Theories of Entrepreneurship and Management in the Creative Industries

Lecture 1 – Business Models Cultural industries are those that produce experience goods with considerable creative elements and aim these at the consumer market via mass distribution. − Mediocre definition: contrasts with the things he just said. Cultural industries are focused on high−end, creative on the low−end. Peltoniemi excludeslow−end. He asks for mass distribution. High−art painting doesn9t count because there is no mass distribution. − Many cultural industries definitions begin from the nature of the value of cultural goods. Such goods offer a low level of utilitarian value, and a high level of aesthetic (Hirsch 1972; Power 2002), symbolic (DeFillippi et al. 2007; Throsby, 2001), social meaning (Markusen et al. 2008) and social display value (Bourdieu 1984; Scott 1999a). What do people speak about when they speak about business models? − Where to find revenues − Where to find the stuff that will make revenues come to us at minimal cost − If we can do 1 and 2, how to make sure it stays that way and my competitors do not imitate me and destroy my relative disadvantages. o A lot of non−profitsin the industry. Sources of revenue in the creative industries − Selling the creative good − Advertising goods of other producers o Viewers  determine the price of the advertisements. − Subsidies or no subsidies  you want many customers to get your subsidies. (How interesting are you?) − Other types of support for what we are because we are that (grants from foundations, mecenae, corporate sponsorship, loyalty programmes) − Revenues for the creative/cultural goods we offer or for other goods we offer on the side (the shop, the restaurant etc.). For example, free entrance and then they make their money from the restaurant/shop. Frey & Steiner: Pay as you go How/why to price? − To help to fulfill its basic museum responsibilities, namely showing its collection responsibly o Too many visitors put the collection at risk and diminish the quality of the visit (too many people breathing  art will be diminished). − To achieve economic goals o Revenue o Differentiation − To achieve other social/political goals o Getting the support of broader groups of stakeholder, e.g. by involving schools etc. (which can lead to financial advantages if this contributes towardsthe museum9s standing in the eyes of other stakeholders who provide revenue)