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The Audiovisual Sector as an Example

Thomas Heskia The Impact of Culture on Social Development and General Well-Being: Is it quantifiable?. The Audiovisual Sector as an Example. Approaches to Measure Culture in Relation to Well-being. What is being produced (inputs) GDP contribution Employment Industrial classification

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The Audiovisual Sector as an Example

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  1. Thomas HeskiaThe Impact of Culture on Social Developmentand General Well-Being: Is it quantifiable? The Audiovisual Sector as an Example

  2. Approaches to Measure Culture in Relation to Well-being • What is being produced (inputs) • GDP contribution • Employment • Industrial classification • What is being consumed (output) • What is perceived (outcome) Approach of happiness research concentrates on the perceived well-being of individuals.

  3. The World of Television Television as a central cultural instance in the last decades Decreasing importance because of media convergence and non linear services • US Dominance of corporate media • „Networks“ • Public service Broadcasting as a non competing additional offer • Europe Dual system of private and public service TV • Tradition of PSB as a democratic institution • Strong private production • Co-finances cinema production

  4. The Bipolar Field of Film Production • Hollywood (MGM, Warner Bros. etc.) Privately financed • Worldwide Distribution • Reciprocal adaption of consumer choices • Up to 85% market share in Western Europe • European production • Small domestic markets, difficult distribution abroad • production costs do not find recoupment in the market Dependent on public subsidies

  5. Well-Being Measured on Actual Consumption (TV) Possible measurable indicators • Entertainment • Violence +/- • Comedy • Drama • Education • Information • Contribution to the political/social discourse • Cultural distinction (% of local content) • Cultural diversity (% of „diverse“ content) • Advertisement (-?) - TWF guideline

  6. Choice as an Indicator for Well-being Well-being through the availability of choice Sen‘s capabilty approach • Oversupply does not improve well-being • Preselection • Choice for high social impact programmes possible • Role of Public Broadcasting Services (BBC approach) Cultural socialisation and education as complementary

  7. Public Sector Intervention • Regulation • Frequencies (market accessibility, criteria, community programmes) • Technical standards • Advertisement (TWF-Guidelines) • Public Service Broadcasting • Public film funding (EUR 2,3 bill. in Europe) • TV programme funding

  8. European film production • Small Budgets (1,5 Mio – max. 10 Mio € / feature film) • Cost disease • Small domestic markets (1-80 Mio.) • Small market shares (10%-40%) • Market barriers make it difficult to cross borders • Language • Other cultural factors • Distribution structures

  9. Film as Cultural AND (?) Commercial good • Film as art of ist own („7th art“) • Contribution to cultural diversity For that • Justification for public funding • Film funding as a permitted state aid under the exception culturelle but • High share of non creative work (on the set, postproduction, processing laboratories) • Contribution to regional economic development

  10. European Film Finance • Own investment of the producer (often below 10%) • Broadcasters (pre-sales, licenses, subsidies) • Direct subsidies (national, regional, European, cultural funds) • Indirect subsidies through tax incentives Growing budgets lead to an ever growing share of international (i.e. inter-European) co-productions + advantage of a 2nd home market! Statistics available by the European Audiovisual obeservatory (COE)

  11. Benefits • National/Regional Culture/s • Cultural diversity • Social benefits • Economic Impact

  12. Economic Impact of Film Subsidies • Regional effects: • Supposed multiplier • No inputs deducted • Employment; • Sector grows and shrinks with the amount of public subsidies

  13. Cultural Impact Selection of projects by • Juries • Commissioning editors • Success driven mechanisms (reference money) Justifications often not revealed. • No ordinal measurements • No cardinal measurements

  14. Script Analysis Approach • Project selection by evaluating different aspects of a project excellent good fair ........... Plot      Characters      Dialogues      ..... (overall)

  15. Script Analysis Approach transfered Analogue to general values excellent good fair ........... Artistic value      Entertainment      Social      Political ......... (overall)

  16. Problems • Input oriented approach • Comparability • Has little impact on audience • Little actual consumption? But: Wider impact than cosumption as there is often a contribution to the discourse in society

  17. Combined Measurement • Evaluation of consumer habits • Evaluation of consumer satisfaction • Evaluation of the Public Service broadcasting services • Availability and accessibility of high quality programmes • Impact of domestic high quality programmes Strenghtening the democratic institutions (Frey/Stutzer)

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