Study Ernst & Young 2010

The new ways to pay in the cultural field :  Micropayment, price-fixing and new ways to pay

Ernst & Young realized a study on the topic of the new ways to pay in the field of Culture. This study launched the debate on the issues related to the dematerialization of financial flows in Culture, focusing on new trends such as mobile internet devices. It also fosters new reflections on potential alternatives to the “all-free”, such as the monetization of cultural content through subscriptions or fee-for-service. The issues of the price, of marginal gratuitousness and of the symbolic thresholds from which a monetization is possible will be tackled. The approach encouraged here will rely on three sections: a data-gathering in several countries, the interviews of renowned economists and business leaders.

Besides, in the continuation of the 2009 Ernst & Young study on “The way to cultural diversity in tax policies” (international benchmark on cultural tax policies in 14 countries), an update of this study has been carried through.


The perils of paying for the internet: what stakes?

The web neutrality implies that all contents are equal and should be distributed in the same way. This approach could be questioned by the priorities allowed to certain firms ready to pay more to access the network. Guaranteeing the access of all to the Internet for some and representing a hindrance to its development for others, the stakes around this principle question the current socio-economic structure of the web.

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The spreading of self-distribution in the film industry

The economic and social context urges the cultural doers to find new ways of financing their activities, as confirms the current development of the independent film industry. Indeed, this sector tends to free itself from the traditional distribution channels, modifying the relationship between the artist and its public. Based on more proximity and mutual listening, this later benefits from the increasing freedom of the directors, even if such processes imply an effective reduction of the budgets. 

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The economy of live performing arts

Two studies presented here by the SACEM assess the situation and the perspective of live performing arts in France (2009) and analyze the financial remuneration of the people involved in this field of activity.

Read the studies 

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The use of « Smartphones » affects « mobile banking »

Crédits Deutsche Bank AG

Always more individuals use their Smartphones as a go-between with their bank - to check their balance account, but also to carry out a bank transfer or to get information and advices. The upsurge of these devices speeds up the development of “mobile banking”, compelling the banks to adapt and develop appropriate platforms and contents. This type of services, still paying for most of the banks, does spread, although a coherent and viable business model remains to be found.

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« Mobile banking » already met with success in Africa

Crédits : Deutsche Bank AG, World Bank Photo collection

Whereas Europe discovers “mobile banking” and progressively converts, the African continent seems to have already adapted itself to these new ways to pay. Introduced in 2008, they meet a real success, notably regarding small transactions, overcoming so the fragmentation and the irregularity of the banks network. Yet, the viability and profitability of these offers imply a diversification of the services proposed by the different providers and a multiplication of the advantages for the consumers.

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Study on the new ways to pay in the cultural field

Flattr: A new form of cultural micro-patronage

Flattr is a micropayment platform created by Peter Sunder, one of the Pirate Bay’s founders. Every month, users allocate a chosen amount intended for the contents’ creator that they liked: articles, videos… Then, the amount is equitably distributed between the different content’s authors indentified by a clickable button Flattr.

Official website

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Micro-patronage

Individuals can directly back artistic creation, sustainable development in general, allocating small amount through the Internet. Organizations as Wikipedia, Creative commons or bands as Radiohead call upon micro-donations of individuals to back their project.

Wikipedia definition

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Desintermediation of the digital ways to pay

Le futur de l’argent, Daniel Roth, Wired, le 22 février 2010

The future of money, Daniel Roth, February the 22nd of 2010
The article of Daniel Roth tells the story of the different ways to pay from the cows in 9000 BC to the different current digital ways to pay like Twitpay, Zong or Hubculture as well as the creation of the credit card.

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Price fixing in the digital era 

Le futur du ‘gratuit’ par Drake Bennett, The Boston Globe, le 28 juin 2009The futur of ‘free’ by Drake Bennett, The Boston Globe, June the 28th, 2009
The “Penny gap” is a theory developed by the venture capitalist Josh Kopelman, explains the failure of business plans only based on micro-payment. Indeed, the closer the cost get to zero, the bigger is the temptation to pay nothing.

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Reglementation of micro-payement in China 

Les autorités de régulation chinoises du paiement en ligne pourraient créer un bouleversement dans le secteur, par Kathrin Hille, The Financial Times, 23 juin 2010China e-payment rules could spark shake-up by Kathrin Hille, The Financial Times, June the 23rd, 2010
The Chinese regulation authorities could lead the leading Internet companies – which propose e-commerce platform – to restructure their shareholdings. The companies must receive the approval of the Chinese authorities if some of their shareholdings are to become foreign.

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Mobile Payment: 108 millions of users in 2010

Christian D, generation-nt.com, June the 21st of 2010

The Gartner cabinet unveils few key figures on the evolution of mobile payment usage:
- The number of users of mobile payment system will raise of 54,5% between 2009 and 2010, meaning that there will be 108,6 millions of users in 2010.
 - The Asia Pacific is the principal geographic area concerned by the mobile payment, with 62,8 millions of users in 2010

 Read the article

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The new philanthropy – (Re) inventing ‘solidarity’ capitalism? By Virginie Seghers,  Autrement (Editions), 2009

The new philanthropy – (Re) inventing ‘solidarity’ capitalism? By Virginie Seghers,  Autrement (Editions), 2009

Philanthropy is spreading all around the world. Never before – even in contexts of financial crisis – were so many billionaires in the world, along with as many inequalities in the wealth allocation or as much media coverage of ecologic and social challenges for the planet.   This context fosters the richest’s awareness of their own power –of their duties- to act for the common good.

But who are the one who actually go through with it? What are their true motivations? In the wake of Bill Gates, a new generation of "philanthrocapitalists ", Chinese, Indian, French or from the middle-east, etc. get involved.

This book draws a world panorama and questions for the first time, in France, the key players: could philanthropy contribute to the wealth reallocation? Is it a moral duty or a simple way for the richest of getting more influence while easing their conscience? In a world where capitalism, facing its own mistakes, wants to promote more solidarity, this research decodes the real machinery of the donation economy.

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