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.     

Demand for culture in Spain and the 2012 VAT rise

This paper analyzes the effects that the 2012 VAT rise in Spain had on household’ demand for cultural goods and services. Household’ demands are modeled as a two-stage QUAIDS. After estimating price and expenditure elasticities, and the pass-through parameter associated with the reform, our results show that the individual welfare loss and the increment in the tax bill increase, but less than proportionately, with income. Consequently, the reform can be considered as regressive. Relating the effects of the VAT reform to households’ incomes also implies a low quantitative effect, because of the low proportion of total household expenditure that cultural expenditure represents. From a social perspective, the size of the induced welfare loss would positively depend on society’s inequality aversion. Regardless of the latter, it cannot be concluded whether the reform would have increased or reduced inequality in the distribution of cultural spending. Our results prove qualitatively robust to alternative values of the pass-through parameter.     

Ownership,organization structure and public service provision: the case of museums

This article provides an empirical investigation of the effects of the ownership and organizational structure on the performance of cultural institutions. More specifically, we consider how museums are effective in their function of disseminating culture to audiences and contributing to the local development. By exploiting a unique data set based on the 2011 census of Italian museums, we develop performance indices of accessibility, visitors’ experience, web visibility and promotion of the local cultural context. Using count data models, we regress such measures on the type of organization. We distinguish between governmental museums, public museums whose administration is either outsourced or has financial autonomy and private museums. We control for the most salient characteristics of a museum, competition pressure and some proxies of potential audience. Our evidence shows that private museums, public museums with financial autonomy and outsourced museums outperform public museums run as sub-units of culture departments. This paper contributes to the cultural economics and public policy and administration literature by adding insights into the effect of outsourcing and administrative decentralization in the public cultural sector.     

To preserve or enhance precious memories: a segmented market analysis of the history museum in Singapore

This study examines the value placed on museums by patrons and non-patrons and investigates the factors that affect this valuation with a view to boost visitorship. The total economic value of Singapore’s History Museum is at least US$57 million, and this is high relative to other countries, a fact which can be used to justify increased government funding towards museums as cultural capital. Females and high income people are the target groups for increased visitation, while among the non-patrons, the ethnic majority is another potential clientele. Somewhat surprising is the finding that neither patrons nor non-patrons see the museum as having significant tourist value, and contrary to prospect theory, there is a preference for enhancing the museum’s services over keeping the museum. These findings provide some direction for the management of the museum to improve its visitor appeal.     

Measuring allocative efficiency in Cultural Economics: the case of “Fundación Princesa de Asturias” (The Princess of Asturias Foundation)

The literature on Cultural Economics provides us with some examples for the measurement of technical efficiency. However, there are few case studies dedicated to the analysis of allocative efficiency. The aim of this paper is to fill this gap by incorporating a methodology that analyses both technical and allocative efficiency. We use the Shephard’s distance function, particularly suitable when affronted with non-profit-making firms or institutions that are not interested in cost minimization. As an empirical application, we analyse the efficiency of Fundación Princesa de Asturias (PAF), a Spanish non-governmental organization devoted to promoting the cultural, scientific and humanistic values of universal heritage, the period of study being 1988–2012. Our findings suggest that PAF could have used 7% less inputs to achieve the same level of output. On the other hand, we have found allocative inefficiency. Concretely, the input for other expenditures appears to have been over-utilized in relation to both the inputs for labour and current assets, with labour in turn being over-utilized in relation to current assets. Moreover, our results indicate that both technical and allocative efficiency have clearly improved during the period analysed. In summary, our empirical application shows how distance function methodology can be successfully implemented to measure allocative efficiency in cultural firms and institutions.     

Effects of the “Gangnam Style Syndrome” on the South Korean stock market

This study attempts to answer two questions. First, can a single cultural event impact the stock prices of a wide range of companies and sectors? Second, was the positive stock market response in the information technology (IT) sector as well as performing arts sector significant? To answer these questions, we examine whether a hit pop single, “Gangnam Style” by Park Jae-Sang in 2012, affected related sectors of the Korean stock market and whether market reactions went beyond the stock price of the singer’s agency to affect those of other firms. We use an event study approach. The results show two notable empirical findings. First, although the findings indicating abnormal returns and cumulative abnormal returns appear mixed, the overall results imply that the unprecedented worldwide hit single by the South Korean singer positively affected the Recreation & Culture and Digital Content sectors. In other words, the market interpreted the event as good news, with shareholders expecting positive effects on the related sectors. Second, a positive stock market response was observed in the IT sector as well.     

The authenticity of the museum experience in the digital age: the case of the Louvre

The technological shift of museums is extensively documented, even if research on the impact of technologies on cultural practices and social patterns at large is still lacking. As part of a research programme conducted by the Louvre and HEC Paris, the article proposes a conceptual analysis of ‘real’ (visiting the museum) and ‘virtual’ (visiting its website) experiences of museums. It contributes to the understanding of whether the two experiences are substitutes or complements using a newly created measurement scale. In addition, the article also aims at enriching the contemporary discussion on the artworks’ aura and the authenticity of the cultural experience in the digital age.     

A Policy Entrepreneur in the Information Society: Shaping the Interdisciplinarity of Brain Research in Korea

This paper aims to show the historical contingency of policy entrepreneurship in science by analyzing the case of brain research in South Korea during the last decade of the 20th century. This decade saw an increasing emphasis placed upon the development of information technology and its use for societal changes. The rise of the “Information Society” in Korea was an important context for shaping the field of brain research as an amalgam of multiple disciplines which led to the passage of the Brain Research Promotion Act; the first law in the world enacted to promote brain research. This paper, through focusing on in what context someone takes up an entrepreneurial role, shows how the concept of interdisciplinarity has been shaped by, and how it has influenced the development of brain research and its related policy measures in Korea. It ultimately reveals the contingent and transient aspect of a policy entrepreneur and his effect on building a new field.     

Competition as cooperation

Games have a complex, and seemingly paradoxical structure: they are both competitive and cooperative, and the competitive element is required for the cooperative element to work out. They are mechanisms for transforming competition into cooperation. Several contemporary philosophers of sport have located the primary mechanism of conversion in the mental attitudes of the players. I argue that these views cannot capture the phenomenological complexity of game-play, nor the difficulty and moral complexity of achieving cooperation through game-play. In this paper, I present a different account of the relationship between competition and cooperation. My view is a distributed view of the conversion: success depends on a large number of features. First, the players must achieve the right motivational state: playing for the sake of the struggle, rather than to win. Second, successful transformation depends on a large number of extra-mental features, including good game design, and social and institutional features.     

Kinematic analysis of hip and knee rotation and other contributors to ballet turnout

Turnout, or external rotation (ER) of the lower extremities, is essential in ballet. The purpose of this study was to utilise physical examination and a biomechanical method for obtaining functional kinematic data using hip and knee joint centres to identify the relative turnout contributions from hip rotation, femoral anteversion, knee rotation, tibial torsion, and other sources. Ten female dancers received a lower extremity alignment assessment, including passive hip rotation, femoral anteversion, tibial torsion, weightbearing foot alignment, and Beighton hypermobility score. Next, turnout was assessed using plantar pressure plots and three-dimensional motion analysis; participants performed turnout to ballet first position on both a plantar pressure mat and friction-reducing discs. A retro-reflective functional marker motion capture system mapped the lower extremities and hip and knee joint centres. Mean total turnout was 129±15.7° via plantar pressure plots and 135±17.8° via kinematics. Bilateral hip ER during turnout was 49±10.2° (36% of total turnout). Bilateral knee ER during turnout was 41±5.9° (32% of total turnout). Hip ER contribution to total turnout measured kinematically was less than expected compared to other studies, where hip ER was determined without functional kinematic data. Knee ER contributed substantially more turnout than expected or previously reported. This analysis method allows precise assessment of turnout contributors.