Publications 2011

Study Kurt Salmon for the Forum d'Avignon

       Study Kurt Salmon for the Forum d'Avignon

Cultural undertaking & investment: from intuition to decision making
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Study of Charles Landry for the Forum d'Avignon

     Study of Charles Landry for the Forum d'Avignon

Creativity, culture & the city: a question of interconnection
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Study Atelier BNP-PARIBAS for the Forum d'Avignon

    Study Atelier BNP-PARIBAS for the Forum d'Avignon

Referencing cultural content on the internet, prescribing culture?
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Study Bain & Company for the Forum d'Avignon

   Study Bain & Company for the Forum d'Avignon

Connected devices and services: reinventing content
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Study Ernst&Young for the Forum d'Avignon

  Study Ernst&Young for the Forum d'Avignon

Intellectual property in a digital world
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Study Ernst&Young for the Forum d'Avignon

 Study Ernst&Young for the Forum d'Avignon

The way to cultural diversity in tax policies
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THE E-BOOK OF THE FORUM D’AVIGNON 2011

THE E-BOOK OF THE FORUM D’AVIGNON 2011

Back to the edition 2011 : Investing in culture
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Cultural undertaking & investment: from intuition to decision making

Forum d'Avignon 2011 – From intuition to decision: who decides who invest in culture? 100 interviews, a frame of reference and 4 case studies by Kurt Salmon

How is the decision to invest in cultural projects and equipments made? What are the criteria and triggering factors behind? What are the justifications offered to favor and promote cultural projects? How do the different key players position themselves: artists, institutions, firms,…? What are the underlying “strategies” at the origin of a project? 

These are the questions answered by the study realized by Kurt Salmon for the Forum d’Avignon 2011. “Committing and investing in culture: from intuition to decision”: the title of the study summarizes well the stakes. The decision chain has been highlighted thanks to hundreds of interviews, realized for the study during 2011, all around the world: the origins, the idea, the concept. Then intuition gives way to the classical rules of management and finance: how to implement it, to concretize it, follow up in the long range or, in other words, ROI!

The economic weight of culture cannot be questioned: in 2002, cultural industries represented 12% of the American GDP, 3.8% of the Canadian GDP and already 1.48% of the Chinese GDP. The main economies and their decision makers have understood it: beyond the cultural sector itself creation spreads innovation by waves to all other economic fields and society. The decision to invest in culture cannot be made lightly or by a single player: cultural investments principally federate economic players, investors’ collectives, donors, public institutions and philanthropists. Culture is not a traditional sector, with innovating financing models, and remains a strategic field of activity.

How can the non-economic consequences of culture be measured? If the study does not have the ambition to offer a fixed framework of analysis, it remains a precious tool box for any decision maker, allowing a precise evaluation of his investment and justifying it to people who could still question its legitimacy. 8 main types of stakes are highlighted by the study: 4 economic ones, related to influence and notoriety, economic development, knowledge economy and the promotion of the heritage. 4 other ones refer to a more societal dimension: social cohesion and enterprise culture are reinforced and so are the societal responsibility of investors, the offer and usages develop in the cultural field; at last creation and artistic expression are renewed.

The next steps are identified: this frame of analysis is a first step toward the evaluation of the cultural impact of each investment. The study values the figure of the cultural entrepreneur and concludes on the need to reinforce the competitiveness of economy through culture. This ambition implies the constitution of clusters federating the various key players involved in each project. The last proposal being to put together a new financing model – tailor-made to fit culture’s characteristics – a responsible and performing pattern, thanks to “cultural and committed savings”. 

In addition to this study, four case studies focus on innovating projects: the centre Pompidou Metz, the Festival of Aix en Provence, the digitalization process of the Royal Belgian Library, the Design Fashion Architecture (DUTCH) in the Netherlands.

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The impact of cultural spending

Forum d'Avignon 2011 The lever effect of public cultural expenditure on GDP: a reality!

In 2009 and 2010, Kurt Salmon set up a database for the Forum d’Avignon, based on 11 indicators and a panel of 47 cities spread out on 21 countries and 5 continents (28 in Europe, 12 in America, 3 in Asia, 2 in Oceania and 1 in Africa). This database has made possible the presentation of a mapping of the strategies of the 47 cities studied in 2010.

In 2011, thanks to the consulting firm Tera Consultants, a step further has been achieved, posing a statistical question raised by many: are the spillovers resulting from cultural investments measurable?

The answer is not as black or white and the statistic analysis offered should remain illustrative. However, on the panel analyzed, if the public cultural expenditure represents on average 0.7% of the GDP per capita in the studied cities, this expenditure affects 10% of the GDP per capita. The lever effect is always positive and without doubt considerable, even if it only impacts and influences a certain type of initiatives. In other words: the more we invest in culture, the more dynamic is the economy of a territory!

At last, the statistic study highlights the interrelations between cultural investment and non economic criteria: the cultural investment directly impacts the attractivity and the social cohesion of territories; its size is related to the city’s wealth and constitutes an indicator of its level of development. Indeed, neglecting culture means: declining…

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Creativity, culture & the city: a question of interconnection

Forum d'Avignon 2011 – Creative cities – Presentation of Charles Landry study on creative cities

For the 2011 edition of the Forum d’Avignon, Charles Landry, the famous theorists of creative cities, delivers a first study on his research conducted on 6 European cities, within the frame of the partnership between the Forum d’Avignon and the Forum d’Avignon RUHR / ECCE.

Lille, Bologna, Bilbao, Cracow, Liverpool and the Ruhr region: what is their common point?  Creativity! This concept, developed by Charles Landry to describe innovative cities, constitutes the major asset of cities competing at a global level to localize resources, imagination and creativity, to attract investments as much as tourist! To the question, why investing in culture, Charles Landry answers with another question: what do we lose if we do not invest in culture? Because it integrates itself in a wider ecosystem within a territory and develops much beyond the limits of the cultural field. Not dealing with this topic comes to impoverishing the dynamic of firms and businesses, to threaten the social cohesion, to weakening the territory against its competitors, to losing its identity, its DNA, and so its future. Creative cities and creative economy are indivisible. 

Charles Landry makes his point through a deeply documented study, with a historical distance of 25 years, on 6 cities analyzed. To statistic figures, to interviews with directly involved key players, he adds his knowledge of an advisor to numerous cities, among which the European Capital of Culture.

Bilbao is often linked to the Guggenheim: of course, but it remains a symbol, hiding a strong policy promoting a renewal, which has transformed the city, from an industrial desert to a creative pole for service industries.

Liverpool has a different path, but started from the same acknowledgment: from an industrial city, devastated by the crisis, the city managed to transform itself, using the memory of the Beatles, in a hype touristic place as well as in a major place for scientific innovation.

Lille, the city of the North of France, is no longer the territory of former mines and textile fabrics: it symbolizes culture, conviviality and welcomes the main firms representing electronic and technological businesses in France, as well as the logistic platforms supporting their development.

The Ruhr region, European Capital of Culture, gave up its previous image associated with blast-furnaces to make of its industrial wild lands real innovative clusters, mixing design, cultural industries, research and development and education.

Bologna follows a similar path to distinguish itself from other Italian cities, benefiting from a more renowned strong cultural heritage and symbols: to artisanal specialization, the city chose to add a strategy around the localization of advance service activities, resulting in one of the highest employment rate in Italy!

Cracow chose to remember its past: after the fall of the wall, the city managed to rely on its intellectual tradition, its university, the heritage of the Jewish districts to launch a cultural renewal and become an incubator of innovation in Poland.

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Referencing cultural content on the internet, prescribing culture?

Forum d'Avignon 2011: Referencing cultural artworks, prescribing culture? By the Atelier BNP Paribas

Who references and who prescribes – concretely – culture on the Internet? To answer this question, the Atelier BNP Paribas for the Forum d’Avignon referred to many documents and … on interviews of prescribers, kings of the Web or physical markets.

A first acknowledgement appears, without surprises: for now, referencing on the Internet goes through search engines, predominantly Google. The situation is changing and a new balance appears, taking into account Facebook and Twitter. Therefore, it naturally changes the way of prescribing culture. Google highlights popular websites; the “prescribing” websites offer “more” (i.e. information with added value) than the cultural goods themselves. The new tools foster a direct prescription of the cultural good – so are doing recommendation engines or comparators.

In any case, the new prescribers of the Internet are not the traditional media, which are at the end of the value chain. These later have not always engaged for the Web, or have declined opportunities offered by the digital universe without setting up any particular system of prescription. Yet, this is precisely this system that can increase the visibility of a media on the Internet – a system made of cross-references between contents – a network of recommendations or “graph”. By relying upon existing technical referencing tools, some media on the Internet have neglected the concrete relationship to customers. This disintermediation has been reflected by a re-intermediation in favor of technical key players.

In other words, since Google’s birth in 1998, the firm has invested 100 Bn$ in the Internet and digital networks if we add up operating costs between 1995 and 2010: this is what Google paid to become the most used service with 1 Bn$ users in 2010. Amazon spent around 132 Bn$: here is the cost to become the leader in sale of cultural goods and one of the main key players of the international electronic trade. 

Google, Amazon, Facebook: those are not cultural services. Their prescription system has been invented to support the development of electronic trade in the widest sense and then applies to the media. This raises the question of the economic independence of prescription: sponsored links or majors’ blockbusters are the artworks that are broadcasted in the best way as they generate the more remunerative. But if these tools theoretically offer a wide exposure to the diversity of artistic creation on the Internet, does it break down the myth of the direct access to artworks, of the value per se of the artwork without any marketing machine around it?

The rules of the game have changed and will keep changing. Tomorrow, referencing will deal with places, objects, going beyond digital artworks: who will be the next cybertrader of our daily lives, referencing our physical world? At last, it can be that the cultural heritage to be referenced will be different: catalogues already are universal for what regards books and music; video and cinema should follow. The alliance of publishers could rebalance the relationship with the new go-betweens of the Web.

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Connected devices and services: reinventing content

Forum d'Avignon 2011 – Culture, screens and connected devices! – 5 countries on 3 continents analysed – by Bain & Cie

For the 2011 edition of the Forum d’Avignon, the consulting firm Bain & Cie realized an exclusive study on connected services and devices aiming at estimating the consequences of the announced revolution: will those be at the origin of a new reinvented cultural experience?

To answer this question, Bain & Cie launched an international survey on 3 continents and 5 countries: Europe (France, UK), America (USA) and Asia (urban India and urban China). By 2015, as connected TV is foreseen as a true revolution, the survey concludes on the increased competitiveness between the various types of screens, which will all be connected to each other in the future. But the trends are already visible, well ahead of the development of connected TV screens, notably in countries such as France where internet providers already offer, thanks to theirs “boxes” a full range of services and on-demand video. It is therefore without any surprise, that we can witness a relatively low willingness in France to access new services offered by connected TV, given their similarities to the ones already available. On the other hand, in urban India and in China, expectations are particularly high and the development of such services should go hand in hand with the increase of the time devoted to culture every day. 

From these trends, the study draws a certain number of lessons. In a connected universe in which demand will influence consumption, the role of search engines and prescription via social networks will be critical. Besides, if blockbusters, which will keep fueling tomorrow’s main TV channels and networks prime times, are not threatened by on-demand video, the situation is rather different for specialized channels: on average audiences, demand could beat traditional linear consumption. The brands gathered by channels and producers will then have to differentiate their offer in this widened universe, necessarily less differentiated. At last, some programs, some cultural experiences, still limited to the long tail and not reaching the main channels’ program schedules, should, on the other hand, benefit from a better exposure and reach a larger public, without questioning the current economic situation. From this perspective, connected devices and services constitute a real opportunity for more confidential programs, being more demanding, or for the sharing of the catalogue constituting our audiovisual and cinematographic heritage – that is to say a real occasion for culture, notably for opera or performing arts!

At last, the study explores the different opportunities offered by the connected universe in terms of cultural heritage and beaux arts: these latter should benefit from the advantages of digital technologies, such a real time 3D or the kinesic recognition, allowing the development of new ways of visiting museums (the Google Art Project is a good example of this) or the digital access to places, such as operas or castles (e.g. Orange currently works with the Chateaux de Versailles on a project of this type). Apps should also completely renew the way of visiting museums, considerably enriching the traditional services offered (e.g. audio guides).

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Intellectual property in a digital world

Forum d'Avignon 2011 : Engaging for intellectual property, 16 countries analyzed - Ernst & Young study

From Napster to Deezer : more than 10 years separate those two music platforms, with on the one hand a symbol for piracy, since then transformed into a legal platform, and on the other hand a streaming service allowing the listening of music without buying it, based on a funding through advertisement or subscription. The world has changed as the web grew taking on a new dimension. Halfway through the path, intellectual property has been confronted with new challenges: adapting itself to the technical context, taking into account the emergence of disrupting uses , promoting innovation and the apparition of new offers – and above all allowing the artists to finance their projects and creation to keep developing. These stakes are, among others, the ones described in the international study carried out by Ernst & Young for the 2011 edition of the Forum d’Avignon.

Focusing on 16 countries, this study on intellectual property in the digital age reminds us that intellectual property is a universal value. International agreements exist as most countries acknowledged. However, differences appear in the way of enforcing laws. An example: the Berne Convention protects copyrights up to 50 years after the death of the author, this minimal threshold is established in Saudi Arabia, in Canada in China, in South Korea and in Japan; it goes up to 60 years in India and reaches 70 years in Germany, Australia, Brazil, the USA, France, Italy, the UK, Russia and Turkey. Mexico thwarts all analysts’ expectations with a protection going up to 100 years after the author’s death.

If intellectual property is recognized by everyone, the legal frameworks differ from a country to another. All have in place ways of fighting piracy out, in order to symbolically switch from Napster to Deezer. Yet, innovations, fines, flexible responses, limitation or even disconnection of broadband accesses, closing down of websites, do not have the same effects everywhere : China and Russia have strengthen their set of laws against piracy to better protect intellectual property – a fundamental immaterial good for all of the most advanced economies, but it has not consequently hit piracy. Enforcing the law required a control of flows and questions the responsibility of Internet access suppliers, at the heart of the debate in many countries. This is a difficult balance to find: most countries also want to foster the diffusion of artworks which could be as free as possible in order to promote imagination and culture.

Without any surprise, it is possible to see that the set of laws cannot solve all issues. This is the superimposition of measures that guarantees efficiency. Technology has its assets thanks to digital imprint or to the control of flow related to artworks accessible in the “cloud”. Similarly, partnerships between distributors and aggregators are at the heart of the innovating systems: frameworks and content go together. These alliances can preserve reputations. The method used can also avoid legal risks and make possible the optimization of the management of license fees and a better distribution of artworks. Orange cooperates with DailyMotion and Deezer, Google works with Hachette, Facebook and Apple with the American studios; new alliances are an early sign of the emergence of a new ecosystem in which copyright could be respected and artworks exhibited in a better way? Everyone has its responsibility, designed as “accountability” by Americans and that the French language cannot translate without being ambiguous: the best distribution system to finance the best of creation, hand in hand.

In conclusion of the study: it is time to step in! Beyond common principles, all should now engage and stick to their engagements, so that the Internet remains attractive, because of the multiplicity of choices and cultural diversity granted to consumers.

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The way to cultural diversity

Forum d'Avignon 2011: Tax systems in favor of culture analyzed in 18 countries! By Ernst & Young

For the 2009 edition of the Forum d’Avignon, Ernst & Young realized a first comparative study on tax policies in favor of culture, in 14 countries. In 2010, a first update has been completed with analysis of the Greek and South African examples. In 2011, Australia and Turkey have been added to this international benchmark, now covering almost all of the G20 countries. 

In the 18 countries studied (South Africa, Germany, Australia, Brazil, Canada, China, South Korea, Spain, the USA, France, Greece, India, Italy, Japan, Mexico, the UK, Russia and Turkey), tax systems are used within the cultural sector to support creation. Cultural taxes are far from being an exception: they are the rule! The study acknowledges the systematic resort to incentives (reduced rates, tax credit, exemptions etc.) On the other hand, a major difference appears when talking about specific measures, that is to say the implementation or not of cultural taxes aiming at directly financing the sector: only 11 countries out of 18 are impacted, with France leading the way with 14 specific taxes, followed by Greece with 9 taxes, all other countries only offering one to three types of cultural taxes. The inventiveness in terms of taxes mainly relates to the audiovisual sector, notably in France (6 taxes out of 14).

The French exception can be a source of confusion when considering the readability of tax systems. But it above all indicates a massive support of culture in its wholeness. Other countries choose to have more specific types of support (e.g. video games in Canada or music in Germany).

Despite the diversity and inventiveness of tax measures, the study acknowledged that all countries give priority to cinema, to facilitate investments and locate shootings, as well as to the cultural heritage. Characteristics exist, related to specific policies in force in the various countries studied : South Africa mixes supports to culture and sport whereas China and India, because of their population and their size, support investments in rural area to foster the access to culture and the transformation of public cultural organizations into private players.

Apart from the UK, privileging cultural players (firms, physical persons and philanthropists) and investors, the study highlights different choices depending on the countries: Brazil and Spain mainly chose to support investors thanks to specific tax systems, whereas 11 other countries favor a fiscal policy in favor of cultural key players.

Cultural tax systems are impacted by austerity policies in western countries: for 3 years, the less advantageous tax systems in favor of philanthropy in the USA has led to an important decrease of the private financing of culture; in Italy, in Greece, in Spain – 3 European countries where public finances are rather weak, we can witness a significant drop of the state involvement.

In Europe, only France and Germany steadily support culture, in terms of direct public investment as much as by maintaining tax incentives. Among the emerging world-powers, some made of culture a clear priority: Russia, China and Turkey massively increase their public engagement for culture. Paradoxically, main players in the field of cinema and audiovisual, such as Brazil and India, reduced in 2011 their public support to culture.

Internet and the digital economy are still put aside, except in Canada. They actually remain taxed more to finance other cultural activities. The trend acknowledged in 2009 is confirmed: the new media are the poor sources of financing and the strong room to reallocate a part of their cash flows to media and culture.

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Back to the edition 2011 : Investing in culture

Continue the discussions and discover the interviews, columns, videos, and the first pictures of the Forum d'Avignon 2011... before seeing the debates in full on video and then, in 2012, in the Acts of the Forum d’Avignon with all the interventions and the drawings by JUL.

Every day articles, synthesis, columns are published on CULTURE IS FUTURE. Follow the Forum!

 

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