The KEA Blog

Presentation, Berlin 4th May - The Economy of Culture, Proposal for a European strategy

The obvious is that culture and creativity is not a priority policy objective whether at national or European level. However there are encouraging signs. In March 2007 at the Brussels Council meeting Head of states and Governments requested the European Commission to take the creative industries into account in relation to its internal market policy.

Furthermore the European Commission is working on its communication on culture following the report on the economy of culture in Europe. The President of the European Commission Mr Barroso is talking about setting a cultural agenda for Europe. The EU is also celebrating the entry into force of the UNESCO convention on cultural diversity. Now that the creative industries have got the ears of the policy makers we might be for some good surprises in the months ahead. However we should be guarded from excessive optimism. This also means that we have to work hard – together – to ensure that creativity and culture is given the place it deserves in policy making and that the right policies are adopted.

It is against this background that I would like to make my contribution.

The Economy of Culture in Europe - A strategy for a creative Europe

Modern economies are not built with capital or labour as much as by ideas. Numerous EU Member States are assessing the impact of intellectually based businesses on the economy. A raft of United Nations agencies, covering health, development or trade, are disputing over how best to enforce copyright and make use of culture as a tool for economic development.

The powers of the European Union in cultural matters are recent, dating back to the adoption of the Maastricht treaty in 1993. They focus chiefly on the ideas of enhancing heritage and cultural cooperation between Member States. However EU policy makers largely ignore the commercial, social and industrial dimension of creativity and culture.

KEA’s study on the Economy of Culture which was completed for the European Commission, casts some light on this unexplored field. It captures the direct and indirect socio-economic impact of the cultural and creative sector in Europe, but it also and most significantly finds out that, in the context of the Lisbon agenda, creativity cannot be relegated to the rank of the optional and superfluous, especially when Europe's competitivity and influence in the world is at stake.

Collective Management of Rights - A European Model?

Rights management is at the heart of Europe's creative industries.

Collective management is also an area where Europe has a leading market position in the world. In the EU there are approximately 65 music licensing societies which collected 5 billion euro in 2004 on behalf of authors, composers, performers and record companies.

SONY/BMG – Milestone Judgement of the European Court of Justice for the Creative industries in Europe

This article is a response to the editorial of Paul Betts published on 13th July - Court edicts put record industry in spin.

It may not generate the kind of public displays of enthusiasm we associate with the World Cup, but it is still a major victory – and one well worth celebrating. I refer to a recent decision by the European Court of Justice, whereby thousands of companies and artists have gained credibility and influence in the debate on the structure of the creative industries and have won recognition for their role in a market that in recent years has become increasingly dominated by a few “big players”. 

IMPALA attended the CISAC hearing on 16 June 2006 and was given the opportunity to express the association's view on this case. You'll find Philippe Kern's presentation below.

Audiovisual policy: what now?

European audiovisual policy should have a triple aim: - to enable producers to carry out their creative vision (without losing sight of business and market imperatives); - to promote access to the market (in particular the emerging digital market) at non-discriminatory terms; - to promote Europe and its wider policy goals in terms of the Lisbon strategy, competitiveness and social and economic inclusion.

Audiovisual remains one of the best means to share our European values with the rest of the world: freedom, democracy, equality, justice, solidarity.

The moving image contributes more to intercultural dialogue, mutual understanding and integration than speeches.

The TWF Directive revision is the opportunity to make EU policy relevant to the needs of the sector. It is about rebuilding confidence in the institutions and asserting their credibility. Europe is more than one single market; it is a common social and cultural heritage that deserves to be promoted in all its diversity.

2005 Liverpool Audiovisual Conference: A Remake of Birmingham in 1998?

In a few weeks time the UK Presidency is convening the Liverpool conference which aims at debating the future of Europe’s audiovisual policy.

7 years after the Birmingham conference the same EU Presidency is aiming at tackling the very same subject.

What has changed since then? What did Birmingham achieve? What should be Liverpool’s goals?

New Music Sales Awards Promote Cultural Diversity

European independent music companies have launched their own awards through their association IMPALA. The IMPALA European Sales Awards are the only music sales awards to promote cultural diversity and new emerging artists on a pan-European basis. Before the launch of the IMPALA awards the only pan-European award was the IFPI platinum award which is not available for records netting under a million sales. There are four different types of IMPALA award:

IMPALA silver – 30,000 sales

IMPALA gold – 100,000 sales

IMPALA Diamond – 250,000 sales

IMPALA platinum – 500,000 sales

IMPALA double platinum – 1,000,000 sales

The awards are intended to provide a new tool for independent music companies and artists to promote themselves, both domestically and internationally. They also recognize new talent and cultural diversity, and the fact that in order to promote cultural diversity in a meaningful and practical way, success needs to be celebrated at a much earlier point in an artist’s career than when they reach 1 million sales. To quote Michel Lambot, the President of IMPALA:

“Success, like beauty, is in the eye of the beholder. For many independent record companies, selling 30,000 is a success. 250,000 is outstanding. 500,000 is a runaway. We now have a real mechanism to recognise this, to the benefit of European music companies, artists and consumers.”

The first award winners will be announced by IMPALA in mid June 2005. To be included on the first winners list, certifications must be completed by the end of May. Anyone wishing to apply can do so on the IMPALA website, the awards are open to entrants from any country but are judged on sales in Europe.

Pluralism and diversity: a challenge for Europe

Europe's creative industries contribute greatly to the European Economy on a social and political as well as cultural basis, but find themselves, for the most part, on the fringes of the European project. The voices of Europe's independent cultural creators are increasingly being ignored by the EU, and Europe's economy, creativity, cultural diversity, and reputation as a world leader are being endangered as a result. Despite the EU's professed ambition of preserving cultural diversity and promoting SMEs, the waving through of the Sony BMG merger, which has resulted in 4 companies having an 80% share of the world market, suggests that they are not ready to back up their words with actions.

One of the EU’s stated aims is the preservation of cultural diversity, and in order to achieve this, a wide variety of competitors within the cultural sector are necessary. However, the measures needed to achieve this, such as the allowance of state aids to the cultural sector, need to be reconciled with the EU’s commitment to a liberal internal market.

KEA has argued that there is a need for a European assembly of the cultural industries to discuss how to contribute to the creation of a vibrant knowledge-based European economy, whilst at the same time preserving cultural diversity; to marry the principles of the free market with the measures necessary to keep a varied and creative competitive environment. It is essential, if the Lisbon objectives are to be acheived, for the cultural industries to be more involved in the European project.

To read more about KEA’s stance on this issue click on the link below.

WIPO - Intellectual Property Protection

What follows is the text of a speech given by Philippe Kern to WIPO (World Intellectual Property Organisation) on13 April 2005.