CULTURAL INDUSTRIES - REVISION
Week 1 - Analysing the creative and cultural industries
Cultural Industries are industries that combine the creation, production and commercialisation of
contents which are intangible and cultural in nature.
The Creative Industries are industries requiring creativity, skill and talent, with potential for wealth
and job creation through exploitation of their intellectual property.
Major outputs with symbolic (immaterial) value: theatre, fine arts, film, books and fashion
Modelling the Cultural Industries - Throsby
The cultural industries require input from human creativity. They contain a symbolic message for
the people who consume them. And they contain intellectual property.
6 tools for economic analysis in the cultural industries
1. Industrial organization theory: often used by governments to determine the value of a
particular industry.
2. Value chain analysis: analysing the production chain from a particular cultural industry. Also
used to determine which stages are powerful and lucrative:
R&D —> Production —> Marketing —> Distribution —> Sales
3. Inter-industry analysis: used to evaluate the impact of the cultural policy.
1. Input output analysis: output from one industrial sector as input to another industrial
sector.
2. Social accounting matrices: requires less data to also analyse the impact of industries.
4. Locational analysis: how governments try to attract other cultural entrepreneurs. Finding out
what firms are beneficial to collaborate/network with that are in a profitable location as
opposed to your own firm (e.g. Hollywood).
5. Contract theory and property rights: determining what the optimal contracts for different
partners within the value chain are.
6. Trade and development: try to eliminate barriers for entry and trade between cultural
industries. UNESCO vs. WTC.
An Individual Business Model in the Making; A Chef’s Quest for Creative Freedom - Svenjenova,
Planellas, Vives
They think ‘value’ is an essential element in one’s business model.
Value creation
Value appropriation
Value slippage to third parties
A business model is the content, structure and governance of transactions designed so as to
create value through the exploitation of business opportunities.
Authenticity is about being true to who you are and what you want and believe in, even if the
external pressures are prevalent.
There are two different cycles that can lead to a change of the business model:
1. Change mechanisms (initiated by triggers): it means changes in scope and resources and
changes in organizational form (so there is a modification of interest and motivations).
2. Value captured: it means changes in the way that activities are organised. It increases revenue
and enhances reputation and competency in relation to external sources.
—> value captured can initiate triggers to rethink a business model. These help with the
development of a business in time.
A creative response is whenever a firm does something that is outside their range of existing
practice. It comes from an internal drive. Transformation mechanisms include:
• Alertness to opportunities (external)
• Strategic intent (internal/external)
• Codification (arranging/numbering)
• Decoupling (seperate)
• Balancing of core and periphery
• Coherence
• Novelty
Value mechanisms:
, • Value creation: it takes place by novelty seeking and resource leverage. Value can be created by
• Leveraging strategic resources
• Investing in assests that appreciate —> innovation
• Encouraging imitation of the innovation
• Value capture: transform values created into revenue streams and asset appreciation (into
capital and praise).
• Value sharing: ‘agreed’ value appropriation by third parties (everyone agrees about the value of
something). Value appropriation is about protecting and leveraging that innovation (innovation
context).
• Unintended and unendorsed value slippage: when value generates ‘slips’ to third parties.
Suriving in Times of Turmoil: Adaptation of the Theatre Les Deux Mondes Business Model -
Poisson-de Haro, Montpetit
How performing arts organisations (like theatres) can adjust their business model to face the
challenge that current turmoil poses for them.
• External environment:
• Funding (stakeholders, donors, government)
• Competition levels
• Customers and consumers
• Internal environment
• Availability of resources (gradual/immediate) —> artistic success and sales
• Organizational structure and team (e.g. dual leadership: artistic- and commercial director)
• Informal and formal processes
—> internal turmoil often leads to external turmoil.
There are four different elements that often form barriers for a customer value proposition:
insufficient funds, access, skill & time.
Key resources are:
• Intangible:
• reputation/knowledge/information
• Tangible:
• Artistic/administration teams
• Technology
• Financial resources
The cost structure (how much you pay for certain goods/services) is determined by the perceived
value of the artistic offerings together with the willingness of the consumers to pay.
When is a new business model needed?
• When something is too expensive for certain customers, innovation is required that will satisfy
those needs differently.
• When you want to capitalise a new technology with a new business model.
• When you want to bring ‘focus’ to something that hasn’t already been focused on.
• When responding to a shifting basis of competition.
Week 2 - Organizational design
Organizational design: involves creation of roles, processes and structures to ensure that the
organisations goals can be realised. It’s an activity or process. It’s the art of building an
organisation.
Organisational form: the configuration of structures and practices that defines how an
organisation functions. It’s a snapshot of what the organisation looks like at a certain point in time.
It’s a static picture of features or characteristics of an organisation. Often a set of ‘common
characteristics’.
Week 1 - Analysing the creative and cultural industries
Cultural Industries are industries that combine the creation, production and commercialisation of
contents which are intangible and cultural in nature.
The Creative Industries are industries requiring creativity, skill and talent, with potential for wealth
and job creation through exploitation of their intellectual property.
Major outputs with symbolic (immaterial) value: theatre, fine arts, film, books and fashion
Modelling the Cultural Industries - Throsby
The cultural industries require input from human creativity. They contain a symbolic message for
the people who consume them. And they contain intellectual property.
6 tools for economic analysis in the cultural industries
1. Industrial organization theory: often used by governments to determine the value of a
particular industry.
2. Value chain analysis: analysing the production chain from a particular cultural industry. Also
used to determine which stages are powerful and lucrative:
R&D —> Production —> Marketing —> Distribution —> Sales
3. Inter-industry analysis: used to evaluate the impact of the cultural policy.
1. Input output analysis: output from one industrial sector as input to another industrial
sector.
2. Social accounting matrices: requires less data to also analyse the impact of industries.
4. Locational analysis: how governments try to attract other cultural entrepreneurs. Finding out
what firms are beneficial to collaborate/network with that are in a profitable location as
opposed to your own firm (e.g. Hollywood).
5. Contract theory and property rights: determining what the optimal contracts for different
partners within the value chain are.
6. Trade and development: try to eliminate barriers for entry and trade between cultural
industries. UNESCO vs. WTC.
An Individual Business Model in the Making; A Chef’s Quest for Creative Freedom - Svenjenova,
Planellas, Vives
They think ‘value’ is an essential element in one’s business model.
Value creation
Value appropriation
Value slippage to third parties
A business model is the content, structure and governance of transactions designed so as to
create value through the exploitation of business opportunities.
Authenticity is about being true to who you are and what you want and believe in, even if the
external pressures are prevalent.
There are two different cycles that can lead to a change of the business model:
1. Change mechanisms (initiated by triggers): it means changes in scope and resources and
changes in organizational form (so there is a modification of interest and motivations).
2. Value captured: it means changes in the way that activities are organised. It increases revenue
and enhances reputation and competency in relation to external sources.
—> value captured can initiate triggers to rethink a business model. These help with the
development of a business in time.
A creative response is whenever a firm does something that is outside their range of existing
practice. It comes from an internal drive. Transformation mechanisms include:
• Alertness to opportunities (external)
• Strategic intent (internal/external)
• Codification (arranging/numbering)
• Decoupling (seperate)
• Balancing of core and periphery
• Coherence
• Novelty
Value mechanisms:
, • Value creation: it takes place by novelty seeking and resource leverage. Value can be created by
• Leveraging strategic resources
• Investing in assests that appreciate —> innovation
• Encouraging imitation of the innovation
• Value capture: transform values created into revenue streams and asset appreciation (into
capital and praise).
• Value sharing: ‘agreed’ value appropriation by third parties (everyone agrees about the value of
something). Value appropriation is about protecting and leveraging that innovation (innovation
context).
• Unintended and unendorsed value slippage: when value generates ‘slips’ to third parties.
Suriving in Times of Turmoil: Adaptation of the Theatre Les Deux Mondes Business Model -
Poisson-de Haro, Montpetit
How performing arts organisations (like theatres) can adjust their business model to face the
challenge that current turmoil poses for them.
• External environment:
• Funding (stakeholders, donors, government)
• Competition levels
• Customers and consumers
• Internal environment
• Availability of resources (gradual/immediate) —> artistic success and sales
• Organizational structure and team (e.g. dual leadership: artistic- and commercial director)
• Informal and formal processes
—> internal turmoil often leads to external turmoil.
There are four different elements that often form barriers for a customer value proposition:
insufficient funds, access, skill & time.
Key resources are:
• Intangible:
• reputation/knowledge/information
• Tangible:
• Artistic/administration teams
• Technology
• Financial resources
The cost structure (how much you pay for certain goods/services) is determined by the perceived
value of the artistic offerings together with the willingness of the consumers to pay.
When is a new business model needed?
• When something is too expensive for certain customers, innovation is required that will satisfy
those needs differently.
• When you want to capitalise a new technology with a new business model.
• When you want to bring ‘focus’ to something that hasn’t already been focused on.
• When responding to a shifting basis of competition.
Week 2 - Organizational design
Organizational design: involves creation of roles, processes and structures to ensure that the
organisations goals can be realised. It’s an activity or process. It’s the art of building an
organisation.
Organisational form: the configuration of structures and practices that defines how an
organisation functions. It’s a snapshot of what the organisation looks like at a certain point in time.
It’s a static picture of features or characteristics of an organisation. Often a set of ‘common
characteristics’.
