Signaling for access to high-demand markets: evidence from the US motion picture industry

We develop a signaling model in which imperfectly competitive firms signal quality through expenditures in segmented markets. Separation in this model results in high-quality firms selling their products in a high-demand, and highly quality elastic, period. Low-quality firms sell their product in a low demand but less quality-sensitive period. A dataset including 1697 US theatrical releases between 1998 and 2008 is compiled and explored for evidence of this separating equilibrium. We find that our measures of signal intensity and realized quality (budgets and critical ratings, respectively) are both significantly greater during high-demand periods. Ticket sales are also shown to be more sensitive to expected quality as measured by budgets during the high-demand season. Other seasonal differences and implications are explored.     

International trade in cultural goods: A cross-sectional analysis

Both industrialized and developing countries have historically applied various trade barriers to protect their domestic cultural industries. International trade statistics show that highly populated countries such as the U.S. have exerted a general pattern of cultural influence over the rest of the world through export of films, music, books, and periodicals. The following empirical study suggests that trade barriers effectively increase the net export of cultural products. While domestic market size seems to factor significantly into the trade for films and prercorded music, protectionism based on the economies of scale argument does not find widespread support among cultural industries.     

Do museums foster innovation through engagement with the cultural and creative industries?

The recent narrative on museums as catalysts of innovation and growth considers their relations with other cultural and creative industries (CCIs) to be very important. We argue that most relations museums establish with CCI firms and institutions are unlikely to produce strong positive externalities that make the latter more innovative. To prove this claim, we propose a conceptual framework qualifying project-based and supply chain relations between museums and CCIs as either strong, moderate, or weak links, according to their potential in terms of knowledge spillovers from museums to CCIs. We apply this taxonomy to data collected from 261 Polish museums. Our findings indicate that strong links are outnumbered by moderate and weak ones. We then suggest that the traditional missions of museums, in particular education and conservation, need to be more thoroughly assessed in terms of their direct and indirect contributions in order to fully capture the impact of museums on innovation in the wider economy.

     

Does the long tail really favor small publishers?

A growing body of literature is devoted to testing the reality of the “long-tail” phenomenon. This literature is mostly, if not exclusively, focused on the impact of Internet on the distribution of sales by product. However, the long tail also raises the issue of a possible change in the usual market structure of cultural industries: an oligopoly with a competitive fringe. To our knowledge, no paper addresses the following question: If the long-tail effect does exist, is it of more benefit to small or dominant publishers? The aim of this paper was to address this issue in the context of the French publishing industry. Our main findings are as follows: (1) the market concentration of the French book industry is lower online than offline and (2) the difference in concentration between the two channels of distribution tended to widen over the period 2004–2010. Strategies adopted by leading publishers on the Web do not allow them to maintain the market share obtained with bricks-and-mortar retailers. Furthermore, we show that the market share lost by dominant firms is captured by small publishers online and by medium-sized publishers in conventional stores.     

Innovation and diversity in the digital cultural and creative industries

Journal of Cultural Economics - The cultural and creative industries (CCIs) are increasingly being recognised in South Africa, as in other countries, as wealth-creating, given appropriate...     

The Opposition between Two Models of Labour Market Adjustment: The Case of Audiovisual and Performing Arts Activities in France and Great Britain over a Ten Year Period

The growth of employment in audiovisual andperforming arts activities during a ten year period(1981–1992) in France and in Great Britain was theresult of a double tendency: An increasing number ofindividuals with cultural occupations working incultural industries and structural changes in thelabour market (more flexible workforce, increasingfragmentation of work opportunities). Qualitativedifferences emerged between both countries, leading totwo different forms of flexibility. Full timeemployment decreased in France, while it increased inGreat Britain with, during the same period, aconsiderable growth of self-employment.This paper explores different hypotheses forexplaining such a divergence. It concedes that thestrategies of organisations, and especially the risingnumber of adhocracies (according to Mintzberg'stypology) rather the choices of workers trying tooptimise their earnings were responsible. Publicpolicies played also a central role. In Great Britainthe Enterprise Allowance Scheme, and in France, thespecific Social Security benefit for artistscontributed to the increase in self employment in thefirst case, and in temporary employment in the othercase.     

How do your rivals’ releasing dates affect your box office?

In this paper, we study to what extent a movie’s box-office receipts are affected by the temporal distribution of rival films. We propose a reduced-form empirical model to measure and test competition effects among films released close to each other in a standard regression framework. Such an analysis is appealing in terms of its policy implication and may provide guidance to distributors to decide on their releasing dates of their firms. We estimate this model using information on the films released in five countries: the USA, the United Kingdom, Germany, France and Spain. The geographical dimension of our data set permits us to control for unobserved heterogeneity among films released using panel data techniques, which allows us to evaluate the individual and specific effects of each film. Thus we deal with one of the most relevant features of the movie market, namely the presence of highly differentiated products.     

Are workers in the cultural industries paid differently?

This article aims to explore wage differentials between employees in three sub-industries of the cultural industries compared with the main (1-digit level) industry to which they belong. We use data from the Wage Indicator Questionnaire 2001/2002, which includes information on 12,757 employees in the Netherlands. We find that workers in these particular sub-industries of the cultural industries are paid differently compared with their respective main industries. Workers in entertainment and publishing and printing (P&P) are less endowed with standard labour market characteristics. However, whereas workers in entertainment face negative price or evaluation-related effects, the opposite holds for workers in P&P. Workers in IT are more endowed with standard labour market characteristics, but they receive lower rewards for their labour market characteristics.     

Rent and Political Economy in Culture Industry Work

This paper locates politics in culture industry work at the organisational and firm level through developing the application of the notion of rent to culture industries as revenues from intellectual properties, and as the more general sense of revenues derived from non-equivalential exchanges. The argument is that politics arises from attempts to establish or eliminate rents. The paper discusses ethnographic research on subjectivity and culture industry work and provides a theoretical account of rent in the capitalist imaginary and in explanations of formal problems of power in the entrepreneurial firm as the basis for the analysis of political practices in culture industries. The paper concludes with a discussion of the relation between rent and subjectivity and politics in neoliberalism.     

Art for the Masses? Justification for the Public Support of the Arts in Developing Countries – Two Arts Festivals in South Africa

In the New South Africa, as in other developing countries, the equitable distribution of public resources is a priority. The case for public support of the arts is thus difficult to make because it has been shown and borne out by South African research, that arts audiences tend to represent the better educated, more prosperous minority of society, not the majority of the very poor, mainly African-origin population. Using data from willingness to pay studies conducted at two South African arts festivals, this paper shows that, when the positive externalities provided by the arts are included in their valuation, it can be shown that both high and low income earners benefit. However, as suggested by Seaman (2003), it is also found that some of what the WTP figure is capturing is current and expected future economic benefit from the event.     

Recognition and renown, the structure of cultural markets: evidence from French poetry

This article explores the organization of cultural markets through the case of French contemporary poetry, distinguishing the market for recognition and the wider market for renown. The market of poetry is made of large-scale and reputed publishers and a wide range of smaller firms, which serve as testing grounds for new authors and innovation. How can the movement of an a priori narrow-appeal literary genre from small publishing houses to large-scale firms be explained? It is argued that if the status of firms is remarkably stable, artists may move from small publishers to large-scale ones. Statistical evidence is used to illustrate this passage, shedding a new light on the structure of cultural markets and the role of reputation in organizing commercial circuits. Future directions for research are offered.     

‘Stars’ and places: exploring the spatial organization of media and entertainment industries in China

ABSTRACT

Drawing on an innovative ‘big data’ method, this paper presents a comprehensive analysis of the geography of media and entertainment industries (MEIs) in China, by examining the specific activities that are performed by celebrities, the key actors in these industries. Compared to previous research on cultural and creative industries, which primarily rely on more traditional statistical data, our study demonstrates a new approach to systemically investigate the spatial organization of the dynamic production process in MEIs. The outcomes reveal that activities focusing on the different value segments of MEIs display rather diverse geographical patterns. Depending on the availability and combination of specific local assets, different locations perform varying functions in the production networks of MEIs. Therefore, the agglomeration of MEIs only partially overlaps with the existing urban hierarchy. In addition, celebrities catering to different media and entertainment markets also exhibit distinct activity patterns, indicating a close and reciprocal relationship between the popularity of celebrities, the activities they perform, the platforms that are chosen, and the commercial value that can be generated as a result. This study contributes to our understanding of the complex development patterns and consequences of MEIs in emerging economies.     

Competition and the Non-Profit Arts: The Lost Industrial Organization Agenda

The recent industrial organization focus on transaction costs and vertical contracting within the cultural industries (Caves, R.E. 2000, Creative Industries: Contracts between Arts and Commerce. Harvard University Press, Cambridge) stands in contrast to the near abandonment of an earlier literature on horizontal firm interaction and competitive conditions within the performing arts (e.g., Throsby, C.D. and Withers, G.A. 1979, The Economics of the Performing Arts. Edward Arnold, London.; Gapinski, J.H. 1986, J.H. American Economic Review 76(2): 20–25). That incomplete but promising agenda was overwhelmed by the emphasis on non-profit arts firms acting as near natural monopolies, as reflected by Throsby himself (Throsby, D., 1994, Journal of Economic Literature 32: 1–29) and Blaug's survey (Blaug, M., 2001, Journal of Economic Surveys 15: 123–143). This paper resuscitates these earlier inter-firm hypotheses, identifies surprising contrasts with Caves' less frequent horizontal observations, and encourages a revival of interest in studying the effects of competition in the non-profit arts.     

Netflix: global hegemon or facilitator of frictionless digital trade?

Trade in cultural products has traditionally been constrained by a combination of law and technology. In Europe, digital sellers based in a given EU country are not always able to distribute across borders. In January 2016, US-based Netflix announced an expansion to 243 countries, accomplishing cross-border distribution through business strategy. Changes in law or technology that facilitate cross-national cultural trade have traditionally drawn the concern of observers worried about the cultural heritage—and products—of small markets. The expansion raises questions about what Netflix is doing. Is it a cultural hegemon, distributing US fare into 243 countries? Or it is a facilitator of free trade, making the products of even small countries more available outside their home markets (relative to traditional distribution)? And how does the curated model—which limits the number of movies the platform wants to distribute—affect Netflix’s function? To shed light on these questions, we develop a new measure of the global availability of a repertoire, the value-weighted geographic reach. Using this measure we find, first, that Netflix makes many of the works from a wide variety of countries available in many other countries. Second, we find that theatrical distribution strongly advantages US-origin fare. Third, the pattern of origin repertoire available through Netflix also favors the USA, although less overwhelmingly. Moreover, many countries are relatively advantaged by their Netflix availability patterns. Finally, we discuss some issues related to the Netflix platform, including horizontal competition with other platforms, vertical struggles with content providers (and its backward integration into production), and we speculate on possible challenges for regulators.     

Beyond the “Charmed Circle” of OECD: New Directions for Studies of National Innovation Systems

In this paper, we engage with the widespread and influential approach of National Innovation Systems (NIS). We discuss its adequacy to non-OECD countries, especially in Latin America where it tends to be reified. Although the NIS approach is meant to address the most pressing needs of the economies it applies to, we argue that it would benefit from developing a more encompassing scope, allowing integration of greater diversity and complexity. By retracing the history of regimes of science, technology and innovation in Latin America, we explore the following paradox: whereas numerous Southern scholars urge the pressing need to develop an innovation agenda for Southern countries with a “Southern framework of thought”, they continue to heavily rely on a reductionist version of the NIS-approach that prevents such a “Southern perspective” to fully emerge. This creates problems for actors willing to use NIS more reflexively, and it also affects the effectivity of science, technology and innovation (STI) policies in non-OECD countries. We formulate a research agenda with three suggestions for further engaging NIS both conceptually and practically. Using such analytical perspectives, we argue, might benefit both to scholarly work about NIS, but could also allow for a better articulation with STI regimes in Southern countries.     

国际视野 多元发展——记荣怀教育集团大力发展国际教育

胡锦涛总书记在2008年5月3日考察北大时,殷切寄语：“留学生是文化交流的使者,是增进各国人民友谊的桥梁。”《国际视野多元发展》《依华的梦》《英国青年在浙江》。这是一组反映外国留学生和青少丰在浙江学习、体验中国文化的文章及图照。多元文化的交流、交融,谱写成友谊之歌和美好篇章。     

How Relevant is Transaction Cost Economics to Inter-Firm Relationships in the Music Industry?

This paper applies the transaction cost framework to the organisation of product sourcing and development (PS&D) activities within the popular music industry. Two firm types characterise the industry and this particular set of activities; large multinational firms (`majors') and smaller regionally bound companies (`independents'). We find that the Transaction CostEconomies framework of Oliver Williamson (1985, 1999) provides only a partial explanation for the observed hybrid organisational structures established by the two firm types. A more sensitive model can be achieved by including a number of moderating variables drawn from the socially constructed and situationally dependent idiosyncrasies of the assets involved in the PS&D activities under consideration.     

The creative instability hypothesis

This paper provides an analysis of why many ‘stars’ tend to fade away rather than enjoying ongoing branding advantages from their reputations. We propose a theory of market overshooting in creative industries that is based on Schumpeterian competition between producers to maintain the interest of boundedly rational fans. As creative producers compete by offering further artistic novelty, this escalation of product complexity eventually leads to overshooting. We propose this as a theory of endogenous cycles in the creative industries.     

Estimating R&;D Expenditures In The Higher Education Sector

The accurate measurement of the time spent by academics on research and development activities is of great importance to universities and government. This essay outlines the ways in which different countries estimate these factors, and suggests ways of producing more reliable estimates.     

Characteristics of Italian art restoration firms and factors influencing their adoption of laser technology

Given the limited number of studies on this topic, the aim of this study is to better understand the characteristics of art restoration firms in Italy, with particular reference to their use of innovative technologies such as laser technology. The paper is supported by a survey conducted in a sample of 100 companies. The factors that have led firms to adopt or resist the adoption of the laser were identified and analysed. The results show that the main determinants of laser adoption are collaborative activities between the firms and universities and specific requests made by public institutions to use this technology.