Summary
Cultural Industries: Readings and Lectures Summary
- Course
- Institution
Readings and Lectures Summary (2020/21)
[Show more]
3 reviews
By: margheritapersipaoli • 3 year ago
By: Iradw • 3 year ago
By: loisvansanten_ • 3 year ago
Seller
Follow
alicetiker
Reviews received
Content preview
CULTURAL INDUSTRIES EXAM NOTESWeek 1 - Lecture
Analyzing the creative and cultural industries
Modeling the cultural industries (Throsby, 2008)
- Concept of cultural industries rooted in why a product is valued by consumers, opposed to
product’s utilitarian or material characteristics
- Understanding of dynamics of consumption rather than dynamics of production
- What makes a group of companies a cultural industry is that their products compete in the
symbolic realm rather than competing on some sort of material characteristics
- Practice of consumption not production that is important in defining the boundaries of the
cultural industries
- Article discusses definition of cultural industries, the boundaries of cultural industries, and
examines six tools for economic analysis that can be applied to cultural industries
- Cultural goods and services
- Valued by those who make them and those who consume them for social and cultural
reasons, likely to complement or transcend a purely economic evaluation
- Creative goods and services
- Require some significant level of creativity in their manufacturing without necessarily
satisfying other criteria that would enable them to be labelled cultural; can extend far beyond
cultural goods
- Cultural industries
- Industries that combine the creation, production, and commercialization of contents which
are intangible or cultural in nature (UNESCO), i.e. artworks, music, literature, film, tv
programs, video games
- Input of human creativity in production, symbolic messages, more than utilitarian as they
serve an additional communicative purpose, contain some intellectual property
- Creative industries
- Industries which have their origin in individual creativity, skill and talent, have potential for
wealth and job creation through the generation and exploitation of intellectual property
- Input of human creativity in production, take form of goods and services, predominantly
commercial
- Is a distinction between cultural and creative industries important? Wh or why not?
- Different emphasis on defining the industries leads to different construction of different
models and cultural production sector of the economy
- 2013: cultural and creative industries generated 3% of the world’s GDP, employed 29 million
people
- Therefore importance of definition core group of what is a creative and a cultural industry to
know direct output contributions, direct employment contributions, and policy implications
- Prediction of catastrophical impact on cultural and creative industries due to Covid-19
,- Six economic approaches to analyzing the cultural industries
- (1) Industrial organization theory
- Focus on standard economic variables such as value of production, levels of employment,
and business concentration
- Looks at organizational characteristics of markets with emphasis on market concentration
(seller and buyer concentration), nature of product differentiation, and barriers for entry
and exit of companies
- Also how industries behave in setting prices, marketing, degree of competition, and how
efficiently companies adjust to effective demands
- Relevant to models oriented towards commercial production of cultural goods/services
- (2) Value chain analysis
- Looks at creative ideas and how they are combined with other inputs to produce a creative
good or service
- Production chain with value adding stages from initial idea, production of goods and
services, their marketing and distribution, until consumption
- Research and development (creation); production (artist); marketing (dissemination);
distribution (exhibition); sales (consumption)
- Used by companies to analyze performance in different stages of the production cycle
- (3) Inter-industry analysis
- Focus on how output is produced and distributed in the economy; offers better
understanding of direct and indirect effects on industry, consumers, and governments
- Input-output analysis: output from one industrial sector as input to another sector
(spillovers)
- Social accounting matrices: similar tool requiring less data for analyzing the impact of
industries
- Used to evaluate the economic impact of cultural policy
- (4) Locational analysis
- Companies in certain industries tend to form clusters in urban and regional settings
- Benefit from being located close to other companies in the same or similar industries (e.g.
Hollywood)
- Used by governments to attract companies and develop cultural industries clusters
- (5) Contract theory and property rights
- Identifying property rights as basis for contractual arrangements that can be explained by
the uniqueness of cultural industries
- ‘Nobody knows’, i.e. uncertainty of demand
- ‘Art for art’s sake’, i.e. irrational labor market due to passion for art
- ‘Infinite variety’, i.e. all products are more or less differentiated
- ‘Durability’, i.e. ability to yield monetary compensations over a long period
- Particularities used by companies to develop optima contracts with (value chain) partners
- (6) Trade and development
- Theory of competitive advantage to explain specialization of production in different
countries and advocate the elimination of trade distorting measures (import tariffs, quotas)
- Assertion: free trade maximizes world welfare
, - Cultural industries presented challenge as cultural goods are more than just commercial
merchandise rather vehicles of transmission of cultural value
- Used to explain specialization of countries and to eliminate trade barriers
An Individual Business Model in the Making: a Chef’s Quest for Creative Freedom (Svejnova,
Planellas & Vives, 2010)
- Renewal or change in a business model is needed, can provide finer-grained information into its
core benefits (business model as tool for company’s logic for creating and capturing value)
- Examples of business models
- Fractionalization business model: organization can sell entire product or cut it in pieces and
sell each piece as a product separately (e.g. pizzeria can sell whole pizza or a slice)
- Razor and blades business model: one item is sold at low price to increase sales of a
complimentary good (e.g. video game console, only useful with games and accessories)
- Subscription business model: charges customer regular payments in exchange for access to
products or services for a set period of time (e.g. Netflix)
- Article demonstrates that business models have significance and usefulness when extended to
individual level; are organizational devices that reveal a company’s logic for creating and
capturing value; are useful in identifying triggers and mechanisms associated with changes
- Business model
- Consists of content, structure, and governance of transactions designed to create value
through the exploitation of business opportunities
- Useful tool that enhances the understanding, labeling, and classification of a company’s
operation
- Organizational device that reveals the logic of creating and capturing value that reveals the
organization’s approach to renewal
- Ferran Adria’s business model
- Chef, owner of Restaurat “El Bulli”, 3 Michelin stars, world’s 100 most influential citizens
- Adria’s ongoing quest for creative freedom as main trigger, led to persistence
- Period 1: employee, pre-stage of business model, capturing value by accumulating
knowledge and expertise; quest for authenticity as driver
- Period 2: owner, manager, shifting value proposition by developing own style and brand of
equity, value created are new techniques and concepts; quest for recognition as driver
- Period 3: entrepreneurship, evolution, value created originated from creativity workshop;
quest for influence as driver
- Period 4: leader, push limits of cuisine connecting it to science, art, and society, value
created by bridging worlds of art and cuisine to create new culinary language
- Two cycles that led to Adria’s business model transformation
- Change mechanisms
- Main mechanism: creative response (introduction of changes beyond the existing range of
accepted practices)
- Other mechanisms at different intensities across periods allow transformation within and
across various periods: chef’s alertness to opportunities, strategic intent beyond current
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller alicetiker. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $4.85. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
66579 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now