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Economic value of the cultural sector

 

A new study published by EY (formerly Ernst & Young) and presented today to Commissioner Oettinger, Commissioner Navracsics and Vice-President Ansip shows that cultural and creative industries (CCIs) are among the EU’s biggest employers and have experienced sustained growth even through recession.

The new EY study Creating Growth - Measuring Cultural and Creative Markets in the EU (available here), was commissioned by the European Grouping of Societies of Authors and Composers (GESAC), and backed by 18 corporate partners and supportive organisations, including IMPALA, the Independent Music Companies Association. The study reveals the determining input of CCIs in the European economy.

 With an annual revenue of €535.9 billion and more than 7 million employees, of which 19.1% are people under the age of 30, cultural and creative industries are the third biggest employers in Europe, just behind construction and food and beverage service activities. CCIs provide work for 2.5 times more people than automotive manufacturers, and the visual arts alone employ more people than the telecommunications industry.

The EY study emphasises that creative works are one of the main sources nourishing the digital economy, which has been placed at the forefront of the European Commission’s future policy plan. Jean-Noël Tronc, CEO of French authors’ society Sacem, commented that “The creative and cultural sectors are an integral part of the digital economy. Creative works are instrumental in the value generated by the digital networks and platforms”. 

Michel Lambot, Co-President of [PIAS] and board member of IMPALA commented: "The results underline the vital role of culture not just in terms of civilisation but also for Europe's economy and jobs. We are proud to be one of the biggest employers, with jobs that cannot be de-localised. The answer to building a new Europe is its creators."

Helen Smith, IMPALA Executive Chair, added: "If there is one message from this study, it is that Europe is, quite literally, creating its way out of the crisis. Leading the world's digital economy, Europe must make sure it is the best place in the world to be a creator."

At a meeting today with European Commissioner for Digital Economy and Society Günther Oettinger, Commissioner for Culture, Youth and Sports Tibor Navracsics, and Vice-President Andrus Ansip, the European Grouping of Societies of Authors and Composers (GESAC), IMPALA and the other partners for the study[1] are inviting EU politicians to give the necessary consideration to the importance of creators who provide the lifeblood of the creative and cultural industries and the digital economy.  

Christophe Depreter, President of GESAC, said “Today’s study shows that the creative and cultural industries create 5 times more jobs than telecommunications and far more than conventional sectors like chemical, automotive and metal and steel industries. We are in the information age and creative works are the main source of its digital economy. Creators need to be at the centre of EU policy on authors’ rights/copyright that would also feed a more diverse and future-proof digital economy.” 

In light of the modernisation of copyright recently set as one of the Juncker Commission’s priorities, Jochen Greve, the German screenwriter of renowned TV Series Tatort, and patron of the SAA said “this study shows what I experience on a daily basis. As I work together with my fellow creators, sharing our ideas and putting our stories together, we are also laying the foundations for the jobs of many other people who bring our stories to the screen and then make sure it reaches as many people as possible around the world. All of the subsequent economic and social value that is created from our ideas comes from our authors’ rights.”

Also arguing in favour of maintaining a healthy copyright system to allow for the cultural and creative sectors to continue to blossom in Europe was Henrique Mota, CEO of Portuguese publishing house Principia Editoria and Vice-President of the Federation of European Publishers (FEP): “Without copyright, there would be far fewer books, and therefore creative expressions would significantly be stifled. Copyright preserves cultural diversity, and with it a European identity deeply-rooted in its versatility.

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The comprehensive study by EY “Creating Growth: measuring cultural and creative markets in the EU” which analyses 11 sectors of the cultural and creative industries (CCIs) throughout the EU28, demonstrates the major contribution of these sectors to growth and jobs in the European Union. Representing €535.9 billion in turnover and more than 7 million jobs (making them the 3rd biggest employers in Europe), CCIs show an impressive economic weight, but also specificities that provide guiding material for the rest of the EU economy:

- CCIs rely heavily on local work forces, making them a key component of local economic development.

- CCIs also attract young workers who are especially hard-hit by unemployment in the EU: they account for over 19% of those working in CCIs.

- During recession (2008-2012), employment in CCIs grew by 0.7% per year, while overall EU employment decreased by 0.7% per year.   

A summary of the study is available here.

 

About IMPALA

IMPALA was established in April 2000 to represent independent music companies. 99% of Europe’s music companies are SMEs. Known as the “independents”, they are world leaders in terms of innovation and discovering new music and artists - they produce more than 80% of all new releases and account for 80% of the sector's jobs. IMPALA has its own award schemes to help promote cultural diversity and new talent and highlight the artistic contribution of independent music. IMPALA award winning artists include Guadalupe Plata who was voted winner of IMPALA's last Album of the Year Award, The xx, Armin van Buuren, Caro Emerald, Adele, M83, Mogwai, Vitalic, Soap & Skin, Royksopp and Andrea Bocelli.

www.impalamusic.org

 

GESAC partners for the study : EUROCOPYA European Federation of Joint Management Societies of Producers for Private Audiovisual Copying; EVA European Visual Artists; FIAPF International Federation of Film Producers Associations; IFPI International Federation of the Phonographic Industry; IMPALA Independent Music Companies Association; IVF International Video Federation; SAA Society of Audiovisual Authors.

Supportive organisations: ACE Architects’ Council of Europe; AEC European Association of Conservatoires; AER Association of European Radios; EACA European Association of Communications; ECSA European Composer and Songwriter Alliance; EGDF European Games Developer Federation; EPC European Publishers council; FEP Federation of European Publishers; FERA Federation of European Film Directors; FSE Federation of Screenwriters in Europe; IMPF Independent Music Publishers Forum.

 

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