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 What is being consumed (output) What is perceived (outcome) Approach of happiness research concentrates on the perceived well-being of individuals.

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

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

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

Choice as an Indicator for Well-being Well-being through the availability of choice Sens 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

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

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

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

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)

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

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

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

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

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

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

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)