America is the third-largest CCI total CCI jobs). African music has
the world bestselling newspaper,
market with revenues of US$620b (28% been central to the development of
prints 10 million copies a day. The
of global revenues) and 4.7 million jobs popular music in North and South
Indian book industry became the
(16% of total jobs). The North American America and even Europe. Today,
10th largest book market in 2014,
market is powered by leading cultural African societies contain cultural
and will see the fastest growth
and entertainment players: the region riches that are bubbling up to embrace
globally in total books revenue. APAC
is the largest market for TV (US$182b), the opportunities offered by new
consumers are particularly keen
movies (US$28b) and radio (US$21b). technologies and commercial markets.
on newspapers and video games
North America is also at the forefront Film production and viewing are now
(14.2 and 0.7 percentage points
of the digital transformation, with driving employment growth in the
above the global average).
the largest number of consumers of CCI, with striking successes such as
• Europe is the second-largest CCI digital cultural content [47% of digital the rise of Nollywood, the Nigerian
market, accounting for US$709b of distribution and revenues, ahead of film industry, which is now reckoned
revenues (32% of the global total) Asia (25%) and Europe (24%)]. to directly employ 300,000 people.
and 7.7 million jobs (26% of all CCI Yet, the African market is poorly
• The Latin American CCI economy
jobs). Europe’s cultural economy is structured and cultural goods are
generates US$124b in revenues
rooted in its history: the region enjoys largely provided though the informal
(6% of CCI global market) and
a unique concentration of heritage economy, which is believed to employ
1.9 million jobs (7% of total CCI jobs).
and arts institutions. However, 547,500 people and generate
Latin America and the Caribbean
Europe also remains a trendsetter US$4.2b in revenues.
region possesses a rich cultural and
on the global stage. For instance,
natural heritage, with 131 sites
the UK is a leader in the art market,
inscribed on the World Heritage List,
Big in the north: CCI strongpoints**
North America Europe APAC

US$620b 4.7m US$709b 7.7m US$743b 12.7m
revenue jobs revenue jobs revenue jobs
3.3% of regional GDP 3% of regional GDP 3% of regional GDP
3
5
Latin America and

the Caribbean 4 Africa and the Middle East
US$124b 1.9m US$58b 2.4m
revenue jobs revenue jobs
2.2% of regional GDP 1.1% of regional GDP
Source: Cultural times: the first global map of cultural and creative industries, EY, 2015
** Rounded figures
Young, gifted and entrepreneurial technologies and mass travel have on the top 250 (domestic) grossing films
lowered entry barriers, making it in the US. This is the same percentage of
Cultural and creative workers stand out far easier for an individual to start a women working in these roles in 1998.1
from the crowd, displaying four particular creative or cultural business, and gain
qualities: Important issues include women’s access
a global audience and reputation.
to participation in the cultural and
• Youth: Creative activities contribute • High level of education: CCI workers economic life of their society, access
significantly to youth employment. are typically more educated than the to credit and investment capital for
In Europe, CCI sectors typically average. In Brazil, CCI workers had their projects, and access to property
employed more people aged 15–29 17% more years of education than the rights. These issues exist within a more
years than any other sector (19.1% national workforce average in 2010. generalized set of difficulties that
of total employment in CCI vs. 18.6% creators face when attempting to secure
in the rest of the economy) in 2013. equitable remuneration for their work:
Toward better access for women
In Central and Eastern Europe, on respect for their moral rights, contract
average, young people account for to cultural employment
negotiation under conditions of extreme
1.3 percentage point more jobs in the With US$2,250b revenues in 2013 power asymmetries, securing financial
creative economy than in the economy and 29.5m jobs, the creative economy backing for creative projects, and the
as a whole. appears to be a powerful development general precariousness of labor contracts
• High productivity: CCI jobs in some tool in general. More specifically, it gives in many sectors of the CCI. For the
sectors contribute more to GDP an idea of the sector’s potential to offer vast majority of women creators, these
than the economy-wide average. economic opportunities to women. difficulties are amplified as they intersect
In China, the film and television with the realities that women face when
In many countries, creative industries attempting to gain access to economic
sector generated 78% more added tend to favor the participation of
value per worker than the rest of participation.
women compared with more traditional
the economy in 2011, according to industries. Statistics compiled by the In many developing countries and
Oxford Economics. In South Korea, UK Government showed that women transition economies, women creators
the productivity of film and television accounted for more than 50% of people are more likely to be found in crafts
workers is twice the national average. employed in the music industry in and the visual arts. However, for a large
• Independence and entrepreneurship: 2014 (vs. 47% only in the whole active percentage of countries — particularly
CCI have always been fragmented, and population). those with weaker intellectual property
creation driven by small businesses frameworks — this sector is the least
However, this is not the norm for all likely to have a functioning system of
or individuals. More than half (53%) creative sectors or job categories within
of Canadian gaming developers say registered copyrights or designs, or
those sectors. For example, in 2014, strong institutional support. The result is
they are independent operators. In women comprised 17% of all directors,
the US, artists are 3.5 times more often an unreliable source of income and
writers, producers, executive producers, no ability to claim attribution when works
likely to be self-employed than US editors and cinematographers working
workers overall. The internet, digital are appropriated by third parties.
The Celluloid Ceiling: Behind-the-Scenes Employment of Women on the Top 250 Films of 2014
1
Cultural and creative industries fuel
the whole economy
Comparing CCI with other Big by any measure
industries shows the width and
depth of the creative economy Revenues (US$b) in 2013 Employment (2013)
CCI sales worldwide exceed those of CCI 2,250 29.5 million

telecom services (US$1,570b globally) Industries Telecom services Automotive industry in Europe,
and surpass India’s GDP (US$1,900b). the US and Japan combined
With 29.5 million jobs, CCI employ 1% 1,570
of the world’s active population. CCI 25 million
have more workers than South Korea Countries India’s GDP South Korea’s workforce
(26.6 million people), or the combined
1,900 26.6 million
population of Paris, New York
and London.
Sources: Cultural times: the first global map of cultural and creative industries, EY, 2015; World Development
Indicators — The World Bank, 2015; Thomson Reuters (2015), Walmart (2015), Telecommunications services
Cultural and creative content report, Ibisworld, 2014; Advanced industries, McKinsey, 2013
drives demand for electronics
and digital devices for digital platforms, have emerged to smartphones) used to access cultural
boost creativity and online innovation. goods and services. Cultural content is
Individuals increasingly expect to access
also the key driver of the demand for
cultural content on every available Consequently, cultural content, goods
high-bandwidth telecoms services (4G
distribution channel in an “any time and services have a direct impact on
and 5G networks, fiber optic link, etc.).
anywhere any device” mode, feeding the sales of electronic devices used to
their appetite for smarter devices and enjoy them (tablets, e-readers, TV, DVD Similarly, consumer electronics push
higher bandwidth. Electronics sales and players), which amounted to US$532b in the demand for new cultural content,
telecoms spending rely heavily upon 2013. Content availability drives sales of allowing for the further development of
demand for cultural goods and content. both culture-dedicated devices (TV sets) content (videos, gaming, etc.).
New forms of cultural content, developed and of multi-functional devices (tablets,
Culture-related consumer electronics global sales in US$b, 2013
532.3 Total “Smartphones

and tablets are
0.9
the future for the
54.7
gaming industry. In
Asia, smartphone
193.2 penetration has
increased by 70%
between 2013
and 2014”
E-readers
283.5 Tablets
Allan Simonsen
Smartphones
Gaming industry representative in Asia
Global cultural consumer devices Co-founder, Boomzap Entertainment
Source: Global consumer electronics manufacturing, IbisWorld, 2015; ABI research (2014); GfK (2014)
CCI contributed US$200b to the The wellsprings of digital revenue, US$b, 2013
digital economy in 2013
198.6 Total
Digital cultural goods are, by far, the
biggest revenue source for the digital
economy, generating US$66b of B2C
sales (ebooks, music, video, games)
in 2013 and US$22b of advertising
revenues for online media and free 85.1
streaming websites such as YouTube.
Cultural goods and event tickets are
increasingly sold on internet platforms
via e-retailers and online classifieds, 21.7
generating US$26b in sales and driving
the growth of the online economy. Digital advertising creation
Online advertisements provided US$85b Advertising revenues for online media

65.6 and free streaming websites
in revenues for advertising agencies in
2013. The online migration is driving Digital cultural content B2C sales
agencies to develop new skills in video, Physical cultural goods sold on
content production and storytelling. the internet
26.3
Authors’ rights and digital

devices: private copying levies Source: EY analysis, MAGNA GLOBAL (2015), Thomson Reuters (2015, YouTube (2015), Dailymotion (2015),
Spotify (2015)
are a trending topic
Private copy exceptions to authors’ of their works, in exchange for a fair devices (such as CDs and DVDs) and
rights/copyrights and neighboring compensation (a fee taken on each storage capacities on phones, tablets
rights constitutes the only efficient and copying device), thus allowing the public and computers and are massively used
operational way to transfer part of the to legally copy their works for their own to copy cultural works.
value created by cultural works from use. It benefits both the public and the
The challenge is that in many countries
digital players toward the creators of manufacturers of copying devices (as the
this system does not exist. In other
these works. devices would have much less interest
countries acts of private copy are
without creative works to copy) while
Private copy is a legal concept invented permitted but no compensation is
not neglecting the need to compensate
in Germany in 1965, at the time when granted to creators (the UK). This
creators for the use of their rights.
magnetic copying machines (for music) means billions of dollars or euros lost
were invented and people would buy The private copying levies system for creators whose works are copied for
them to copy music from the radio for proved adaptable and was, therefore, people’s use and entertainment without
their personal use. adopted in many countries; 52 countries any compensation.
worldwide have a private copy exception
The Germans created an exception to nowadays, including Burkina Faso and
authors’ rights by which creators waive Algeria. It proves particularly efficient
their right to authorize/forbid the use in the digital age, where blank copying
Protecting authors’ rights and sharing
value: what is collective management?
Authors’ rights/copyright can be The first CMO to be created was

exercised either via individual SACD in France in 1777. There
direct licensing (e.g., a music are now more than 200 such
producer negotiating the price CMOs representing all types of
of their catalogue with an repertoires and four million creators
online music service) or through worldwide forming an efficient
collective management. network through CISAC. Their
primary goal is to manage economic
Collective management came
rights and collect and distribute
to being as an economic answer
remuneration to creators for the
to the challenges presented
use of their work. CMOs also work
by many-to-many markets: it
to create a sustainable environment
is impossible for each author/
for the development of copyright
composer to deal directly with each
and authors’ rights to foster and
user of their work, to give them
encourage the development of
authorization to use their works
cultural diversity, and to promote
and get remuneration. For instance,
the dissemination of creative
SACEM, the French music collective
repertoires worldwide.
society, has 153,000 members
and 500,000 users. It could be CMOs are particularly well-adapted
practically impossible for each of to the negotiating of rights in the
these members to negociate or digital era as they provide a one-
enter into a licence agreement with stop-shop to get licenses for the
every potential licensee. Collective Digital Sound Programmes (DSPs)
management organizations (CMOs) for a large number of works, thus
are generally ruled by creators fostering legal security as well as
themselves, to be both the interface simplicity. For creators and artists,
between them and the people using they provide platforms to manage
their works. CMOs are working nano/micro payments and payments
as cooperatives, where they can for the use of their works worldwide,
assemble their works to get better and ensure that all repertoires are
bargaining power with users (media treated equally — essential to ensure
outlets such as TV, radio, internet, that cultural diversity has the means
digital companies, theaters, concert to blossom.
halls, etc.)
Creative industries and cultural
tourism have become strategic
assets for local economies
The number and scale of cities continue heritage, activities and events are 24 years old in 2014, a record high — and
to grow across the globe — driven by urban growth accelerators, and play a global literacy has improved significantly.
rapid urbanization in emerging markets major role in urban renewal. In Japan, Strong economic growth and young
and continued urbanization in mature the Odaiba artificial island brings populations are already combining
markets. According to the United Nations together business, leisure and cultural to produce a surge of middle class
(UN), 54% of the world’s population infrastructure. The island’s two museums consumers in many emerging markets.
now lives in cities, and by 2050, this and its cultural events (the Comic Market Nowhere is this trend stronger than in
proportion will increase to 66%. In 2010, and Gundam festival attract international Asia and Africa: the rapid emergence
36% of Africans lived in cities; by 2030, gaming, manga and anime enthusiasts) of Asia’s middle class is adding a leisure
half the continent’s population will be underpin the success and attractions of center to the world’s manufacturing hub.
urban, and by 2050, 6 out of 10 Africans this Tokyo district. The Comic Market Already, Asia counts 525 million middle-
are expected to be city dwellers. draws twice a year almost 500,000 class cultural consumers.
people in a three-day event.
In accordance with theories advanced by
The lure of culture The South by Southwest (SxSW) festival American economist Thorstein Veblen,2
A rich cultural life has become a has put Austin, Texas, on the global consumers are spending money on
major asset for countries seeking cultural map, attracting more than ”luxury” cultural goods to publicly display
to attract corporate executives and 370,000 people in 2014, and generating their newfound economic power. Cultural
talented employees — who are typically US$315m for the local economy. knowledge and consumption have
keen consumers of culture and become a means of enhancing social
entertainment — as well as culture- The rising middle class is hungry status. This trend is clearly apparent
in India, where rising newspaper sales
driven tourists. Developing cultural for culture
infrastructure is especially important for reflect social as well as economic
emerging countries, which will attract The world is young — 1.8 billion of the aspirations.
more than half of international tourists world’s population was between 10 and
by 2030.
Some cities are deliberately developing
cultural zones. Examples include the
Zorlu Center near Istanbul, Odaiba in
Tokyo, West Kowloon Cultural District
in Hong Kong, NDSM in Amsterdam
and Stratford City Development in
London. Zorlu Center, nine kilometers
from the heart of Istanbul, includes
Two thirds of the
not only a premium shopping mall
(105,000 sq m) and hotels, but also
global middle class
a large cultural center (50,000 sq m) will be Asia-Pacific
with two theaters and exhibition spaces.
The inaugural season (2014–15) was residents by 2030,
to include 400 performances in front of
500,000 spectators.
up from just under
In France, culture-based tourism one-third in 2009.
(festivals, live music, operas and
galleries, but excluding historic sites) Source: Hitting the sweet spot: the growth of the middle class in emerging markets, EY, 2013; Skolkovo
Institute for emerging market studies 2013
generated US$2.6b in 2013. Cultural
The theory of the leisure class: an economic study of institutions, 1899.

2
Cities provide a concentration of people class.” This class, according to Richard According to the EY Global Talent in
hungry for entertainment in many Florida, urban studies theorist, includes Global Cities 2015 study, the city ranking
forms, and with diverse appetites. “super-creative” scientists, artists, for creative class attraction is:
They provide a market for culture and engineers, designers and novelists, as
• New York — enjoys a unique cultural
allow cultural diversity to flourish — an well as “creative professionals” who
scene, embedded in a cosmopolitan
effect increasingly displayed in China. work in a wide range of knowledge-based
and forward-thinking urban
Rising urbanization and demand for occupations. The creative class is the
environment, generally considered
entertainment have prompted large incarnation of the triptych “Technology,
beneficial to creative activities
investments in construction and Talent and Tolerance,” defined by Florida,
real estate in the country. Chinese and is a key motor of growth, innovation • London — ahead of Paris owing to
conglomerate Dalian Wanda Group, now and attractiveness in urban areas. The its international openness (33% of
the world’s largest cinema operator, is combination of cheap inner city property its population was born abroad,
investing US$1b to set up its Han Show and strong endorsement of creative compared with just 12% in Paris)
Theatre in Wuhan (population 10.2m). freedom helped revive Berlin, which now
• Paris — ranks third due to its cultural
Dalian Wanda Group is also investing in draws artists and cultural entrepreneurs
heritage and technology assets, but is
the nearby Wanda Movie Park, a giant from around the world.
penalized by a weaker entrepreneurial
indoor theme park, using European and
environment
Chinese talent to help develop the shows Global talent in global cities (2014)
and attractions. Top 10 city ranking
Cultural projects are drivers of
Urbanization is accompanied by changing
1 New York urban regeneration
employment patterns and the acquisition
of new skills: African urbanization World-class cultural infrastructure is a
2 London
is part of a shift from agriculture to catalyst of urban development: building
manufacturing and services. In Latin 3 Paris a museum often offers opportunities
America, governments are awakening to engage in large urban development
to the opportunities offered by, and 4 San Francisco
projects and to develop a new “city
the needs of, their developing creative 5 Singapore brand” around cultural and creative
industries. A vocational school for industries. Such flagship projects boost
performing arts was recently established 6 Sydney a city’s attractiveness for tourists, talent
in La Plata, Argentina, to equip and highly skilled workers.
7 Los Angeles
unemployed youngsters and adults for
jobs in this growing arena. Bilbao, in Spain’s Basque Country, is now
8 Berlin
an icon of culture-led urban regeneration,
9 Tokyo with the Guggenheim Museum. In a
A new creative class emerges region blighted by high unemployment in
with the growth of global cities 10 Barcelona the 1990s (around 25%), the US$700m
revitalization plan enhanced the city’s
Urbanization, coupled with the
Source: Global talent in global cities, attractiveness, underpinned 4,400
development of cultural activities, is
EY, 2015 existing jobs in the city, and created more
also fueling the emergence of a new
than 1,000 full-time jobs. Tourist visits
economic class in both developed and
have since multiplied eight-fold.
emerging countries — the “creative
The truth about the cultural-digital
revolution
A variety of digitalization levels games, with US$33.8b in sales, were
the world’s best-selling digital content,
Sales of digital cultural goods and followed by digital movies (US$13b),
services are estimated to have reached music (US$10.3b) and books (US$8.5b).
US$66b in 2013. Online and mobile
Worldwide sales of digital cultural content in 2013 (US$b)
65.6 Total
33.8
Online and mobile games

13
Digital movies & video
10.3 Digital music

Digital books
8.5
Source: EY analysis of cultural and creative markets, 2015
The shift from physical to digital sales sales. In movies, video-on-demand now
is most advanced in recorded music, contributes more than a quarter of sales
where digital accounts for 45% of (26%), while in books, e-books comprise
purchases worldwide, while online and 7% of the global market.
mobile gaming account for 34% of
Digital vs. physical content sales in 2013 (% value in US$)
Total
Gaming
Movies
Music
Books
0% 20% 40% 60% 80% 100%

Digital sales Physical sales
North Americans are the most Understanding how consumers
enthusiastic consumers of digital drive value and content
cultural goods, accounting for nearly
half of all digital content sales (47%) Consumer shifts reshape the world of
in 2013, followed by Asians (25%) and cultural and creative industries. Though
Europeans (23%). These varying rates the scale and pace of the online shift
reflect a difference in digital equipment vary markedly in different areas of media
and infrastructure availability (not and entertainment, all are feeling the
everyone has a tablet or e-reader), but effects. Continuing technology change
also highlight different consumption will accelerate this move, empowering
patterns. Buying 20% of their books the consumer.
in digital form, compared with 3.8% in
Europe and 3% in APAC, North Americans
are the most digitally-savvy population.
Digital cultural goods sales by Disruptive business models: key figures

region, 2013 (US$b)
Amazon Netflix Google searches
revenues subscribers per year
1.0
15.4 +44% +61% +18%
16.1
2.5
2011 2014 2011 2014 2011 2014
30.6 Number of €m collected by

Facebook entrepreneurs
users on Kickstarter
Europe North America LatAm
+39% +81%
APAC Africa and the Middle East
Source: EY analysis of cultural and creative

markets, 2015
2011 2014 2011 2014
Source: Creating growth: measuring cultural and creative markets in the EU, EY, 2014 — updated
More than any other sector, CCI have • Community: Social networks have “binge-view” shows back-to-back). Online
radically restructured in response aided the emergence of a community- marketers are using gaming techniques
to the omnipresence of the internet based digital economy, in which (called gamification) to attract and hold
and the new consumption patterns it friends may be more trusted than audiences — witness the success of social
enables, reshaping business models and traditional brands and media. video-game-viewing platforms such
content creation processes. Six features as Twitch — and viewers can enhance
• Involvement: Content needs to move
stand out: their experience of live events by
from “offer” to “engagement” in
simultaneously sharing their reactions
• Abundance: The abundance and order to sustain relationships. Social
via second screens and social platforms.
immense diversity of content is networks contribute to the production,
now taken for granted by today’s diffusion and marketing of cultural and
consumers. creative works. Developing innovation and a
“culture of data”
• Personalization: The creative • Illegal content: Digital technologies
industries embody our appetite for and the internet have enabled the New entrants have been creating
increasingly personalized content, emergence of many unauthorized ecosystems that make it easier for
targeted according to time, place services and usages. Unlawful consumers to discover, choose and
and person. dissemination deprives creators enjoy media and culture. Already, they
and entrepreneurs of revenues, have significantly disrupted business
• Aggregation and recommendation:
in some cases making it hard to models and pricing in music and
The emergence of “time and content
finance creation. publishing. Often, with a background in
consumption crossroads,” such as
technology such companies seek early
Google and Facebook, has fueled Changing consumption is challenging
international expansion to attain critical
market segmentation enabled by traditional formats: TV-established
size, and invest heavily in technology and
big data and the renewed search formats continue to prove successful,
systematic data analysis. In 2013 Netflix
for relevance. State-of-the-art driven by live events and original
devotes US$379m a year (9% of sales) to
recommendation engines guide the content, whereas digitalization enables
R&D and employs 300 people to maintain
end-user in a world of “hyper-choice” and requires experimentation to
and develop its content recommendation
and enable them to track down meet expectations and enrich viewer
engine at a cost of US$150m a year. As
specialized content of interest to experience. Meanwhile, on-demand
of 30 September 2015, R&D costs are up
minority audiences. access is changing the way people watch
to US$172m per quarter.
TV shows (76% of viewers prefer to
Powerful ecosystems are emerging around content, devices and networks
Amazon Bigflix +
Cable TV Prime
Netflix Hulu Instant Verizon
everywhere Apple
Lovefilm Vudu Video Redbox Vine Facebook music
Hulu Plus purchases
Spotify streaming
Apple Yahoo Oculus Rift
Itunes Film4oD Movieplex
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
To stay competitive, companies must
innovate constantly. They have to:
• Invest in new talent and skills to
better leverage consumer and content
“Print is definitively
• Match the interactivity of other online
analytics, improve the customer’s here to stay. It is a
platforms by adding new features or
multi-channel experience and develop
the ability to constantly overhaul what
popular medium and
improving existing ones
they do people are attached
• Stop thinking in terms of platforms,
and focus instead upon content, to
• Develop open innovation strategies to reading on paper.
enabling direct relationships with
deliver it seamlessly across platforms
start-up companies, individuals and
In fact, it is the fifth
• Develop direct relationships with universities to benefit from their ideas year that we see a
customers to secure control over key
value-chain activities
net increase in the
Investing in new media
number of book
Companies face tough choices about
where to invest in a fast-changing stores in the US.”
What recently landscape. Offline media still provide the
majority of revenues and profits, but the
surveyed media and share of digital is growing. Steve Bercu
entertainment CEOs Yet, digital is often loss-making in the Former President of American Booksellers
have to say short and medium term. Media and Association, co-owner of BookPeople
entertainment (M&E) companies must
continually assess their investment The digital paradox
strategies as market dynamics change.
They have to: Although digitalization is driving
“The challenge in navigating media and culture consumption, some
the path to digital is keeping • Evaluate the opportunities and CCI are showing strong resistance to
your balance — keeping one limitations of different platforms digitization, such as books: in 2015,
as they evolve, hinging investment print will represent 80% of all book sales
foot safely on the dock as decisions upon how they will affect the worldwide, and even higher in developing
you put your leading foot in user experience countries.
the boat.”
• Direct investments toward emerging The appetite for physical events and
ecosystems offering the greatest value venues has sharpened. The music
“We need to invest in more • Study how consumer behaviors industry is now once again driven by live
digital talent.” and technological development events, and revenues from live shows
influence each other, and adopt a now exceed recorded music sales in some
“test and learn” approach (as digital regions. In Europe, ticket sales for live
“We will consider deals companies do) music performances, at US$16.5b, are
now more than twice those of recorded
at the right price, but • Understand how current and future music sales (US$6.3b).
experimenting with formats digital revenue models will affect
long-term profitability: companies Digital distribution is becoming a tool for
and price and offers will also
often struggle to recast their business promoting live events. Using cultural data
enable growth.” about consumers (cultural behavior and
models while focusing on short-term
returns on investment social recommendations) to alert them to
live events and sell them tickets enables
the creative industry to blend business
models to achieve growth.
The informal economy is an economy
The informal economy is defined as most recently, stream ripping, rival legal the US Government of US$422m in
“market-based production of goods subscription and downloading services. In tax revenues.
and services, whether legal or illegal, Spain, 88% of cultural content consumed
that escape detection in the official online during 2014 was illegal according The informal economy
estimates of GDP (Smith, 1994). In CCI, to the Spanish Observatory on piracy and
dominates cultural content
this involves the exchange of cultural digital consumption habits in 2014.
and creative goods and services that are distribution in developing
Piracy is extremely harmful to the countries
hidden from official view. It includes:
cultural and creative industries: it wrecks
• Piracy: physical piracy, i.e., distribution channels and leaves creators In Asia-Pacific, Africa and Latin America,
manufacturing unauthorized (pirate) and creative industries unrewarded or informal trading of pirated cultural goods
copies of protected material and ill-rewarded. Piracy is believed to have and services (usually at lower prices)
distributing and selling them; digital cost the five largest EU economies without any payment to authors is
piracy, i.e., unauthorized internet around US$25b and more than 189,600 widespread. It ranges from rip-off CDs,
distribution of protected works jobs between 2008 and 2011 as shown movies and video games, to unlawful
by a Tera Consultants/Forum d’Avignon book copies, to unlawful performances
• The informal economy: paid provision
report in 2014. In the US, music piracy and back-door TV subscriptions. Informal
of goods and services, largely outside
causes US$12.5b in economic losses, CCI sales in emerging countries totaled
formal arrangements. As such,
and an estimated 71,000 jobs are lost an estimated US$33b in 2013 and
the informal economy must not be
annually, reducing the music industry’s provided 1.2 million jobs.
considered as criminal activities: it
earnings by US$2.7b and depriving
represents cultural activities and
content traded by creators using
informal distribution channels. Informal sales of cultural goods and Where the jobs are: employment in the
services in Africa, Latin America and informal cultural economy in Africa,
Piracy is a significant Asia-Pacific, 2013 Latin-America and Asia-Pacific, 2013
threat to CCI
Digital technology has made it easy 6%
to unlawfully copy and share cultural
content. Illegal streaming platforms, 31%
file-sharing, peer-to-peer networks and, 26% 32%
56%
3%
12%
3%
16% 7%
8%
Books Music TV Movie Books Music Movie

Gaming Performing arts Gaming Performing arts
Source: EY analysis of cultural and creative Source: EY analysis of cultural and creative
markets, 2015 markets, 2015
The informal economy provides employment for sellers, artists and performers.
Performing arts are the biggest The lack of legal cultural distribution In the absence of formal venues, the
employers in the informal economy, channels (such as bookstores) and other informal economy also helps finance the
providing unofficial music and theater cultural infrastructure makes it hard work of performers, including actors and
performances (street performances, for consumers to obtain lawful copies musicians. In Africa and Asia-Pacific,
festivals and concerts that do not pay of cultural works. In South Africa, the informal contracts between artists and
authors rights, private performances at first multiplex in a township did not open private sponsors are often the primary
marriages or funerals, etc.), which are until 2007. source of income for creators.
often free for audiences. In Africa, these
Many creative workers in emerging
performances can be paid by individual
sponsors.
economies, including musicians, artisans, “The informal sector is
performers and visual artists, often find
themselves beyond the reach of official everywhere whereas
In the absence of official regulation. 80% of legal musical
alternatives, cultural consumers
turn to the informal economy
Informal distribution channels in South shows are in Abidjan.”
Africa, Brazil, India, Russia and Bolivia
In emerging countries, the high prices of have become so effective that lawful
cultural goods, low incomes, and cheap distributors sometimes try to use them.
The Nigerian home video industry — now Director of Abidjan’s Palais de la Culture
digital technologies combine to foster
piracy. Relative to incomes, retail prices the second-largest film industry in the
of CDs, DVDs are 5-10 times higher in world — was built on informal distribution
Brazil, Russia, and South Africa than in networks, and its success is encouraging
the US or Europe. their extension throughout Africa.
industries in five
global regions
This section highlights the weight, drivers and challenges This section also includes 17 country focuses to illustrate
of cultural and creative industries in five global regions: specific and selected CCI trends and challenges in different local
Asia-Pacific, Europe, North America, Latin America and the markets.
Caribbean and Africa and the Middle East.
Selected countries, selected sectors and corresponding page
For each region, we propose: numbers are as follows:
• A panorama of CCI in each global regions, highlighting their
specific trends, strengths and drivers in the regions;
• A preview, providing a forward-looking analysis of the
main challenges to develop CCI, according to local
technical evolutions, innovation and economic outlook
of each global region. Japan
Architecture/newspapers
and magazines
USA UK France Russia Page 40

Performing arts/TV Gaming/visual arts Books/advertising Performing arts
Page 60 Page 50 Page 48 Page 52

Canada Turkey China
Music/gaming Music Performing arts/
movie
Page 58 Page 53
Page 41
Page 42
South Korea
Music/TV
Page 74
Page 66 Page 38
Nigeria
Mexico Music/movie Australia
TV/books Performing arts/advertising
Page 78
Page 68 Page 36
South Africa
Brazil Visual arts/radio India
TV/music Newspapers and
Page 76 Page 80 magazines/movie
Egypt Middle East

Visual arts/movie Visual arts/TV
Asia-Pacific
Snapshot
US$743b 12.7m
CCI revenues CCI employment
CCI revenues in Asia-Pacific (US$b) in 2013
Visual arts 191.5
Newspapers and magazines 141.6
TV 118.0
Architecture 117.2
Advertising 68.5
Books 48.7
Gaming 47.1
Movie 25.9
Music 16.3
Performing arts 14.5
Radio 6.1
CCI jobs in Asia-Pacific in 2013
Visual arts 3,284,000
TV 1,943,000
Books 1,704,000
Newspapers and magazines 1,630,000
Performing arts 1,349,000
Music 1,294,000
Movie 774,000
Architecture 492,000
Advertising 453,000
Gaming 252,000
Radio 177,000
Total for jobs and revenues have been estimated after removal of double-counting. The sum of each sector exceeds the
consolidated total as some cultural activities are counted in two sectors (for instance, live music is included in “Music” and in
“Performing arts”).
Panorama
Demographic and Digital is a significant Asia has created its own digital world
with successful social platforms in
economic changes competitive advantage China, spurred by proactive government
boost architecture and For perhaps two decades, Japan and intervention. In China, Youku dominates
video uploads, RenRen social networking
mass media South Korea (now joined by China)
and Weibo leads micro-blogging. Youku
have been at the forefront of the digital
The rapid emergence of Asia’s middle hardware revolution, giving them a and Tudou, the two biggest video
class is transforming the region into significant competitive advantage in platforms in China, have 900m users
a powerhouse of economic growth. the gaming industry. This helps explain and exert a significant influence over
The progressive integration of Asian the strength of Asia-Pacific companies the Chinese internet advertising market,
countries into the global trading system such as Konami, Square Enix, Capcom which has jumped from US$2.8b in 2009
over recent decades and related and Sony Computer Entertainment. to US$13.4b in 2013.
governance improvements have given Asia-Pacific is a champion in global
people the wealth and leisure to become gaming (revenues of US$47.1b, 47.5% National markets and
cultural consumers. Rising prosperity
and literacy are enabling a cultural
of the global market) and contributed growth vary widely
82% to the growth of the global games
resurgence, notably in China, but also in market in 2014, benefiting from the rise Asia is a vast and varied region,
populous emerging economies such as of online gaming. marked by a strong and diverse cultural
Indonesia and the Philippines. Elements heritage. The levels of prosperity and
of Japanese art and culture have long With 1.25 billion people connected to the
economic development vary from
been widely admired, though population internet, Asia-Pacific is home to 47% of
Singapore, Korea and Japan at one
decline, economic stagnation and a series the global online population. China alone
end of the spectrum, to Myanmar
of stumbles by technology companies has more than half a billion internet users
and Cambodia at the other. Two huge
have prevented Japan’s cultural and the world’s second-largest population
emerging powers, China and India, have
industries from living up to expectations. of online shoppers (145 million people).
extraordinarily ancient, diverse and
Japan struggles with change. That two Smartphone penetration in Asia-Pacific rich cultures, cross-fertilized by global
of its newspapers, Yomiuri Shimbun has boomed in recent years. In Hong diasporas.
and Asahi Shimbun, are the world’s Kong and Singapore, 87% of adults
The region’s cultural and creative
bestsellers could reflect its aging now have a smartphone. Asia-Pacific
industries reflect this multiplicity.
population, difficulty in adapting to a new countries are among the most connected
Though a few markets are relatively
era, and rigid economy. in the world. South Korea has the world’s
mature, many are still growing rapidly.
Elsewhere in Asia-Pacific, however, fastest broadband and the internet
The gaming industry scarcely exists in
many economies are growing fast. This reaches almost every family, facilitating
the least-developed Asian countries, but
is boosting the construction market the purchase and delivery of cultural
is relatively mature in Japan and Korea,
and providing a field day for architects content. Sales of e-books have been
and in China it grew 35.1% between
as they vie to build homes, offices and rising steadily to reach US$178m in
2011 and 2012.
leisure facilities. Architecture, an activity 2012 and more than US$228m in 2013.
The South Korean e-book market is Architecture, too, is growing strongly in
that marks time in mature economies,
among the world’s largest. China, surging 20% between 2012 and
continues to achieve double-digit growth
2013 as the country built increasingly
in Asia-Pacific (13% in 2013).
sophisticated homes, shops, offices and
other venues for its people. In Australia,
Asia-Pacific civil engineering sector value (US$b) however, where the construction market
1400 is less dynamic, the architectural
1237.2 profession is marking time.
1200 1084.9
1000 Some cultural industries have yet to
903.1
755
812.2 gain momentum in Asia. The region is
800 especially underweight in the performing
600 arts, accounting for just 11% of the global
400 market, and in the music industry (23%).
200
0
2009 2010 2011 2012 2013
Source: MarketLine, 2014
Preview
Free for all Media freedom and freedom of
expression are very limited in many
From heritage to industry
Poor copyright protection ceases to be Asian economies, a factor that impedes Many economies in Asia-Pacific have
an advantage. The Global Intellectual the development of CCI. According identified CCI as a high-potential
Property Center (GIPC) IP Index suggests to Reporters Without Borders, nearly strategic sector and are striving to
that India, China and other southeast half of the 20 economies with the most promote their development and enhance
Asian countries need much stronger, restricted press are in Asia-Pacific, their competitiveness. Creative hubs
better enforced protection of intellectual notably North Korea, Iran, Mainland and clusters have mushroomed under
property. India scores just 6.24/25 and China, Vietnam, Laos, Uzbekistan, Sri the impetus of policy makers. Among
China 9.13/25, compared with a score of Lanka and Kazakhstan. Even democratic the best known are Hong Kong’s Jockey
22.5/25 for the UK. Ignoring copyright, states in northeast Asia often score Club Creative Arts Centre (JCCAC),
while morally wrong, makes it cheaper poorly. In the latest survey, South Korea West Kowloon Cultural District, and
to access cultural goods from elsewhere, fell six places to finish 50th, and Taiwan Beijing’s 798 Daishanzi Art District. For
but can impede the development of slid two places to 47th. instance, JCCAC serves dual roles: as
domestic cultural industries. an arts village, it helps support the arts
The informal economy remains “India is the world’s community’s needs from art studio to
operation space, and as an art center,
dominant in the region, accounting for
US$25.2b of sales and 670,600 jobs in
second largest market it showcases artworks and welcomes
2013. Piracy rates are especially high for YouTube music visitors. In 2014, it provided 136
studio units and attracted an estimated
in the music, TV, movie and gaming
industries: 90% of DVD sales and 95%
videos, with close to 300,000 visitors during the year.
of recorded music sales in Asia are 100 million individual The slow but steady development of the
estimated to involve unlawful copies. ASEAN Economic Community should also
Regulations and institutions are weak:
viewers per month.” facilitate the development of a cross-
the informal economy may generate border creative economy in parts of the
half of all GDP and provide a large Asia-Pacific region.
majority of jobs. Achille Forler
MD at Universal Music Publishing
The combination of rising leisure exports have helped shift perceptions York, London and Paris. Huge public and
time, communication and education is of Korea: a survey by the Korea private investment has flowed into the
enhancing international awareness of International Trade Association found creative and cultural sector as a result.
the region’s creative potential. Major that 80% of respondents from Japan,
Chinese collectors have become hugely
cultural events have helped highlight Mainland China, Taiwan and Vietnam
influential in global visual arts markets
progress, notably universal expositions at believed that Hallyu had positively
and Chinese investors are rapidly
Aichi (Japan) in 2005, Shanghai (China) influenced the purchase of South Korean
expanding into cinema, gaming and
in 2010 and Yeosu (South Korea) in products. In 2011, South Korean cultural
TV. Chinese collectors have become
2012. The region is also home to some exports, including films, music and TV
prolific buyers in global fine art markets,
of the world’s best-known traditional shows, hit a record US$4.2b. South
acquiring both Chinese and Western art
festivals: Cherry Blossom (Japan), Korea is now a role model for Asian
for display in private collections or in the
Songkran (Thailand), Diwali (India) and countries that are seeking to reduce
country’s rapidly-expanding network of
the Lantern Festival (China). their reliance on imported entertainment
museums and galleries. Fine art sales
and provide jobs for artists, writers,
of US$12.5b in 2013 made China the
Exporting cultural models producers, set and costume designers,
world’s second-largest market, after the
and others involved in film and television
New Asian cultural industry models US. Museums are also an integral part
production.
are beginning to emerge, aiding of the country’s cultural renaissance
regional exports. India’s film industry is now the world’s strategy: their number doubled to 4,000
largest in terms of annual production in the decade to 2013.
Japan is striving to become a cultural numbers, turning out 3,000 movies
superpower, but more than a decade As audiences increase rapidly, China has
a year in more than 20 languages.
after its inception, the Government’s also begun to stamp its authority on the
Once centered largely upon musical
Cool Japan campaign remains lackluster. film industry. The rapid opening of new
films, some Indian movies increasingly
However, Japanese anime, video games cinemas has led to soaring audiences.
resemble international offerings, and
and manga comics, which appeal to many Chinese box office receipts now ranks
thanks to the country’s large diaspora,
urban and young people in both Asia and second worldwide (behind the United
gain a niche entry to non-Indian
the West, are still thriving. States). Mainland China’s movie industry
communities around the world, especially
is thriving; aided by the international
South Korean culture has gradually in the Middle East and South Asia.
reputation and skills of Hong Kong movie
gained international markets, especially makers, it achieved year-on-year growth
among the youth, since the 1990s. The Cultural re-conquest of 27% and 36% in the past two years.
Korean Wave, also known as Hallyu, Domestic and collaborative international
In 2009, a meeting of China’s State
reached China via K-pop and TV soaps. It productions are gaining art-house
Council declared culture a strategic
also reached a broader youth audience audiences, while popular films, such
industry that should generate at
via social media platforms including as the Detective Dee series, now win
least 5% of the country’s GDP. China’s
Facebook and YouTube, where it captured showings worldwide.
“cultural strategy” aims both to satisfy
the attention of tech-savvy and culturally
a growing domestic demand for culture,
curious audiences in North America
as well as enhance China’s heft around
and Western Europe. In 2011, K-pop
the world and better enable Chinese
was a global phenomenon, with nearly
cities to compete with rivals, such as New
2.3 billion YouTube views. Cultural
Focus from ...
India
Beyond Bollywood: the diversity and richness of
Indian cinema
Cinema in India: a long-standing and “Bollywood,” “Kollywood,”

thriving cultural cornerstone “Tollywood”: cinema is plural Key figures
Seen as a “cement of society” by former Though Bollywood has become a byword
Prime Minister Jawaharlal Nehru, cinema
in India has a formidable tradition and
for Indian cinema, there is more to
the country’s film industry than the
US$3.6b
has long been nourished by supportive effervescent Hindi-language production direct revenues;
184,000
government policies. Cinema remains a center in Mumbai. Kollywood films shot
popular activity every Indian can afford: in Chennai in the Tamil language are
open air and indoor cinemas are found nearly as numerous, as are Tollywood direct jobs
across the sub-continent, from traveling films from the Tollygunge studios at
cinemas to single-screen cinemas (for Kolkata, mainly scripted in Bengali. Each
up to 900 people) and technologically- center produces 200 to 300 films a year,
advanced multiplexes in big cities. generating an output that makes the Top 10 box office markets in
Indian film industry the world’s largest by 2014 (US$b)
Though there are no restrictions on
production numbers, ahead of Nollywood
imports, locally made films dominate the
and Hollywood.
market. US/Canada 10.4
Bollywood films are, however, the most
Between 90% and 95% of films released China 4.8
exportable. They are very popular in
are Indian. Offerings range from the
Asia-Pacific countries, including Sri Japan 2.0
masterful art-house work of Satyajit
Lanka, Bangladesh, Nepal and Pakistan,
Ray to modern-day comedies such as France 1.8
in many Arab countries, as well as among
Delhi Belly. But most Indians adore the
India’s extensive global diaspora. More UK 1.7
country’s musicals, a peculiarly Indian
recently, independent directors including
genre paced over three hours centered
Manjeet Singh and Anurag Kashyap India 1.7
upon music, dance and a love story.
have produced more works depicting
South Korea 1.6
India is the third-largest cinema market everyday life, which have won acclaim at
in Asia after China and Japan, and international movie festivals.
sixth-largest globally, with annual box Source: MPAA (2015)
office revenues of US$1.7b. And it is still
growing, aided by the opening of 150
new movie theaters every year. “In India, music and
cinema are inseparable.
Indians discover music
through films.”
Achille Forler
MD at Universal Music Publishing
Newspapers: a booming industry for a
rising middle class
At a time when some renowned Western A promising future Top countries by newspaper sales
newspapers have downsized or shifted
to online editions, the Indian newspaper Regional language newspapers are
1. India
industry is booming. expected to achieve double-digit growth
in the next 10 years as millions of newly 2. China
The world’s biggest newspaper literate citizens in mid-sized towns
choose newspapers as their primary 3. Japan
market
source of information. Among the top 4. United States
The Indian newspaper industry is divided local-language dailies (excluding Hindi
into two markets: regional newspapers and English), Manorama in Kerala is read 5. Germany
(mainly in Hindi, such as Dainik Bhaskar in Malayalam and the Daily Thanthi in
and Dainik Jagran), and English Tamil, while Lokmat gathers a Marathi Source: World Association of Newspapers and
audience in the Mumbai hinterland in the News Publishers
newspapers, including The Times of India,
the world’s largest circulation English state of Maharashtra.
language newspaper, and the Hindustan
Since internet penetration remains poor
Times. Democratic India has had a long
in India — 80% of the population still lacks
history of print news; the first newspaper
internet access — Indian newspapers,
was founded more than 230 years ago.
which can be delivered for less than
Today, there are more than 82,000
US$2 a month, are much more accessible
newspapers. India is already the world’s
for a fast-growing middle class.
biggest market with 110 million copies
sold daily. Readership is even greater, This is encouraging advertisers to spend
as each copy is often shared by several more on print. They have discovered the
readers. vast diversity of vernacular print media
and its ability to reach consumers in
A recent study from the FICCI suggested
thriving medium-sized cities. Classified
that the value of the Indian newspaper
advertisements in local papers have
industry has grown by two-thirds in the
largely replaced traditional matchmakers
past six years. In 2005, the total industry
in finding marriage partners for young
was worth US$2.64b. This rose to
men and women.
US$4.37b in 2010.
Newspapers play an important social
and educational role in India; buying
a paper is often seen as helpful in
educating children.
Australia
Pioneer of the advertising industry
Australia is becoming a global Australian advertising spend in 2013 —

advertising industry benchmark breakdown by medium Key figures
Australia has a small, but sophisticated, 1%
advertising market. In terms of ad
spend per person, Australia ranked third 4% US$12.3b
5%
worldwide in 2014, with spending per of advertising revenue
head of US$504, behind only the US 8% 30% notched up by media
(US$565) and Norway (US$538). companies in 2013;
4%
Australian advertising executives
are renowned for their creativity. An 180,000
international evaluation of advertising
18%
people employed in
industry creative award winners, advertising and marketing in
The Gunn Report, put Australia fourth
in its 2014 ranking.
Australia in 2011
4% 26%
Australia was one of the first
countries to go digital
Digital Free-to-air TV Pay-TV
Australian advertising has rapidly gone Newspapers Magazines Radio
digital. Revenues from online advertising
Directories Outdoor Cinema
more than doubled between 2010 and
2014, outpacing growth in the US. They Source: CEASA, 2014
are expected to carry on growing by
10.2% a year between 2014 and 2019.
Digital advertising became the dominant
medium in Australia in 2013, securing
30% of the market, compared with 27%
in the US and 25% on average worldwide.
Total online advertising was US$3.98b
compared with US$3.87b for advertising
on broadcast TV.
Performing arts in Australia: a thriving sector
Within the creative industries, music and A whirlwind of creativity

performing arts have shown one of the Key figures
strongest performances over the past The Sydney Opera House is today one of
five years. Ticket sales in 2013 generated the busiest performing arts centers in the
total revenue of US$1.48b, up 22.7% world, staging up to 2,500 performances
and events every year, and attracting an
US$1.48b
on 2012.
estimated four million visitors. ticket sales;
A vibrant live music scene In Australia, there are a large number
of performing arts organizations,
34,277
Australia has long hosted a lively music
particularly because of an enquiry people working in music and
scene, benefiting from connections the performing arts
held in 1999, which led to significant
with English-language audiences and
measures in government support
performers worldwide. Australian
through the Australian Council. In
contemporary music performers,
fact, the performing arts sector is
including Kylie Minogue, Xavier Rudd,
supported by the state through the
Olivia Newton John, and INXS, are
Australian Performing Arts Centres
international stars. With a mix of major
Association. Australia’s international
touring acts and a burgeoning local
visibility is reinforced by the Australian
music scene filling stages, Melbourne
Performing Arts Market (APAM),
has become Australia’s live music capital,
an international industry event for
and is home to festivals, including:
contemporary performing arts. APAM
Soundwave, which spans rock, metal and
showcases Australian acts, and promotes
punk; Laneway (indie music); and Sugar
collaboration and exchange with foreign
Mountain, which mixes contemporary
industry counterparts to bolster the
music, visual arts and new media.
export of Australian performing arts.
Total revenues from live performances in Australia, 2004–2013 (US$m)
1600
1400
1200
1000
800
600
400
200
0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Source: Live Performance Industry in Australia, EY, 2014
Japan
Architecture is driven by home-building
87% of Japan’s home sales are new value in Japan: after 15 years, a home world’s most prestigious architecture
construction typically loses all value and is demolished award — in 2013. He has designed dozens
on average just 38 years after being of structures, from homes to libraries,
Demand is driven by a distinctive cultural built. The enthusiasm for renewal has around the world. In 2014, Shigeru Ban
phenomenon: the average home is been encouraged by natural disasters won the same prize for his work with
demolished and replaced every 38 years; (earthquakes, tsunamis and fires) and recyclable materials to craft structures
and 87% of homes bought by Japanese war-time destruction. in disaster zones. It is also two Japanese
buyers are new, compared with only architects — Kasuyo Sejima and Ryue
11% to 34% in Western countries. This Japan, internationally recognized Nishizawa — who designed the Louvre
means that Japan builds as many homes Lens in France. Thus, the global changes
each year as the US, though it has only Japan is an architect’s paradise. It taking place in the architectural world
a third as many people. Homes are not has four times more architects per are crystallizing right now in Japan, with
renewed because they are dilapidated; capita than the US and they enjoy an the past five years being considered one
houses in Japan rapidly depreciate like impressive international reputation. of the most innovative periods in current
consumer durable goods (cars, fridges, Japanese architect Toyo Ito won the Japanese design history.
golf clubs, etc.). Thus, houses have little 2013 Pritzker Architecture Prize — the
Read all about it
One of the highest levels of competitive environment and active sale “Thanks to the high
newspaper and magazine readership promotions are conducted.
literacy rate of
Newspaper readers accounted for nearly Japan’s magazine industry is
83.6% of the total population in 2013. distinguished by the publishing of many Japanese people,
Despite a digitally adept population, manga comics, and a weekly comic strip the spread of writing
Japan has some of the world’s bestselling anthology, Shonen Jump, still sells three
newspapers. The Yomiuri Shimbun, one million copies. The comics on which culture as well as
of five national newspapers in Japan, Shonen Jump is based are sold in about
30 countries around the world, and
well-established house
has the largest circulation in the world,
according to the World Association the magazine is now available online. delivery system,
of Newspapers and News Publishers. The annual market for weekly comic
magazines and comic books is estimated
Japan has a higher
Founded in 1874, the newspaper
prints more than 10 million copies for to total US$3.2b. level of newspaper
its morning editions, reaching more
A looming decline
penetration.
than 26 million readers, and another
4.3 million copies of its evening editions. Newspaper readers
Print media are losing their appeal for
The paper’s circulation has been stable
younger people, who increasingly read accounted for nearly
for the past two decades and more than
30% of readers have subscribed for over
online. Newspaper set* sales have fallen
18% since 2000.
83.6% of the total
20 years. It has 29 printing plants and
8,501 distributors throughout Japan. Moreover, the consumption tax rate is
population in 2013.”
currently expected to be raised again in
Regardless of whether readers live in
Japan. Associations have argued against
urban or rural areas, they have options According to the Japan Newspaper
taxation and called for the application of
to choose from among four to seven Publishers & Editors Association
a reduced tax rate to newspapers.
general newspapers, securing the
diversity of Japanese newspapers. It also
means Japanese newspapers are in a
*A set paper is a subscription to both morning and evening editions of the same paper.
China
Film industry under the spotlight
Attendances break records Chinese productions to vehicle national

values ensure that the Chinese industry Key figure
Cinema box office receipts in Mainland produces most of the films shown in-
China surged 34% to US$4.8b in 2014, country. Yet, despite its scale, Chinese
making it the first market outside North
America to exceed US$4b in revenues.
cinema has often been confined to US$4.8b
domestic themes and been slow to
win audiences abroad. The two most of box office receipts
By 2020, China is expected to become the
world’s biggest film market. It is already popular genres in China are comedies in 2014
the most important market for many and romantic comedies, often deeply
US-made movies, and Transformers: embedded in Chinese culture and finding
Age of Extinction was the best box-office little resonance abroad. To develop, Blossoming box office receipts in
performer in China in 2014. the industry needs to make movies China (US$b)
with wider appeal, especially if they
This growth is mainly driven by the 4.8
are to showcase Chinese culture as the
emergence of a middle class and the Government wishes. Co-production is
rapidly growing number of screens: the 3.6
currently seen as the best way to achieve
Chinese cinema industry has added this goal. One example is Wolf Totem — 2.7
20,000 screens in the past decade and directed by Frenchman Jean-Jacques
is opening new cinemas at the rate of Annaud — a China-France co-production
18 screens a week. that earned more than US$100m at the
box office.
The Chinese film industry is still
very local 2012 2013 2014
Strict import quotas and historic Source: MPAA, 2015
emphasis upon the importance of
Reinventing ancient performing arts traditions Key figure

A broad set of competencies One of the biggest projects recently
There has been a long tradition of

was the construction of the Han Show
Theatre in Wuhan, a city of 10 million US$3.2b
performing arts (especially Chinese people. This state-of-the-art theater with of performing arts box
opera) throughout China’s long cultural 2,000 seats has been purpose-built to
history. Early forms of Chinese drama
office revenues in 2011
house the brand new theatrical, acrobatic
were simple, but over time, they included water spectacle, The Han Show, by
music, song and dance, martial arts Belgian theater director Franco Dragone. National performing arts box office in
and acrobatics, and literary art forms to The project has been developed by China (CNY1,000)
become what we now call Chinese opera. Chinese real estate conglomerate Wanda
Today, the performing arts in China are a Group, which invested US$409m in 1,976,000
mixture of traditional performances and building the theater as it diversifies into
more modern shows, accompanied by the entertainment business. 1,080,000
the emergence of performing arts brands Wanda has included theaters, cinemas,
and centers. 288,200
amusement parks, hotels and Wanda 133,118
With the commercialization of performing Plaza shopping malls in its plans for
arts in China, a fast-growing middle class, developing its cultural tourism business.
and the multiplication of new projects 2008 2009 2010 2011
and performance space construction,
sales of tickets for performing arts Source: Dao Strategy Centre for Cultural Research
nationwide have been growing steadily
since 2008.
South Korea
Music industry set to hit a high note
Global music recording industry training to prepare them for pre-targeted

revenues fall, but Korea is bucking markets, ensuring they master the Key figures
the trend language and culture. However, the
industry is careful to ensure it continues
One lesson from South Korea’s music
market is that sound laws, combined with
to service its national market too, as this US$211m
still accounts for more than 80% of music
a rich and diversified repertoire, can still sales. Korean popular music (K-pop) of recorded music
underpin growth. Since 2005, when it draws upon electronic music, hip-hop, revenues;
was the world’s 33rd market by revenues,
South Korea has grown to become the
pop, rock and R&B music. Developed
over 20 years, it has been adopted by US$409m
world’s 10th-largest recorded music teenagers and young adults throughout of live music sales
market. In 2013, revenues continued Asia, causing them to mimic the fashions
to surge, growing 9.7% and making and styles of idolized Korean groups
South Korea the second-largest recorded and singers. The global success of Psy’s
music market in Asia-Pacific after Japan Gangnam Style has been emulated
(which experienced a fall of 16.7% in by groups such as Super Junior and
recorded music revenues). South Korea 2NE1, who have sold millions of CDs and
is one of the world’s largest subscription concert tickets elsewhere in Asia.
markets, with subscription services
accounting for 85% of digital music and A reservoir of musical talent
43% of all music revenues.
South Korea is also a powerhouse in
Local artists and audiences classical music. South Korean musicians
underwrite international growth do well in international music contests
and are regular winners of the Queen
The Korean music industry has become a Elisabeth Music Competition awards.
formidable machine for developing artists Audiences for classical music are
on an industrial scale. It now dominates often younger than in other developed
the Asian scene and challenges American countries. South Korea also has strong
musical influence there. Potential artists jazz, hip-hop and electronic artists, but
are identified while they are very young they are largely overshadowed by the
and follow 5 to10 years of intensive success of K-pop.
Sign here: subscriptions conquer digital music sales

2% 3%
6% 7% 10% 9%
9% 18%
17%
17%
22% 36%
20%
74%
85%
48% 52%
43%
16%
6%
2009 2010 2011 2012 2013
Downloads Subscriptions Mobile Ad-supported Other
Source: IFPI, 2014
Television is at the center of South Korea’s
cultural export strategy
A successful TV industry K-dramas conquer Asia-Pacific

audiences Key figure
Previously held back by government
repression and strict censorship, South Korea started to broadcast
South Korea’s television industry has
blossomed since 1987, aided by the
television series in the 1960s. Like the
country’s music and movies, Korean
US$167m
launch of satellite broadcasting in 2002. dramas have been exported across of revenues from sales of
Yet, South Korea’s TV market remains Asia during the past decade, part of a K-dramas abroad
dominated by three large networks: phenomenon called the “Korean Wave”
Korean Broadcasting System (KBS), or in China, Hallyu. These dramas
Munhwa Broadcasting Corporation (MBC) are typically centered on a love story,
and Seoul Broadcasting System (SBS). with strong emphasis on family ties
With rivals in China, Singapore and and relationships. In 2013, K-dramas
Malaysia still more or less subject to the constituted 82% of South Korea’s cultural
heavy hand of censorship, South Korea exports, earning US$167 million, up
has been comparatively successful in four-fold in a decade. KBS’s Love Rain,
developing its programs to appeal to a starring Jang Geun-suk and Yoona, was
global population. sold to a Japanese broadcaster before it
had aired in Korea. Costing US$400,000
South Korea’s place at the leading edge
per episode, it has since been sold to
of the digital revolution makes it a market
broadcasters in 12 countries in Europe
to watch. More than 41 million South
and Asia, including China, Singapore
Koreans were online by the end of 2013,
and Malaysia, notching up US$106m in
and the country is a pioneer of TV via
overseas sales.
mobile devices and the internet (IPTV).
More than 8 million Koreans subscribed
to IPTV offers in 2013.
Europe
Snapshot
US$709b 7.7m
CCI revenues in Europe (US$b) in 2013
Advertising 143.7
TV 129.2
Visual arts 121.5
Architecture 59.0
Books 52.5
Gaming 29.8
Movie 24.4
Music 23.5
Radio 14.5
CCI jobs in Europe in 2013 (US$b)
Music 1,289,000
Performing arts 1,183,000
Advertising 1,028,000
Books 973,000
Visual arts 803,000
TV 746,000
Movie 704,000
Newspapers and magazines 604,000
Radio 115,000
Gaming 92,000
Total for jobs and revenues have been estimated after removal of double-counting. The sum of each sector
exceeds the consolidated total as some cultural activities are counted in two sectors (for instance, live music is
included in “Music” and in “Performing arts”).
Panorama
Diminishing state support A cultural economy Group. Ubisoft and Supercell outperform
in video games, and Publicis and WPP
leaves some creators rooted in history are leaders in advertising. Europe is
struggling The strength of European CCI is a
also an innovation hotspot, creating and
developing new business models such as
unique concentration of heritage and
The creative economy in Europe is those of Sweden’s Spotify and France’s
arts institutions with an old, rich and
underpinned by strong public support — Deezer in online music streaming
diversified history. Seven of the 10 most-
with variable intensity from one country services.
visited museums in the world are in
to another — through purchases, financial
Europe (three in Paris, two in London), The European creative and cultural
and fiscal incentives, subsidies and public
and 30 of UNESCO’s 69 “Creative Cities” economy is built upon two learning
employment. In 2013, governments in
are European — making Europe a world- routes: a strong concentration of
the EU28 devoted nearly US$68.6b of
class cultural destination attracting 52% creators (authors, writers, composers,
spending to cultural services.
of international tourists in 2013. etc.), and a dense network of art and
This broad-ranging public support is now culture schools. Europe’s cultural
threatened by public spending cuts, as A highly talented cultural workforce includes more than 500,000
European governments pare spending in writers, and a million music composers
an effort to reduce deficits and re-launch workforce and lyricists. Europe is home to more
growth. Before the 2008 financial crisis, With a dense and educated population, creators than any other global region.
public spending on cultural services was a strong market for culture, and a world-
growing by 5% a year; since then, it has Art centers and cultural training
class heritage, Europe is renowned for institutions boost the European
fallen by 1% annually on average. Though its corporate leaders in the creative
it accounts for only 1% of public spending cultural economy. Europe has a unique
industries. Whether international, concentration of schools and universities
(compared with 2.9% for defense and mid-sized or successful start-ups, many
10.7% for education), government teaching cultural and creative industry
European businesses are pioneers. skills. There are more than 5,500
support has a vital pump-priming effect. Universal Music Group leads the music
It often triggers private support and universities, undergraduate and post-
industry, while Endemol leads in TV. graduate schools in Europe. Its dedicated
anchors the economic vitality of CCI Europe’s publishing industry leaders
across European countries, in particular art and cultural schools include some
include Pearson and Hachette Book of the world’s best, contributing to the
for the performing and visual arts.
worldwide renown of the European
cultural industry and enhancing its
Top 10 international museums (millions of visits, 2012) attractiveness for creative professionals
worldwide. The region hosts some of
Louvre 9.72 the world’s most prestigious schools
of architecture (London Architectural
Metropolitan Museum of Art 6.12
Association, Technical University of
British Museum 5.58
Delft, ETH Zurich), performing arts
(Bolshoi Ballet Academy in Moscow,
Tate Modern 5.30 Paris Opera School of Dance, Vienna’s
State Opera Ballet Academy), film (Ecole
National Gallery 5.16 Louis Lumière and FEMIS in France,
Filmakademie of Baden-Württemberg),
Vatican Museums 5.06 fine arts (The Royal Danish Academy
of Fine Arts, London’s Royal College of
National Palace Museum 4.36
Arts — the only school in the world with
National Gallery of Art 4.20
art and design post-graduate programs)
and design (Design Aalto University
Centre Pompidou 3.80 in Helsinki).
Musée d'Orsay 3.60
European museums
Source: The Art Newspaper
Preview
The rise of a new Europe such as apps, streaming. To maintain
Europe’s creative and cultural strength,
ways of accessing finance (including
crowdfunding, targeted public funding
In a mature market with weak growth in the EU’s framework of copyright and cultural leaders’ investment) because
private consumption (0.6%), European protection as well as that of e-commerce many banks have hitherto struggled to
CCI need to find new ways to grow. must be adapted to the threats posed value the business models of creators.
Some content producers are expanding by new digital players. This includes the German publishing group Axel Springer
abroad to reach bigger audiences. Some ability of digital platforms to secure a (through its American division) has
have begun to revitalize historic ties with bigger part of revenue. It must also adapt successfully invested in several digital
neighboring regions. Africa has become to support emerging creative businesses and creative start-ups (including Pocket
a target market for some: newspaper held back because their content cannot and Blendle), thereby adapting to
group Le Monde, TV company Canal+ secure a fair share of value created. changes in the newspaper industry.
and entertainment group Vivendi are
The current debate on the harmonization However, Europe has been slow to
expanding in French-speaking African
of copyright and authors’ protection develop new digital champions (with the
countries. European TV champions
in the EU leaves the future of existing notable exception of music streaming
including the BBC and Endemol have
copyright laws in doubt. platforms). To remain a pioneer in the
long enjoyed export success. Recently,
disruptive cultural and digital revolution,
Scandinavian TV shows including The Authors’ rights must be at the heart of
Europe needs to learn how to create
Killing and Bron have won widespread the debate, laying the foundations for
digital champions.
acclaim abroad, allowing cultural a fairer framework under which the full
industries in even very small countries to potential of the European CCIs in terms
secure global audiences and revenues. of growth and jobs can be unlocked. “We need to build a
Europe’s cultural breadth and richness Some tax optimization practices need
helps win global audiences for its cultural to be halted. The value generated by cultural community
industries. creative work must be shared equitably of exchange of
with authors.
To retain their leading role, European knowledge and
cultural players must join hands with
emerging creative industries in other Supporting creative experience at the
parts of Europe. Emerging gaming businesses to nurture European level,
industries in Central Europe (Croatia,
Serbia and Slovenia), TV and music cultural leaders to support the
in Turkey, and film in Russia offer
opportunities for Europe to increase its
Europe suffers from a lack of mid-sized creators and to share
companies in its creative sectors. The
clout in global cultural industries. smallest companies lack the money methodologies. We all
to expand. The European Commission face the same problem
Building a fairer legal estimated in a 2013 study the financing
when we are going
environment gap for European CCI businesses at
US$8.7b-US$14.5b and called for abroad.”
Competition from newcomers such as new financial instruments to support
GAFA (Google, Apple, Facebook and the industry’s growth and leverage the
Amazon) and Netflix have put historic development of its small businesses. New
revenue streams at risk. This competition financing schemes must be invented to Lovro Nola
also enables innovative revenue models support creative businesses with new Director of Machina Gaming School, Croatia
Focus from ...
France
Book production in France is performing well
The book market in France is 2009 and accounted for 17.3% of titles Despite a dynamic editorial offering,
performing well produced in 2012 (2011: 15.9%). the book industry suffers from a
Besides, the French book industry is general decline
About 87% of French people declare that strongly represented globally with
reading is one of their daily activities, Hachette Livre, the world’s sixth-largest From 2003 to 2011, book sales in France
and 69% of French people over 15 years publishing group, present in 25 countries, increased by 6.5%.
old have read at least one entire with 12,000 titles annually. The French book industry has witnessed
book in 2014. Readers’ loyalty can be
a drop of 4.1% between 2011 and 2013.
explained by the Loi Lang (Lang Law), The comics industry is a real driving
which imposes a fixed price for books, engine for the book market in France Digital books have increased more than
but foremost by the wide variety of the 29% in 2013, representing €105 million
editorial offering, which continues to More than 36 million comic strips were and a 40% increase in two years. The
grow year after year, in number of titles, sold in 2013, highlighting the real interest rate of digital reading has tripled from
with a 6.2% in 2013. of French people in this industry. In 2013, 5% to more than 15%, following this
the bestseller in the whole book industry growth trend. However, digital sales are
Moreover, French titles are gaining in
was a comic strip: Astérix chez les Pictes, not enough to compensate for physical
popularity, both at home and throughout
with more of 1.6 million copies sold. losses. In the short term, the digital
the world: the number of translations
revolution does not seem to be the
from French has risen steadily since
miracle solution for the book industry,
and more than 85% of French people
Book production increase in 2012 (in number of titles) admit to prefer reading on paper.
+ 6,2%
79,300 81,300 86,300

74,800
2009 2010 2011 2012
Source: Syndicat national de l’édition (SNE), 2013
A leader in advertising
In 2013, France was one of the stories such as Criteo, an advertising advertising reached US$448m in 2014,
European leaders in the advertising targeting start-up, quoted on the and is expected to exceed the €1 billion
industry with the UK NASDAQ stock market since 2013 mark by 2016. Logically, this means
with a US$2.5b capitalization. Another that mobile is likely to account for an
France hosts leading international striking example is Teads, a start-up that increasing proportion of the digital
companies, such as Publicis with an proposes video solutions to maximize ad spend over the coming years. The
annual turnover of €8.5b, and Havas advertising spots online, expected to be percentage figure currently stands at
one of the top 10 global advertising listed in 2015. 14.7%, and is predicted to rise to 22.2%
companies. It also has a myriad of in 2015 and surpass 50% in 2018.
small and medium companies, which Mobile spends for advertising in
represent the majority of employment in France set to hit €1b in 2016
France: 90% of people in advertising are The main driver for growth in the
employed by a company with less than digital advertising market in France is
five employees. the impressive increase in advertising
France has also become a digital pioneer, on mobile devices, which rose by 80%
and has given birth to digital success in 2014 alone. Expenditure on mobile
France annual advertising revenue forecast
Year 2012 2013 2014 2015 2016 2017
Total internet (US$million) 2,791 2,966 3,187 3,448 3,784 4,172
Annual growth (%) 5.5 6.3 7.5 8.2 9.8 10.3
Share of total media (%) 25.9 28.0 30.0 32.0 34.4 37
Source: Magna Global Advertising Growth Forecasts, 2015
UK
Video game industry breaks world records
Games sold more than video or UK video games companies are micro or socialize with other children. By 2013,
music in 2014 small businesses. The mean number of a staggering 80 million were playing the
employees is 120 and the median 49. game worldwide. Moshi Monsters were
The UK has a long history of making featured in a wide range of merchandise,
world-class video games. According to Many major video game franchises from books to bath soap, and even had
Entertainment Retailers Association are developed in the UK their own feature film.
(ERA), in 2014, the games market grew
by 7.5% to reach US$4b, while video Grand Theft Auto 5 is the most successful Up to US$12.5m pledged to the UK
decreased by 1.4% to reach US$3.4b worldwide entertainment product of video game industry
and music by 1.6% to reach US$1.5b. all time, including movies. In fact, it
The digital sales of games (US$2.3b) are broke six different sales world records To boost the British games industry,
bigger than the combined digital sales of including: the fastest selling video game and indicating its importance to the
video and music (US$2b). The industry’s of all time by making US$815.7m in economy, the Government launched a
biggest consumer market revenue sales worldwide during the first 24 hours new US$6.2m Prototype Fund to help
streams in 2014 were digital console and (grossing US$1b worldwide in just three start-ups in the video games sector.
PC (US$1.5m, +18%), consoles hardware days); the highest revenue generated by The Government also announced an
(US$1.424b, +46%, due to strong PS4 an entertainment product in 24 hours; additional US$6.2m over the next two
and Xbox One sales), and mobile gaming and the most viewed trailer for an action years to support the Skills Investment
(US$853m, +21%). adventure video game. Fund: this provides funding for training
for the video games industry and other
There are 1,902 video game companies London-based Mind Candy launched
creative sectors.
in the UK. Between 2011 and 2013, the Moshi Monsters as a website in 2008.
number of games companies grew by The game allowed children to adopt a pet
22% per annum. The majority (95%) of monster, solve educational puzzles and
2014 UK entertainment sales and % evolution vs. 2013
4.5 +7.5%
4.0 US$3.9b 1.4%
3.5 US$3.4b
3.0
61% 37%
2.5
2.0 –1.6%
US$1.5b
1.5
63% 50%
1.0
39%
0.5
50%
0.0
Games Video Music
Digital Physical
Source: Entertainment Retailers Association, 2015
Roaring times for the visual arts industry
Visual arts are flourishing The visual arts contribute US$3b The challenge of securing a future for
gross value added to the UK visual arts
The annual art market in London has
economy each year, and employ more
been estimated at US$13.2b (second However, over the last three years, 71%
than 37,000 people
after New York). New art fairs in London, of artists exhibiting in publicly funded
such as Frieze and Zoo, have attracted a In fact, the sector has strong links galleries received no fee for their work. In
large number of visitors. Consequently, with other creative industries such as fact, 59% did not even receive payment
contemporary art has never been as architecture, design, advertising and for their expenses, leaving them not
popular or as high profile as it is today the computer games business. To take a only unpaid but out-of-pocket when
in England. Major venues and festivals concrete example: in 2013, the 500,000 presenting exhibitions for the public
all over the country have transformed visitors to the Hepworth Wakefield Art to enjoy, according to a Paying Artists
the sector in the past two decades, and Gallery (located in Yorkshire) during study (Securing a Future for the Visual
several visual arts ecosystems have its first year contributed an estimated Arts in the UK). Fifty-seven percent of
emerged in places outside London. US$15.6m to the local economy in artists generate less than a quarter of
Increasing numbers of people are buying Wakefield. An economic impact study of their income through their art. The result
art for the first time. the Yorkshire Sculpture Park estimated is a loss of art: 63% of artists have had
its annual contribution to the local to turn down requests from galleries to
Also, there are more than 50 million
economy to be US$7.8m, according to exhibit their work because they cannot
visits to the UK’s galleries and museums
the Local Government Association. afford to do so without pay.
a year, including more than 7 million by
overseas tourists.
Russia
The Renaissance of the performing arts industry
Glorious past: a Russian idea of the A promising future: signs of rock — from reggae to jazz to folk — is
performing arts industry rebirth appear also growing.
Russia’s reputation for the performing It is not all doom and gloom. The Bolshoi The Russian festival culture is also
arts was established a long time ago by Theatre reopened in 2011 with new flourishing in theater. For example, the
its exceptional classical music, theater productions by young and talented revival of the Moscow “Golden Mask”
and dance schools. The Soviet period, directors. The classical music field is festival exhibits the best of Russian
undoubtedly, had a radical impact on getting a boost with Valery Gergiev theater from the past year to critics as
performances in the country, increasing taking over the Tchaikovsky Competition. well as producers from overseas. Every
the population’s access to performing More surprisingly, Russia’s festival culture year, it improves public attendance and
arts. “The Soviet Union was the only is blooming, notably thanks to the rapid pays tribute to Russia’s rich theater
country in the world where amateur growth of the country’s rock festivals. culture.
dancing groups performing folk dances, “Rock on the Volga,” held in mid-June, Even folk performances show some
small self-assembled orchestras playing is the largest one-day music festival in signs of rebirth. Some folk choruses
traditional instruments, and similar Europe. Every year, the festival makes all and dancing groups have become truly
grass-roots initiatives received state the possible attendance records: in 2011, commercially successful. The acclaimed
financing,” acknowledges Elvira Kunina, it gathered 260,000 people, in 2012, Alexandrov Chorus, which specializes
the head of the Russian Committee on 307,000 and in 2013, the number of in Russian military songs, tours all over
Preservation of Cultural Heritage under visitors has more than doubled to reach Europe, China and the US.
UNESCO. However, these traditions more than 691,000, according to official
suffered a heavy blow with the collapse of statistics of the Ministry of Interior Affairs
the Soviet Union, when state sponsorship (GUMVD). In the meantime, Russia’s
for the arts dropped off the agenda. festival scene in music genres besides
Turkey
Betting on digital to develop the music industry
The music industry in Turkey is Turkey has been influenced by sector’s income in 2012. In 2012, several
characterized as a dynamic industry open developments in the digital domain global digital music companies took steps
to development. It is expected to reach to enter the Turkish market and signed
US$318m in annual revenues in 2017, The Turkish digital market has been agreements to this end.
whereas it represented only US$267m reshaped by the copyright collective
management societies through digitizing At the end of 2013, there were
in 2012 and US$262m in 2008. There
music and establishing the infrastructure around 34 million broadband internet
is a shift mainly toward digital, in parallel
for digital music. Digital sales revenues subscribers and around 13 million
with the recent worldwide technological
grew and increased substantially every mobile broadband subscribers in Turkey.
advances in the music industry.
year, and accounted for 21% of the Furthermore, music producers can claim
around US$270m in royalties, only
for the exploitation of music in public
Sales in the recorded music market (US$m) spaces. Thus, Turkey is well-positioned
to climb up the global ranking in the
120
coming years.
108 109
103 For example, the most viewed YouTube
100 channel in 2011 was Turkish music
90
94 87 site Mu-Yap, which attracted more than
86
46 million views, beating both the Miley
80
79 Cyrus and One Direction VEVO channels.
The channel has close to two million
60 subscribers.
Fighting digital piracy

40
Mu-Yap also acts as Turkey’s phonographic
21 23 industry collective management society,
20 which battles online piracy to ensure
13 15 unity in the music industry and help
with digital licensing. In fact, Turkey
0
2009 2010 2011 2012 is planning to align itself with current
developments in the European creative
Physical sales Digital sales Total sales markets and the importance attributed to
creative industries. It plans to introduce
Source: WIPO, 2014 new regulations for launching incentives
and support mechanisms to improve the
creative industries by fostering cultural
diversity and creativity.
North America
Snapshot
US$620b 4.7m
CCI revenues in North America (US$b) in 2013
TV* 181.6
Visual arts 97.8
Advertising 46.2
Gaming 40.3
Books 38.5
Architecture 38.0
Movie 28.2
Music 23.7
Radio 20.6
CCI jobs in North America in 2013
Visual arts 1,685,000
Music 844,000
Books 538,000
Performing arts 429,000
TV 313,000
Movie 306,000
Advertising 225,000
Gaming 185,000
Radio 106,000
*Including TV shows and cable

Panorama
Mixing creative and broadcast around the world and often
achieve global box office success,
Growth of cultural and creative output
remains strong in North America.
marketing talent to win which movies from other regions Value added by arts and cultural
global audiences struggle to emulate. The US-made film production industries increased 3.8%
Avatar earned box office revenues of between 2012 and 2013. The gaming
American popular music conquered almost US$2b. industry is expected to grow 6.1%
the world in the 20th century and a year during 2013-2018, and the
the cultural influence of the country’s filmed entertainment industry by 4.4%
creative industries has more recently US motion picture a year. US advertising agencies hired
been reinforced by movies. Many 30,000 people in 2013 as the industry
global entertainment leaders are North industry exports were recovered from a slump. The American
6 times
American, having gained critical mass motion picture and television production
in a market that afforded economies industries, comprising 108,000
of scale amid rising prosperity and businesses, remain highly competitive
enthusiasm to develop a new national greater than imports worldwide. North American audiences
identity at a time of mass immigration. provide 39% of world revenues from film
US consumer demand underpinned the
in 2012 production and distribution, compared
first movie studio in history, Black Maria, with 23% for their European cousins.
and subsequently, the Hollywood film
industry with its six big studios. The first Entertainment is the
video games were born in the US through
name of the game “CBC is adopting a
arcade offerings, such as SpaceWar
and Pong. The Warner Music Group CCI in North America are driven by a mobile-first strategy,
became one of the three major global strong cultural appetite. North America which doesn't mean
record companies. is the audiovisual industry’s biggest
market by sales for TV content abandoning legacy
North America’s CCI strength stems
from mixing large pools of creative (US$182b), movies (US$28b) and radio platforms like TV, but
(US$20b). It is also a heavyweight in the
and marketing talent. Script writers
gaming and music industries: its music rather acknowledging
schools clearly constitute a competitive
advantage for the Hollywood industry. industry sector (live and recorded) has that there is stiff
annual sales of US$23.7b, 36% of the
The US is a net cultural exporter in most
sectors. Sales of US copyright-based global total. competition from
cultural products, including films, TV, North America is also the leader in the other emerging
video, recorded music, newspapers,
books, magazines and software in
performing arts (US$61.5b) with a platforms in the
pronounced craving for musical shows.
overseas markets totaled US$156.3b This is illustrated by the success of the increasingly
in 2013. They topped the foreign sales
of many other major US industries
Superbowl mid-game show (and its
unique and expensive TV commercials)
disparate broadcast
including chemicals (US$147.8b), and the dynamic live music industry in marketplace.”
aerospace products and parts Ontario, Canada, which has been growing
(US$128.3b), agriculture (US$68.9b), 6.5% a year since 2010. In 2013, 3 of
and pharmaceuticals (US$51.6b). the 10 biggest music festivals were in the Canadian TV expert
American culture exerts strong US: Ultra (Miami), Coachella (California)
influence worldwide, and conveys soft and Summerfest (Wisconsin).
power. American movies are widely
Driving the digital and are the biggest consumers of digital
cultural content, which accounts for
advertising spend is expected to fall
from 40% in 2013 to 37% in 2019.
transformation 47% of digital distribution and revenues Newspapers’ share of advertising spend
The development of the internet and of US$30b, ahead of Asia (25%) and is set to almost halve to 6% over the same
mobile access has enabled new patterns Europe (24%). period. Newspapers and magazines, and
of cultural consumption. Consumers books have experienced sharp declines
But traditional CCI is hard-hit by the
have innumerable media options: in sales of physical products as readers
digital revolution. With the online share
hundreds of TV channels, billions of switch to digital editions.
of advertising revenues expected to
YouTube videos, social media platforms, grow from 27% in 2013 to 41% in 2019, The recording industry’s collapse since
video-on-demand and personalized traditional advertising-based businesses, the first decade of the 21st century
music services are creating increasingly such as TV and newspapers, will likely shows how hard the digital transition
fragmented audiences, who are see their long-established income can hit CCI. Since people started
connecting via a plethora of devices. continue to fall. The two bestselling downloading single tracks instead of
Cultural content is spread across many cultural industries in North America buying CD albums, the value of recorded
media channels. It is now possible (TV, US$183b; and newspapers and music sales has slumped 59% from 2000
to reach individuals with targeted magazines, US$83b) must rely less levels — though live music has gained
advertising, but this is a game of cat on advertising revenues and more on ground. Many high street and shopping
and mouse, as viewers and players flit subscription-based models. Between mall music retail jobs have been lost.
between devices and online destinations. 2002 and 2013, advertising revenues
North Americans like digital delivery, slumped 60%, and TV’s share of global
Growth in online music subscriptions in the US (millions of subscribers)
6 6.1
3 3.4
2
1.7 1.8 1.8
1.6 1.5
1 1.3 1.2
0
2005 2006 2007 2008 2009 2010 2011 2012 2013
Source: IFPI, 2014
Preview
North America’s media Technology and digital funded by the advertising revenues these
audiences attract.
and entertainment lead champions
This creative laboratory is supported by
worldwide North America has long been among targeted and strategic public policies.
the front runners in new technologies. Canada has long backed its CCI with
North America has dominated the
Today, Silicon Valley is home to many of tax incentives (a tax credit for film and
international media and especially
the world’s largest high-tech corporations video production) and special regimes
the entertainment scene for several
(Apple, Google, Facebook), as well as for the gaming industry. The country
generations. Today, its supremacy faces
thousands of technology start-ups. The is continuing to add new support, such
strong challenges. Around the world,
region is also a leading hub for high-tech as the Ontario Music Fund. This fund,
cultural content is being democratized,
innovation and digital applications in the dedicated to live and recorded music
and companies and policy makers in
cultural arena. North American ingenuity with a three-year US$45m program,
other powerful economies including
and resources make it a laboratory for provides grants to the music industry to
those of Europe, Japan and China see
new business models that will meet the address investment gaps and support
culture as a strategic sector. With CCI
entertainment whims of consumers, new groundbreaking projects.
revenues totaling US$620b, North
and old.
America now lags behind Europe and Meanwhile, increasing effort is being
Asia-Pacific and is losing its leadership in The Silicon Valley’s champions benefit made to develop a legal framework
some sectors. from network effects: their global reach that is more effective in halting cultural
and large shares in key markets make it piracy and protecting IP. In 2014,
North America’s punch in cultural and
easier for them to shape market trends Canada ratified internet treaties drawn
creative markets has weakened a little. In
and innovation in the sales of digital up by the Geneva-based WIPO. It is
the film industry, global box office figures
culture and entertainment. With massive regarded as a “priority country” in
show that although North America’s
cash piles, they also have the firepower the fight against piracy launched by
share of value is unchanged, North
to fund broad research programs to the International Federation of the
American movies secured 28% of global
explore new technology applications, Phonographic Industry (IFPI).
box office receipts in 2014, down from
and to snap up emerging challengers.
34% in 2010. In gaming, Asia-Pacific
They are also able to gather massive
leads the global market with a 47% share
volumes of data that provide insights
(US$47.1b sales in 2013) compared with
into consumer behavior and desires,
41% for North America.
Global box office growth 2010-2014 (US$b)
$40
$35.9 $36.4
$34.7
$35 $32.6
$31.6
$30
$25
21.0 22.4 23.9 25.0 26.0
$20
(66%) (69%) (69%) (70%) (72%)
$15
$10
$5 10.6 10.2 10.8 10.9 10.4
$0
2010 2011 2012 2013 2014
US/Canada International
Source: MPAA, 2015
Focus from ...
Canada
Music, a strong asset making Canada more attractive
Digital provides half of recorded social experience.

music revenues Key figures
To take advantage of this dynamic fabric
Physical music sales are falling fast, of venues, the Ontario Arts Council
down 15.1% in 2013, but the slide
is only a little faster than the 11.7%
and the Ontario Tourism Marketing
Partnership have developed a strategy US$424m
global average. to boost live-music-related tourism, and of recorded music
to position both Ontario and Canada as revenues;
Soaring digital sales underpin a flat high-level destinations for live music.
recorded music market. Canada has
one of the fastest rates of digital music Revenues from live music in Canada US$826m
revenue growth in the world, with are growing and are directly benefiting of live music revenues
receipts up 10.4% in 2013, more than creators. In 2014, SOCAN (Society
double the global 4.3% average. of Composers, Authors and Music
Publishers of Canada) revenues from
Digital now provides half of the revenues concerts and live entertainment
and is mainly driven by downloads (86% totaled US$16.6m, up 18.3% from
of total digital revenues). Streaming has 2011. Composers and creative artists
been slow to take off. increasingly rely on live performances
for their income. Montreal, Toronto
Vibrant live music market, and and Vancouver are the top locations
strong international presence for live music.
Canada has a long-standing tradition Canadian music is also showing great
of music festivals, with events such as success in international markets.
the Festival de Jazz, Francofolies, and International revenues from Canadian-
Osheaga in Montreal, and North by created music reached US$51.3m in
Northeast and Canadian Music Week in 2014, from US$47.7m in 2013 and
Toronto. As festivals mature, organizers US$43.9m in 2012.
are working hard to create a premium
Evolution of recorded music markets revenues in Canada (US$m)
99.8
120.6 156.4 190.3

210.0
333.5
261.5 225.8 205.4
174.5
19.2 18.2 28.7 29.7

20.5 5.3 15.5 10.5 10.0
2009 2010 2011 2012 2013
Digital Physical Performance rights Synchronization revenue
Source: IFPI (2014)
Gaming, a globally renowned industry with active
public support
Canada becomes the benchmark for The trend is toward cheaper games that
game development are quicker to develop and require fewer Key figures
staff: companies report that the average
Canada is home to some world-renowned console game costs US$8.7m to develop,
game developers and studios, such
as BioWare Edmonton, Behaviour
requires 65 developers and takes a US$2.3b
year and a half (583 days) to complete.
Interactive, BattleGoat Studios, and A typical mobile game, however, costs contribution to Canada’s
Beenox. Today, Canada has the world’s US$300,000 to make, takes only seven GDP in 2013;
third-largest gaming development
industry, after those of the US and
people, and can be completed in less than
six months (156 days). 16,500
Japan. A global heavyweight, it has more
people directly employed
than 320 gaming companies employing
more than 16,500 people and generating by the Canadian video
more than US$2.3b in GDP in 2013. game industry
Companies enjoy substantial government
support through tax credits, especially
in Ontario, and get help in attracting
technical and creative talent. Canadian industry output snapshot
The Canadian gaming industry is also Console games vs. mobile games
driven by a strong entrepreneurial and
start-up culture: 53% of professionals
in the gaming industry self-identify as
independent developers.
48% 84%
working on titles for consoles developing games for mobile
The gaming market is still growing as
mobile gains ground 16% 43%
Two in every five Canadian gaming total completed project total completed project
companies are predicting at least 25%
growth in 2014.
88.6% 2.3%
With mobile and social gaming taking overall industry budgets dedicated overall industry budgets dedicated
the world by storm, Canada’s gaming to creation of console games to mobile games
industry enjoys scale advantages that
attract talent from around the world
to a deep employment pool. Employee 66.5% 11%
numbers grew 5% between 2011 overall industry revenues overall industry revenues
and 2013.
The large majority (84%) of Canadian
video game studios are now working on
US$8,728,125 US$303,500
average development budget average development budget
games for mobile devices, though 48%
for console for mobile
of studios still devote some resources to
console games.
65 7
average team size for average team size for
console project mobile project
583 days 156 days

average time for console project average time for mobile project
development development
US
The performing arts industry a showcase of US cultural influence
The performing arts industry is Performing arts in Broadway — A booming industry, 2009–2015
booming
Season Gross Attendance Playing weeks New productions
In the US, the performing arts industry
(in US$ billion) (in million)
in 2008 included about 3,000 theater
companies; 200 dinner theaters; 200 2014‑15 1.365 13.10 1,626 37
opera and 600 dance companies; 4,600
2013-14 1.269 12.21 1,496 44
musical groups and artists, including
850 symphonies and chamber music 2012-13 1.139 11.57 1,430 46
organizations; and 60 circuses. Major
companies include The Metropolitan 2011-12 1.139 12.33 1,522 41
Opera, The Public Theater, The Boston
2010-11 1.081 12.53 1,588 42
Symphony Orchestra and The San
Francisco Ballet. 2009-10 1.020 11.89 1,464 39
The number of organizations offering
Source: Broadway League, 2015
live performances continues to grow, and
the number of Americans attending live According to the Broadway League, US$11.9b to the economy of New York
performances and purchasing recorded during the 2012 to 2013 season, City and supported 87,000 jobs.
ones has been growing consistently. the Broadway industry contributed
According to Reuters, in 2008, the US
performing arts industry included about
Broadway's economic impact, 2012–13
9,000 companies with combined annual
revenues of US$11b; in 2015, it is
estimated to be US$16b. Broadway spending Direct spending (US$m) Total impact (US$m)
Spending by Broadway tourists $6,464 $9,641.1

Broadway plays and live
performances are attracting record Show expenses $979.3 $2,219.7
audiences Theater capital expenses $11.5 $17
The revenues of Broadway shows have Total $7,454.8 $11,877.8
been growing since 2009. The 2014–15
season saw a record-breaking 13.10m Source: Broadway League, 2015
admissions in Broadway theaters — the
best year in terms of attendance. Tourists However, the performing arts than US$500,000. According to RAND,
account for 70% of all ticket sales, industry is fragmented on average, performing artists earn
highlighting the recognized quality of considerably less, work fewer weeks per
American plays around the world. Some The 50 largest companies account year, and face higher unemployment
shows retain world records in number for less than 30% of revenues. Two- than other professionals with comparable
of performances, such as The Phantom thirds of year-round performing arts education levels.
of the Opera with 11,367 performances companies have annual revenues less
since its creation.
TV industry is “global”
The US continues to export a far however, many new media forms (mainly Instant Video. Netflix, which streamed
greater number of TV shows than online media) continues to put pressure 10 billion hours of video in 2013, now
other countries on TV’s most profitable broadcasters. represents close to 6% of total TV
The industry is facing steep declines in viewing in the US. Netflix is clearly now
According to a WTO 2010 study, the US viewership and the gradual movement of an international player, with 36.5 billion
accounts for nearly half of the world’s ad dollars to digital platforms. According hours of streaming per year in 2015.
total audiovisual trade. In 2011, the to Magna Global, advertising spend
US exported film and TV shows worth This is why HBO will launch a streaming
is expected to fall 10% for broadcast
US$14.3b to other countries, as the box video service in 2015 that does not
networks and 5% for cable networks
office in countries such as China and require consumers to have a cable or
in 2016. According to Todd Juenger,
Brazil expanded. satellite subscription with an online
a Bernstein Research analyst, the US
streaming service. In 2013 HBO is taking
According to the European Audiovisual television industry is entering a period
a page out of Netflix’s book and is now
Observatory, in 2000, major European of prolonged structural decline, caused
competing head-to-head with the rival
TV networks scheduled 214,000 hours by a migration of viewers from ad-
streaming service. HBO has 30 million
of American TV shows; in 2006, this supported platforms to non-ad-supported
subscribers in the US; Netflix has about
number grew to more than 266,000 or less-ad-supported platforms. Indeed,
37 million. As of 30 September 2015,
hours. In 2008, the world’s three most the Cabletelevision Advertising Bureau
the number of US subscribers is over
popular TV shows in 60 countries estimates that 40% of the TV ratings
43 million plus 26 million international
were US exports: Dr House (81.8 declines suffered in the second half of
subscribers The company made US$5.5b
million viewers), Desperate Housewives 2014 were due to viewers migrating
in revenues in 2014: the future of
(56.3 million viewers) and The Bold and from traditional television to subscription
watching television is clearly online.
the Beautiful (24.5 million viewers). streaming services, such as Netflix.
The industry is facing systemic TV’s shift to the internet presents

challenges new growth opportunities for
traditional producers
In an age of proliferating choices,
television remains the most popular According to a report by Comscore, in
medium in the US. Americans spend 2014, 4 out of 10 online users subscribe
more time watching TV than ever before; to a service, such as Netflix or Amazon
Netflix annual revenue from 2002 to 2014 (in US$ million)
6,000
5504.66
5,000
4374.56
4,000
3609.3
3204.6
Revenue
3,000
2162.6
2,000 1670.3
1364.7
1205.3
996.7
1,000 682.2
500.6
150.8 270.4
0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Source: Statistica, 2015
Latin America and
the Caribbean
Snapshot
US$124b 1.9m
CCI revenues in Latin America (US$b) in 2013
TV 41.9
Advertising 21.1
Visual arts 12.4
Books 7.9
Movie 5.4
Performing arts 4.7
Gaming 4.6
Architecture 4.4
Radio 2.5
Music 2.3
CCI jobs in Latin America in 2013
Visual arts 376,000
Books 308,000
Advertising 273,000
Music 150,000
Movie 115,000
TV 105,000
Gaming 36,000
Radio 17,000
Panorama
Television is king A long tradition of Creative and cultural
TV is, by far, the most dynamic CCI in exporting cultural content tourism in Latin America
Latin America, accounting for US$42b in
Latin American music and dance styles The Latin America and Caribbean region
revenues, nearly a third of the total.
have become one of the region’s great possesses a rich cultural and natural
Latin Americans revel in audiovisual cultural exports. Traditional music and heritage. Built upon ancient civilizations,
content. On average, they spend more dances such as tango, salsa, samba and this heritage is a cultural melting-pot
than five hours a day watching TV, and Cuban musical fusions have won global enriched by immigration, as well as
90% of Brazilians say TV is their preferred audiences. Celebrity singers include common languages stemming from
news source. Pay-TV penetration is Gilberto Gil (more than 50 albums the colonial era. Across the continent,
among the highest in the world, topping released over four decades) and Shakira, 131 sites are inscribed on the World
46% of households across Latin America the highest-selling Colombian artist of all Heritage List, of which 91 are “cultural”
in February 2012. time (more than 100 million albums sold locations. All 33 countries of the region
around the world). have ratified UNESCO’s Convention
The TV industry is driven by multi-
concerning the Protection of World
media conglomerates. Grupo Globo The AV industry is gaining traction as
Cultural and Natural Heritage. Well-
in Brazil, Grupo Televisa in Mexico and an exporter. Rede Globo is the biggest
protected World Heritage sites contribute
Grupo Clarin in Argentina are major producer of Telenovelas, a form of Latin
to social and economic development
companies with a spread of TV, radio and American soap opera and one of the
by attracting tourists keen to discover
press interests, capturing large audiences most popular forms of entertainment
the Inca, Maya or Aztec heritage, but
and producing distinctive TV programs. in the region, with distinctive styles
also life in Latin America’s cities and on
in different countries. TV shows and
Business and production skills honed in its ranches.
movies are increasingly export-oriented,
TV have driven significant growth in film
especially in Argentina: for every 15,000
production, creating many jobs. Though
hours of programming, 2,000 are
the industry is starting from a modest
exported to international markets, where
base, employment has almost doubled
they are increasingly winning audiences.
over the past 15 years. Output has
Argentina and Colombia rank among the
been particularly dynamic in Argentina,
top five exporters of formats and scripts
Brazil and Mexico, the three largest
worldwide, along with the UK, the US and
markets, which together produced
Spain. Latin American formats find favor
400 films in 2013.
in France, Russia and North America.
Latin America has also produced many
writers who have achieved global acclaim
Brazilian adults spend and commercial success, including
5 hours
Gabriel García Márquez, Jorge Luis
Borges and, more recently, Paulo Coelho
from Brazil. Collective life is often shaped
17 minutes by traditional festivals that span several
CCI, including Rio de Janeiro’s Carnival,
a day watching TV the Festival of the Virgen de la Candelaria
in Bolivia, and the Inti Raymi Festival in
Cusco, Peru.
Preview
Gaining traction in global “Today, we see a unique inform decision-making by executives
and policy makers. Meantime, Medellín
markets growth period of every in Colombia, once considered among the
Latin America’s cultural industries CCI in South America, most dangerous cities in the world, has
helped engineer economic revival from
used to be small and concentrated in
a handful of capital cities. This is still
in rich countries the era of drug gangs by developing a
true of TV and film production, which but also in smaller thriving industrial and cultural economy.
The focus on education and culture to
is centered upon the major cities of
Argentina, Mexico, Brazil, Colombia and
countries” drive regeneration has been crucial. In
seven years, 135 schools were renovated
Venezuela.
and eight libraries created.
But as quality improves, strong French cultural representative in Colombia A growing understanding that creative
newcomers are emerging. They are
industries foster both social and
breaking free of domestic markets to
markets. The most striking example is economic development is enabling and
reach international audiences with films
Yo soy Betty, la fea, which began life encouraging cross-border cooperation.
and TV shows that appeal worldwide.
as a Colombian telenovela, became a The MERCOSUR trade bloc, comprising
Colombia is increasingly renowned for
surprise hit in the US as Ugly Betty, and Argentina, Brazil, Paraguay, Uruguay
its cinema industry, which is advancing
subsequently attracted 11 million viewers and Venezuela, has set up MERCOSUR
rapidly as the country opens 100
in its Chinese incarnation, Ugly Wudi. Cultural. This regional network of
cinemas each year. Colombia now
about 400 individuals and institutions
produces around 50 movies a year. Mexico has been a leader in
aims to work on strengthening cultural
international modern art markets in
Colombian artists are also winning information systems in member
recent years, encouraging collectors
international acclaim and exporting to countries. The objective is to create
to prospect more widely for talent
North America and Europe. Colombia will a single market in cultural goods and
across Latin America. Strengthening
be the “guest country” at the next edition services by improving knowledge of
demand for art works from Brazil, Chile,
of ARCOmadrid, a leading European members’ cultural industries and sharing
Venezuela, Colombia and Cuba shows
contemporary art fair. best practices.
growing acceptance and understanding
Chile, too, has an increasingly robust of art production in the region. A shared use of the Spanish or
independent film scene. In a region where Portuguese languages and Latin cultural
foreign finance is often crucial to film Toward more regional elements acquired during centuries of
production, Chile has recently become colonization helps facilitate cross-border
a favorite among international funds. integration cultural exchanges in much of Latin
Chile’s movie industry is aiming to rival The success of Latin America’s cultural America. Today, the biggest export
those of Brazil, Argentina and Mexico. leaders is prompting neighboring market for Mexican telenovelas is not
Created three years ago, the CinemaChile countries to seek similar routes to Asia, but neighboring countries in Latin
agency has made progress in bringing economic growth. Argentina, Brazil, America. Many cultural artefacts also
film industry stars together to promote Chile, Colombia and Cuba now have find their way back to Spain, such as the
Chilean cinema internationally. policy frameworks designed to promote Argentine comic strip Mafalda, popular in
the development of cultural industries. Spain for half a century.
Latin America, as a whole, is
increasingly exporting cultural content. Noting their success, Mexico, Peru and
China has become a popular destination Uruguay are beginning to recognize the Digitalization might be an
for Latin American cultural exports. potential of the sector, and following suit.
answer to piracy
Mexico’s Grupo Televisa, which is quoted City-level initiatives have been
on the New York Stock Exchange, has A large proportion of Latin American
particularly effective. Buenos Aires
partnered with Chinese production cultural spending is on pirated goods.
has become a global benchmark for its
companies to produce local versions of The informal economy generated an
creative industries strategy. The city’s
some of its popular telenovelas, often estimated US$3.9b of cultural revenues
Observatory of Creative Industries
based on formats that have already and 160,000 jobs in Latin America in
produces statistics and studies to help
proven their merit in international 2013. In Buenos Aires alone, pirated
“There is a growing The biggest challenge for home
entertainment companies in Latin
national awareness America is to substitute paid digital
sales for pirated DVDs. Digital tools and
about the economic platforms will play an important role. The
importance of CCI in middle class is expanding — one Latin
American family in three is reckoned to
Argentina, as shown have achieved middle class status — and
by various public increasing buying power should facilitate
more spending on legitimate videos. A
policies to finance shift online should be aided by increasing
small cultural projects. internet penetration, with online visits
up 12% to more than 147 million
A significant part of unique visitors in 2013. Grupo Televisa,
CCIs, in some case now considering developing exclusive
programming for video-streaming service
up to 80% of cultural like Netflix, is increasingly active in the
industries, are fight against content piracy.
supported by national Digital also means marketing

opportunities. The music industry in
as well as regional and Latin America was once regarded as
local governments.” an entertainment industry backwater,
not least because original recordings
were quickly pirated, undermining
the revenues of artists and those who
Hector Shargorodsky backed them. However, improvements in
Cultural Observatory, Faculty of Economics, technology, infrastructure and standards
University of Buenos Aires of living are now prompting a music “gold
rush” across Brazil and the rest of Latin
goods are estimated to generate sales of America. It is much easier to charge for
US$10m a day, while a total of US$500m live performances, and big entertainment
a year of pirated DVDs are sold in Brazil companies are beginning to take a close
and Mexico. interest in the region’s stars.
Digital recorded music revenue growth in Latin America (US$m)
182
143
94
81
61
2009 2010 2011 2012 2013
Source: IFPI, 2014
Focus from ...
Mexico
Building the book industry from the ground up
Starting from scratch in Mexico today. In fact, the lack of become the biggest book fair in the
options exists at every point of the supply Spanish-speaking world and is second
Mexican publishing is a small trade chain, not just the end point. The scarcity only to the Frankfurt Buchmesse
community attempting to build a large of specialized book distributors and worldwide. Mexico will be in the limelight
and globally competitive industry — and wholesalers within Mexico cramps the at the London Book Fair in 2015,
consumer base — from scratch. The flexibility of business between publishers capitalizing upon the success of authors,
country’s GDP growth of 5.5% in 2012, and booksellers. For instance, it is such as Carlos Fuentes and Juan Rulfo.
and status as one of the fastest-growing significant that the largest book fair for
providers of skilled technological jobs in Efforts are also being made to develop
the Spanish-speaking market takes place
the world, all add up to unprecedented the e-book market. In 2014, Mexico’s
in Guadalajara, Mexico, and not where
amounts of disposable income. More National Council for Culture and Arts
the largest publishing houses exist. There
importantly, between 1990 and 2000, launched Librosmexico.mx, an online
are also more bookstores in Barcelona
Mexico’s literacy rates for people aged platform with a large catalogue of
(Spain) than in all of Mexico.
between 10 and 15 years went from Mexican titles. It aims to make it easier
around 12% to more than 90%. As this to find and buy Mexican books, as well as
Going international and digital: two
generation has reached adulthood, make historical documents available for
engines of growth free in digital form. Book publishing in
millions more literate people than ever
before are wielding unprecedented Mexico is starting to increase its Mexico is expected to grow by 4% a year
spending power. international visibility. It is home to the during 2013-2018.
Guadalajara International Book Festival,
Publishers cite “distribution” as the
which, since its launch in 1987, has
biggest challenge for the book business
Number of copies produced

160,000
142,860 145,756
140,000 129,213 131,849
121,853
120,000
100,000
80,000 82,242 79,432 75,487 90,014 98,528

(67%) (61%) (57%) (63%) (68%)
60,000
40,000
39,611 49,781 56,362 52,846 47,228
20,000
(33%) (39%) (43%) (37%) (32%)
0
2009 2010 2011 2012 2013
Reprinted New
Source: Caniem, 2014
TV: an export machine
Television is greatly popular, with produced by Grupo Televisa, have also Grupo Televisa: a powerhouse
mass entertainment playing an done well in Europe and the Balkans. The throughout the Spanish-speaking world
important role in creating a national large and increasingly influential Hispanic
community in the US has become a big Grupo Televisa has extended its
culture unifying Mexico
market for Mexican TV. Televisa exports interests across TV, publishing, cable,
Entertainment is Mexico’s fifth-biggest its programs and formats to the US telecommunications and radio. It has four
export, generating annual cross-border through Univision Communications — broadcast channels in Mexico City, and
sales of US$27b. TV programs dominate an American media company serving produces 24 pay-TV brands for distribution
these exports, especially Mexico’s Hispanic America — and to networks in Mexico and the rest of the world. In
popular telenovelas, for which broadcast in more than 50 countries. Last year, 2013, Grupo Televisa produced more than
and production company Grupo Televisa Mexican shows were seen by more than 93,000 hours (more than 10 years of
has acquired an international reputation. a billion TV viewers. viewing time) of content for free-to-air and
Soaps such as Rebelde and El equipo, pay-TV.
Televisa production hours from 2004 to 2013
93,323
90,492
79,152
74,929 2.1
72,890 2.0
71,326
68,818
1.9
64,743
1.8
57,548 1.7 1.7

54,791 1.6 1.6
1.5
1.4
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Revenues (US$b) Produced hours
Source: Grupo Televisa annual report, 2014
Brazil
Digital and local music
Brazil is Latin America’s digital style typified by Sérgio Reis, and Música
pioneer Popular Brasileira (MPB), with artists Key figures
including Ana Carolina and Vanessa
Brazil is the ninth-largest recorded music da Mata, to Tropicália, which merges
market in the world and the biggest
in Latin America, with annual music
Brazilian and African rhythms with rock US$199.7m
and roll and is exemplified by Gilberto
revenues of US$199.7. Gil and Maria Bethânia. There is also of recorded music
With CD sales falling sharply since 2011, the Mangue Beat cultural movement revenues in 2013;
online sales have rapidly become a
major distribution channel for music.
founded by Chico Science. Longstanding
export styles such as Bossa Nova and US$215m
Digital sales surged 22.3% during 2013, Samba have more recently been joined of live music revenues in 2013
turbocharged by the arrival of iTunes in in international success by artists such
2012. Downloads earned US$25.6m in as Lenine (MPB music) and Michel Teló
2013, up 71%. Take-off has been aided (Sertanejo universitário music).
by the arrival of music streaming service Musical exports are also seen at the
Deezer in 2013 and rising smartphone festival level: “Rock in Rio,” one of the
penetration — there are 200 million largest music festivals in the world,
smartphones in use in Brazil today. originated in Rio de Janeiro and was
Mobile networks in Brazil have seized then exported to Lisbon, Madrid and
on music to help sell their data services. Las Vegas.
In 2013, Brazil’s second-largest mobile
carrier TIM partnered with Muve Music to Music market revenues in Brazil (US$m)
launch a service offering unlimited music
streaming for US$50 cents a day.
A dynamic live music scene driven 35.1 63.3

by local artists and festivals 24.7 77.4
31.2
Although digital services offer music
from around the world, the demand for
local repertoire remains very strong in
Brazil. Brazilian output is reckoned to
constitute 65% of the music heard in
Brazil (including radio, concerts, etc.). 153.2 160.9
141.3 144.8
In 2013, 9 out of 10 bestselling albums 122.3
in Brazil were by local artists including
Padre Marcelo Rossi (a songster priest),
Roberto Carlos and Paula Fernandes.
The Brazilian live music scene is driven
2009 2010 2011 2012 2013
by local and renowned festivals such
as Rio’s, and by a rich national music Digital Physical
culture. This ranges from Música
sertaneja, Brazil’s most popular music Source: IFPI, 2014
TV: the most popular medium in Brazil
A national institution about to In April 2014, Brazilians spent around
change 12.5 hours a week on online social Key figure
networks from their desktop computers,
Brazilians love TV: 98% of Brazilian more than double the global average,
homes have a TV, and owning a TV
implies social inclusion. According to
according to research firm comScore.
US$13.7b
IBOPE, in 2011, Brazilians spent more Netflix has entered Brazil in 2011 and
in TV revenues in 2013
than five hours per day watching TV, shows significant ambition. Traditional
well ahead of the global average. This actors argue that Brazilians prefer
popularity could be explained by the telenovelas to foreign fare. In TV, as in
history of TV development in Brazil. In football, they are likely to keep rooting
fact, TV was introduced for the 1950 for the home team; however, the
World Cup hosted by the country. At that competition will be fierce.
time, Brazil was the fourth country after
the US, the UK and France to have a TV Brazilian TV audiences in March 2012
station with daily broadcasts.
3%
Favorite programs include TV news, 5% 13%
sports, reality shows and novelas, a
Brazilian phenomenon that transcends
18%
class, and is equally popular with city
and rural dwellers. In 2012, 38 million
people watched the 9:00 p.m. novela
Avenida Brasil every day.
Brazil’s audiovisual leader is Rede Globo, 15%
with channels that are watched by more 46%
than 150 million people around the world
every day. It is the fourth largest channel
in the world in terms of audience size.
Other popular terrestrial TV channels
include, among others, SBT and Band. Globo SBT Record
Pay-TV penetration is booming, with Band Rede TV Others

more and more Brazilians getting access
Source: UbiFrance
to cable television: projected pay-TV
penetration is 46% by 2018, with 28.8
million residences with pay-TV, and 31.4
million in 2019.
Africa and
the Middle East
3
Snapshot
US$58b 2.4m
CCI revenues in Africa and the Middle East (US$b) in 2013
TV 13.8
Visual arts 13.1
Advertising 5.1
Books 4.4
Architecture 3.3
Music 2.9
Gaming 2.9
Radio 2.2
Performing arts 2.0
Movie 1.5
CCI jobs in Africa and the Middle-East in 2013
Movie 585,000
Music 507,000
TV 421,000
Visual arts 358,000
Books 317,000
Radio 86,000
Architecture 70,000
Gaming 40,000
Advertising 29,000
The Middle East refers to countries including: Algeria, Bahrain, Egypt, Jordan, Kuwait, Iran, Iraq, Israel,
3
Lebanon, Libya, Morocco, Oman, Qatar, Saudi Arabia, Syria, Tunisia and the UAE
Total for jobs and revenues have been estimated after removal of double-counting. The sum of each sector exceeds the consolidated total as
some cultural activities are counted in two sectors (for instance, live music is included in “Music” and in “Performing arts”).
Panorama
Culture is multifaceted There is also a vibrant literary scene,
especially in Nigeria. The Association of
music stores in Africa) leave Africans who
are keen to acquire cultural goods with
and everywhere Nigerian Authors (ANA) has been at the little choice but to do so informally or
forefront in promoting Nigerian literature illegally.
Though often materially poor, many
and the interests of Nigerian writers.
African societies contain cultural
riches that are bubbling up to embrace
These include Chinua Achebe and his Avid audiences crave
book Things Fall Apart, one of the first
the opportunities offered by new
African novels in English to receive global information
technologies and commercial markets.
critical acclaim, and Wole Soyinka, who Radio is the most accessible way to share
Music that has evolved in North and
became the first African to be awarded information and culture with urban and
South Africa won export success
the Nobel Prize in Literature in 1986. rural audiences across Africa and the
worldwide. In recent decades, choral
singers from Southern and West Africa Middle East. People everywhere listen to
and the Rai singers of North Africa have The informal economy: broadcasts in local languages. African
woven links with peers elsewhere on no risk for citizens, no countries typically have 100-150 radio
the continent, and recording studios in stations, and community radio stations
London and Paris, to develop new memes reward for authors are especially common. Small, local and
of traditional music that appeal to both deeply rooted in their communities, they
The informal economy, a system of trade
African and European consumers. help strengthen and develop the African
or economic exchange that circumvents
cultural mosaic.
Spurred by linguistic diversity and poor state-controlled or even money-based
communications, culture is everywhere, transactions, is an integral part of the Television also exerts huge influence
and often centers upon live performances cultural scene in Africa and the Middle in Africa and the Middle East, often
of music, worship and storytelling. East. Cultural goods and services are reaching 90% of its potential audience
Craftsmen and women serve local largely provided though the informal across Southern Africa. TV is the fastest
markets, and dance groups, musicians economy, which is estimated to employ growing medium in Africa and the Middle
and singers perform at gatherings, around 350,000 people and generate East. This has been made possible at
weddings and festivals. US$4.2b revenues in 2013. last by the extension and reinforcement
of electricity supplies, and the rollout of
The richness of traditional African art, The way people understand culture in
digital terrestrial TV in 2015, which has
sculpture and music are celebrated in Africa and the Middle East reinforces
opened up the audiovisual landscape.
both Africa and Europe. Music festivals informal distribution channels. The
Pay-TV is gaining ground, especially in
in Africa, including MASA in Abidjan, notion of “culture” is often disconnected
South Africa. The continent’s first pay-TV
Côte d’Ivoire and FESPAM in Brazzaville, from the economic dimension: in
market is expected to grow by 7.4% a
attract large audiences, while European Francophone Africa, people are used to
year between 2013 and 2018, reflecting
concerts and festivals, including attending festivals and performances
the gradual emergence of an African
“L’Afrique dans tous les sens” in Paris and practicing theatre for free. Artists
middle class.
also celebrate African musical diversity. rely upon other financial revenues, such
as sponsorship, to finance their lifestyle. Newspapers and magazines are published
This African attitude to culture fosters widely in Africa and the Middle East.
“We need to bring back free — and illegal — reproduction of They often serve very local audiences
the authenticity of music, video recordings and other art,
and IP rights are widely ignored.
with short print runs, and in West Africa
at least benefit from state subsidies. But
African culture by Poor access to cultural life also fuels the
the appetite for information is strong
supporting artists’ informal cultural economy. A low level
and reading habits deeply ingrained:
on average, each copy is read by
education in Africa. of equipment (internet penetration in
Sub-Saharan Africa is at 16.9%, among
8 to 10 people.
We were influenced the lowest levels in the world), a lack In addition, African countries are
of cultural infrastructure (most African
too much by the cinemas closed more than two decades
leapfrogging to mobile-first technology,
offering many opportunities for CCI in the
West, especially by ago) as well as poor legal distribution video, gaming and music industry.
networks (there are hardly any legal
American artists.”
Ejemen Ojeabulu
Founder, AUCA
A fast-growing film typically have about 25 production Yet, the employment potential of the
companies each. But the big stories in cultural sector remains largely untapped.
industry African film are the rise of Nollywood Africa has plentiful entrepreneurial
in Anglophone Nigeria, which is now energy and talent, but needs to
Film production and viewing have grown
reckoned to directly employ 300,000 overcome the handicaps of poor
rapidly over the past 10 years, and are
people (see focus on Nigeria), and the infrastructure, relatively small and
driving employment growth in the CCI.
emergence of a dynamic film industry impoverished markets, and the lack of
A decade ago, telenovelas from Latin
in South Africa. Favored by good training and technical facilities. However,
America were common TV fodder. But
infrastructure and a dry climate, Cape as broadcasting and the internet
African viewers have increasingly been
Town has become a preferred location develop, the advertising industry rides
demanding local content, inspiring the
for shooting commercials and movies, on their coattails.
development of local series production.
and has acquired a reputation for sound
Today, Francophone African countries technical skills, funding and equipment.
such as Côte d’Ivoire and Senegal
Preview
Unequaled appetite Low costs and shared either original or modified content, are
viewed avidly in East and Central Africa.
for cultural goods and values drive cross-border Meanwhile, they have become so popular
services economies in Francophone West Africa that the
Nollywood TV channel now commands
Africans are increasingly consuming Cultural content is increasingly being the region’s biggest audience.
culture, be it ultra-local, national, sold across African frontiers. African
foreign or digital. Liberalization of TV, movie and music producers realize African cultural content is also
the audiovisual sector in many Middle that to offset production costs in a price- increasingly being exported
Eastern and African countries in the sensitive market, their best strategy is to internationally thanks to both local and
early 2010s — enabling the introduction maximize audiences by catering to pan- global players. Local TV channels are
of privately-owned radio stations African tastes and selling across borders. starting to think global. RTI, the main
and TV channels — and the arrival of Nigerian films and soap operas, with TV channel in Côte d’Ivoire, has set up
video and music digital platforms have
aided more broadcasting of local and Dial-up: number of smartphones connections in Africa (in millions)
foreign cultural content across the
region. Telecoms infrastructure, the 1,213
cornerstone of the digital transition, is 1,152
1,086
also improving fast. Though internet 1,012
availability is poor in much of Africa and 931
unaffordable for many, submarine cables 839
and phone relays are, at last, providing 742
the communications backbone to link
Africa to the internet. This development
will surely prove transformational for CCI
412
across the continent. 334
264
The appetite for culture will strengthen 204
fast as a young population acquires 154
79 112
budget smartphones and tablets. The
total population, about 1.1 billion today,
is expected to grow by 400 million over 2012 2013 2014 2015 2016 2017 2018
the next two decades, providing an army Smartphones All mobile
of keen cultural consumers.
Source: Informa telecoms & media
production and distribution arms with
a view to producing, distributing and
Africa starts a creative “A majority of
promoting better quality drama abroad. industrial revolution governments used to
International media groups are also
seeking to increase the visibility and
African governments earlier paid little consider culture as
attention to CCI, either due to lack
exports of African culture. In 2014,
of understanding of their economic
hobbies; they are now
France’s Canal+ launched a 100% African
TV channel, A+, now broadcast in
impact or because governance and rethinking it as an
economies were too weak to support
more than 20 African countries, while
them. However, they are increasingly
industry that can have
Lagardère Active Radio International
has launched the Vibe radio station
recognizing the value of cultural significant impacts on
development. Nigeria’s Government now
in Senegal.
supports its film industry, recognizing their economy.”
its ability to create jobs, export earnings
and tax revenues. The National Film
“With the Arab and Video Censors Board is proactive in Cultural policies expert, Mozambique
Spring, TV regained industry development, and has expanded

its role from content regulation to To thrive, however, African creative
an essential role industry advocacy. industries will have to shift from the
of communication There is still a lot to do. The challenge free-to-audience model and find ways
to reward creators. This will require the
is to make CCI more structured and
and information in formal to increase international visibility development of new business models,
North Africa. We also and exports of African cultural content. new attitudes to intellectual property,
and effective copyright protection.
Despite government support, Nollywood
saw the emergence has no official institutional presence
of various pirate outside Nigeria, and is missed by
many surveys of international cinema
channels with more production. According to UNESCO in its
freedom of speech.” 2013 Creative Economy report, because
Nigeria’s film industry is not plugged into
the international festival and sales circuit,
its products remain difficult to acquire
Abbas Azzouzi outside Africa, though some can now be
Director of Medi1TV, Morocco found online.
Focus from ...
Nigeria
Nollywood: a thriving movie production industry
“Nollywood,” an important force in about Nigerians, according to WIPO. The

Nigeria’s economic growth market is expanding as the popularity of Key figures
the films spreads across Africa, fulfilling
The film production industry in Nigeria, demand from African TV stations
commonly known as “Nollywood,”
is a vital contributor to the Nigerian
and audiences for relevant, low-cost 2%
entertainment. Nigerian film production
economy: serves an audience thirsty for love, contributed to Nigeria’s
• It is the second-largest employer drama, intrigue, action, redemption and GDP;
in Nigeria (after agriculture), with
300,000 direct employees.
sorcery.
Because of its informal structure,
300,000
Nollywood enables films to be made direct jobs in the Nigerian
• It generates an estimated US$500m-
US$800m annually. rapidly and with low-budgets (average film industry
cost is US$40,000 each). Most Nigerian
• It accounts for 2% of Nigeria’s GDP. films are made for distribution on DVDs.
With roughly 40 films made every week,
Nollywood has become the second- “Netflix of Africa” takes Nollywood
largest movie industry in the world after to a wider audience
that of India (see graph).
Founded in 2012, iROKOtv.com is the
world’s largest online distributor of
National and regional appetite Nollywood films, making a library of more
for movies than 5,000 African movies available to
For more than 20 years, largely ignored fans worldwide. In less than six months, it
by the movie industry elsewhere, signed up 500,000 users.
Nollywood has fuelled an insatiable
appetite in Africa’s most populous
country for films made by Nigerians
Annual film production per country, 2013
3000
3000
2500
2000
2000
1500
1000
800
500
US Nigeria India
Source: iROKOtv.com, 2015
Nigeria’s music industry: the most mature in Africa
Nigerian music climaxing Nigerian music industry set to hit a

high note Key figure
Over the last 5 and10 years, there has
been incredible growth in the output Beyond a thriving and diverse local music
of “Naija” music, made in Nigeria. The
industry produces over 550 albums
scene, advances in mobile technology
mean that digital and international
US$150m
annually, and record sales have more recorded music companies can now of live music revenues
than tripled in the past five years. Some effectively reach a huge swathe of
expect that the country’s entertainment consumers across Nigeria. Nigeria
industry will achieve sales of US$1b a already has a domestic digital music
year by 2016. business, with strong partnerships
“Ten years ago, we did not
with leading regional and national have any (music) industry;
Nigeria also has one of the most dynamic
live music scenes in Africa. Global annual
telecommunications operators (such as we did not have any
MTN Nigeria). International services such
Nigerian live performance revenues support. We did not even
as Deezer, iTunes, Shazam, Simfy and
exceed US$100m, reinforced by a
YouTube are now operating in Nigeria. have any record labels.
growing live music scene — especially via
the Music Lagos Festival.
The Kleek, a streaming service developed And because we believed
by Universal Music and Samsung, was in ourselves and we
Nigerian music clearly dominates Africa. launched in Angola, Ghana, Kenya,
In 2015, Nigerian artists maintained Nigeria and South Africa in early 2013. believed in what we had,
their superiority at the MTV Africa Music There are also local services such as we continued. And now
Awards, notably with Davido’s emergence Spinlet and iRoking. the music industry is the
as the Best Male Artist and Yemi Alade as
Best Female Artist. biggest export from Africa
after oil and gas.”
Nigerian singer and songwriter
Egypt
Films in Egypt: a traditional industry in transition
“The Hollywood of the Orient,” Egypt’s flourishing film industry is based Revenues fell after the revolution on
a past golden age in Cairo, which hosts a world-class annual 25 January 2011, compounded by
International Film Festival — the oldest reduced demand for Egyptian films
From the 1940s to the 1960s, Egypt in the Middle East — launched in 1976. abroad as US and Indian films found
enjoyed a thriving cinema industry. Some films have successfully achieved more favor with audiences. Egyptian
Internationally successful films of the both critical acclaim and popular appeal, films often struggle to cover their
1950s, including musicals and comedies, such as Sahar el Layali (Sleepless costs from box office receipts, pushing
became classics, their stars screen Nights) in 2003 and Imarat Yacoubian producers toward low-budget films that
legends and their producers (such (The Yacoubian Building) in 2006. appeal to a mass audience.
as Youssef Chahine) internationally
acclaimed. Some Egyptian films of the With 25 movies produced in 2013, Egypt The Egyptian movie industry’s problems
1960s, such as El Hara’ or Shay men el remains the largest film producing country include piracy by satellite channels and
Khauf’ remain widely revered. in Africa and the Middle East after Nigeria. film websites, and the state’s lack of
Yet, the number of productions has been support for the industry. In this climate,
Egypt went on to become the filmmaking declining since 2010. cinema has become dependent on the
center for the Arab world, producing efforts of investors, who have succeeded
about 40 films a year and commanding Egyptian cinema in crisis in producing high-budget films such as
an 85% share in its domestic market Hani Khalifa’s Sahar al-Layali (2003).
in 2008. More than 75% of the 4,000 Egyptian film output has been adversely
short and feature-length films made in affected by changing political and
Arabic-speaking countries since 1980 economic upheavals in the Arab world.
are Egyptian.
Local heroes: number of feature films produced by selected African countries

(2009-13)
50
45
43
40
35
33
30
25 25
25 22 23 24 25
19
20 19
16
17 18 17
15
13
10 9
8
5 7
4
0 1
2009 2010 2011 2012 2013
Egypt South Africa Morocco Tunisia
Source: European Audiovisual Observatory
Visual arts: a cultural heritage to preserve
Africa’s visual arts champion US$326m revenues. Three years earlier, uses its public art institutions to promote
struggles to sustain momentum UNESCO had designated the city of an ancient art form and encourage
amid political upheaval Aswan its first City of Crafts and Folk Art. museums. This is aimed at helping local
Known as “Swno” (the market) by the people achieve sustainable development,
Egypt is home to a world-renowned and Pharaohs, Aswan has preserved a unique mutual understanding, and fight poverty
diverse cultural heritage. It has five big heritage in folk art, while evolving into a and illiteracy.
museums: the Cairo Museum, which contemporary hub of exquisite craftwork,
exhibits over 100,000 artifacts from arts education, creative exchange Crisis and political instability induces
ancient Egypt; the Museum of Islamic and civil engagement. Standing at the a downward trend
Art; the Alexandria National Museum; the junction of the northern and southern
Luxor Museum; and the Nubia Museum. parts of the Nile Valley, Aswan combines Since the Egyptian uprising in 2011,
It also has a remarkable 150 museums of their influences into a unique tradition visitor numbers have fallen sharply: the
modern art. Combined with a noteworthy of Nubian art that melds Egyptian and Nubia Museum had only 250,000 visitors
heritage of monuments, the country has Sudanese cultures. in 2014. The International Council of
a big pull for tourists: in 2010, the Nubia Museums (ICOM) has been following
Museum alone attracted a record one Inviting artists from all over the world, events in Egypt closely. In 2011, ICOM
million visitors. Aswan hosts an International Symposium published an Emergency Red List of
for Sculpture to sustain a sculptural Egyptian Cultural Objects at Risk to
In 2008, Egypt was among the top tradition dating back to nearly 5,000 raise public awareness about the illicit
10 exporters of art and crafts among years. By emphasizing its past and trafficking of cultural objects.
developing economies, generating working to improve its present, the town
South Africa
Visual arts: toward democratization
Growing support for the visual arts extended to Johannesburg. The event
provides a free cultural experience in Key figures
There is strong willingness to support the which art galleries and other cultural
arts in South Africa. There are spaces for attractions stay open late on the first
artists to exhibit their works, as well as
several non-governmental organizations
Thursday of every month, luring younger US$16.5m
audiences.
(NGOs) and institutions supporting and annual turnover generated by
funding the arts, including the Visual An appealing art market visual arts in 2010;
Arts Network of South Africa, the South
African National Association for the Contemporary art from South Africa 7,700
Visual Arts, and the Arts & Culture Trust. is gaining growing attention in the
South Africa’s Government supports the
people worked in the visual
international contemporary art market.
arts through its National Arts Council. The FNB JoburgArtFair in Johannesburg, arts sector in 2010
The council is responsible for developing which the continent’s leading African
South Africa’s creative industry by and diaspora contemporary art fair, and
awarding grants to individuals and the more recently-launched Cape Town
organizations in the arts, though demand art event, That Art Fair, which seeks to
exceeds the available budgets. nurture and invest in emerging talent, are
increasingly gaining worldwide renown.
Events intended to make visual arts
available to all include First Thursdays,
launched in Cape Town in 2012 and
The enthroned radio industry

Radio in South Africa has grown
tremendously: revenues rose 50%
driven, they help develop cultural
diversity. About 240 community stations
“It will take a long time
between 2009 and 2013. Whether operate in South Africa, broadcasting before radio gets any
public, commercial, or community-run,
radio stations are listened to everywhere
news, interviews or children’s programs,
and producing content that may be
close competitors.”
and anytime, capturing a large audience: picked up by other media.
87% of South Africans listen to radio.
Zulu is the most used language on South
According to the South African Research Johannes Dire,
African radio stations, attracting more
Foundation, South Africans spent an National Secretary at National
than seven million listeners, followed by
average of 3.5 hours a day listening to Community Radio Forum, South Africa
Afrikaans and Xhosa, with more than
radio in 2014.
four million listeners each. Broadcasts
are made in each of South Africa’s
Radio is the most accessed form
11 official languages.
of media in South Africa, reaching
beyond urban centers The spread of smartphones has
encouraged, not undermined, radio
Blending entertainment and information, listening: 28% of South Africans listen to
radio stations encourage dialogue, radio on their phones. That crossover,
debate, popular participation and combined with the popularity of
involvement in decision-making, even in community stations, has helped revenue
the poorest and most remote rural areas. growth from radio advertising outpace
Community stations are especially rates at other media.
popular. Small, local and community-
Middle East
TV market is ready to expand
The Middle East TV market, with quadrupled from 1.33 million in 2004 and OSN are forming a virtual duopoly in
more than 400 million inhabitants, is to 4.35 million in 2013, increasing at an MENA’s satellite pay-TV market. The two
particularly large and attractive for annual average rate of 14.64%. The Gulf companies have managed to attract the
broadcasters and advertisers States (Saudi Arabia, the UAE, Kuwait, vast bulk of satellite subscribers. Since
Qatar, Oman and Bahrain) account for 2009, their combined market share has
The strong population increase and two out of three pay-TV households fluctuated between 82% and 85%.
continued economic development (66% of the total). However, there are
provide potent growth perspectives. significant disparities in the uptake of Al Jazeera conquering the world
According to an IHS report, the demand pay-TV services across the region: UAE
for and consumption of TV broadcasting has the highest penetration rate at 85% Initially launched as an Arabic news
is significantly stronger than in most and Egypt the lowest at just 2.4%. and current affairs satellite TV channel,
developed countries. To respond to this Al Jazeera has since expanded into
enticing consumer TV demand, the HD channels offered in the Middle a network with more than one string
Middle East TV sector has been literally East and North Africa experienced to their bow, including the internet
burgeoning, as shown by the growth and specialty TV channels in multiple
explosive growth
in advertising spend in the Arab region languages. Al Jazeera exemplifies the
(almost 4.5% between 2012 and 2015). HD channels offered in the region grew growing attention the Middle East TV
from just two in 2009 to 158 in 2014; industry is receiving today. In 2015,
The pay-TV market has quadrupled in 71 of these, around 45% of the total Al Jazeera is reaching more than 270
just 10 years offer, are being provided for free. The million households in more than 140
free HD offering in MENA is higher countries across the globe.
In 2013, the pay-TV market grew 11.2% than the total HD offering in countries
in terms of market share and 14.1% in such as Italy, Spain, Russia, Australia
terms of subscriber numbers. Over the and South Africa. BeIN Sports Arabia
last decade (2004 to 2013), the number (formerly known as Al Jazeera Sports)
of primary pay-TV subscribers almost
Growth in advertising spend and real GDP growth in Arab region (2010‑15)
10%
6.5% 8.5%
7.1%
5.3% 5.0%
4.0%
5% 4.9%
4.8% 4.5% 4.8%
3.5%
0%
2010 2011 2012 2013 2014 2015
-5%
-10% -10.3%
-15%
Real GDP growth Advertising spend growth (Y-o-Y)
Source: Arab Media Outlook 2011-2015
New center of gravity for the visual arts
In the Middle East, the exhibition 17% of the regional total. Iran hosts the The Louvre Abu Dhabi will be one of
industry continues to grow largest number of events in one country, the most emblematic museums in the
welcoming 219 events in six cities. Iraq Arab world. Thus, although the greatest
In a survey by UFI, the Global Association has shown a reasonable comeback, museum — Le Louvre — is in Paris today,
of the Exhibition Industry, 80% of and Kuwait and Saudi Arabia have also the future cultural dynamic force of the
organizations in the region remain witnessed good growth. As business contemporary world is located in the
optimistic about the exhibition industry’s centers, Abu Dhabi and Doha have Middle East.
promising future, despite the global increased their exhibition numbers by
economic downturn in 2008 and the Moreover, Dubai plans to invest US$136
230% since 2006.
instability of the Arab spring in 2011. million in the “Museum of the Future,” a
According to the UFI, since 2006, there technological museum that will produce
In an attempt to become a
has been a 14% increase in the number of futuristic inventions with advanced 3D
worldwide tourist destination, the printing construction techniques, set to
trade fairs organized and a 21% increase
Middle East is heavily investing in open for the public in 2017. According
in available exhibition space.
large museums to Sheikh Mohammed, vice president and
The UAE now provides the largest indoor ruler of Dubai, the museum “will be an
The Louvre Abu Dhabi is undoubtedly
exhibition space, representing 31% of incubator for ideas and real designs” and
the best example. Designed by Jean
the regional total. Dubai remains the will contribute to UAE’s mission to be a
Nouvel and born of an intergovernmental
regional hub, with the greatest number global innovation center.
agreement between the UAE and
of events hosted in one city (104) and
France, the museum will open in 2016.
the largest indoor exhibition space:
Outlook: challenges of a
more creative world
The challenge of growth
Cultural and creative industries are EY’s 2015 Media & Entertainment Capital against a background of weak global
often extremely fragmented, though Confidence Barometer shows that CCI economic growth and disruption of
they may be dominated by a few large companies’ appetite for M&A has risen business models by digital technologies.
players. As companies chase the scale to a four-year high in this sector: 50% of However, competition for assets,
needed to exploit their best content ideas executives expect to pursue acquisitions combined with relatively high valuations,
across global markets, consolidation is in the next 12 months. This is being makes it hard to close deals.
back in vogue. driven partly by efforts to renew growth
Do you expect your company to actively pursue acquisitions in the next

12 months?
“Fertile ecosystems
must be created
50%
to help CCI flourish;
in particular,
40%
by coordinating
34%
both public and
25%
private actors.”
23%
Astrid Audibert
Team leader — Technical assistance at
ACP Cultures+ Programme
Apr-13 Oct-13 Apr-14 Oct-14 Apr-15
Source: Media & Entertainment Capital Confidence Barometer, EY, May 2015
Gaining market share and protecting What are the main drivers impacting your M&A strategy over the
revenues are seen as the biggest drivers next 12 months?
of expansion moves by CCI companies.
Faced with intensifying competition and Gain market share in existing
43%
digital disruption, they need to gain scale geographical markets
and operational leverage.
Leverage regulatory/legislative opportunities 43%
At the other end of the spectrum, growth
in small cultural and creative companies Improve structural tax efficiencies 29%
should be boosted by new financing
tools. Crowdfunding creates a market for Move into new geographical markets 26%
financing ideas, and is increasingly used
by budget filmmakers, artists and authors Acquire talent 23%
to finance projects that might struggle
to secure bank loans. Those seeking to Move into new product/services areas 11%
finance movies and other cross-border
creative projects are also turning to co- Access new technology/intellectual property 9%
production. Recruiting foreign partners
not only helps share costs, but also to Reduce costs, improve margins 3%
secure larger markets for creative works.
It is proving a particularly effective tool Source: Media & Entertainment Capital Confidence Barometer, EY, May 2015
for sharing risk and enhancing revenues
in the film and TV industries.
The challenge of globalization
Investment destinations span developed zero to five, with five being the most lack distribution infrastructure, can be
markets and top-tier emerging markets. attractive. significant. China’s restrictive caps on
When choosing where to invest, creative foreign participation, and India’s low
We learned from DiMAx that mature
and cultural companies need to both prices and fledgling digital consumption,
markets remain the most attractive for
anticipate the rewards and appreciate the limit their attractiveness and growth
investment, and that in terms of capital
risks. Understanding which markets to possibilities in the near term. These
deployed, the US, UK, the Netherlands
focus on, when to enter and how to enter difficulties are compounded by basic
and Australia look set to lead developed
is essential for success. handicaps ranging from bureaucracy to
market growth in 2015. This view was
unreliable power supplies and shortages
To help cultural services companies with confirmed by respondents to our M&E
of skilled talent. As a result, cross-border
their international and emerging market survey.
capital commitments by creative and
growth strategies, EY has developed
Nonetheless, China and India remain cultural investors into emerging markets
the Digital Media Attractiveness Index,
emerging markets of choice for many are likely to remain cautious and modest
or DiMAx — a proprietary tool that ranks
executives, drawn primarily by strong in scale over the next 12 months.
countries on their relative potential to
growth and massive long-term potential.
generate earnings from digital media.
However, the costs of entering and
The tool is structured as a cost-benefit
developing these markets, which often
analysis and scores countries from
Which are the top five destinations your company is most likely to invest in the next 12 months?
Top Media and

Entertainment
destinations
United States
United Kingdom
Netherlands
China
Australia
Source: Media & Entertainment Capital Confidence Barometer, EY, May 2015
The challenge of online monetization
When digital content first migrated vigorously fought to ensure viewers The research shows noticeable disparity
online, many creative companies continue to pay for their creative works. between free and transactional online
made the strategic decision to make behaviors. Of course, in most countries,
Providing high-quality, value-added
much, if not all, of their content free to people like free online content. The graph
content will be critical to persuading
consumers. Many now face the difficulty below shows the average penetration
online viewers to pay for what they
of trying to persuade consumers to pay levels of free online activities — such as
watch or listen to. Creative and cultural
for something they have hitherto been reading news, gaming, watching videos,
companies need to better understand
accessing for free. Consumer resistance accessing social networks and blogging —
the factors that determine consumers’
is strong. Newspapers and radio often in each of the countries studied.
willingness — or reluctance — to pay for
offered free online content, wrongly Penetration levels varied from 70% in
online content.
believing that advertising revenue South Korea to 43% in Japan. The US
would become sufficient to cover news- EY has studied the online and offline had an average penetration rate of 57%
gathering costs. Similarly, music sites media habits of consumers in 12 countries and was the only non-emerging country
often made recordings available for free, around the world to better predict where among the top five.
in a move designed to take the wind paid content strategies are more likely to
out of pirates’ sails. But other content succeed and where they are not.
providers, including moviemakers, have
Average penetration free online activities
80%
70%
70%
61% 60%
60% 57% 56% 55%
52% 51%
49% 48%
50% 45%
43%
40%
30%
20%
10%
0%
South China India US Brazil Italy Spain France Russia Germany UK Japan
Korea
Source: Monetizing digital media, EY, 2010
In a recent Nielsen survey, 85% of to pay for certain categories of cultural

internet users said that online content content, including movies, games, TV
that is currently free should remain free. shows and music, and less likely to pay
But, unsurprisingly, the survey found for news, blogs and user-created videos.
online consumers may be more willing
The challenge of nurturing talent
Talent is the lifeblood of the CCI.
Achieving artistic excellence often takes
innovation and spin-off companies,
universities are often pioneers in
“Today, the focal
extraordinary dedication, prolonged hard technological innovation. point of the gaming
work and intelligence. But it can also
require a great deal of learning, and the
• Talent: Universities have an important industries is the
ability to cross-fertilize ideas from the
role in attracting, developing and
retaining talent. For themselves, they
right of independent
past with new techniques, technologies
and memes.
seek to attract the best students developers to create
and post-graduate researchers. By
In a 2006 paper, The University and collaborating with companies, they
and commercialize
the Creative Economy, Richard Florida, can help add value and attract creative new games. In
Gary Gates, Brian Knudsen and Kevin industries. But they also play a more
Stolarick suggested that universities act subtle role, helping build audiences of
fact, with the
as engines of innovation, but that their a sufficient size to support artists and democratization of
role is really rather wider. They argued groups pursuing creative endeavors.
that universities often act as creative technology, everyone
• Tolerance: Though this quality
hubs for the economic, social and cultural
appears increasingly under threat can develop a video
development of their home cities and
regions. The authors focused on the role
from the minorities determined game. It can be
to impose their views on others,
of universities in stimulating a “spillover”
universities continue to help spread perceived as a threat
of technology, talent and tolerance,
thereby aiding the development of CCI.
new ideas to neighboring regions. for traditional actors
By attracting students from diverse
According to the prominent professor backgrounds, they bring in new but it is also an
E. Glaeser, Richard Florida’s Rise of the ideas and promote their exchange, opportunity to boost
Creative Class4 resumes the importance while seeking to cultivate freedom
of cities attracting human capital: “the of expression. Norms and values innovation.”
urban lesson of Florida’s book is that such as these help create an
cities that want to succeed must aim at environment that appeals to talented,
attracting the creative types who are the creative people, thereby attracting
wave of the future.” Florida’s work is built individuals who are innovative
Kate Edwards,
around its “3 Ts theory” (technology, and entrepreneurial, and who will Executive Director of the International
talent and tolerance), the three driving contribute to economic growth. Gaming Developers Association
forces of regional and local economic
However, to have the desired effect,
development.
universities and other higher education
• Technology: Because universities institutions must be well-integrated into
receive public and private funding for their host regions: they are an important
research, and are often sources of ingredient of creative growth.
The Rise of the creative class, Richard Florida, 2002

4
Educating for creative growth
Contestability of markets and funding

Drivers of Democratization of knowledge
• Fiercely competitive domestic and
international student markets
change and access
• Ubiquitous content
• Challenges to government funding • Broadening of access to
• Competing for new sources of funds higher education
• Increased participation in
emerging markets
Global mobility
• Emerging markets becoming global-scale
competitors in the international Digital technologies
student market • Bringing the university to the device — Massive
• Academic talent increasingly sourced from open online course and the rise of online
emerging markets learning
Integration with industry
• Emergence of elite, truly global university • Bringing the device to the university — the use
• Scale and depth of industry-based of digital technologies in campus-based learning
brands
learning • Blended learning
• Research partnerships and
commercialization
• Industry as competitors in the
certification and delivery of content
Source: University of the future, EY 2012
The challenge of author’s right protection and support
The creative industries make a unique
contribution to the economic and cultural
protection for intellectual property in
China. This was essential, said the duo,
“It will be a long uphill
well-being of nations and individuals. “if the nation wants to create more of struggle to ensure the
At the heart of these industries — which
generate US$2,250b of revenues and
its own online content.” They added:
“Improving copyright protection will help
regulation of cultural
create 29 million jobs — are the creators. Chinese companies develop a mature goods and the help of
business model for videos, music and
As content increasingly moves online,
animation.”
the public sector to
the notion of “free access” is spreading,
promoted by those who benefit What is true for China is true for the rest
support new talents
commercially from providing free access. of the world, too. Proper protection for locally.”
But for authors and creators to continue creative content is needed everywhere.
creating culture and promoting cultural Collective management of rights is a
diversity, they must be compensated system that allows creators to devote
Artist, Ivory Coast
fairly for the use of their works. time to creation, with the guarantee that
Otherwise, creating will again become a even the most modest use of their work
leisure activity restricted to those who will be tracked and fairly remunerated.
already have the means to house and
On top of this general recommendation,
feed their families.
it is clear that several specific initiatives
“Fair use” is not fair to the creators if are needed to better protect authors’
they are not getting paid for this use. rights. In the music field, the Fair Trade
“Fair” means that creators should be Music initiative is looking at bringing
paid — fairly — for their work. Creators many digital services to the table, to
depend on being paid in order to make identify and agree “fair trade” conditions
a living. When other people go to work, for creators. The visual arts sector is
creators go to the colors and canvas; building a coalition of creators around the
to the pen and paper; to the recording world to support the artist resale right
studio; to the film set or to yet another and lobby for an international treaty. For
demanding, exhausting, and even painful audiovisual, a project that looks at the
rehearsal in search of performance inalienable right of remuneration has just
perfection. If they cannot get paid for been launched, which would have major
doing what they do, they will have to do repercussions for creators in the field,
something else instead of creating — and especially in countries where no such
all of society will lose. right is recognized.
If artists stop creating, what will be the The “Universal Declaration of Human
worth of free content? Anyone can see Rights,” adopted by the United Nations’
the difference between quality journalism General Assembly in 1948, states that
by trained and rigorous minds, and “Everyone has the right to the protection
the freely aired virulence of countless of the moral and material interests
bloggers. Those who want free access resulting from any scientific, literary or
and those who make money from artistic production of which he is the
providing free access are free-riders on author.” Today, that is far from being the
the effort of those whose content they case. The failure to achieve it is limiting
access or give away. Today, we have revenues of the CCI, and therefore
reached a critical situation. Unless it is holding back their growth and ability
put right, creativity itself is in danger. to hire.
Two of China’s most prominent creative
and cultural entrepreneurs, Jack Ma,
the billionaire founder of Alibaba, and
Pony Ma, the owner of Tencent, which
operates social networks and web
portals, last year pleaded for stronger
The challenge of new business models
Hybridization of are the revenue sources. Some CCI
sectors are really hybrid — it means
is still predominant, contributing almost
97% of total revenues.
economic models diversified — such as gaming with six
Moreover, hybridization is undoubtedly
economic models functioning in parallel
Today, in a period of rapid change, linked to digitalization: if a sector is
(physical or digital payment, subscription,
the CCI are facing a phenomenon of digitized, then it is also hybrid, as shown
free-to-play including Paymium,
“economic models’ hybridization,” below. However, the music industry is
advertising and micropayment).
which entails the multiplicity of funding an exception.
On the contrary, the book industry
and revenue sources. Within a specific
presents, with an index of 23, a very low
cultural sector, the more diversified
hybridization. In fact, traditional payment
economic models are, the more varied
Video games Music Movies Books

Digitalization rate 72% 50% 30% 15%
Hybridization index 80 41 56 23
Source: Kurt Salmon, 2015
There is no doubt that every cultural Evolution of the digitalization rate between 2010 and 2018
industry is impacted by digitalization.
For instance, the movie industry, with 90%
a 15% digitalization rate in 2010, will 80%
experience digitalization at 53% in 2018.
70%
Also, there is no argument about the
importance of digitalization for cultural 60%
activities. One way of identifying the
effects of digitalization is to keep in mind 50%
that it radically changes distribution
costs and, by reducing them, makes it 40%
possible to reach a substantially larger
30%
number of potential consumers. On the
content delivery side, the contribution 20%
of computers and telecommunications
industries, together with the spread of 10%
digital technologies, has enabled new
economies of scope and integration 0%
2010 2014 2018
that change the economics of content
distribution. Music Movies Video games Books
To conclude, once it is coupled with
Source: University of the future, EY 2012
digitalized sectors, the hybridization
mechanism is positive and creates value.
New economy, new rules 1. The “free customer”: no difference 3. The “pirate management”:
between a paying and a redefining execution
Coupled with hybridization, new strategies non-paying one Creating an innovation-friendly
emerge with the triumph of Google, Apple, Everyone is a customer, even without environment to supercharge
Facebook and Amazon. In fact, the future money; in fact, the customer base is performance and pioneer the future,
of every company seems to follow the way essential for all growth. ensuring freedom of thought, creation
these four evolve. Fundamental strategic and action
steps have led them to make decisions 2. The “utility value model:” thinking
with no apparent economic sense, but in terms of customer commitment
which have contributed to developing rather than financials
their position as the world’s largest value Delivering sustainable customer value
providers. These include: prevails over short-term profitability.
industries at a glance
Sales Jobs Key trends
(US$b) (million)
TV 477 3.5 Leaders — revenues: North America (38%); jobs: Asia (55%)
• TV is the most lucrative sector and will continue to be so: the global
broadcasting and cable TV market is forecast to grow 24.3% between 2013
and 2018.
• In emerging countries, digital terrestrial TV and pay-TV subscriptions
are booming, e.g., DirecTV Latin America saw a 15% increase in satellite
subscribers between 2012 and 2013.
• In mature countries, web TV and digital TV content are increasingly popular;
new pay-TV business models are emerging.
Visual arts 391 6.7 Leaders — revenues: Asia (49%); jobs: Asia (49%)
• The visual arts — including varied activities — are the first employers in the
CCI globally.
• The global art market is booming: it reached a total of just over €51 billion in
2014, an increase of 7% year-on-year and its highest-ever recorded level. The
distribution of sales by value in the global art market is dominated by the US
(39%), China (22%) and the UK (22%).
• Simultaneously, museums are mushrooming, especially in emerging countries,
creating new consumer experiences and enabling new ways to create fine arts.
Newspapers 354 2.9 Leaders — revenues: Asia (40%); jobs: Asia (57%)
and magazines • In mature countries, the sector is experiencing structural decline, and a shift
to online editions, e.g., The New York Times reported an average weekday
print circulation of less than 650,000 in September 2014, but its website and
associated apps attracted nearly 54 million unique visitors in January 2015.
However, the digital revenues do not compensate for the losses of print today.
• In emerging countries, print newspapers is booming. China and India combined
will account for an astonishing 57.3% of global average daily unit print
circulation in 2019, up from 49.7% in 2014.
• Total magazines revenues will remain on an upward curve to 2019, driven by a
1.5% growth in trade magazine revenue.
Advertising 285 2.0 Leaders — revenues: EU (50%); jobs: EU (50%)

• Advertising is especially important; it is feeding the other CCI (newspapers
and magazines, radio, TV, etc.), and global advertising revenues will increase
US$300 million between 2010 and 2019.
• Print ads have fallen off and ad spending is moving to digital. Digital advertising
will become the largest advertising segment in 2019. The rapid growth (23.1%)
of mobile internet advertising revenues means that it will overtake display by
the end of the forecast period.
• In emerging countries, advertising in general is booming, e.g., Latin America
holds the same number of advertising jobs as North America. The rising
markets are forecast to contribute 62% of additional ad expenditures between
2012 and 2015, increasing their share of the global market to 37%.
(US$b) (million)
Architecture 222 1.7 Leaders — revenues: Asia (53%); jobs: EU (39%)

• In emerging countries, the demand for architecture is rising. China, India and
Brazil offer the best growth potential for architectural services.
• Driven by the demographic boom, China remains the world’s largest
construction market since 2010. The Asia-Pacific market is expected to be the
largest by 2020, with a projected value of US$4.6 trillion.
• Although the demand is clearly located in emerging countries, Western
architects continue to dominate the market: the three largest architecture firms
are all North American: Aecom (US), Gensler (US) and IB Group (Canada).
Books 143 3.7 Leaders — revenues: EU (37%); jobs: Asia (46%)

• Print is alive and well: in 2015, print will represent 80% of all book sales
worldwide, and even higher in developing countries.
• Total global books revenue is set to rise to US$128b in 2019, from US$120b
in 2014. Growth will be driven by India, which became the 10th-largest book
market in 2014 and will see the fastest growth globally in total books revenue.
• The growth of educational books will outpace consumer and professional books
revenues: between 2014 and 2019, total global educational books revenue
will grow 2%, exceeding the 0.8% for consumer books revenue and 1.6% for
professional books revenue.
Performing 127 3.5 Leaders — revenues: US (49%); jobs: Asia (38%)

arts • The performing arts market is still dominated by western countries, mainly the
US and Europe.
• The global box office is growing, notably with the marketization of the
performing arts in some emerging countries. However, the sector is clearly
dominated by the informal economy in some regions, notably in Africa.
• Festivals are an increasing asset for cultural tourism worldwide.
Gaming 99 0.6 Leaders — revenues: Asia (47%); jobs: Asia (42%)

• Online and mobile video games will constitute 86% of the consumer video
games market in 2018. In fact, global smartphone connections are forecast to
nearly double to 3.85b by 2019.
• The emergence of a new class of independent developers is renewing the video
game industry.
• Cloud gaming will become an increasingly applicable proposition: the next five
years will see vast increases in device connectivity.
(US$b) (million)
Movies 77 2.5 Leaders — revenues: US (37%); jobs: EU, Asia (31%)

• The global box office grew 1% in 2013, driven primarily by Asia (12%). Cinema
screens increased by 6% worldwide in 2014.
• Competition is intensifying between western and emerging countries.
Particularly strong growth of filmed entertainment revenues will be seen
between 2014 and 2019: 14.5% in China, 6% in Brazil and 11% in Argentina.
The global leader — the US — with 33% of the total market in 2014, will see
above-average growth of 5%.
• New digital distribution models are appearing around the world, such as Netflix
in the US and iROKOtv.com in Africa.
Music 65 4.0 Leaders — revenues: US (36%); jobs: Asia (33%)

• In terms of employment, the music sector is the second CCI after visual arts.
Music is still a large part of millennials’ budget: US$125 in 2015 in North
America.
• Globally, live music is thriving: 80% of millennials in North America will attend a
live event in 2015.
• Music has become digital and mobile (streaming, downloads, etc.) At the end of
2014, the number of countries in which total digital recorded music exceeded
physical recorded music revenue stood at 22; in 2019, that figure will have
risen to 40. Globally, consumer spending on digital formats and services will
overtake physical in 2015. This situation raises the issues of digital revenues’
monetization, as well as the control of piracy and illegal sales.
Radio 46 0.5 Leaders — revenues: US (45%); jobs: Asia (35%)

• Globally a popular medium, radio is here to stay. Radio advertising revenues
will extend its share of total global radio revenue from 75.3% in 2014 to 75.8%
in 2019.
• The US dominates the global radio market, with 46% of all revenue. However,
growth is now occurring more quickly in other markets.
• In emerging countries, non-traditional models such as community radios
prosper, especially in Africa, e.g., about 240 community stations operate in
South Africa. Small, local and community-driven, they help develop cultural
diversity, broadcast news, spread music and produce content.
industries community
cultural and creative
Voices from the
Index
The following pages consists of interviews that were conducted for this study
96 | Niniola Allan Azeezat, songwriter and performer, Nigeria
96 | Carlinhos Brown, musician, singer, songwriter, Brazil
97 | Daniel Burman, Film director, Argentina
97 | Giora Chamizer, TV creator, Israel
98 | Vince Degiorgio, songwriter, Canada
98 | Klaus Doldinger, composer, Germany
99 | Nguizani Domingos, choreographer, Angola
99 | Achille Forler, MD at Universal Music Publishing, India
101 | Christian Furr, visual artist, United Kingdom
102 | Peter Gabriel, musician, singer-songwriter, label owner, festival promoter and
OD2 co- founder, United Kingdom
103 | Prof. Dieter Gorny, Executive Board Chairman of the German Federal Music
Industry Association (BVMI), professor at Düsseldorf University of Applied Sciences,
Director of the European Centre for Creative Economy (ECCE), and German Federal
Ministry of Economic Affairs’ Commissioner for the Creative and Digital Economy
104 | Bouzaglo Haim, director, writer and producer, Israel
104 | Ansomwin Ignace Hien, novelist, poet and book publisher, Burkina Faso
105 | David Hirschfelder, musician, film score composer, Australia
106 | Willem Jeths, music composer, Netherlands
106 | Cécile Kayirebwa, singer and songwriter, Rwanda
107 | Calvin Kirimba, TV producer and hip-hop artist, Kenya
107 | Hartwig Masuch, CEO at BMG, Germany
108 | Vasyl Nevolov, writer, playwright, Ukraine
108 | Carmine Perna, managing director, Mondadori France
109 | Laurent Petitgirard, music composer and conductor, France
109 | Jan Sardi, screenwriter, Australia

110 | Soro Solo, cultural journalist and radio producer, Paris, France
111 | Isao Tomita, creator and musician, Japan
112 | Fernando Trueba, film director, Spain
112 | Andrzej Wajda, film director, Poland
The music industry adds value to the Nigerian economy
Niniola Allan Azeezat, songwriter and performer, Nigeria
This is a great time for Nigerian music, Alongside leading artists, there are jobs Positively, because we can easily record
which is finding a global audience. This for backup singers, instrumentalists, our voices and forward to a producer
reflects the creative drive of our country, dancers, choreographers, publicists, through emails and other platforms. A
especially from the youth. Almost stylists, event decorators ... producer can also send beat/instruction
everywhere you turn there’s an upcoming through email, and so on.
The music industry is creating serious
artist. Almost every family in Nigeria,
employment opportunities, servicing Negatively, as our music is being easily
especially in the cities, have an artist in
different industries. In short, the Nigerian pirated and sold online. This deprives
their folds.
music industry has added greater value creators from their rightful remuneration
What this has done is giving the youths to the Nigerian economy. and would require swift action from
hope. Regardless of the woes of the governments to enforce our rights.
In future, sale of music on CDs will
country, they have hope of a brighter day
no longer exist. All music will be sold
through creativity.
through mobile phones, websites and
The other aspect is that it provides jobs other digital means. Digital technologies
to young people in the creative sector. have both positively and negatively
influenced our art.
Culture is not only for entertainment

Carlinhos Brown, musician, singer, songwriter, Brazil
To be an artist is part of myself. I’m a to develop new technologies. But he
server of the art and the preservation needs also to learn from the past because
of the legacy of our ancestors. It was without this foundation we will find
through the “timbau”3 that I have ourselves lost. A tablet can’t replace the
discovered the world, and it was the plow. I believe it is necessary to reconcile,
“timbau” that thought me the real the best way possible, the digital world
value of the environment where I come with the analogic world. This is the great
from. I have always had the dream of challenge in front of us! Internet helps
overcoming the depreciatory image of a lot the creator to bring its work to
the “favela” and I made it. I’ve struggled; any continent, to be acknowledged and
I’ve gone after partnerships and together recognized and, above all, to be able to
with the community of Candeal Pequeno, research and to learn about what has
in Salvador, where I was born, I’ve been produced all over the world. But
managed to reach on of the best Index I do value the oral tradition, the face-to-
of Human Development in Bahia. We face contact with my masters and with
© Imas Pereiras have created music schools and regular people that admire my work. We all have
schools; we’ve offered housing and a lot to learn and we should do it through
basic sanitation to the inhabitants of the the most different sources possible.
community. From there great musicians
We shall work to bring awareness that
came out and they are playing with great
culture is not only for entertainment,
artists all over the world. I’m very proud
for partying, but it is also preserving our
of this achievement! Music for me is a
roots. We have a lot to learn with the
very powerful agent of social and cultural
cultural diversity that constitutes the
transformation.
legacy given to us.
A human being needs to drive himself
towards learning; a human being needs
Timbau is a percussion instrument, the main instrument used by Carlinhos Brown. Out from his timbau he
3
created the famous group”Timbalada”.
Technology has become part of cultural content
Daniel Burman, film director, Argentina
We are facing a moment of a profound Media tend to be confused with the
paradigm shift. We creators are getting artistic content it displays. Creators
closer to consumers; revenues are losing must stop seeing technology as a
their value along the chain. Artistic challenge: we have to start incorporating
content is what helps make a difference technology in our creative processes.
between this confusing maze of display Technology needs to stop being a
windows. mere platform or a means to an end.
Technology is not a result but a process.
Technology is no longer “nice to have”
but has become part of the content.
© Daniel Burman
It is about good stories

Giora Chamizer, TV creator, Israel
I have worked as a TV creator since every year new generation of viewers what drives kids to my shows is their
1993. Over the last 10 years, I have been binge-watch them and keep them “alive.” hunger for a good story. As much as they
the creator and show-runner of four TV Between seasons, the viewers keep the love the stars, for example, they are far
series for kids, in a genre that I basically engagement on social media outlets more concerned with which direction the
invented: it is a daily drama which like Instagram with thousands of fan plot may take. And the story itself is the
combines a telenovela-like structure, pages. For me it provides a perfect way one constant element that, in my view, is
infused with high doses of suspense. The to communicate with my audience on a immune to change.
four shows were all very successful in daily basis, get a sense of what they like,
Israel, reaching hundreds of thousands of what they miss the most, what moves
young people. them, and what they expect to see.
The shows have shown a surprising At the same time, after a decade of
staying power on Video on demand, and experience in this genre, I can say that
Supporting creators in the digital era
Vince Degiorgio, songwriter, Canada
As the curator of the Songworks The SAC is using digital technologies
writer camp program and Chair of the to create a platform that will provide
events committee for the Songwriters mentoring, communication and global
Association of Canada (SAC), the delivery of work from our members,
creative activity taking place at this using everything from one-on-one video
moment is incredibly vital to the future mentoring to song delivery and help with
of Canadian songwriters. Our events and copyright protection techniques that
programs have become a hub of activity support creators.
nationally for our members and project
Our philosophy is not to fear the digital
participants, giving them a launchpad for
era, but to drive a parallel road beside
emerging, established and even legacy
its constant state of change. The ways in
level creators in our industry. As an
which our messages will be delivered in
organization, we are rising beyond the
the future are forever changing. But all
negative norms of the digital age.
start with a song.
© Denise Grant.
A proper remuneration for authors and artists is crucial

Klaus Doldinger, composer, Germany
If we gaze back over the history of the survival and independence of those
mankind and wonder which values creating art and their descendants, and
actually survived the ups and downs of by extension of the arts themselves.
that history, we will inevitably notice The emergence of the digital world
that they are the values of art created also brought great benefits to the arts
by individuals using words, music in many areas, but there are major
and images. Inventions like printing, disadvantages as well.
recording, film, and more, came about
The main challenge for the future will
because people were intent on preserving
be the need to harmonize international
and expanding these values. This, in
regulations. Authors and artists depend
turn, attracted more people to new
on proper remuneration from the
professions associated with the world of
internet and from streaming in particular.
the arts. The inventors, the musicians,
Maintaining our culture through our
the artists always remained a minority
museums, theatres and symphony
compared with the host of individuals
orchestras is crucial for our society. By
© Florian Jaennicke who stood by them and offered crucial
the same token, preserving our values,
support. The development of copyright,
like copyright and support for coming
as the core element of the preservation
generations, is just as important.
of rights, ultimately led to commensurate
compensation for the use of intellectual Luckily, music, and jazz especially, is so
property. Furthermore, this ensured much fun during its performance already.
Culture needs public and private investment
Nguizani Domingos, choreographer, Angola
Art defines the cultural identity of a technologies can also have the source TV programs, movies, videos and radio
country. Choreography used to be at of acculturation and can damage or shows to serve national needs but also to
the avant-garde of my country’s culture, denature our cultural fabric. be exported.
especially during the first decade that
Our first challenge is to defend our Last, creators in all artistic fields, through
followed the independence. Like for other
cultural identity and support creators. our authors’ society UNSC-SA (National
art forms, there was a vibrant scene,
Artists need support, be it through Union of Artists and Composers-Society
but the lack of public policies to support
public policies, cultural patronage or of Authors) should be able to reap the
the art was detrimental to many cultural
legislation. We need public and private rewards for the use of our works. We
endeavors in Angola, and many artists in
investment in education, cultural centers, now have many reciprocal agreements
all disciplines chose to leave the country
and concert venues, and we need new in place with sister societies around the
to be able to continue to work in the
ways to produce and distribute cultural world, and we have joined CISAC, for the
creative sector.
content and to export our culture and benefit of visual artists, choreographers,
Today, young artists are obviously the our artists. Creative industries can play musicians, filmmakers and all the
first to endorse new digital technologies a major role in the development of our creators from Angola.
and adapt them to our reality. These country, contributing to the creation of
Continuous improvement in licensing and collective

management of rights
Achille Forler, Managing Director at Universal Music Publishing, India
About you: could you describe Back in the early seventies, India’s
yourself (your job/position) and your Supreme Court ruled that when authors
company/organization? worked for a film, their status was that
of “hired workers.” The producer was,
I am the founder of Deep Emotions therefore, the first owner of literary and
Publishing (DEP), India’s first music musical works. In 2012, copyright law in
publishing company, founded in 1995. India took a new turn when both Houses
The company was acquired by Universal of Parliament passed the Amendments
Music Publishing (UMP) in December in a landmark vote of unanimity. It
2012, and I am now the MD of both DEP contained three important clauses for
and UMP. authors: authors gained an unwaivable
right to royalties equivalent to 50% of all
What are the particular aspects publishing income; collective licensing of
of your industry (music) in your literary and musical works could be done
country? only through a society; and all registered
© Chantal Forler societies had to re-apply for a license
Most of the music in India is produced by
within a year.
film producers, who then sell the bundled
“music rights” to record labels (who
How has your industry changed over
were the traditional gate-keepers to the
the last few years?
market in the age of physical products).
India adopted its first Copyright Act in India is a unique market, remarkable in
1957, modeled on the British Copyright many ways. It ranks among the handful
Act, 1956. Until the early 1970s, HMV of countries that possess a powerful
(now Saregama) had a monopoly over entertainment industry with crossover
disc manufacturing, hence the practice of reach: its cultural products are purchased
“bundled rights.” by consumers from other cultures.
The Indian entertainment industry is so ahead of the US. It is the second largest In your opinion, what is the future
massively dominated by Bollywood and, user of Google Search. Online shopping of employment in your industry and
to a limited extent, South Indian films is expected to exceed US$100b by 2019 region/country?
that any music strategy that ignores or and online advertising will cross US$2b
discounts film music cannot be serious (source: eMarketer). It also has a young I believe that the current size of the
and is destined to remain niche. The population (63% are below 25). music industry is grossly undervalued.
market share for international repertoire The figures published in various reports
Fuelled by this explosive growth of mobile are restricted to the turnover of the
is in the single digit only.
internet, India is witnessing the churning record labels; they do not take into
Bollywood is the key to the Indian of communications, entertainment, account the value of music in films,
entertainment industry. And music marketing and technology on a radio, television, games, etc. Some of
is the key to Bollywood. The music stupendous scale. the value attributed to these industries —
industry is massively dominated by a which are not paying royalties, or very
single company whose market share In your opinion, what would be the little, to collective rights organizations —
equals the combined share of the next key future trends in your region/ actually should actually be accounted
four labels. Such unbalance is the sign country? under “music.” The sooner we bring
of an immature market and therefore a global standards to the music industry,
promise of high potential for determined For over a decade, collective the faster this industry will grow and
challengers. management organizations (CMOs) music assets attributed today to other
have had a steep learning curve to be industries will be accounted as “music.”
Television has become a €2 billion on par with the quality standards and
industry, with over 850 channels catering efficiencies of CMOS in other parts of
to the Hindi and English speakers as well the world. Recent developments give me
as to the numerous regional languages. hope that collective licensing will start to
look up in 2016. I believe that an authors
How important is digital technology society in India has the potential to be
in your activity? Do you see any among the top 10 earners globally in the
related challenges and issues in next decade.
particular?
The country will become next year the
second largest smart phone market,
Digital technology is a tool
Christian Furr, visual artist, United Kingdom
Art can be used to change entrenched influences and styles are more disparate
mind-sets. If more corporations and eclectic now than ever. I don’t know
employed resident artists and allowed whether this is to do with the internet or
them freedom to create I think the results media saturation. It’s not necessarily a
for all concerned would be spectacular. bad thing, as a true artist will take what
Artists are trendsetters. What they create they want from it anyway. The artists are
gets copied/appropriated and filtered the ones that lead the way. They are the
down into the culture around us often in filterers.
a homogenized form. Art is pure from
One future trend might be the dismissal
the source.
of binary? If digital technology is used it
Digital technology is a tool. Artists have will be to help create a tangible object.
always used whatever they can lay their People are buying vinyl again. Neon is a
hands on as a means to an end to make valid art medium. Paintings are valued
their jobs easier. Nowadays there is even more. One thing I have picked up on is a
© All rights reserved more on offer to use. For any digital return to appreciation of craftsmanship
technology to work well you need a whether someone spends a lot of love
strong vision at the beginning of how it and time on something or creates
should be used and for what purpose. something instantly using their own
wealth of experience it means more.
I don’t think there are any clear
movements in visual art right now. I think
Digital distribution represents a remarkable opportunity
for creators and listeners if the value is fairly shared
Peter Gabriel, musician, singer-songwriter, label owner, festival
promoter and OD2 co- founder, United Kingdom
I believe that creators should play an only become the primary means of
active role in the distribution of their distributing music, but music around the
work and should have the right to world is helping to drive the development
participate in the value that is so clearly and the reach of digital services.
derived from the use of their works. The Streaming has overtaken downloading,
way the digital world has redrawn the and during July 2015 the number of
map around media, musicians and writers UK audio streams in one week passed
have lost many of the rights and much 500 million, double the number of
of the revenue share that had taken streams for the same period in 2014.
many years to achieve. Deals have been
This growth represents a remarkable
done between the distributors and the
opportunity for creators and listeners
record companies (such as stock options)
alike but one that we will only be able
that deliberately exclude or reduce the
to realize fully if those who create the
involvement of the creators on whose
content are allowed to share in the
work the deals have been based.
© Michele Turriani © 2013 Peter Gabriel Ltd
value that their work is generating.
In 1999 I co-founded OD2 (two years The creative and cultural industries need
ahead of iTunes) with Charles Grimsdale to speak with a single voice, and work
and John Grinham. We were convinced together to persuade legislators to strike
that digital channels were going to be the the right balance between encouraging
main means of distributing music in the creativity and access to content, while
future and the original purpose of OD2 safeguarding the rights of the creators,
was to provide distribution, infrastructure especially young and minority interest
and rights management for unsigned artists, to ensure they have access to
musicians who would not otherwise enough opportunity to make a living
benefit from this opportunity. and to secure a viable economic future
for these industries and all their future
Our intuition was proved right. Since
creators.
then, digital channels have not
The music industry has integrated the inner workings of
the digital economy into its DNA
Prof. Dieter Gorny, Executive Board Chairman of the German Federal Music
Industry Association (BVMI), professor at Düsseldorf University of Applied Sciences,
Director of the European Centre for Creative Economy (ECCE), and German Federal
Ministry of Economic Affairs’ Commissioner for the Creative and Digital Economy
Never before has music been consumed of 2015. Streaming — has been the
to the extent it is today. It not only is a driving force behind this development.
universal, global language, but also plays The music industry has integrated the
a key role in shaping a region’s identity in inner workings of the digital economy
a cultural sense. Given the huge socio- into its DNA, and tailored its business
cultural significance of its “product,” the model accordingly. With its diversification
revenues of the global music industry — strategy, the music industry has, along
income generated from the sale of digital with other sectors within the creative
and physical recordings — should perhaps economy, been setting economic,
be even higher than it is (US$15b in cultural, and social trends that resonate
2014). But you cannot put a price tag far beyond the boundaries of the
on the sector’s economic contribution, industry.
for the music industry was the first to
The issues that all sectors of the
have to address the challenges posed
creative economy are currently facing
(and opportunities offered) by the digital
can only be addressed together. These
© Markus Nass transformation, and it did so successfully.
include the compulsory legal deposit
The internet really put the industry’s
of works, making amendments to the
existing business model to the test,
German Telemedia Act (TMG), and
and the “internet copy shop” ultimately
revising copyright contract law. It is
led to sales between 1997 and 2012
also important that we recognize that
being halved.
contracting parties will only be able
But in 2015, we can now say that to meet each other on equal terms
we’ve done our homework: there has once certain platforms are required to
been a slight upward trend in Germany purchase licenses.
over the past two years, with a small
increase in sales in 2013 and 2014,
and a 4.4% rise for the first six months
A new era for creators of content
Bouzaglo Haim, director, writer and producer, Israel
I wrote and directed 12 feature films, down the cost of filming. It changed the main conduit for big events with
eight TV series and one documentary the discipline: we have more freedom massive ratings, but the individuals will
and I also produced 16 of them, seven of in shooting, we can shoot more scenes develop their own libraries of films and
which in coproduction with France, Spain with more takes. I think digital is one of series based on their personal tastes.
and the US. Some of my films are part of the reasons of the success of Israeli films Each spectator will be a programmer.
programs in film schools and universities and TV programs in the world, because Creators will deliver the content for these
where my special way of directing is it allowed for more talents to express libraries and the choice will be left to
discussed. themselves. each individual. And original content will
be the most important ingredient in the
I shot all my first movies in 16 and 35 We are approaching an era where what
new world of cinema and television.
mm but the development of digital is new and original will win directly the
equipment made life easier and brought attention of the viewers. TV will remain
National public policies of encouraging literary

creation are needed
Ansomwin Ignace Hien, novelist, poet and book publisher, Burkina Faso
As an author, I have written some of royalty collection and organize an
20 books in genres as diverse as novels, effective fight against counterfeiting
novellas, poetry and tales for young networks to weaken, if not eliminate them.
readers. I have also been a publisher,
Piracy, which until now was mostly
a profession which led me to chair the
concentrated on music, has now invaded
Association of publishers from Burkina
the literature field. This has a devastating
Faso (ASSEDIF) until 2010. I was involved
effect on authors and publishers,
in helping define the public policies in the
undermining what is already an
books’ publishing sector in Burkina Faso
embryonic industry here. In addition, the
but also in Niger, Togo or Djibouti.
publishing sector lacks investment and
Contributing to CISAC’s work in Africa, needs access to financing. To address
most notably as an expert in authors’ these issues, a national public policy of
and neighboring rights, I have measured encouraging literary creation should be
the need for action in Africa in the field able to galvanize creators. And we also
© All rights reserved of rights. To address the issue of low need an more efforts to incite young
collections of royalties in most African people to read from a very early age.
countries, CISAC has established very
We need to nurture the next generation
useful programs to strengthen collective
of readers by producing and giving them
management organizations in the
access to a wide range of books. This
continent, especially through training
strategy will create an audience for books
schemes.
who will read literary works in digital or
In Burkina Faso, we are lucky to have a traditional format. And since it is usually
very dynamic collective management through the passion for reading that
organization with the Bureau burkinabé people start writing, let’s hope that it will
du droit d’auteur/Burkinabé Copyright also trigger the creative muse among
Office (BBDA), but a lot of work needs youngsters and bring to the fore a new
to be done to significantly raise the level generation of creators.
Improved collective management
is key for developing creation
David Hirschfelder, musician, film score composer, Australia
In the 35 years, David has been involved Tognetti and Lisa Gerrard, shows the
in the music industry both in Australia need for collaboration and shared
and abroad. Copyright and royalty authorship.
have had a direct impact on his income
The advent of digital technologies has
streams.
been significant for film composition
Early in his career, David’s role as and production. Like most composers,
the musical director and composer David brings the new technology to his
for the 1996 film Shine, based on work through a digital composing suite
the life of pianist David Helfgott, was yet he retains his passion for all things
simultaneously a critical and commercial classical, especially the use of orchestral
success and a copyright battleground, instruments, as well as his beloved
both from heirs to the Rachmaninov Bösendorfer grand piano. The digital age
estate through a moral rights action and has also brought its share of challenges.
David’s own litigation to secure royalty David laments the democratization of
© Tim Jones Photography 2014 payments for soundtrack units sold. music and film and the anonymity given
to consumers who support piracy sites.
David believes over-simplification of
He says, like any free market, the less
copyright law could mean all artistic
expensive a product becomes (to the
creations would be treated alike, which
point it is free), the more higher skilled
they are not.
artisans will gravitate away from that
For example, David firmly believes market and the quality of product will
the authorship of film, because of the rapidly decline.
collaborative nature of film-making,
Because of the relatively small
should be duly shared among a larger
population, David believes Australian
range of collaborators — the performers,
copyright industries, which generate
the cinematographers, the script writers,
income of US$4.8b a year, should be a
the directors, the designers as well
cause célèbre for the nation’s economic
as music composers. His passion for
health. He supports the important role
composing music as well as imbuing his
collecting societies, like APRA AMCOS in
signature on other pieces of work, as
his home country, play in protecting the
seen in Shine, underlies this belief.
rights of authors.
His recent work on Russell Crowe’s The
Water Diviner, with additional music
credited to Ludovico Einaudi, Richard
Creative sector isn’t just a market
Willem Jeths, music composer, Netherlands
The most beautiful sounds in the world creation. They also need strong copyright
do not consist of merely one simple laws that provide the creative community
tone, an odd single sound or an isolated with the necessary and sustainable
chord. The most beautiful sounds are the foundations to protect their rights and
ones that have not been composed by a earn fair remuneration from their works.
musician. The most beautiful sounds do Copyright enables them to generate
not have copyright; a kiss, a footstep on income which makes it possible for them,
the pavement of your loved one coming and future generations, to professionally
home, the rustling of leaves in the trees, contribute to an active, continuously
the roar of the surf. evolving culture and increased
employment.
Composing is something completely
different. It is the shaping, the creating of Policy-makers should encourage the
sound with the purpose of telling a story: development of culture. Not only because
then, the musical craftsman will get to it ensures enrichment, change, relaxation
© Friso Keuris work. He will turn sound into music, by and movement, but also because it
polishing, improving, slaving away and creates jobs. Close to 30 million people
listening to it again and again. After that, in the world work in the creative sector.
it can be heard by anyone, and everyone We expect policy-makers to realize that
can, and will, think something of it. But the creative sector isn’t just a market
there are only few that actually make but deserves investment and needs to
money on it, or try to. be protected. By doing so, they will keep
culture alive, serve the public interest
Creators need freedom of culture,
and guarantee that creators can continue
freedom of speech and freedom of
to mold sounds, words or images.
Supporting creators in the digital era

Cécile Kayirebwa, singer and songwriter, Rwanda
Today’s climate is full of hope and in Rwanda or if we are still at the stage
innovation. Artists are organizing of “wishful-thinking.” Does the music
themselves, developers create platforms produced in Rwanda have the necessary
for online sales/distribution, streaming level to compete in the global market?
and applications, and big telecom Does that “pop sound” favored by
companies are collaborating with artists. young people bear a unique and original
Rwandan identity?
There is an awakening of Rwanda’s
music scene. This involves businesses, Rwanda sorely lacks labels, digital
corporations, government agencies, distribution networks, people with real
young entrepreneurs, and media, and all knowledge and experience, competent
of this causes excitement, a buzz. We can creators and businesspersons who
even observe a physical manifestation on understand the real issues in order
the net through various articles and ads to center all this energy in the right
on social media. direction.
© Roger Sangwa The question now is whether this is a
true digital revolution that is taking place
Digital helps move contents to consumers faster
Calvin Kirimba, TV producer and hip-hop artist, Kenya
Music and entertainment have a huge campaigns and political stands. As a it in. Digital technology has reduced the
importance in Kenya. The creative TV producer, the concepts and shows number of processes needed to create
industries account for a substantial that we come up with help entertain a song, a TV concept and even helped
percentage of the country’s economy. and educate the youth among our further in the distribution process which
Music is also used to bridge cultural and community. was largely nonexistent.
tribal differences that exist in Kenya.
The digital revolution has allowed both
From a social point of view, music has music and TV shows to move to the
been used effectively to push agendas consumers faster. There is more music
ranging from cancer awareness available and more platforms to access
Creating a global database of world’s songs to address

digital challenges
Hartwig Masuch, CEO at BMG
Digital technology has been like a breath There is no doubt that digital poses
of fresh air for the music industry, challenges — not least in the form of
re-energizing the business, but most piracy and the casual disregard for the
importantly empowering songwriters value of music of some technology
and artists as never before. For the companies. But the greatest challenges
first time in history not only can artists for the music industry are first to create
create a worldwide hit wherever and a truly global, clean database of the
whenever they are, they can reach a world’s songs and recordings, a move
worldwide audience too thanks to the which I believe in itself will be the catalyst
power of social media. Understandably for growth in the business. Second, we
the possibilities of technology have made must ensure we never forget that we are
them more demanding. They demand ultimately a service business, there to
fairness and transparency and service. serve the songwriters and artists who
create the music.
We accept that for many in the music
© Ben Wolf business the transition from an analogue
to a digital world is not easy. BMG is
fortunate to be a new player in the
market. For us the business has always
been digital.
Notwithstanding social and economic turbulences in
Ukraine, drama creators keep on contributing to their
cultural sector
Vasyl Nevolov, writer, playwright, Ukraine
Ukrainian drama authors are currently of cultivation plays an important role
facing significant problems. Tough in social and economic well-being of
economic environment in Ukraine the country as the authors raise spirits
inevitably impacts an ability of target and direct public mood to positive
audience to pay forcing the theatres to vector. Protecting the conditions that
keep the cost of the tickets for theatrical will allow us to create is the key to
performances at minuscule level. For sustainable economic, social and cultural
this very reason, Ukrainian theatres are development.
not able to increase box-office receipts
Notwithstanding social and economic
depriving right holders of dramatic rights
turbulence in Ukraine, drama creators
of their fair remuneration. The situation
keep on developing and contributing
is worsened by insufficient state funding
to their cultural sector. I see more and
of the cultural sector. As a result, most
more Ukrainian playwrights and directors
of the state theatres often do not have
making international career as national
funds to make timely royalty payments.
Credit: Vasyl Nevolov
boundaries erase. The information
The main problem also remains weak is being spread instantly, allowing
legislative framework leading to financial Ukrainian creators to be up to date on
instability of the creators. Unauthorized the world’s latest trends in drama sector
use of our works by theatres, internet and promote Ukrainian culture abroad.
piracy and other IP issues shall be We are also very happy to see growing
urgently addressed by the government. number of international theatrical
When the state ignores the creative festivals taking place in Ukraine as well as
industry, it results in frustration and increasing number of works of Ukrainian
vulnerability of the authors which is drama authors staged at the theatres all
detrimental to creativity. At the same over the world.
time, I strongly believe that overall level
Digital revolution is forcing companies to adapt their

organizations and disrupt their business model
Carmine Perna, managing director, Mondadori France
For several years, the magazine sector and mobile applications. We progressively
has been facing a constant revenue implemented a wholly integrated
drop. As for many other sectors, digital editorial workflow and new technological
revolution disrupted habits of magazines platforms in order to change the way
and newspapers readers. we produce and sell our contents.
Meanwhile, an intense training program
Media access has drastically changed:
has been launched in order to develop
people want to access information
our editorial teams’ digital skills.
anywhere, anytime, on several devices
while paying as little as possible. Finally, a huge reorganization of our staff
has been achieved. A new way to practice
An actual revolution forcing media
journalism appeared, based on new skills,
players to rapidly turn their companies
ability to use new tools or devices and
around, adapt their organizations,
managing an intense presence on the net
disrupt their business model and finally
and social networks. A new professional
become a multimedia company.
© All rights reserved environment where young, digital native
That’s why we started our digital and specifically educated journalists have
transformation some years ago, a key role to play.
significantly developing our websites
Author’s rights are the return on creative investment
Laurent Petitgirard, music composer and conductor, France
As a composer, my professional life relies ensures fairness and sustains repertoires
on a favorable environment for creation. that are more fragile, less exposed. As
Authors and composers, like me, are creators, we are strongly attached to this
in a position that can be and often is collective model for two main reasons:
precarious: the return on investment on first, because it gives us — individual
the time spent creating is uncertain and creators — “strength in number” in
at best middle term, especially in the order to get proper remuneration for
contemporary music world. To collect the our works; and second because we are
fruit of our labor we have to rely on many the decision-makers in our CMOs. At
actors in the creative chain — first of all, Sacem for instance, the Board — made
our publishers, but also record producers up of creators and publishers — convenes
and artistic programmers — so that our 50 times per year to manage our society.
creation will be shown to audiences and
Of course, author’s rights are not usually
will maybe encounter success, depending
the only source of revenue of many
on the public’s favors. We even often
© J. B. Millot creators, and most of us hold other
need to become our own producer.
jobs. But this is by no means new: Bach
Author’s rights and collective was a mathematics teacher, Liszt and
management give us some stability. Mendelssohn were virtuoso pianists and
Our collective management societies conductors, Fauré was director of the
are here to insure that when our works Paris Conservatory … However, this does
are broadcast, be it on the radio, on the not mean that our author’s rights are
internet, on television or in a concert not crucial for us: they are a significant
hall, our author’s rights are collected part of our revenues, and they are the
and duly redistributed. Sacem, for return on our creative investment. That
instance, redistributes 80% of rights is why creators are always vigilant about
“work by work,” on the basis of reports the evolution of the legal environment of
made by broadcasters. This precision intellectual property rights.
Building a legal framework to

guarantee fair rewards for creators
Jan Sardi, screenwriter, Australia
Australia’s cultural and creative industries With the rapid expansion of platforms in
contribute US$86b annually (7%) to the the digital age, we are determined to see
national economy, and writers simply Australian copyright laws brought into
need to have the right to share in the the 21st century and in harmony with
returns of the intellectual property they international best practice. Furthermore,
create. Australian writers have long been the business models digital technologies
disadvantaged by a contract-by-contract require mean that collective management
treatment of copyright and secondary of equitable remuneration for creators
royalties, one which often demands all is the only option, to ensure they are
rights assignments. rewarded for the ongoing exploitation of
their work.
© Jan Sardi
From “free for all” to “pay to listen”?
Soro Solo, cultural journalist and radio producer, Paris, France
African culture has had a great influence For a long time, music was not Today, the music market in Africa needs
on music all over the world, influencing considered as a commercial commodity to be restructured, to offset the weight
music genres such as Blues, Jazz, Bossa in Africa. It is still true today, as radio of informal economy in the sector.
Nova, Rumba and many others. As is a major music distribution channel: Organized creation and distribution
Martin Scorsese successfully showed in people listen to music on the radio all societies are needed to reshape
his movie Feel Like Going Home (2004), the time and everywhere, and get it for business models and content creation
blues is related to traditional music from free. Music, and more widely culture, has processes, while strong copyright
Mali and Niger. American Gospel and become a commercial commodity only collective management societies must be
rap music rhythm are other examples of recently, with the development of official supported to cut the informal distribution
African music influence. sales networks and distribution channels, channels and protect authors’ rights. This
explaining the importance of informal restructuration has to be led through
Music in Africa outreaches simple
economy. But there have been historical ambitious cultural policies and the
entertainment: it has a social and
precedents: in the 1900s, “High life,” commitment of African governments.
political function. Music is played during
an emerging musical genre in Ghana,
funerals and weddings; it either describes
implemented the concept of lucrative live
daily difficulties like Mamadou Doumbia’s
performances. If music still has a social
songs or serves political commitments
and political function, it is now consumed
like Alpha Blondy’s songs.
via audiotapes, CDs, concerts …
Let us change this atmosphere
Isao Tomita, creator and musician, Japan
When I felt the creative energy welling up integral part of my being able to release
inside me, I would completely immerse new sound recordings, and to hold live
myself in the creative process, even if it events called “Sound Cloud” all around
meant declining more lucrative projects. the world. Through these activities, my
And the music I created with such an music reached more ears, and I feel like I
effort had certain persuasiveness. It was given the opportunity to try to enrich
seems there are fewer passionate music- the souls of those who listened.
loving young people and less persuasive
To continue to benefit from such
musical works out there. And this
opportunities, we must maintain an
atmosphere that we have in our society,
environment in which creators can
that slights this important cultural
devote themselves to the act of creation,
component that is music, has definitely
and where newly created works can be
had an adverse effect.
delivered to listeners without any fear; in
The advancement of technology drives short, an environment that nurtures the
Photo by Yasuhiro Ohara the mass consumption of musical works culture of music. To this end, all creators
through large-scale music streaming who love music from the bottom of their
services and others, but on the other hearts must make their voices heard to
I started creating music hand, this atmosphere has undoubtedly gain support from the general public.
decreased the remuneration creators
simply because of my received. Music creators support their
The culture of music enriches our souls,
affection for music. lives with the remuneration they receive
and nobody wants to see it decline. The
culture of music is precious for the entire
for their creations. But the effects of
I spared no pains to create being remunerated go much farther than
human race, and it is our responsibility to
the music that I love. pass it on to the next generation.
that. The remuneration I received was an
The defense of authors’ right is the foundation on which
to build a Europe of culture
Fernando Trueba, film director, Spain
Authors’ rights are a legacy of the men In Europe, culture brings more wealth — The defense of authors’ rights is the
who made Europe the center of the including economic wealth — than any foundation on which to build a Europe
intellectual world, men like John Locke other industry. Art, culture, the ability of culture. If we fail to protect authors,
and Thomas Paine, Beaumarchais and to debate are Europe’s main assets, if we fail to defend their intellectual,
Condorcet, Voltaire and Diderot, Kant althought our politicians sometimes moral and economic rights, we will lose
and Hegel. forget it. In times like today, when it is the independence of our ideas and our
more urgent than ever to relaunch the freedom of thought.
Europe is the continent of authors’
idea of Europe, we take this opportunity
rights, the inalienable moral rights of
to start—this time—with the foundations.
artists and creators.
2014, an exceptional year for Polish cinema

Andrzej Wajda, film director, Poland
Polish cinema has been gaining an Polish films (in marked contrast to the Another serious problem is piracy.
increasing interest, both internationally 700,000 tickets 10 years ago). As a A 2014 study “Analysis of the impact
and locally. Last year was exceptionally result national market share attained of piracy of video content on the
successful — Pawel Pawlikowski’s Ida won nearly 30%. economy in Poland” estimated that
the Oscar for the Best Foreign Language piracy cost Polish economy about
Although the online distribution is in its
Film and Malgorzata Szumowska’s Body PLN700m (€160m). If legislative
early stage of development it is expected
was awarded the Silver Bear for the best changes are not made in the coming
to grow rapidly. Unfortunately Polish
direction at the Berlin International Film years, the loss can exceed PLN6b
copyright law does not secure online
Festival. (€1.4b).
exploitation royalties for filmmakers,
We’ve been also observing a significant which is the case for theatrical and TV
growth of Polish bow office with more exploitation.
than 11 million tickets sold in 2014 for
Detailed methodology
and sources
Objectives
The main objective of this study —
the first of its kind — is to produce
a quantitative and qualitative
estimate of the economic role of
cultural and creative industries in
the world.
This reports aims to consolidate
and put in perspective the set of
existing national and global studies
in a single, accessible and striking
report, based on an innovative and
robust methodology.
What do we measure?
Definition Sectorial scope
CCI comprise industries producing or distributing cultural and Beyond this broad definition, we have adopted a sector-based
creative goods and services, defined in 2005 by UNESCO as approach in order to consider the specifics of each industry. Our
“activities, goods and services which (…) embody or convey report covers 11 sectors to provide an overview of the growth
cultural expressions, irrespective of the commercial value drivers and key challenges to each: Advertising, Architecture,
they may have.”3 Visual Arts, Performing Arts, TV, Radio, Music, Books, Gaming,
Movies, and Newspapers and Magazines4.
Advertising Advertising agencies Music Sound recording and music Radio Radio broadcasting activities
publishing industry, live music
Architecture Architectural firms Movie Motion picture production, TV TV programming, production

post-production and and broadcasting
distribution
Books Physical and digital books sales Newspapers Newspapers & Magazine Visual arts Visual arts creation, museums,
(including scientific, technical and publishing industry (B2C and photographic and design
and medical books) magazines B2B, news agencies activities
Gaming Video game publishers, Performing Performing arts activities:

developers and retailers; Arts dance, theatre, live music,
equipment sales opera, ballet, etc.
Geographical scope
This study provides a comprehensive economic assessment of the 11 CCI worldwide. CCI jobs and markets are estimated at
a regional level, before being consolidated at a global level.
North America Europe

US and Canada European Union, non-EU European countries (Norway, Switzerland,
Iceland, Balkans, etc.), Turkey and Russia. Central Asian countries
(Kazakhstan, Uzbekistan, etc.) and Israel are not included
Latin America and Asia-Pacific

Caribbean Including Central Asia
and Caucasian countries
Mexico, South America, (Azerbaijan, Armenia
Central America and and Georgia)
Caribbean countries
Africa and
the Middle East
Africa, Gulf countries and
Middle East (including Israel)
Convention on the Protection and Promotion of the Diversity of Cultural Expressions, UNESCO, 2005
3
Advertising is understood as advertising agencies revenues

4
Indicators
This study quantifies CCI’s economic contribution to the global fees that can be tracked worldwide). An estimate of
economy, both in terms of revenues and employment, in 2013. public funding has been calculated separately for all
CCI combined.
• CCI revenues: The study adopted an approach based on final
consumer markets, primarily taken at retail prices (without • CCI employment: We estimated employment in number
indirect taxes). of jobs (not in full-time equivalents). We used the ILO’s
definition of employment: “Persons in employment
• We considered revenues at the end of the value chain,
comprise all persons above a specified age who, during a
rather than adding up revenue from all stakeholders
specified brief period, either one week or one day, were
involved in individual parts of the value chain. As an
in the following categories: paid employment and self-
illustration, for the book industry revenues estimate, we
employment.” By doing so, we were able to consider every
considered the final sales of physical and digital books: by
person working in a CCI (including non-permanent jobs;
definition, all intermediate revenues are included.
creators, authors and performers).
• Informal sales of cultural goods and services have been
• Informal employment has also been included.
included in our estimates (see below).
• Public employment has been included for each sector,
• Devices sales have been excluded.
except the performing arts, where no reliable data was
• Given the lack of data, public subsidies have not been available to make robust assumptions.
included in each sector (except audiovisual public license
Revenues: what do we measure?
Cultural and creative industries revenues
B2C revenues
B2B revenues Public revenues

Ad spend License fees
Legal sales of Informal sales
CCI goods and of CCI goods
services and services
Informal economy
The informal economy refers to the underground economy, • Loss of profit due to piracy, illegal downloading or streaming
defined as “market-based production of goods and services, have been excluded.
whether legal or illegal, that escapes detection in the official
estimates of GDP” (P. Smith, 1994). • The informal economy has been included in our regional
sales and employment figures.
We considered only the production and distribution of
cultural goods and services traded in informal marketplaces Informal sales and employment are estimated through
in developing countries, usually at a lower price, without any illegal cultural goods sales ratios estimated in a sample of
authors’ rights collection. representative countries (with IFPI, national anti-piracy
institutes and market reports figures), and with data on the
• Only Africa, Asia-Pacific and Latin America have been weight of the informal economy (OECD, ILO).
included in our informal economy estimates, as the informal
cultural marketplaces in Europe and North America are not
significant.
Digital economy
Digital players (online retailers, streaming platforms, etc.) are • Online media advertising (for online media and free
fuelled by CCI content. As this report aims to highlight the streaming services)
impact of CCI on other branches of the economy, we assessed
• Digital advertising creation
the revenues generated by cultural content for digital players,
defined as companies providing: CCI’s economic contribution to the digital economy is the sum of
cultural-content-generated revenues.
• Physical goods sold on the internet (books, music and video)
• Digital cultural content (streaming subscriptions, mobile
gaming, e-books, etc.)
Data collection and analysis

Because reliable aggregated statistical data was unavailable, regions, adjusted by indicators to take into account the
we adopted a “bottom-up” approach in this study. Our structural specificities of each region (productivity ratios,
methodology and assumptions have been discussed and literacy rates, GDP per capita, etc.)
validated by Oxford Economics experts.
Our estimates and methodological assumptions have been
We based our estimates for each region on: validated with key industry players, such as federations
and associations, and internationally renowned economists
• National statistics
from Oxford Economics. We also conducted 150 interviews
• Market research analysis during the study to construct our key hypothesis and market
assumptions.
• Existing CCI studies (such as WIPO’s)
Totals for jobs and markets have been arrived at after removal
• Industry reports
of double counting:
• Technical interviews
• For markets, the sum of regional figures exceeded the
Where regional data was not available, we estimated global total, as we logically do not consider exports in the
employment and revenues through tailor-made assumptions: consolidated figure.
• We scaled up available data from the main markets in each • The sum of sectorial figures (employment and jobs) also
region with a representative sample (for instance, Brazil, exceeds the consolidated figure in each region, as some
Mexico, Argentina and Colombia for Latin America) activities can be counted in two CCI. For instance, live music
revenues and employment are counted in both the music and
• We used world data and applied a market share scaling-down
performing arts sectors. To consolidate our regional figure,
factor.
we deducted every activity that is double counted.
• When absolutely no data was available for any country in
a region, we used a ratio based on data collected in other
Main sources
17th Annual Global CEO Survey, PwC, February 2014
A map of the UK games industry, Nesta, 2014
Advertising Global Forecast Model 2000-2019, Magna Global, June 2014
Annual statistics, NSK Japan Newspaper Publishers &Editors Association, 2015
Arab Media Outlook, Deloitte, 2011-2015
Art Market Report, TEFAF, 2014
Audience statistics, The Broadway League Report, 2014
Cabletelevision Advertising Bureau, 2014
Cities and the Creative Class, Richard Florida, 2003
Comscore Report, 2014
Creating opportunity, African University of Creative Arts, 2015
Creative economy as a development strategy; a view of developing countries, Itau cultural, 2008
Creative economy report, UNESCO, 2013
Digital Music in Africa, Ovum, 2013
Economic contribution of the Indian motion picture and television industry, Deloitte, March 2014
Economic Contribution of the Indian Motion Picture and Television Industry, Deloitte, MPA, 2014
Economic Contribution of the Japanese Film and Television Industry, Mitsubishi research Institute, 2012
El desarollo del Mercado audiovisual en Argentina: una industria de exportacion, Ethel Pis Diez, Fausto Garcia, 2013
England Art Council, 2014
European Audiovisual Observatory Report, 2014
Future of Television, EY, 2013
Futuro Digital Latinoamerica, ComScore, 2013
Global Advertising Agencies, Ibisworld, 2014
Global Book Publishing, Ibsiworld, 2014
Global Broadcasting & Cable TV, MarketLine, April 2014
Global Consumer Electronices, Ibisworld, 2014
Global entertainment and Media Outlook 2013-2017, PwC, 2013
Global entertainment and Media Outlook 2015-2019, PwC, 2014
Global Magazine Publishing, Ibisworld, 2014
Global Mobile Market Outlook, Ovum, 2014
Global Movie Production and Distribution, Ibsiworld, 2014
Global Music Production and Distribution, Ibisworld, 2014
Global Newspaper Publishing, Ibisworld, 2014
Golden Mask website, 2015
Indian Media and Entertainment Industry Report, FICCI-KPMG, 2014
La economia naranja, una oportunidad infinita, Banco Interamericano de Desarrollo, 2013
Latin America’s Media market, US Media Consulting, 2013
Les festivals de théâtre en Afrique Subsaharienne, Bilan, impact et perspectives, Kyrnea International, 2003
McKinsey, Global Media Report, 2014
Measuring the economic contribution of cultural industries, UNESCO, 2009
Megatrends 2015, EY, 2015
Middle East present huge growth opportunities for Pay TV Industry, HIS, April 2014
Monetizing digital media, EY, 2010
Netlflix annual revenue, Statistica, 2015
Panorama da economia creative no Brasil, IPEA, 2013
Panorama de los museos en Iberoamerica, Observatorio Iberoamericano de Museos, 2013
Panorama des Industries Culturelles et Créatives en France, EY, June 2015
Recording Industry in Numbers, IFPI, 2014
Reuters, the US Performing Arts Industry, Reuters, 2008
Satellite Television and Development in the Middle East, MERIP, 2010
Strategic review of the television broadcasting sector in the Middle East, Bozz Allen Hamilton, March 2006
Technology, Media & Telecommunications Predictions, Deloitte, 2015
Televisa annual report, Televisa, 2014
The economic contribution of the film and television industries in China, Oxford Economics, 2012
The Economic Impact of the Creative Industries in South Korea, Oxford Economics, 2012
The Economic Impact of the Creative Industries in the Americas, Oxford Economics, 2012
The Economic Performance of Copyright-Based Industries, 44 National studies, WIPO
The exhibition industry in the Middle East & Africa, UFI, 2012
The games industry in numbers, Ukie2015
The Impact of Culture on Tourism, OECD, 2008
The performing arts in a new era, Rand, 2001
Theatrical Market Statistics, MPAA, 2014
UK Market Statistics, Era, 2014
University of the future, EY, 2012
World Film Market Trends, European Audiovisual Observatory, 2014
World Magazine Trends, FIPP, 2014
EY | Assurance | Tax | Transactions | Advisory
Contacts About EY
EY is a global leader in assurance, tax, transaction and advisory
services. The insights and quality services we deliver help build trust
Marc Lhermitte
and confidence in the capital markets and in economies the world over.
+33 1 46 93 72 76
We develop outstanding leaders who team to deliver on our promises
marc.lhermitte@fr.ey.com to all of our stakeholders. In so doing, we play a critical role in building
Solenne Blanc a better working world for our people, for our clients and for our
+33 1 46 93 59 17 communities.
solenne.blanc@fr.ey.com
EY refers to the global organization, and may refer to one or more,
Bruno Perrin of the member firms of Ernst & Young Global Limited, each of which is
+33 1 46 93 76 47 a separate legal entity. Ernst & Young Global Limited, a UK company
bruno.perrin@fr.ey.com limited by guarantee, does not provide services to clients. For more
information about our organization, please visit ey.com.
© 2015 EYGM Limited.

All Rights Reserved.
“Cultural times” study is online ! EYG no. EA0105
www.worldcreative.org
BMC Agency
BACS 1002964
ED None
In line with EY’s commitment to minimize its impact on the environment, this document
has been printed on paper with a high recycled content.
This material has been prepared for general informational purposes only and is not intended to
be relied upon as accounting, tax, or other professional advice. Please refer to your advisors for
specific advice.
The views of third parties set out in this publication are not necessarily the views of the global
EY organization or its member firms. Moreover, they should be seen in the context of the time
they were made.
ey.com

Cultural Times: The First Global Map of Cultural and Creative Industries

Hochgeladen von

Dokumentinformationen

Originaltitel

Copyright

Verfügbare Formate

Dieses Dokument teilen

Dokument teilen oder einbetten

Freigabeoptionen

Stufen Sie dieses Dokument als nützlich ein?

Sind diese Inhalte unangemessen?

Copyright:

Verfügbare Formate

Cultural Times: The First Global Map of Cultural and Creative Industries

Hochgeladen von

Copyright:

Verfügbare Formate

Cultural times

The first global

Jean-Michel Jarre Angélique Kidjo Ousmane Sow

Marc Lhermitte Solenne Blanc Bruno Perrin

Cultural and creative industries (CCI) generate US$2,250b of

The cultural and creative world is multipolar

Cultural and creative content drives the digital economy

Cultural production is young, inclusive and entrepreneurial

The informal economy is a vast reservoir of jobs

Leveraging a more creative world

CCI analyzed in 11 sectors and 5 global regions

CCI: a wide range of cultural and creative activities in 11 sectors

Architecture Architectural firms Movie Motion picture production, TV TV programming, production

Gaming Video game publishers, Performing Performing arts activities:

North America Europe

Latin America and Asia-Paciﬁc

Measuring economic value by revenues and employment

US$2,250b 29.5 million

CCI sectors Revenues Employment

Television 477 3,527,000

Visual arts 391 6,732 000

Newspapers and magazines 354 2,865,000

Advertising 285 1,953,000

Architecture 222 1,668,000

Books 143 3,670,000

Performing arts 127 3,538,000

Total (before removing double counting) 2,285* 31,524,000*

Total (minus double-counting) 2,253 29,507,000

North America Europe APAC

Latin America and

CCI sales worldwide exceed those of CCI 2,250 29.5 million

Culture-related consumer electronics global sales in US$b, 2013

532.3 Total “Smartphones

Online advertisements provided US$85b Advertising revenues for online media

Authors’ rights and digital

Authors’ rights/copyright can be The first CMO to be created was

The theory of the leisure class: an economic study of institutions, 1899.

Worldwide sales of digital cultural content in 2013 (US$b)

Online and mobile games

10.3 Digital music

Source: EY analysis of cultural and creative markets, 2015

Digital vs. physical content sales in 2013 (% value in US$)

0% 20% 40% 60% 80% 100%

Source: EY analysis of cultural and creative markets, 2015

Digital cultural goods sales by Disruptive business models: key figures

2011 2014 2011 2014 2011 2014

30.6 Number of €m collected by

Source: EY analysis of cultural and creative

2011 2014 2011 2014

Powerful ecosystems are emerging around content, devices and networks

Books Music TV Movie Books Music Movie

USA UK France Russia Page 40

Page 60 Page 50 Page 48 Page 52

Egypt Middle East

Visual arts 191.5

Newspapers and magazines 141.6

Performing arts 14.5

Source: EY analysis of cultural and creative markets, 2015

CCI jobs in Asia-Pacific in 2013

Visual arts 3,284,000

Newspapers and magazines 1,630,000

Performing arts 1,349,000

Source: EY analysis of cultural and creative markets, 2015

532.3 Total “Smartphones