School of something FACULTY OF OTHER Institute of Communications Studies European cultural policy and the creative industries David Hesmondhalgh Professor of Media and Music Industries University of Leeds

The creative and cultural sectors are interconnected But concerns about relations between them are justified Creative Europe proposals: echoes of other recent policy initiatives internationally Institute of Communications Studies

Historical and economic context Massive growth of cultural industries in C20 High levels of concentration and integration; high risk, unpredictable demand Spatial concentration, uneven geographical development Arts subsidy developed to counter cultural-industry expansion Late C20 decline of basis for traditional cultural policy Institute of Communications Studies

Increasing use of arguments about economic impact of cultural policy Rapidity of growth exaggerated, but long-term steady growth of creative industries since 1980s Europe needs a creative industries policy Europe’s competitive advantage in this area Problem: downplays benefits of culture for human flourishing in favour of economic goals Institute of Communications Studies

Problems if distinctive dynamics of cultural/creative industries are not understood Demand side inequality: problems in audience access to benefits of culture might be downplayed The market does not solve access issues Supply side inequality: market and spatial concentration might be downplayed Creative industries as ‘the thin end of the wedge’ in bringing economic goals into cultural policy? Institute of Communications Studies

Problems of implementation Merger of Culture and MEDIA desks needs attention to differences between commercial and non-profit sectors Institute of Communications Studies

Systematic problems of markets in cultural and media sectors Markets can be effective but often fail in cultural/creative sector: Imperfect information among consumers Tendency of cultural goods to operate as public goods High ratio of fixed to marginal costs creates winner take all markets Institute of Communications Studies

Two further points How sustainable are creative-industry jobs? Loan guarantees: creation of intermediaries, subsidy to banking sector? Summary: joint framework structure MAY be welcome, but non-profit and small institutions need protecting Institute of Communications Studies