1
Cultural industries
Week 1 - Analyzing the creative and cultural industries
Modeling the cultural industries (Throsby, 2008)
Cultural goods and services characteristics:
- Require some input of human creativity in their production
- Original ideas and novel ways of interpreting the world, expressed in text, sound and image.
- Vehicles for symbolic messages to those who consume them
- Cultural goods and services are more than simply utilitarian and larger communicative purpose
- Contain, at least potentially, intellectual property
Is a distinction between the cultural & creative industries important? Why or why not?
6 economic approaches to analyzing the cultural industries
1. Industrial organization theory
1. Market structure
2. Pricing
3. Performance
2. Value chain analysis
1. Production chain with value adding stages from initial idea, the production of goods or services, their
marketing and distribution, until consumption
3. Inter-industry analysis
1. Input-output analysis: output from one industrial sector as input to another sector.
2. Social accounting matrices: similar tool requiting less data for analyzing the impact of industries.
4. Locational analysis
1. Network and agglomeration externalities in cultural production lead to clustering of firms that
benefit from being located close to other firms in the same industries.
5. Contract theory and property rights
1. Identifying property rights as a basis for contractual arrangements that can be explained by the
uniqueness of cultural industries.
2. These peculiarities of the industry are used by firms to develop optimal contracts with value chain
partners.
6. Trade and development
, 2
1. Theory of comparative advantage to explain specialization of production in different countries
2. Assertion: free trade maximizes world welfare
3. Used to explain specialization of countries and to eliminate trade barriers
New world, old rules: Creative industries in the age of digitalization and globalization (Khaire, 2017)
Articulates how digitalization and globalization have reshaped business models in creative industries,
highlighting the dual need to adapt traditional practices and the evolving role of intermediaries amidst these
changes.
Digitalization
Need for new business models: digitalization has altered how creative content is produced and consumed,
introducing tools that enable creators to bypass traditional production and distribution channels, thus
reshaping the industry’s structure.
A new canvas for creation: Can you reverse engineer superhits? Bypass gatekeepers to become superstars,
but is long tail a problem? Is the goal to be on the traditional platform?
Globalization
The double-edged sword: globalization has facilitated the worldwide dissemination of cultural goods,
creating a larger market while also presenting challenges such as increased competition and cultural
uniformity.
Intermediaries
The evolving gatekeepers: Despite the direct to consumer model, intermediaries maintain their relevance by
adapting to digital shifts, focusing on the curation and contextualization of content for targeted audiences.
- Infinite variety needs expertise
- Independence is valued
Synthesizing old and new business models
The creative industries are finding balance by integrating traditional business strategies with innovative
digital approaches to sustainably navigate the complexities of the current global market.
Surviving the times of turmoil: adaptation of the Théâtre Les Deux Mondes business model (Poisson-de Haro
& Montpetit, 2012)
The article explores how a performing arts organization can adjust the components of its business model to
meet its current challenges resulting from an environment of turmoil.
, 3
Week 2 - Organizational design
Balancing act: Learning from organizing practices in cultural industries. (Lampel, Lant and Shamsie, 2000)
Discusses the five ambiguities or tensions that managers in the cultural industries must navigate. They
all revolve around the question: What organizational from is best suited to production in the CI?
1. Artistic vs entertainment value - should the intrinsic value of art drive decision making, or should
decisions be driven by economic value of mass production?
2. Product differentiation vs market innovation - Should artistic products focus on novelty or
familiarity?
3. Demand analysis vs market construction - Is the consumption of art driven by consumer tasters or are
consumer tastes driven by the artist?
4. Vertical integration vs flexible specialization - Which system of production favors creativity: large in-
house production and distribution, or a flexible network of small producers?
5. Individual inspiration vs creative systems - Is creativity an individual or collective product?
Capabilities in motion: new organizational forms and the reshaping of the Hollywood movie industry
(Lampel & Shamsie, 2003)
Investigates how capabilities in the Hollywood movie industry have developed in response to the transition
from a studie era dominated by integrated hierarchies to a post-studio era dominated by flexible hub
organizations.
The resource-based view of the firm
Resources: inputs for achieving superior performance
- tangible
- Firms may fail to acquire / keep / use the best resources
- Firms resources need to be upgraded and renewed over time
Cultural industries
Week 1 - Analyzing the creative and cultural industries
Modeling the cultural industries (Throsby, 2008)
Cultural goods and services characteristics:
- Require some input of human creativity in their production
- Original ideas and novel ways of interpreting the world, expressed in text, sound and image.
- Vehicles for symbolic messages to those who consume them
- Cultural goods and services are more than simply utilitarian and larger communicative purpose
- Contain, at least potentially, intellectual property
Is a distinction between the cultural & creative industries important? Why or why not?
6 economic approaches to analyzing the cultural industries
1. Industrial organization theory
1. Market structure
2. Pricing
3. Performance
2. Value chain analysis
1. Production chain with value adding stages from initial idea, the production of goods or services, their
marketing and distribution, until consumption
3. Inter-industry analysis
1. Input-output analysis: output from one industrial sector as input to another sector.
2. Social accounting matrices: similar tool requiting less data for analyzing the impact of industries.
4. Locational analysis
1. Network and agglomeration externalities in cultural production lead to clustering of firms that
benefit from being located close to other firms in the same industries.
5. Contract theory and property rights
1. Identifying property rights as a basis for contractual arrangements that can be explained by the
uniqueness of cultural industries.
2. These peculiarities of the industry are used by firms to develop optimal contracts with value chain
partners.
6. Trade and development
, 2
1. Theory of comparative advantage to explain specialization of production in different countries
2. Assertion: free trade maximizes world welfare
3. Used to explain specialization of countries and to eliminate trade barriers
New world, old rules: Creative industries in the age of digitalization and globalization (Khaire, 2017)
Articulates how digitalization and globalization have reshaped business models in creative industries,
highlighting the dual need to adapt traditional practices and the evolving role of intermediaries amidst these
changes.
Digitalization
Need for new business models: digitalization has altered how creative content is produced and consumed,
introducing tools that enable creators to bypass traditional production and distribution channels, thus
reshaping the industry’s structure.
A new canvas for creation: Can you reverse engineer superhits? Bypass gatekeepers to become superstars,
but is long tail a problem? Is the goal to be on the traditional platform?
Globalization
The double-edged sword: globalization has facilitated the worldwide dissemination of cultural goods,
creating a larger market while also presenting challenges such as increased competition and cultural
uniformity.
Intermediaries
The evolving gatekeepers: Despite the direct to consumer model, intermediaries maintain their relevance by
adapting to digital shifts, focusing on the curation and contextualization of content for targeted audiences.
- Infinite variety needs expertise
- Independence is valued
Synthesizing old and new business models
The creative industries are finding balance by integrating traditional business strategies with innovative
digital approaches to sustainably navigate the complexities of the current global market.
Surviving the times of turmoil: adaptation of the Théâtre Les Deux Mondes business model (Poisson-de Haro
& Montpetit, 2012)
The article explores how a performing arts organization can adjust the components of its business model to
meet its current challenges resulting from an environment of turmoil.
, 3
Week 2 - Organizational design
Balancing act: Learning from organizing practices in cultural industries. (Lampel, Lant and Shamsie, 2000)
Discusses the five ambiguities or tensions that managers in the cultural industries must navigate. They
all revolve around the question: What organizational from is best suited to production in the CI?
1. Artistic vs entertainment value - should the intrinsic value of art drive decision making, or should
decisions be driven by economic value of mass production?
2. Product differentiation vs market innovation - Should artistic products focus on novelty or
familiarity?
3. Demand analysis vs market construction - Is the consumption of art driven by consumer tasters or are
consumer tastes driven by the artist?
4. Vertical integration vs flexible specialization - Which system of production favors creativity: large in-
house production and distribution, or a flexible network of small producers?
5. Individual inspiration vs creative systems - Is creativity an individual or collective product?
Capabilities in motion: new organizational forms and the reshaping of the Hollywood movie industry
(Lampel & Shamsie, 2003)
Investigates how capabilities in the Hollywood movie industry have developed in response to the transition
from a studie era dominated by integrated hierarchies to a post-studio era dominated by flexible hub
organizations.
The resource-based view of the firm
Resources: inputs for achieving superior performance
- tangible
- Firms may fail to acquire / keep / use the best resources
- Firms resources need to be upgraded and renewed over time
