Llibre blanc sintesi angles

Handbook on the Cultural Industries of Catalonia

SUMMARY AND CONCLUSIONS

Barcelona, October 2002

PROLOGUE Throughout its history, in the area of culture, Catalonia has had and continues to have a most valuable asset: creativity. In every area of culture, from literature to music, from the visual arts to the performing arts, Catalan creators have been recognized on an international level.

And it is upon the very creativity of these artists that their own corresponding cultural industries have formed.

It is also thanks to creativity that a language becomes prestigious and normalized. Culture also means economic development. A culture needs to be backed by a strong business framework, especially in the industries where more investment and technical support are required.

It is necessary to reinforce the industrial backbone, starting with the record industry, the theater community, and the multimedia and audiovisual sectors, with special attention given to film co-productions and the media.

The creation of the Catalan Institute for the Cultural Industries has been an important step, along with various public and private authorities within the different cultural industries, in articulating the means necessary to reinforce this industrial framework. Dialog, new formulas for funding, new aid given to exporting cultural products, and a guaranteed presence in the domestic market, are all necessary to accomplish this task.

To rise to the challenges of the future with enthusiasm and competency, both in general and specifically in the sector of the cultural industries, the ICIC –in agreement with its second additional function, as established by law—holds the responsibility of creating this Handbook on the Cultural Industries of Catalonia.

The study undoubtedly proposes an innovative and visionary outlook, a positive one that will help unite the cultural industries in the 21st century, clearly paving the way for a Catalan cultural sector of prestige, quality, and international projection.

I would like to especially thank the University of Barcelona, the team of experts consulted, and, above all, the group of collaborators as a whole, including both civilians and public administration officials, since their invaluable contributions have made possible this Handbook on the Cultural Industries of Catalonia.

Jordi Vilajoana Minister of Culture

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INDEX INTRODUCTION

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1. ANALYSES BY INDUSTRY

5

A. Film and Television

5

B. Media

7

C. Publishing

9

D. Music

11

E. Performing Arts

13

F. Visual Arts

15

G. New Multimedia Arts

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2. CROSS-ANALYSIS

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A. Commercialization and Foreign Promotion B. Competition, Alliances and Business Concentration

18 21

C. Professional Training and Job Placement D. Investment and Financing E. Territorial Structure

24 26 28

F. Impact of New Technology G. Audience Development H. Catalan Language in Cultural Products and Industries

30 32 34

3. GENERAL ANALYSIS

37

4. OPPORTUNITIES AND THREATS IN PERSPECTIVE

40

5. LESSONS LEARNED FROM FOREIGN EXPERIENCE

41

6. PROPOSALS FOR INTERVENTION

44

A. Strategic Goals to Attain B. Recommendations Made to Governmental Institutions

44 46

7. EPILOGUE

49

8. CONTRIBUTORS

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INTRODUCTION In December of 2000, the Parliament of Catalonia approved the creation of the Catalan Institute for the Cultural Industries (ICIC) that, with the collective support of the professionals involved, has the goal of stimulating the development of business and industry in Catalonia in the areas of cultural production, distribution, and promotion. The same law calls for the creation of a Handbook to complete an extensive analysis and suggest methods of government intervention in this area. This is the task that the ICIC assigned to a team of renowned experts at numerous universities and specialized consultants to carry out during 2001 under the direction of Dr. LluĂ­s Bonet of the University of Barcelona. For one year, an analysis of various industries in the cultural sector and a general study of the common challenges facing participating subjects have been carried out, with the objective of understanding their strategic positioning within the market.

This analysis of the domestic situation has been complemented by an exercise comparing the experiences of foreign nations in the area of culture.

The Handbook departs from a concept of the cultural industries that encompasses the whole of creative activities tied to a mercantile structure of cultural production and distribution. Therefore, this study centers on an analysis of film and television, multimedia arts, the means of communication, publishing, music, stage productions, and visual arts.

These last few industries, with more craftsmanship in their production processes, are those that are especially challenged by the goal of building a business framework in Catalonia in all of the cultural industries, so as to connect local art with international networks and increase the consumption of culture.

In this summary, the main conclusions of the industry-specific and general analyses conducted are brought together, as well as an evaluation of the strengths, weaknesses, opportunities, and threats that affect the Catalan cultural industries as a whole. The document concludes with a proposal of strategic and operational objectives to implement in the coming years, as well as a set of recommendations made to the various levels of government, partly responsible for the growth of a solid and competitive cultural sector.

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1. ANALYSIS BY INDUSTRY

A. Film and television The film and television industry is characterized, on the one hand, by the market’s growing variety of contents and formats, as well as the progressive diversification of the channels of distribution of audiovisual programs.

On the other, the Catalan audiovisual industry shares in Europe’s experience of an American-dominated industry, blended with governmental intervention and support to the industry.

Despite the existent interdependent structure and the fact that many businesses operate simultaneously in various sectors, the situation of the industry presents different characteristics and challenges for film and television production, wholesale distribution, film exhibition, video and DVD retail sales, a nd television broadcasting.

Catalan film activity, with a considerable average production of 19 fulllength films per year, meanwhile has a very small worldwide share (an average of 1.28% of the market) and a very irregular distribution (in 2002, some films had 250 copies released while others had hardly any). Its main challenge, therefore, is to improve the promotion and commercial success of its projects, both within the domestic market as well as throughout Spain and the rest of the world. Regarding productions funded primarily by federal grants, extending to more than two thirds of those made in Spain, mid- and large-sized Catalan production companies with good relations with the television or distribution sectors or with a strong integration in the main business groups in culture and communication, are lacking. It must be added, however, that a noticeable increase in production and marketing budgets, casting centered around better-known actors, improvements in professional training, and institutional support on a more integrated level, all contributed to a heavier involvement of large groups such as Lauren, Filmax, or Media Pro, in film productions. This allows for a more optimistic view of the future, along with the recent incorporation of various editorial groups in the area of film and television production.

For its part, television production vacillates between programs produced by public television networks and independent productions. The latter, by way of agreements of various types (associate productions, co-productions, etc.), has an emerging role in the European television market. In Catalonia, independent production companies have an increasing importance, having reached 25.1% of programs and 21.1% of the airtime devoted to independent productions in all of Spain during 2000-2001. Around 60% of companies work exclusively for Televisió de Catalunya, the driving force in Catalan television, but the most dynamic, such as Cromosoma, El Terrat, Diagonal TV, or especially Gestmusic Endemol, work not only for other networks in the region but also for state-run networks. Catalan productions in the aforementioned year specialized in cartoons, informative documentaries, games and contests, news magazine programs, comedy presentations, and late-night talk shows. In contrast, fictional series and

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other series with a considerable following in Catalonia do not have the same success in proportion to the overall volume of productions from Spain.

In this way, government action to strengthen the role of Televisió de Catalunya, agreements made between the main producer associations, and the creation of the Catalan Institute for Cultural Industries, are all of great importance. These measures are complemented by the television and film industry policies of the Spanish government and by the European Commission.

Unlike the production sector, the distribution of film and television has a high concentration of business involvement. Thus, it is becoming more common for branches of major American distributors in the film, video, and television markets to delegate marketing activity to these companies. In this context, some Catalan companies in distribution or in television programming have experienced a significant growth in the last few years.

As with other European films, the exhibition of Catalan films in the last decade has benefited from great investment made by operators with a general strategy for the Spanish market as a whole, centered on the densest urban areas. The increase in movie theaters has had a positive repercussion in the totals of viewers registered (around 24% of the Spanish population), despite the low numbers of viewers among inhabitants living in more rural inland areas. For its part, video stores, usually quite fragmented in business terms, have remained stable and seen their sales rise.

During 1994-2001, the average share of film exhibition in Catalonia held by Catalan film productions amounted to merely 1.28%, much less than that of countries similar in population size such as Denmark, Finland, Norway, or the Quebec region in Canada. One must keep in mind that Spanish films represent an average of only 12.18% of total film revenue in Spain. Also, viewers of movies shown in Catalan, reflecting the small supply in this language, represent only 2.5% of the total number of viewers.

In light of this situation and given the strategic role of film and television as a key industry for the survival of a nation’s own cultural identity, the main objectives for Catalonia are as follows: ?? Public funding to the industry must be increased, with financial mechanisms that favor the reinvestment of grants received so as promote risk assumption by the industry itself, and a greater involvement and commitment on behalf of private donors must be pursued. ?? The decision to locate study programs, parallel business activities, professionals, and training centers in the metropolitan Barcelona area brings with it clear mass economies, which must be complemented by a pro-active position to help integrate Catalan companies into larger-sized groups and make them more competitive in foreign markets.

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?? Businesses in the industry themselves, the government, and public television networks must augment the international projection of Catalan film and television by fostering co-productions and supporting Catalan representation at major conventions and international tradeshows. This worldwide projection must be complemented by the attraction of foreign producers to film and invest in Catalonia, since it not only improves the image of Catalonia but also helps spark parallel domestic industries. ?? Publicity and marketing strategies encouraging potential audiences to view films in movie theaters must be emphasized, since this activity is essential for future revenue from posterior distribution channels (video and television). ?? The leadership and specialization of certain businesses in areas such as animation must be taken advantage of in order to increase Catalan penetration in the Spanish and international markets. ?? The state-run Televisión Española (TVE), particularly its production studios in the Catalan town of Sant Cugat, must understand and accept its responsibility, as a public network, in the development of Catalonia’s audiovisual industry.

B. Media Businesses and institutions in the creation, production, and commercialization of the means of communication are increasingly diversifying their range of activity in such a way that it becomes difficult to classify them into traditional fields (press, radio, and television).

Companies dedicated to only one industry or format still exist, of course, but a new strategy for approaching the analysis of the structure of social communication is undoubtedly needed. On the one hand, businesses are becoming more and more specialize d.

On the other, a complex and changing pattern of relationships is being formed by both the classic players (editors and radio and television programmers) and new ones (holders and managers of transmission rights, content producers, advertisers for new television formats, etc.). The media is progressively turning into a true system of communication in which all elements are clearly interdependent and centered around television, due to its ability to capture the bulk of marketing investments and gradually attract audiences that could in turn reduce their use of other means.

Catalan media groups are slowly moving into the Spanish communications market, both in the overall share gained and in the increased presence of businesses in media activities in Catalonia. However, Catalan participation in forming Spanish communications giants has not yet materialized and is desperately lacking.

Moreover, local communications networks are currently being taken over by larger groups, perhaps more evident in radio and television than in the press, where the dynamism and cooperation of

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various local businesses have been able to maintain a sizable portion of the market.

In a similar fashion, while multimedia business groups are taking shape, they are gradually diversifying more traditional communications activities and moving towards the digital press (Internet). This is contrasted by too little diversification taking place in other cultural industries (publishing, music, and film production), and in the field of new television formats (cable, satellite, and broadband). This phenomenon could explain why use of the various means of communication do not share overlapping production processes, whereas promotional efforts are more frequently divided among multimedia groups as a whole. By comparison, synergy is much more common strategy among Spanish business groups.

Also deserving of attention is the stability or slight reduction in the consumption of the conventional means of communication. Nevertheless, this does not recover revenue, especially for the traditional formats: paid press, radio for the masses, and free television. As for formats that have appeared more recently, such as free press, the public has shown signs of fast acceptance, despite that statistics indicate only a moderate level of consumption at the moment. This situation foreshadows a new business structure, based a fragmented consumption due to the diversification of services offered.

Finally, the difficulties that businesses have experienced in coping with the current crisis in revenue generated from advertising, one of the media’s essential sources of finances.

The consequences include a slower implementation of business projects and a reduction in overall costs (personnel, design, programs, etc.). Even though it has more greatly affected the communications giants of the Spanish market, Catalan companies in general or local press that had planned to begin diversifying have had to tackle these problems first, given that the written press still is the base of their business.

Facing this situation, the main challenges to overcome are the following: ?? An adequate range of media services must be offered to an emerging audience that steers away from conventional means (written press, radio, and television for the masses). It is necessary to adapt the general structure of the communications system to new audiences, so that their basic functions (quality information, pluralism, diversity, social integration, programs of general interest, etc.) are guaranteed. ?? The feasibility of new media formats (digital television through cable, broadband, or satellite, digital radio, and electronic press) must be ensured, as these must support the services sector of the future and their construction is foreseen to be expensive and long. The inevitable transition to digital technology may force many businesses to reinvent themselves.

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?? The maintenance of a sufficient number, diverse and plural, of means geared towards the local and Catalan communications systems constitutes a major obstacle, given the progressive concentration of business in the Spanish-speaking market and the Catalan media’s dependency on this market for revenue from advertising. ?? An independent communications authority is needed to competently intervene in any number of issues affecting the entire industry, not just television, given the formation of various multimedia groups. ?? Communication policies should not be based exclusively on economic criteria or on gradual liberalization but instead take advantage of the opportunities that technology offers and the private capital interests in controlling the means. A public policy is needed for structuring the industry by way of subsidies, quotas, tax breaks, and anti-trust controls, with special emphasis placed on the relationship between editorsprogrammers and content providers.

C. Publishing The publishing industry is made up of a densely woven network of businesses, divided into three main sectors: publication, wholesale distribution, and retail sales, and in addition to a side industry involving graphic arts, which spends 10-15% of its activity on the publishing sector.

Editorial production represents 80% of the total added value generated by the industry.

Catalonia leads total Spanish editorial production, with 57% of sales coming from the domestic market. The number of titles published by Catalan publishing houses has grown from 21,639 in 1997 to 25,467 in 2000, which represents an increase of 17.7%; however, revenue totals have leveled off.

Publications in Catalan, with 7.795 titles published in 2000, represents 30.6% of the titles published in Catalonia but only 14.2% of the Catalan publishing industry’s revenue, due to the fact that their circulation is much smaller. The relatively strong figures Catalan-language publications can be explained, to a large extent, by the importance of the Spanish-language publishing industry in Catalonia.

The large presence of multinational corporations in publishing has clearly positive consequences for the positioning of Catalonia within international markets. These comprise large business networks that internalize and externalize different phases of the production and marketing processes of their products, generating significant economies of scale. Of the 250 unionmember publishers, many of which form part of large publishing houses, 14 exceed 18 million euros in revenue and together represent more than 70% of total sales. The corporate structure of the industry is led by Grup Planeta, the most important publishing house in Spain, followed by the businesses of the groups Bertelsmann, Hachette, and OcĂŠano. Regarding

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publications in Catalan, the groups Edicions 62 and Enciclopèdia Catalan are industry leaders.

Catalan publishing activity focuses on fictional literature, how-to manuals, general interest books, dictionaries, encyclopedias, and comics.

Of all of these genres, encyclopedia series represent the sector with the most problematic or uncertain future. Its disproportional weight in the overall revenue for the industry in Catalonia, its status as one of the most mature sectors, and its possible extinction thanks to the advancement of digital technology, all contribute to this danger.

The Catalan publishing industry constitutes one of the most dynamic ones, with the longest history of exporting from the country. It corresponds to 50% of all Spanish exports, headed primarily to Latin America and the rest of the European Union. However, its growth rate is proportionally smaller than throughout the rest of Spain.

Retail sales of books are associated with a certain category of establishments quite diverse in their structure and characteristics, depending on their quantity and selection of titles, location, storefront conditions, reliability, time spent in filling orders, customer service, public image, and stock of other articles for leisure and enjoyment. Publishers have looked into diversifying their channels of distribution and researching new markets. However, recently the trend has been increased or steady sales to bookstore chains and large-scale retailers specializing in arts and entertainment (El Corte InglĂŠs, Crisol, FNAC, Casa del Llibre, and Abacus), at the expense of sales on credit and kiosks. In this context, the ability of numerous independent booksellers to specialize and offer quality services stands out. The Internet, for its part, does not amount to any substantial revenue for the industry at the moment.

Given the importance of publishing houses in the Catalan cultural industries as a whole, the main focus for publishing consists of the following: ?? The industry must fully take advantage of business aspects including its financial potential and the experience of major publishing houses in exporting overseas, as well as contacts with financial intermediaries and with key players in foreign markets. It must aspire to an international presence greater in size than that of all Catalan cultural industries combined. ?? Distribution must overcome two major obstacles: minimizing the effect of returned goods and acquiring a heavier business concentration to correct the elevated level of liquidation, which allows it to increase profitability and create greater economies of scale in the services sector (transportation and data processing, among others). ?? The possibility of a growing deregulation of the book market in Spain represents problems that are difficult to evaluate and that must be

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studied in greater detail.

It is especially necessary to examine: copyright issues in digital marketplaces, the repercussions of the removal of fixed prices on the livelihood of independent bookstores, Catalan language editions, product diversity, and the possibility of turning around plummeting sales through price reductions. ?? Strategies for developing new audiences and promoting reading, specifically to youth and their parents and teachers as formative influences in the reading habits of children, must be defined in response to a stagnant book market. ?? In this sense, it is necessary to further elaborate a reading campaign on a nation-wide scale, with a strong cooperation between the public library system and schools. At the same time, the media must be supported and given the responsibility that they should assume in promoting books and other publications, as well as raising the prestige associated with reading as a cultural habit.

D. Music To offer a complete analysis of the situation of the music industry in Catalonia, one must first distinguish between live performance and the recording industry, despite the logical interdependency between these two worlds, and between commercial activity and non-profit or publicly funded musical activity. In general, it can be said that the vitality of the Catalan music industry is the result of relatively successful individual initiatives and the combination of circumstances affecting the industry throughout the Western world, rather than a united Catalan market.

The Catalan record industry represents the largest weakness. Although some record labels may once have achieved a medium level of success, these account for only a small portion of the market. On another note, there is the lack of a competent distribution channel of its own that could serve as a point of reference and communications system for Catalonia (star system included).

The heavy concentration of subsidiaries of major multinational record labels in Madrid forces the Catalan record industry to make strategic decisions that veer far from its creative potential and to depend on the demand from its own local market. This level of demand must not to be underestimated, as it accounts for more than 20% of the Spanish market.

Nevertheless, although certain major corporations undeniably support Catalan performers and musical groups on occasion, the economic logics dominating the industry are tied to a markedly oligopolybased, transnational system.

Considering the dimensions of the local market, this system logically makes its decisions based on the worldwide potential of the Spanish or Spanish-speaking market and media. Given the structure of the record industry, it is evident that multinationals to a great extent have a hand in the production, distribution, and marketing of successful local products.

Once again, the creative talent thriving in Catalonia is not translated in terms of a sufficiently developed local industrial network.

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This local industry analysis must not overlook the slowing of revenue and the financial crisis on a global scale, stemming from the changes in consumer habits and the troubling growth of piracy generated by new technology. This has created a crisis in the traditional structure of the record industry and obliges it to focus on its role as an intermediary and as a scout for new talent. As for small and mid-sized record labels, technology and mergers or alliances among multinationals pose both a threat and an opportunity that require a response.

In contrast, the field of live music enjoys a much better status, both in terms of supply and demand. From the beginning, despite geographical imbalances and a little-structured business aspect, the range of musical performances available to the public is wider and more diverse, as much from a creative standpoint as from a programming one. This explains the growth and diversification of demand in the last fifteen years. In addition, Barcelona attracts musicians from around the world and has become a point of reference for the world in certain types of modern music, especially in electronic music. The position taken by the Catalan and local governments to promote certain performances or festivals with pretenses and functions as different as the Vic Live Music Festival or the electronica-based Sonar Festival demonstrate that the public sector can play a key, although subordinate, role in the promotion of private musical initiatives. Finally, one must wait for the government’s efforts to support music education (both in compulsory education and municipal music schools) and the tireless work of certain private entities to materialize in terms of higher demand, increased musical practices on behalf of the public, and the next generation of professional, top-quality musicians.

In this context, to push forward a powerful private music industry in Catalonia, the following must be considered: ?? A powerful Catalan musical force (programmers, promoters, and managers) must be supported with training and new financial tools, helping convert creative talent into a viable product within the market. ?? Places for meeting and conversing must be provided to players in the live music and record industries, facilitating collaboration on common strategies and products. ?? Greater cooperation with other cultural industries must be pursued to increase the presence of Catalan musicians and music in the means of communication and in stage productions, publications, audiovisuals, and multimedia. ?? Solid networks of musical production, distribution, and advertising throughout the Catalan territory must be created and integrated, in cooperation with music schools and local governments, along the lines of

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the new Catalan Network of Pop/Rock Clubs or the Echo Circuit of Catalonia. ?? Small businesses research on rare audiences, taking corporations and Internet.

in the industry must further develop specialized musical phenomena, regarding both creators and advantage of the lack of agility of multinational the self-promotion opportunities offered by the

E. Performing Arts The world of stage performance encompasses many diverse disciplines, increasingly interrelated in their management, ranging from dance and theater to circuses, musicals, and puppet shows. The daily work of stage performers makes this industry one with a high level of human craftsmanship and, consequently, high operational costs, often requiring significant government subsidies, especially to guarantee its continued presence beyond big cities or productions of a certain scope and quality.

The investment mentality of the public administration has allowed for the renovation or creation of a significant number of performance halls, sufficient for presenting professional performances in all mid- to denselypopulated areas of Catalonia. This improvement in infrastructures has been accompanied, in the majority of cases, by policies for more stable programming, integrated efforts to promote distribution beyond the local market, the creation of a large convention for presenting new proposals, as well as grants for producing new shows and for training industry professionals. This government investment has been compensated by an increase in stage productions and an increased involvement of the private business community in the areas of performance, production, and distribution of programs. Companies in the production and distribution of programs (like Focus, Bitó, Vània, DeGira, and Fila 7) work with longrunning ensembles (els Comediants, Dagoll Dagom, and La Fura dels Baus), which have become solid companies with parallel interests in the industry.

In regards to performance, ADETCA categorizes the interests of the vast majority of the private sector, which in Barcelona corresponds to nearly 70% of audiences.

Professional performances available in Catalonia have grown significantly in recent years, securing a position as the primary center of independent production in Spain. However, this increase has an inconsistent rhythm according to the year and genre in the number of performance halls, performances, and new productions presented.

Around 80 different performing groups or companies annually offer 125 different productions (70 newly created), which correspond to approximately 9,400 performances. Nonetheless, this level of activity is not consistent across all genres. For example, dance, a sector with great international prestige but a small local following, has witnessed a slowing of its activity to around 80 new productions per year, each one being performed an average of ten times.

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Generally speaking, in Catalonia the general public’s response has been positive but has oscillated from one year to the next and has not grown as much as the number of performances offered. The total number of patrons reaches about 2.7 million annually and provides about 40 million euros in ticket revenue, with the middle class representing the bulk of the audience.

Theaters fill about half of their estimated total number of seats, with private and alternative theaters being the most affected by the discrepancy between supply and demand.

The largest difficulties facing Catalan stage productions are the following: ?? Strategies of public-private cooperation that solidify business involvement must be defined, allowing for the development of nondiscriminatory price and ticket policies, incentives for attracting audiences, efforts to reduce VAT taxation on stage productions, and alternative financial resources (capital risk funds, business sponsorship, endorsement for credit, etc.). ?? Public and private strategies of collaboration among theaters, and between theaters and companies within the industry, must be coordinated, with the objective of consolidating lines of co-production and shared programming. ?? The possibility of regular seasonal programming outside the city of Barcelona can be explored through setting up agreements and joint strategies among certain theaters, companies, and businesses in the industry. ?? Common strategies for increasing demand starts with schools and continues with the extra efforts of the media to advertise and promote, the increase in exchanges and tours of productions, the improvement in the management and marketing of products, and the creation of positive experiences with stage productions for potential spectators. ?? Professional ties between Catalan stage production companies and initiatives in the entertainment industry (theme parks, film and television programs, large-scale events, etc.) can help reinforce the industry, its revenue, competitiveness, and experience, at a time in which the penetration of foreign capital and globalization are changing existing traditional relationships. ?? Foreign projection of proposals, productions, and professionals from Catalonia must take full advantage of their tradition and accomplishments, as well as the cutting-edge reputation of certain companies.

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F. Visual Arts The visual arts industry is structured around the interrelationships of various players that together form a loose network: artists, galleries, dealers, exhibition centers, museums of contemporary art, collectors, critics, curators, the media, public administration, cultural foundations dependent on the private business community, providers of medium/media and services, etc. Because of the positions taken by different players according to their own aesthetic tastes, several groups are united in their opposition to a more traditional view of art favoring a definition more appropriate for art of the 21st century. This goes back to the ongoing battle throughout history between classical and modern that at times forces a definition of one’s identity based on inclusion or exclusion. Moreover, past techniques have traditionally distinguished the fine arts from the applied arts, a dichotomy currently fused together by a whole series of new art forms of a more informal nature, tied to new technology and to the world of stage productions, such as performance art, multimedia, or installations.

These new forms of expression play a role in the commercialization process, but at the same time they bring the creator of visual art closer to the rest of the cultural industries.

Catalonia has a significant number of art galleries specialized in the most current aesthetic tastes. Although the city of Barcelona is home to 57% of Catalan galleries, these have a much more decentralized model in their location than those throughout the rest of Spain. Galleries in Catalonia have a larger presence in mid-sized cities because of a long artistic tradition there, a School of Art nearby, or a strong local tourism industry. However, it must be noted that many of the large cities in the metropolitan Barcelona area do not house any private galleries whatsoever.

On another note, in recent years, local governments in Catalonia have made a large investment in new museum and exhibition infrastructures. If the rather reasonable Law on Intellectual Property and the institutions regulating copyrights, acting with the necessary authority and respect, are included, the context favoring industry development does exist. However, at a time in which the main public buyer in Spain is the Reina Sofia Art Center and private collecting is handled by large foundations and multinational corporations, many of which are based in Madrid, Catalan galleries find themselves geographically challenged in order to grow.

Moreover, the differences between domestic gallery owners make it difficult to define a unified strategy for creating events on an international level, which would bring a decisively stronger support to the sector from the public administration. Finally, another problem is that collections are too heavily focused on the 19th and 20th centuries in comparison to other European countries.

In order to promote a stronger and more dynamic visual arts industry, the following recommendations, among others, are proposed:

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?? Special attention must be given to supporting artist workshops, turning Catalonia into an engine for the visual arts, taking advantage of its reputation of having produced numerous renowned artists and received many foreign artists to live and work, as well as the international image of Barcelona. ?? The visual arts industry must strive for an artistic showing of prestige and internationalism, serving as a platform for presenting quality artists and galleries, complementing the collections of museums of contemporary art, and establishing a dialog with the proposed Capital of the Visual Arts. ?? The presence of the visual arts in the educational curriculum of schools needs to be reinforced, and the quality and educational content of museum visits improved, as providing today’s youth with a positive art experience is the best guarantee for creating future art collectors and audiences. ?? To introduce visual works to non-experts in such a way that the use of different types of language facilitates greater experimentation, communication, and learning. The singular nature of the product has the tendency to limit art collecting to people with a high acquisition potential, plus the level of abstraction in the presentation of many exhibits becomes a barrier to widening public accessibility. This fact, understandable for certain specialized projects, must be overcome for the vast majority of exhibits financed by public resources. ?? Beyond the necessary support of pubic administrations to art education and promotion, it is necessary to increase support to the creation and foreign promotion of works by lesser-known artists.

E. New Multimedia Art Multimedia creation is included in the context of different traditional cultural industries, which makes it difficult to speak of a separate cultural industry of its own. In fact, the emergence of new art forms in the area of multimedia stems from the possibilities for digitalization and interactivity that new electronic information technology supports. Therefore, in this way, multimedia makes new means and products available to the production process of various cultural goods and services, as well as new forms of distribution and consumption for old and new products.

Fundamentally, it deals with a “re-manufacturing� of the information content of traditional cultural industries into multimedia productions, although it of course also gives way to new forms of expression.

Digital technology comes into contact with cultural activity on three levels: assistant, when it assists the creator but does necessarily result in a digital final product; intermediary, when digital channels are necessary to access the final product or information; and generator, when digital technology 16

generates the final product, served and provided by computers and other digital means.

From an economic perspective, one of the main transformations brought about by the development of digital technology in the cultural industries is the multiplication of possible versions of a product. Traditionally, the number and modality of versions have been determined primarily by the considerations of opportunity, cost, or calendar. New technology simplifies this but also makes the process more complicated and expensive by multiplying the options. Among the enormous variety of possibilities is, for example, the opportunity to provide a more personalized access to information, to facilitate a time-limited usage (convenience), to offer a product in an extended market, or to make its manipulation or interaction with it possible. Technology also offers the possibility to share product information with a community and to establish different levels of speed in accessing and processing of data with automated language translation systems, among others.

The emergence of the digital technology paradigm creates new uncertainties and difficulties in the relationships between the traditional and new models of production and between the inherited and newly created forms of cultural expression. A transformation of this scope requires major adjustments to be made on various levels: education, finance, industrial relations, public policy, etc. Facing this challenge, Catalonia’s answer can only be either to adapt (taking advantage of only the new opportunities offered by this technical change) or to truly innovate (opening itself to the fundamental changes produced by this new techno-economic paradigm).

The digital revolution brings with it the challenge presented by the ability to vary the content of different products. As rarely are all of the production needs for each of the different “versions” covered at once, the major industrial groups tend to create business subsidiaries for producing just one specialized form: for example, Grup Planeta (with Planeta Act media, Multimedia Editions, Planeta-UOC, Factoría de Contenidos, and Estubroker), Grup Enciclopèdia Catalana (with Interedi, Ensenyament Obert, and Aula de Formació Directa), and CCRTV (TVC Multimèdia), etc. In the case of small and mid-sized companies, the cooperation and alliances between producers in different sectors of the cultural industries is a key factor for development.

Therefore, some of the main objectives in the coming years for the field of multimedia production are: ?? The position of entering a new industry implies opportunity as it grows and expands, as compared with other more mature business sectors, where entering from a marginal position can be difficult. Catalonia must acquire the vision needed for securing a cutting-edge position in the use of interactive digital multimedia, made possible thanks to the talent of certain creators, investigators, and innovators.

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?? Busine sses must answer the challenge presented by the possible coexistence of the same content in both analog and digital versions, or in one or various versions at the same time, since the costs of production and technological acquisition could skyrocket. Multimedia products must offer an added value to the information in analog or in the simplest form, setting themselves apart by offering some commodity or incentive to consumers inexistent in the traditional version of the cultural product. ?? Multimedia implies the formation of new professional profiles and new ways of working. This technical and cognitive change means that new professions will take shape, artists and creators acquire will new skills, and new ways of organizing the work of cultural creation and production require multidisciplinary teams. ?? The weakness and fragmentation of the institutional and business framework of the multimedia sector in Catalonia must be corrected and the interactivity among its components improved, by raising the quality and quantity of connections and relationships. The development of multimedia production must be facilitated by a densely knit research infrastructure, a highly skilled workforce, and an innovative and entrepreneurial attitude. ?? The elevated level of technical expertise that these activities require initially assumes a major economic risk. As a consequence, a risk-taking approach is necessary that provides financial resources under these conditions, as well as the appropriate legal and fiscal instruments. On another note, relationships between cultural activities and technology must be smooth, both on a work and business level as on a public policy level. ?? Multimedia constitutes a new sphere of public intervention that requires specific budgetary resources and policies that are flexible and appropriate to the particularities of the activities (resulting from the high cost, complexity, and uncertainty that characterize them).

2. CROSS-ANALYSIS A. Commercialization and Foreign Promotion In the area of culture, the commercialization strategies for the product depend fundamentally on two factors: the particular economic nature of the cultural production and distribution processes, and the type of marketing campaign chosen.

Regarding the first factor, the industries built more on craftsmanship (visual and performing arts) see their potential market restricted by technologically limited methods of increasing their audience (selling a unique prototype or a

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its repeated reproduction). The more industrially oriented industries (film and television, publishing, media, recording industry, etc.) can mechanically reproduce their prototypes unlimitedly and enjoy a wide array of potential markets with growing possibilities of dissemination. However, as new technologies lower the marginal cost of reproduction, bringing within the reach of the average citizen the opportunity of making homemade copies, piracy is spreading even faster among those products that allocate more resources in promotion and advertising.

The second factor, less vital and partly ideological in nature, makes marketing strategies vary between: a vision strictly oriented towards the market starting with the needs of the customer, upon which the product is defined; and a perspective focused on the product, around which potential customers are sought. In the area of culture, and in contrast to the dominating tendency in other economic sectors, the second option predominates over the first (although this is not always true and hybrid strategies exist), as the added value is determined almost entirely by creative contribution. In this case, the company deals with identifying which part of the market could be potentially interested in its product and, based on this criteria, decides on a commercialization strategy (price, distribution, and advertising). The economic feasibility of this strategy depends on the accuracy in identifying the “attributes” of cultural products and in identifying and approaching customers that could have a need for them.

Price policy, of utmost importance in the vast majority of conventional marketing strategies, has a relative effectiveness in stimulating cultural demand. In many industries, a large portion of consumers can be relatively unresponsive to variations in price, provided that they fall within an interval acceptable for the recognition or prestige of the product. Nevertheless, certain demographic groups that are quite sensitive to price (students or senior citizens, for example) are the target of differential price policies. In addition, the design of new product variations can be better visualized with graduated prices.

Along these lines, strategies such as discounts for determined groups, season subscription benefits to secure customer fidelity, product innovation in different formats and prices (for example, books with high-quality binding versus paperback editions), or special offers during periods of less demand, are producing quite good results.

Another key instrument for the successful commercialization of a cultural industry is distribution. This goes beyond an efficient logistics structure (despite its great importance) to encompass intermediation, management of market-network relationships, and location of product supply. Control of the channels of distribution has influenced and still influences a company’s share of the market and of domestic production.

The fact that intermediaries tend to increasingly fall into the hands of large business groups in a centralized geographic location does not benefit a cultural industry such as Catalonia’s with few large businesses and a rather decentralized spatial arrangement.

For this reason, strategies for organizing intermediary networks on a local and European level must be

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reinforced, as well as the structure of alterna tive producers and vendors in Catalonia.

Advertising is fundamental for maximizing the marketing results of a cultural product.

This encompasses publicity, direct marketing, sales promotion (corporate trademarks and merchandising), and public relations.

The performance of these functions has a growing importance for the viability of a product, which explains the need to allocate even more resources towards them.

Without underestimating the importance of logistics and distribution, the principal challenge currently consists of grabbing the attention of the public, given the information overload to which society is exposed.

Regarding external projection, the territorial divisions of the Catalan cultural industries’ potential market include, on a basic level, where Catalan is spoken (despite of the weakness of its communications infrastructure), and on the next level, the Spanish market.

Spain usually represents a significant share of external demand, as well as a point of entry into other foreign markets. However, in an increasingly globalized world, Catalonia’s primary ambition must be the world marketplace, with Europe and Latin America in first place, followed by countries in the Mediterranean rim, and then the rest of the world.

In order to improve public and private strategies for the domestic commercialization and foreign projection of Catalan cultural production, the following basic issues must be addressed: ?? Marketing strategies must be improved and business resources dedicated more to the promotion and commercialization of cultural production. ?? The marketing strategies of the main cultural intermediaries (distributors and television networks) must remain the focus, since they often possess the key to accessing the market (and, in the case of the film and television industry, they can even decide the feasibility of the production process). ?? The structural strategies for the intermediary networks on the Spanish and European levels must be reinforced, utilizing the prestige, location, and size of the Catalan market as tools for promotion. ?? The inconvenient isolation of the Catalan cultural businesses from the main Spanish media groups, leaders of opinion, and directors of major businesses located in Madrid, can be overcome by organizing public events and using communication services in this city in Catalonia’s favor. ?? Economic resources must be sufficiently allocated towards pursuing a more effective course of action in Catalan cultural promotion overseas,

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along with formulas for cooperation with the various public institutions responsible for implementing these policies (the Institut Ramon Llull, the COPEC and COPCA, the Instituto Cervantes, the ICEX and AECI, as well as various centers promoting tourism). ?? Gaps or deficiencies in the current tools for foreign promotion must be carefully identified in order to fully adapt them towards the needs of Catalan cultural businesses. For example, it is necessary to increase activity overseas by linguistic-cultural blocks (not just according to country boundaries), or to associate the trademarks “Catalonia” or “Barcelona” with certain artistic categories or trends, in tune with the dominant tendencies in each one of the cultural markets of reference. ?? A certain de-concentration of the functions of foreign promotion is proposed to involve the whole of industry subdivisions and the rest of public administrations in the coordinated effort of international projection. This is especially relevant when establishing formulas for regular cultural exchange (bi-directional or multidirectional), organizing promotional conventions and expos, and allocating financial resources towards co-production or other forms of exchange and cooperation.

B. Competition, Business Concentration, and Cross-Business Alliances The competitiveness of the cultural industries of Catalonia can be measured on two levels.

First, by the ability of different cultural producers to stimulate outside demand and to adapt and improve their competitive position within the respective markets, on a domestic, national, or international scale. In this sense, one of the main indicators of reference is the evolution of the share of the market for each business, and of the whole of one sector in relation to other sectors, and in relation to external markets for the same area of specialization.

On the other hand, it makes more sense to measure the competitiveness of Catalonia as compared to other territories within the environment on the criteria of attracting the operations of economic, business, and professional activities of foreign cultures. Along these lines, the exponentially positive economic effect achieved places it on a level comparable to other territories.

The brut value added to market prices in cultural and leisure industries in Catalonia grew at a rate of 15.5% annually during the 1993-1997 period, but its relative weight within Spain declined from 32.9% to 25.8% during the same period. This loss, less significant when considering the number of salaried employees, corresponds to a centralization of large businesses in culture and leisure (the ones with the highest productivity and added value) in the country’s capital.

This situation affects the cultural system’s structure as much as the economic one. On the one hand, this inferior development of Catalan cultural industries as compared with those based in Madrid represents a

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major difficulty for positioning Catalan cultural products in the Spanish market and for their integration into the international market. On the other, it implies a loss of opportunity in the economic modernization process dealing with the production of intangible goods. The reasons for the evolution of this situation are complex, since they depend in part on endogenous factors (derived from characteristics of the Catalan economy, society, and culture themselves).

By sectors, the changes that took place during the nineties brought many ups and downs. A notable rise in the brut value added of audiovisual production and distribution deserves attention, reflecting the emergence of certain major companies during the decade of the nineties. The recording industry also presents a growing dynamism at the hand of certain mid-sized companies, despite their decline in weight in relation to the publishing or audiovisual industries due to the complete domination by major multinational record labels. By contrast, the slowing of the domestic book market in Spain, an industry led by Catalonia, represents a decline in the economic potential of the main cultural industry of the country, leaving the future of the industry uncertain.

The business backbone of the Catalan cultural industries is composed mostly of small and mid-sized businesses and micro businesses, which represent one of the main forces in the industry if its competitive potential is harnessed. Large-size businesses are present only in the publishing industry and, on a smaller scale, in audiovisuals and the press. It is necessary to know, therefore, how to maximize productive and financial synergies as well as the economies of scale of these large businesses, in order to form a potent nucleus capable of driving the industry as a whole.

An essential factor in the competitiveness of the cultural industries is their ability to reach the largest number possible of potential consumers. This is why the main means of mass communication, especially general-interest television, play a leading role. The strong centralization of the principal media groups in Madrid is the cause and effect of the growing tendency to locate cultural industries in capital cities. On another note, the distance (literal and figurative) of Catalonia from these “echo chambers� is a fundamental competitive disadvantage when trying to make Catalonia’s cultural production known within the Spanish market.

A remarkable ability to carry out initiatives of an entrepreneurial character, tied to innovation and artistic creativity, is a trait that traditionally has favored the competitiveness of the cultural industries of Catalonia in comparison to the rest of the country. Nevertheless, it is still a struggle to materialize projects and bring them to market once the initial creative development phase has been completed. The reasons for this weakness can be found in a severe lack of public and private financing and in the insufficient size of the domestic market, resulting in innovative proposals failing to make a sufficient commercial impact. This situation, with very negative consequences for the development of the Catalan cultural

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industries, must be considered as one of the main weaknesses of the competitiveness of the cultural sector in Catalonia.

Coinciding public and private provisions of certain cultural services occasionally leads to situations of conflict between the two spheres. The resolution of these situations lies in clearly defining the purposes of public service, which allows competition between products and companies within a free market to develop properly. In this sense, the public sector should specialize in supporting those services that the market provides at a price that excludes most consumers, opting for the direct provision or other forms of management of guaranteed public services according to the efficiency and effectiveness achieved. Fulfilling these conditions, along with giving necessary support to private cultural initiatives, the public sector must perform a fundamental role in protecting general interest and securing competition in oligopolically structured markets, against the abusive practices of stronger economic forces in a position to dominate.

Facing this set of concerns, the decisive pursuit of the following goals is proposed: ?? Policies supporting the cultural industries must be redirected towards favoring processes that facilitate a major competitive advantage for Catalan cultural businesses, with the efficient use of an entire range of fiscal and financial instruments at hand. ?? Given the oligopolistic structure that characterizes many world cultural markets and the predominately small and mid-sized businesses in Catalonia, it is especially important to maintain conditions that ensure free competition and go against all abusive practices by a dominating leader. ?? Support must be extended to restructuring commerce and to fighting against the high level of business remoteness and weakness, both in the production and distribution processes, with the latter carried out by an especially tiny minority of players. This can be brought about by strengthening the concentration of business in culture, forming purchasing centers and associative networks, and promoting international co-production and other forms of business cooperation. ?? The role of the Catalan media, both public and private, must be reinforced as the propeller of cultural production taking place in Catalonia and the source of incentives for a demanding and inquisitive domestic market. ?? The provisions for infrastructures in information and communication technology must be improved, as it is a deciding factor in the competitiveness of the contemporary cultural industries. At the same time, the cultural industries could play an important role in the research and development of this technology by serving as a field of

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experimentation in the formation of “new� digital on-line and off-line services used for offering information content, or in the research on interactivity. ?? Major Catalan businesses must be supported and to the attractive qualities of Barcelona and Catalonia must be promoted to large foreign businesses interested in establishing operations in the region. This is accomplished for the purpose of attracting the corresponding decisionmaking agents and making the Catalan cultural industries more competitive. ?? In all cultural activities, the talents of the creative worker constitute a key factor for competitive development. In this sense, the processes of basic and continued education, the strength of information networks (for example, modern libraries), and the transferal of talent from education to business, are all at the forefront. ?? Expansion into foreign markets is a basic condition for increasing competitiveness in the cultural industries. To reach this goal, policies of foreign cultural promotion must go beyond merely promoting the culture itself and its main artists in other countries. Among other things, a greater protagonist role must be given to cultural exchanges, participation in co-productions, the presence of Catalan businesses in international conventions and expos, and the celebration of international festivals and events in Catalonia.

C. Professional Training and Job Placement Today’s information society demands a profound transformation of the educational system in order to adapt to a series of processes that are much more advanced in the cultural industries in other economic sectors. First, the educational system and the working world must come into contact, and their interdependencies in so dynamic a context as that of the cultural industries must be analyzed. Since the mission of the educational system goes beyond job placement and the working world and seeks to provide a civic, scientific, and cultural foundation to the citizens of the country at large, it is evident that creative workers committed to the future of their professional fields are needed.

Secondly, the obsolete nature of the educational system contrasts with the need for continued education for a lifetime, which allows old skills to be updated and new working skills and attitudes to be attained. Thirdly, the educational system must be able to adapt to the demands of global markets, companies, and competitors, not an easy task at all given the rigidity of the Catalan and Spanish educational systems. Next, the information society means that a majority of new professions either process information and knowledge or give direct attention to the public. Finally, one must bear in mind that labor relations are forming around the predominance of services, a more flexible sector but also a more precarious one in which the worker becomes responsible for his or her own skills and competitiveness (without partial funding or incentives, which exist in other European countries).

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An analysis of the existing educational system provides a first look at the cultural sector. Compulsory primary and secondary education, in terms of cultural industry needs, hold ambivalent aspects. The organization of arts curriculum has been a major turning point, but in general education, a reinforcement of the basic skills is still needed: writing abilities, reading habits, and the use of the new technology that the information society requires.

For its part, professional training currently available is clearly insufficient.

Specializations related to the cultural industries on the middle and advanced levels are lacking, and those that do exist are poorly distributed in geographical terms.

However, although professional training does not achieve the social prestige desired, the number of job placement and incompany internship opportunities it provides gives it a more active role in transforming the educational system.

As for specialized artistic technique development, there is still a long way to go in comparison with European standards for training amateurs and professionals in specialized art forms.

Certain industries have a long tradition, even dating over a century, and the efforts of certain private schools and local governments in this area must be recognized (especially in music education). In spite of the gaps, the programs currently available still attract a large number of students from outside Catalonia, who then create professional and personal ties with the region.

Finally, the university curriculum is satisfactory in terms of the traditional programs of study offered in audiovisual communication, journalism, publicity, or documentation, and, with the creation of graduate programs and unique degree programs; it has been possible to respond to certain emerging professions. Nevertheless, unequal financing of these programs and a lack of properly developed applied research show the structural weaknesses in the system. Furthermore, although the majority of teachers are aware of the need to teach how to learn, the low preparation of educational methods utilized by teachers and students casts shadows on teaching innovation and the development of mental processes that adapt to the successive recycling of information by new technology.

Thus, the main focus for the coming years in the area of professional training and job placement includes the following: ?? Coordination must be improved within the educational system and between it and the workforce in order to create of a common place of reflection and dialog that bridges the educational and professional worlds, from primary to post-secondary and professional-oriented education. ?? Public administrators need a stronger arts education plan, with a more balanced distribution throughout the region and throughout the

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curricular specialization of individual schools, as well as in the management and funding strategies of the overall system. In this way, specialized professional training can grow and respond to the demands of new emerging professions in the cultural industries. ?? Innovation in teaching must be promoted and the pedagogical and technical requirements of teachers regulated so that education involving the cultural industries improves in quality and competitiveness. ?? University programs must adapt to current professional needs, thus improving quality in teaching and professional skill development, as well as promoting applied research allowing for a better exchange of knowledge between universities and businesses. ?? Catalonia should be promoted as an international point of reference for training in the fields where the Catalan cultural industries are most competitive (international publishing, performance and direction, cultural tourism and management, audiovisual and multimedia production, etc.). In fields where Catalonia is not as strong, it may be preferable to create a solid system of scholarships for attending centers of international prestige. ?? Professionals in the cultural industries can be supported by improving labor regulations and continuing education, of utmost importance in an economic sector dominated by liberal professionals.

D. Investment and Financing The mid-range viability of the cultural industries depends on proper and sufficient financing, embodied in the investments made. For this reason, first it is necessary to evaluate the size and type of investment needed to meet existing needs. Secondly, it is important to further analyze the criteria and mechanisms by which these resources will be allocated and managed, keeping in mind both public and private funds, plus funds with a possible return or profit for the funder as well as grants given with no strings attached.

Research on external financing possibilities by those in the cultural sector normally is limited to handouts from different public institutions or business sponsorship compensated with publicity and advertising. Very rarely is the possibility of partially assuming risk or offering a return on the original investment even considered. In this sense, the positive change in this approach attributed to the ICIC’s new model of regenerated contributions is significant: of course there are certain artistic activities that, even when managed with a certain mercantile logic or by the private sector, are only financially viable if aided by public hand-outs. This need is not the fault of poor management but rather the consequence of the craftsmanship in the production process itself, limited in its potential productivity, or of the insufficient size of the cultural market in proportion to outside competition.

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Subsidies, along with other financial sources that are not reimbursed, are necessary for the survival of many cultural activities. It is essential, nevertheless, to demand a more efficient use of the scarce resources available and a clearer and healthier relationship between private cultural service providers and the public administration. In any case, one must seek out the most appropriate mechanisms for supporting and financing each kind of product or project.

Obtaining private external financing based on risk is not easy whatsoever.

Financial intermediaries and potential private investors do not perceive the cultural industries as a viable and secure business sector. First of all, ignorance of the cultural market and the logic of its structure, where originality and opportunity compose the basic formula for success, and the fact that the world of entertainment does not project a serious image, do not help. Secondly, the intangible nature of many cultural products and services and the difficulty in objectively evaluating creative talent, the driving force in many projects, have negative repercussions for financing.

Finally, standardize d analysis of the feasibility of cultural projects is lacking, plus many novice entrepreneurs have little experience. An exception in the distance of the main financial agents from culture can be found in the direct investments made by savings and investment banks in telecommunications companies, publicity and television, and, in few instances, publishing or audiovisual groups.

Adding to this intrinsic difficulty is another trait inherent in the cultural industries: their need to constantly create new prototypes to satisfy the expectations of a market that thrives on novelty. This fact enormously reduces the lifespan and economic viability of a majority of products that do not reach a minimum of sales to be cost efficient. Moreover, in some cases, returned goods generate severe accounting problems reducing the resources available for new investments. Therefore, the desperate need for funding and the risk associated with a high number of prototypes influence the model of managing and financing a cultural business.

The precariousness of fundraising explains the innovative role required of the cultural industries in exploring new sources of external financing: participating in international co-productions, issuing vouchers for financing performances, forming public-private capital risk partnerships, etc. Other sources of indirect resources include sponsorship and endorsements in exchange for credit, as well as certain tax write-offs. All of these sources supplement, although minimally, finances generated internally, such as income from selling a product or service or exploiting the creator’s name or image, revenue from publicity (quite dependent on economic trends), handouts and subsidies, or business sponsorship. In this sense, great importance is given to strategies for winning customer fidelity and promoting consumption (subscriptions or membership), automated ticket sale systems, and the development of new audiences thanks to cultural tourism. Some of these tools also play a key role in de-seasonalizi ng available resources and improving cash flow.

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Even though the most appropriate tools for supporting and financing each type of product and project must be identified, the main challenges related to the investment and financing aspects of the cultural industries can be summarized by the following: ?? For as long as the private sector can continue assuming greater commitment, more public resources must be dedicated to providing capital risk funds for small and mid-sized cultural businesses. Sharing risk with cultural entrepreneurs and other financial intermediaries helps reach the goal of guaranteeing a greater control over the livelihood of each product. ?? Subsidies for those cultural activities that rely more on craftsmanship or have a smaller potential market must be maintained or increased.

Objective criteria for evaluating distribution mechanisms and resource management must be defined. Handouts must be transformed, in as many areas as possible, into loans, based on the activity’s net income. ?? Private investors need to given confidence and convenience and must join cultural businesses in approaching institutions that regulate market value, so as to widen access to external finances that, until now, have been far removed from investments made in the cultural sector. ?? The creation of a Cultural Industries Bank or Fund, specialized in the financing of small-sized cultural projects (through credit, micro credit, and endorsement) should be considered. Among its services, it could offer management consulting, specific tools for estimating and minimizing risk, and the evaluation of social impact and repercussion. In this way, this bank could promote the use of new monetary instruments to help meet the financial and accounting needs of cultural projects. ?? Specialized coalitions and task forces need to be formed for emerging cultural businesses to help evaluate the size and type of investment needed in order to respond to existing demand and to prepare a viable plan for accounting and financing. ?? In order to increase supporting resources to self-financed cultural industries, a tax on cultural consumption, like those existing in other Western European countries, needs to be studied. A tax would take advantage of the decreasing price elasticity in the demand of the majority of cultural goods and services.

E. Territorial Structure Catalonia is geographically formed by the Barcelona metropolitan area, the belt of outlying cities, and by the group of small and mid-sized cities scattered throughout the rest of the region, which accounts for about 90% of the population. In terms of productive activity, it is anchored by a

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coastal axis and connected by a network of highways.

The territorial structure of a market can be summarized by the concentration or decentralization of the goods and services made available to the public and by the existing communication infrastructures. In this context, the cultural industries play a pivotal role, as the decentralized nature of certain industries supports the maintenance of territorial logistics as a source of local development. The closest relationship between the cultural industries and the territory can be found at the two opposing ends of a common cycle: creation and consumption. On the one hand, creators come from the territory and create their products as an influence of their environment. On the other, consumers live with and relate to cultural products from the same territory. When talking about domestic consumption, one sees few differences in the cultural habits of the population; however, the concentration of the bulk of the community’s supply in large cities discriminates against citizens residing in the more peripheral areas. With this perspective, investments in infrastructures and programming made by the public administration are essential to restoring balance in culture.

Regarding cultural production, certain industries are nearly forced to concentrate a majority of their operations in the same place, as they require infrastructures and an environment conducive to growth. The publishing, audiovisual, and recording industries, including complementary industries, tend to center around Barcelona and the metropolitan area. In contrast, certain industries find that decentralization is no inconvenience whatsoever, given that new information and communication technologies allow for a more decentralized production, especially true of a small area like Catalonia where one end can be reached from another in little time. Along these lines, a high-quality connection to the overall network is indispensable for a balanced territorial growth.

The cultural capital of a territory plays a remarkable role in local development. Thus, the concentration of advanced artistic or professional training in Barcelona affects the possibilities for the development of industrial districts in the surrounding area. Furthermore, in a time of globalization, having a large capital city like Barcelona is fundamental to helping Catalonia secure a leadership position in the Western Mediterranean macro region. However, some production and distribution centers have relocated to Madrid, despite Barcelona’s attractive and competitive advantages in the fields of artistic creation, education, and innovation.

These qualities must fully be taken advantage of and must acquire an entrepreneurial edge to avoid the loss of educated professionals – musicians, artists, actors, or directors –to the film and television productions taking place in the Spanish capital.

For their part, festivals and conventions can play an important role. On the one hand, organizing small festivals stimulates cultural activity on a local level, even if effects do not expand beyond local consumption or the attraction of tourists or summer vacationers, for example. On the other, festivals and events like those held in Tarrega, Vic, Sitges, or, on a smaller scale, Manresa, can ignite a double spark in both an entire industry

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(theater, live music, cinema, and popular respectively) and territory, in this case, Catalonia.

or

traditional

culture,

In view of this situation, the following goals, among others, must be pursued: ?? Sustained business strategy in favor of geographical concentration demonstrates that the synergies of location and physical proximity are still an important factor in the development of a large part of the cultural industries. Moreover, the positive influence of the presence of one or numerous industries in a territory on local development is inarguable. Therefore, the public sector must continue investing, in cooperation with the private sector, in the creation of a network of specialized industrial districts that give rise to densely knit relationships and professional and business interaction in certain areas. ?? High-speed connections to the Internet must be made more widespread, as they are essential for balanced territorial development in terms of both stronger domestic consumption and decentralized production processes. ?? Continued support is needed for the major industry conventions and festivals within culture that currently take place, applying this strategy to other industries and cities with the potential for growth. ?? Supra local strategies must be made to allow for the production and distribution of locally created cultural products and for the formation of webs and networks of exchange among the different players involved, so as to promote a certain poly-centralism in production processes. ?? Barcelona must continue to promote itself as the driving international force and capital of the Catalan cultural industries, a creative metropolis open to cultural exchange and the point of entry for resources and knowledge to be spread throughout the rest of Catalonia. ?? A map of the territorial deficiencies of the various cultural industries must be drawn up, one based on new parameters that measure the balance of cultural criteria throughout Catalonia, with the goal of creating a plan to meet the needs of the entire territory.

F. Impact of New Technology Digitalization and electronic interactive information technology (EIIT) function as strategic elements in the transformation of contemporary society, culture, economics, and politics. This is a change that radically

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restructures all processes dealing with the sequence of production, circulation, and reinvention of symbolic goods.

Therefore, one simultaneously witnesses a globalization of cultural markets, a new and emerging diversity, and a split in the old linear standards guiding time and growth, making the continuity of space in culture entirely relative. On another note, a profound change in the systems of production and the transferal of knowledge is being experienced. Finally, a new definition of identities (individual and collective) is taking place, in agreement with a new context of multiculturalism that brings democratic representation and the nation-state model of cultural reproduction into crisis.

In this context, the singularity of the Catalan situation and the impact of new technology on the development of the cultural industries in Catalonia are highlighted: facing these sweeping changes is a people, with its own language and culture, that has managed to survive two previous revolutions in communication, the press and analog audiovisual communication.

From a social perspective, one notices an especially close relationship between a significant sector of Catalan society and the use of electronic interactive information technology. It is constituted by a true ideological praxis, both in the areas of work and leisure, relating intelligence, personal ranking, and modernity in concept and in lifestyle, with a ladder-like usage of this technology and the activities tied to it.

This ideology, rather hegemonic and popular, could explain the Catalan leadership in the public use of electronic interactive information technology.

Meanwhile, from an institutional perspective, the combination of inadequate regulation, insufficient public policies in spite of current efforts, and certain business strategies –price policy included—influenced by sustained market predomination, seem to have placed, for the time being, a certain ceiling on the social use of EIIT. This situation limits the potential growth of Catalonia when compared in relative terms to other advanced Western countries with which it competes.

Digital technology allows the same product to be distributed in new and numerous channels. In simple terms, the outcome of cultural production no longer merely consists of the design of a finished product (a book, film, or compact disc), but also the management of information content made available in different markets through complementary channels, as well as particular pricing systems. Therefore, the design of the commercialization sequence of products produced digitally becomes extremely important, as well as the distribution conditions of the various markets: free access (influenced by publicity campaigns), direct sales, subscriptions, etc.

One of the most interrogating questions to arise refers to the regulation of intellectual property supported by new digital technology.

As a consequence, business strategies and professionals as a whole must adapt to the new competitive environment of the market.

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Therefore, some of the main challenges in the coming years in adapting the Catalan cultural industries to the demands of new technology in information and communication can be articulated as follows: ?? The telecommunications infrastructures needed to ensure an optimal and competitive development of electronic interactive information technology and the cultural production framework must be fully extended throughout all of Catalonia, foreseeing the conditions needed to keep technical aspects constantly up to date. ?? Clear, extensive cultural policies, ranging from entertainment industry production to scientific theory, must be expressed, integrating the educational system at all levels and making electronic interactive information technology and the cultural industries central protagonists. ?? The full development of digital technology in all areas of culture must be fostered: professional training, the transferal of knowledge from schools to businesses, and the processes of cultural production, distribution, preservation, and consumption. ?? A crash-course serving as a general introduction to new information and communication technology is proposed for the entire educational system, providing networks, equipment, and programming geared toward both students and teachers. ?? The role of the Catalan cultural industries in the new technological and social contexts must be reconsidered, giving them their proper place in the development of strong and decentralized cultural and audiovisual industries.

G. Audience development All policies regarding audience development must start with the most complete understanding possible of cultural consumption and the cultural habits and practices of the public. In this sense, one must keep in mind that an increase in consumption (products purchased, additional revenue for a sector) is sometimes due to an increase in the number of consumers and sometimes to an increase in the frequency of consumption by a determined group of consumers. Therefore, the cultural consumption and habits of the citizens of a territory must be distinguished from those of visiting tourists, a value that is expressed in the percentage of people that have carried out a certain cultural activity in a determined period of time. In this context, the surveys conducted by the Department of Culture of the Generalitat become an important tool in the analyses of audiences.

The home environment and the accessibility to culture there play an increasing role in the cultural consumption and practices of Catalonia, which

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will grow as the Internet and new technological applications become more widespread.

Currently, television sets, radios, cassettes and cassette recorders, and photographic cameras are present in almost all homes, closely followed by stereo systems, which have experienced an incredible boom in recent years.

For its part, about sixty percent of Catalan households have a Walkman in their possession, and about one-third of families own a musical instrument.

This last element proves to be extremely important in the active participation of the population, even though compulsory music education normally carries greater weight. A qualitative breakdown of domestic cultural consumption shows that the main practices of the public in the area of culture are watching television (with a high average of 230 minutes daily) and listening to music or the radio, while reading varies dramatically according to one’s educational level or age.

Outside of the home, the population participates in activities depending on the cultural production available, which explains the greater demand in a large urban nucleus as compared to more rural areas. The library is the network that is the most integrated and has benefited the most from major infrastructure and society transformations in the last several years, as its number of users has grown four-fold to above 13 million today. Museums and monuments have also seen a significant increase in visitors, thanks not only to the tourism boom in Catalonia but also to stronger interest displayed by residents, a situation that can be explained by the rise in the public’s average level of education plus large investments and advertising campaigns. As for live performance, the increase in productions available and the convenience in buying tickets over the phone or at automated cash machines has helped push demand. However, the cultural activity most common outside of the home is film viewing, in direct competition with television and radio, with 63% of the population claiming to have gone to a movie theater at least once in the past twelve months.

The index of active participation in artistic and cultural practices is logically quite lower than that of consumption and mostly revolves around handiwork, drawing and painting, writing, and making music. However, the cultural enrichment that amateur productive activity brings to an individual is linked with a much higher disposition to consume cultural products. A person’s level of studies and age, especially as youth are often involved in extracurricular activities, are key variables in participation.

The main factors for the consumption and practice of cultural activities are the immediate surrounding environment and previous contact. For this reason, family, the educational system, and the media serve as major catalysts for the development of audiences. With this in mind, the strategic goals in culture to be reached by the professional community and public administrations are as follows:

?? Policies must be established together with the educational system so as to reinforce the artistic content of secondary education, maximize the

33

participation in and educational potential of different cultural activities, and facilitate an enriching experience in the visits made to cultural organizations. ?? Policies and programs must be proposed together by cultural institutions and tourism operators to improve the promotion of historic sites and monuments, increase access to manifestations of traditional culture of all kinds, and encourage participation in all kinds of musical and theatrical performances. ?? The media, especially those means under public control, must be convinced to increase information on and programs about cultural activities, on both an introductory level and an in-depth, quality basis. ?? Accessibility to cultural projects and infrastructures must be improved, keeping in mind the whole of the Catalan population and territory while giving special attention to those persons with physical or sensory disabilities. ?? A team of experts should be formed specifically for analyzing, designing, and promoting access to cultural infrastructures for new immigrants coming to Catalonia.

H. Catalan Language in Cultural Products and Markets While the main objective of this Handbook is to strengthen the creative and business backbone of cultural production in Catalonia, independent of the language of expression, it is undeniable that the market in the Catalan language plays a major role in preserving its symbolic space of expression and identity. This is by no means an easy task. On the one hand, the reduced size of the Catalan market complicates the competitiveness of certain products and specific mechanisms of distribution and evaluation. On the other, Catalan consumers have an increased ability for adapting to foreign products, especially those originating in the Hispanic or Anglo-Saxon worlds.

Compared with other countries, the lack of a sufficient favoritism towards products made in Catalonia or in the Catalan language makes the viability of a production with an already small-sized market even more difficult.

Obviously, with books or the press, the level of profitability of the same publication in Catalan and Spanish is clearly much higher when published in the latter. Different languages naturally can present problems in accessing a product’s contents, however removing this barrier should balance consumption, and this is not the case. Two publications in Spanish, one published in Catalonia and the other in the Spanish market, do not reach a similar volume of sales, as the Catalan-produced version, despite a higher concentration of sales in the local market, lags behind the other in total sales.

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Therefore, it is difficult to compete with products that follow the logic of much larger cultural marketplaces and a singular language and set of cultural referents, especially when a large portion of these values and referents are shared and widely-known.

In this sense, there is an enormous difference between products in the Catalan language-- limited to only a portion of the population of Catalonia, Valencia, the Balearic Islands, and other marginal Catalan-speaking areas—and products in Spanish, geared towards the same territory as well as the entire Spanish-speaking population of Spain and Latin America, plus other markets interested in this type of production (basically the United States, Europe, and Brazil).

The situation of the Catalan language in the various sectors of the Catalan cultural industries is rather uneven.

The industries involving greater craftsmanship, formed by businesses and professionals more indicative of the reality of Catalonia, show an elevated proportion of production in Catalan.

In contrast, the more expensive it is to produce the initial prototype, the smaller the likelihood of products being made in Catalan language or content. Finally, language plays a marginal role in certain sectors such as dance or music.

The cultural and linguistic context represented by the Catalan-speaking territories is not sufficiently exploited by the various Catalan cultural industries, given their potential importance in cultural, economic, and demographic terms (between 6 and 10 million Catalan speakers). Even though many public and private figures do not take into account the potential of this common cultural context, it must be given due recognition so that the various public administrations, scattered across Spain, Andorra, France, and Italy, can coordinate efforts to develop a viable cultural market of products in Catalan. This would fulfill the important communicative function of making contact among these territories more regular, strengthening projects of exchange and cooperation, and favoring domestic cultural production. While on this particular topic, it is important to mention the initiative brought forward by the creation of the Institut Ramon Llull, and the level of coordination with the governments of Andorra and the Balearic Islands for a common strategy of foreign promotion such as this.

The Catalan Radio Corporation and Catalonia Television (CCRTC) has been an important factor in stimulating the television industry of the country, as it has done an enormous favor for the linguistic and cultural normalization of Catalonia. Similarly, the Spanish-language, state-run RTVE should be encouraged to remove a large part of its operations and instead actively support the Catalan cultural industries and production in Catalan. The fundamental role that the media as a whole, both public and private, and especially on a local or county level, has played in the linguistic normalization process of Catalan, in the transmission of domestic cultural production, and in the development of a cultural market of its own, deserves recognition.

The media has helped Catalonia build a communication space of its own and answers the need for information, leisure, and public debate within the Catalan community; it is therefore

35

rather easy to spread the word on local production. If the role that the media plays for the whole of cultural production in Catalonia is key, it is even more so for production specifically in the Catalan language. For this reason, it is important that the means of communication present in Catalonia’s communications market (press, radio, television, and new Internet media, independent of the language used by these means) give a special coverage to the productions expressed in Catalan. Logically, it is much easier to echo the culture produced in Catalonia in the Catalan media, or mostly directed towards the domestic Catalan market, than in those means geared towards the entire Spanish market, or managers with little knowledge of or sensitivity towards the unique Catalan linguistic and cultural reality.

In order to respond to some of the problems indicated here and help unite efforts supporting the Catalan language and Catalan cultural industries, the following specific proposals are offered: ?? The production, distribution, and consumption of a cultural product originating in the Catalan language, one that is creative, economically viable, and high in quality, must be favored, with the goal of reaching a larger market share than the current one in those sectors where Spanish holds a clearly dominant position. ?? The Catalan media, or one geared towards the local cultural market, needs to be supported, given their greater interest in promoting Catalanproduced cultural projects or those in the Catalan language. ?? A greater commitment from the public means of communication to support productions made in Catalonia, and in particular those made in the Catalan language, needs to be demonstrated by way of specific promotional programs and, when necessary, co-productions and foreign assignments that reinforce the domestic market. ?? Exchanges, co-productions, and promotional strategies must be planned together with the artists and cultural institutions of Catalan-speaking territories, with the goal of reinforcing the most integrated and interdependent cultural market possible. ?? The social use of Catalan and cultural production in Catalan must be defended, combining the legal protection guaranteed by the Law of Catalan Linguistic Policy with complementary measures of governmental support and promotion to reduce the impact of the opposition of certain multinational filmmakers to mid-range goals for normalizing Catalan. ?? Catalonia shall be promoted as an international center, multicultural and multilingual, for cultural production, bringing together Europe, the Mediterranean, and Latin America. It holds this position as a result of being home to a bilingual society, a major cultural industry in Spanish, and the growing presence of an artistic community hailing from other

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cultures. This strategy, instead of reducing the importance of production in Catalan, allows it to become known beyond its cultural and linguistic frontiers.

3. GENERAL ANALYSIS With the goal of understanding the general situation and proposing action for the sustainable development of the Catalan cultural industries, an integrated analysis has been completed, looking at the main strengths and weaknesses, both in the industries themselves as well as in the areas of culture that support these industries. These are as follows: Specific Strengths of the Cultural Industries of Catalonia ?? Catalonia, creative center with a strong tradition of quality in image. ?? A capital city, Barcelona, on the map for both European and Latin American cultural production. ?? Ability to attract foreign artists and professionals. ?? Availability of a diverse array of cultural products and services. ?? One cultural industry, publishing, enjoys a solid and long business tradition and exports in significant numbers to the Spanish and Latin American markets. ?? The most dynamic activities and businesses in the Catalan cultural arena are catalysts for making management in Spain innovative and professional. ?? Availability of actors and other skilled professionals with a high level of quality and education and inclination towards new emerging cultural fields. ?? CCRTV plays an important role as a leader in the television industry and a supporter of Catalan culture. ?? Pioneer development of strategies for multi-channel distribution and automated ticket sale systems.

Generals Strengths of Culture in Catalonia

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?? A significantly higher level of consumption per capita of cultural products than the average in Spain. ?? Pioneer development and higher use of Internet than the Spanish average. ?? Growing territorial equilibrium in cultural activities and infrastructures as a result of the important role of the different Catalan public administrations. ?? Development of a full range of arts education, from primary school to professional training, with infrastructures in all main towns and cities of Catalonia. ?? Existence of a solid amateur scene that feeds consumption and new professional outlets in culture. ?? Key role of savings banks in promoting culture and in advertising quality projects and activities.

Specific Weaknesses of the Cultural Industries in Catalonia ?? Relatively small dimensions of the Catalan cultural market. ?? Low presence of major transnational multimedia groups in production in Catalonia. ?? Not one privately-run television network from Spain has an active or significant production studio in Catalonia. ?? Discrimination against the Catalan consumer regarding certain product lines fabricated in Catalonia. ?? Insufficient business strategies for networking and cooperating. ?? Low market activity in cultural production and promotion outside the metropolitan Barcelona area. ?? Excessive dependency of certain companies on public funding. ?? Lack of stronger business groups in the area of the film, television, and music industries. ?? Potential synergies in the use of alternative versions, formats, and channels are not fully taken advantage of.

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General Weaknesses of Culture in Catalonia ?? Fragmentation of the Catalan-speaking territories as a market for Catalan cultural products. ?? Little coordination among the various levels of public administration within the Catalan linguistic zone. ?? Insufficient impact made by the Catalan linguistic normalization process in the fields of education and administration on decisions regarding cultural consumption. ?? Weak impact made by theater quotas and language-dubbing policies on consumer decisions regarding films. ?? Fewer funding opportunities for highly innovative but less commercially successful or socially conscious activities. ?? Little development on behalf of the public administration, especially the Spanish federal government, of tax breaks existing in other countries for fostering cultural activities. ?? Little tradition of financial agents investing or assuming risk in cultural production. ?? Relatively recent development of financial mechanisms to stimulate private investment in culture. ?? Weak tradition of private patronage or business sponsorship in culture. ?? Reduced impact of the policies in effect for training new professionals in the area of culture. ?? Difficulty of non-union artists to access both public and commercial jobhunting resources. ?? Lack of specific regulations for the professional conditions of workers in culture. ?? Peripheral situation of Catalan productions in Spanish-dominated media.

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4. OPPORTUNITIES AND THREATS IN PERSPECTIVE As a result of the analyses presented in this Handbook, the main challenges for the Catalan cultural industries can be summarized by the following general threats and opportunities, tied primarily to the globalization process of the cultural markets and to the emergence of the new economy.

Opportunities for Catalonia Facing the Globalization Process of Cultural Consumption and Distribution ?? Development of cultural tourism ?? Model for social and cultural coexistence facing the problems of integrating new waves of immigrants. ?? High standard of living ?? A bilingual and increasingly diverse society Opportunities for Catalonia in Connection with the New Economy ?? Creativity, vital for the business chain of added value ?? Elimination of the barriers to accessing new technology. ?? Less significance given to the location of the site of productive and creative processes. ?? Possibility of assuming multimedia markets.

a

competitive

position

in

new

emerging

Threats of the Globalization Process of Cultural Consumption and Distribution ?? Distribution and consumption of standardized cultural products on a worldwide scale that benefit companies with the greatest economies of scale ?? Growing business concentration led by businesses from the largest linguistic-cultural markets ?? Location of prototypes for mass-production in a limited number of continental capital cities.

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Threats of the New Economy ?? Dependency on the technological systems of a few major operators ?? Disappearance of the traditional linguistic and cultural barriers and the rising cost of the large-scale promotion implied. ?? Loss of importance of the location of production and creation.

5. LESSONS LEARNED FROM FOREIGN EXPERIENCE Observing governmental initiatives and industrial strategies implemented in other Western countries let us reflect on and learn from foreign models of providing support to their respective cultural industries. Among the cases selected are experiences, many on a local level, of the United Kingdom, France, Germany, Ireland, or the Quebec area of Canada, that, due to similar cultures, problems or sizes, are of great interest for the development of the Catalan cultural industries.

After a great deal of international experiences have been studied:

research,

the

following

selected

?? Arts and Technology Center of London (ARTEC): resource center designed to link the worlds of the arts and multimedia in the areas of education, multimedia productions, and the promotion of commercial projects. ?? Tax breaks for film and television industries: tax deferral mechanism for film and television productions in Quebec for the duration of the implementation phase of a project. ?? Research and Innovation in Audiovisuals and Multimedia (RIAM): initiative to promote collaboration among public research centers and the audiovisual and multimedia industries, which also administers funding to innovative projects. ?? Audiovisual support fund: credit given by North Rhine LandWestphalia to the film and television under the condition that at least 150% of the funds received must be spent on businesses and services in the local region. ?? Sheffield Culture Industry Quarter (CIQ): creation of a cultural quarter or neighborhood where different public and private initiatives and interests with common objectives can interact, characterized by an

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industrial structure formed by young entrepreneurs highly adaptable to change. ?? Funds for investing in the cultural industries: pioneer pilot program in Europe providing small amounts of capital risk funds to cultural businesses in the West Midlands region. ?? Book Publishing Industry Development Program (BPIDP): federal aid program for the publishing industry with the goal of providing easier access to books written by Canadian authors. ?? Sohonet: business initiative for administering a high-speed network for companies in the audiovisual means of communication located in the famous London neighborhood. ?? Business Expansion Scheme (BES): Irish program of tax breaks to stimulate private investment in the capital of new or small-size companies in the musical industry. ?? Fostering multimedia production: creation of a private-public mixed agency dedicated exclusively to promoting the multimedia industry in the city of Brighton. ?? Cultural Industry Development Service (CIDS): service bringing the cultural industries into contact with the local infrastructures for developing Manchester.

Even though, to a large extent, the success of an initiative depends on the particular context of its implementation, the players involved, and timing, the following general conclusions can be made regarding the experiences selected: ?? The diversity of services and existing practices to promote the cultural industries reflects the richness of new programs implemented (diversity of organizing institutions, industries involved, initiative goals and contexts, etc.). ?? The key role of the public sector clue as an external catalyst in the development of the cultural industries in different countries, cities or regions. In this sense, the government’s ability to implement new mechanisms of support and financing tools at the national, regional or local levels stands out. It must create an atmosphere conducive to cooperation between public agencies and the private sector in order to stimulate the growth and integration of the business network and share financial responsibility with the private sector.

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?? The level of commitment of the public sector in the early stages of projects, leading and investing in them in order to make them more visible to the industrial agents involved but without subordinating their evolution to governmental bureaucracy. In this way, programs sparked by public initiative end up working independently following a mercantile structure, financing themselves through commercial activities and different forms of indirect public aid. ?? The tools that dominate the various theories of public funding are those that improve the efficiency in the allocation of public resources and governmental intervention. In this sense, the exchange of resources are usually conditioned by the economic feasibility of the project and by the very behavior of the agents involved. In order to increase the efficiency of mid-range programs, support mechanisms usually have a cycle spanning several years. ?? The importance of research and development importance inside and outside of the cultural companies.

Measures taken include the stimulation of collaboration and exchange of technology between public research labs, academic centers, and cultural companies, as well as an increased public participation in R+D programs. ?? Adaptation of the various cultural industries to new information communication technology in order to make them more competitive in the market. ?? Emphasis on developing the audiovisual industry and new multimedia art forms as protagonists in the new strategies for growth of local and regional cultural industries. Similarly, a priority is given to implementing new technology and digital means in cultural activities. ?? The fusion of economic objectives, such as bringing the unemployed into the job market or adapting to new information and communication technology, with social objectives, like integrating certain marginal groups in society or strengthening cultural identities. ?? The location of many cultural activities in city centers, allowing them to take part in urban development programs that combine productive activity with residential and commercial use of old, urban areas to be rezoned and renovated.

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6. PROPOSALS FOR INTERVENTION A. Strategic Goals to Attain With the goal of defining a mission for policies promoting the cultural industries that directs their design and implementation in operational terms, efforts have been made to reach a consensus among the institutions and individuals participating in the creation of this Handbook. After two long sessions of debate between members of the Cultural Commission of the Parliament of Catalonia, a mission has been articulated in the following sentence: ?? “To promote a competitive industrial network for [Catalan-made] cultural production and exportation”.

This mission statement of promotion and encouragement cannot be separated from the more general mission of Catalan cultural policy, which can be defined as: ?? “To promote a [Catalan] culture that is deeply-rooted, open to the world, and actively involved, serving as a melting pot for creativity”.

The appropriateness of both mission statements to the reality facing Catalonia at the beginning of the 21st century, in addition to the analysis of the different intrinsic and extrinsic purposes for cultural policy making, has allowed for the definition of a number of strategic goals for guiding culture towards the year 2010. Articulating this limited set of strategic goals has required both an internal (industry-specific and general) analysis and a general analysis of the surrounding environment, as described above. Five strategic goals have been elaborated in about twenty operational objectives: ?? Breeding ground for innovative creators and businesses ·Promote projects and innovative creation ·Give support to cultural entrepreneurs by promoting viable and integrated business projects

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·Promote professional businesses.

and

managerial

training

for

creators

and

·Encourage the creation of cultural industry districts within cities, providing specialized services and infrastructures ·Attract foreign companies and creators ?? Audiovisual and multimedia, strategic industries ·Empower the trickle-down effect of CCRTV and the publishing industry in these fields. ·Encourage institutional and private investment in R + D ·Give support to basic and professional training and to job placement strategies in these fields ·Favor the presence of Catalan productions in the various markets and networks of distribution and promotion ?? A competitive cultural industry with international projection ·Maximize use of the size and export experience of the publishing industry ·Spread Catalan production among industry intermediaries at the main conventions and expos in Europe and America ·Reinforce the strategies and promotion and commercialization

resources

geared

towards

foreign

·Widen the range of cultural products and services directed towards tourists ?? Creative metropolis open to cultural exchange ·Ensure the success of the Forum 2004 in terms of both its domestic and global impact

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·Foster cultural exchange, cooperation, and common areas for meeting and communicating ·Strengthen a diverse cultural framework formed by amateurs and professionals and by public, commercial, and civil agents ·Attract foreign creators, projects of cooperation, and cultural institutions originating from overseas ?? Structured Catalan cultural market ·Encourage the programming and consumption of Catalan products in the Catalan language ·Pro-active position in favor of production and distribution in Catalan ·Promote an open and non-discriminatory market on both regional (Catalan) and state (Spanish) levels ·Ensure the the distribution networks for domestic production

B. Recommendations Made to Public Institutions This proposed set of goals for culture, as the very creation of this Handbook sets out to accomplish, must be shaped by every single Catalan political entity in their respective public policy programs. However, it seemed fitting to articulate some specific proposals and recommendations that, from this Handbook’s viewpoint, could be considered strategies for the mid-range sustainable development of mercantile structures used for Catalan cultural production and distribution. The suggestions offered here, in many cases already on the agenda for the institutions mentioned, are addressed to the institution with the most responsibility or power in carrying them out.

Recommendations Made to the Generalitat: ?? Join the private sector, by articulating strategies, endorsements, and a certain economic commitment, to opening up funding possibilities and relationships with the financial world, the national commission of market value, and other areas of support and regulation. ?? Establish a set of priorities for the short, middle, and long terms in public policies dealing with culture, with measurable objectives that are flexible

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and adaptable to enormous diversity of the cultural market. In an informative and clear manner, objectives and anticipated outcomes must be thoroughly explained, while measures already taken must be evaluated on the criteria of opportunity cost and social benefit/ cost. ?? Vouch for projects that increase demand over the middle or long term, ensuring public support for these initiatives for periods of time exceeding one year. ?? Create and direct a Catalan Cultural Industries Watch Institute, in agreement with the CAC, CCRTV, the Statistics Institute of Catalonia, and Catalan universities and taking advantage of the work, effort, and existing resources of the Technical Services Office of the Department of Culture. Its functions should be, among others, to prepare statistics for analyzing the various industries, promote industry debate groups, training, and updates, observe foreign experiences in the cultural industries, participate in Europe-wide programs, and offer consulting to emerging public and private initiatives. ?? Coordinate the foreign projection of Catalan cultural production, using COPEC’s experience, the network of COPCA offices, and the initial arrangements made for the newly created Institut Ramon Llull, as well as other existing industry initiatives that support and complement private sector’s efforts overseas. ?? Ensure that the Programming Contract of CCRTV opens up its programming to reflect a greater cultural diversity, encouraging the cultural habits of citizens and helping secure an independent sector of Catalan audiovisual businesses and professionals. ?? Utilize the public library network of Catalonia, in cooperation with local governments and cultural industries, to head up a reading campaign that fosters reading and provides access to a diverse archive of books, recordings, and videos. ?? Negotiate with large shopping centers on areas for marketing Catalan cultural products. ?? Protect minority or specialized cultural production, not only making possible its continuation but also, more especially, guaranteeing its accessibility to the public. ?? Direct specific lines of support, flexible and adaptable to its changing needs, to multimedia creation in every field of cultural production. ?? Stimulate cross-industry synergies and cross-business cooperation.

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Recommendations Made to the Parliament of Catalonia: ?? Help structure the public sector and its intervention in the audiovisual field through the creation of a specific law expressly for this purpose. ?? Consolidate the powers of the Catalan Audiovisual Council as a maximum independent authority with the functions of regulating and performing inspections of the industry. ?? Progressively adapt Catalan legislation protecting local culture to the new possibilities of production and distribution opened by new technology.

Recommendations Made to Catalan local governments: ?? Program and provide available spaces and infrastructures to local creators and cultural businesses. ?? Stimulate the creation of demand, starting with training centers and the programming policies of public institutions, demand that is open, critical, and motivated by products from the Catalan cultural environment. ?? Promote a double strategy of cultural democratization (decentralized distribution) and cultural democracy (decentralized production) on a local level, strengthening a market of demanding consumers, a powerful amateur sector, and a melting pot of innovative creators and producers in contact with Barcelona’s cultural dynamism. ?? Approve a reasonable occupancy of public spaces by artists and cultural industry events while simultaneously promoting a minimum level of quality and viability of alternative distribution channels for cultural products. ?? Support strategies for cooperation and distribution through supra local networks.

Demands Made on the Spanish Government and Parliament: ?? A tax law that favors the consumption of all kinds of goods and services, stimulates private investment in cultural production, and reinforces business and patron sponsorship. ?? Greater widening and promotion of the market for Catalan cultural projects and creators on behalf of the Spanish officials overseas.

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?? Develop regulations for a labor and mercantile infrastructure in Spain that bears in mind the peculiarities of cultural production. ?? Strengthen and utilize the TVE studios in the Catalan town of Sant Cugat as a productive driving force in this industry in Catalonia, and favor regulations that facilitate the installation of private production centers in Catalonia. ?? Reinforce the policies of cultural cooperation with Latin America.

Demands Made Parliament:

on

the

European

Commission,

Council

and

?? Defend cultural diversity through regulations and policies supporting the production and distribution of cultural goods and services, adapting strategies and criteria for support to the peculiarities of cultures smaller in size. ?? Reinforce policies for cooperation with Latin America and the southern Mediterranean region. ?? In WTO negotiations on liberalizing trade involving cultural goods and services, maintain a position that guarantees European (and Latin American) citizens access to real cultural diversity.

7. EPILOGUE The evolution of the cultural industries in Catalonia brings with it a notable increase in both added value and employment. This situation is not an isolated condition, as other developed countries have also seen the creation of intangible goods generate important increases in the productivity and competitiveness of their respective economies. Many of the more dynamic and cutting-edge activities involve the use of new digital interactive information technology. In this context, the industries with the largest potential for growth are film, television, and multimedia.

In Catalonia, the traditionally strong publishing industry has drawn in important business groups with a significant potential for exporting. Lately, despite stagnant sales in the book market, the number of mid- and largesized companies has grown in the film and television industry and, to a smaller degree, in the recording industry. On another note, the business framework of the Catalan cultural industries has been built mainly by smalland and mid-sized businesses and by micro businesses, an important asset if able to harness its competitive potential and entrepreneurial spirit.

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Foreign experience reveals the key role of the public sector as a catalyst in the development of the cultural industries. Governments overseas have committed to investing in projects in the initial stage and helping them become viable and visible, without allowing public administration procedures control their evolution. The increasing use of indirect aid and reinvested capital is complemented by the programs spanning several years and by government handouts to stimulate demand and support artistic and educational activities.

Therefore, the results of this Handbook provide to all industry and government officials who are involved in fostering a solid and competitive private sector in culture with the analytical and diagnostic tools necessary to fulfill this task.

A great number of experts from institutions and businesses involved in the cultural industries have participated in this analysis; now, the next step is to implement the recommendations made and design programs for the sustainable development of mercantile structures of cultural production and distribution in Catalonia.

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CONTRIBUTORS DIRECTION AND COORDINATION: General direction and coordination: Lluís Bonet. University of Barcelona.

Coordination of expert panel: Núria Llorach. University of Barcelona.

Bibliographic research: Enric Andreu, Lluís Bonet, and Anna Villarroya.

University of Barcelona.

Translation and language editing: Jordi Hernàndez, Kimberly Katte, Marcel Pedragosa, and Joan Nadal INSTITUTIONAL COORDINATION: Institut Català de les Indústries Culturals (Catalan Institute for the Cultural Industries): Jordi Penas (Director) and Edgar Garcia (Director of Project Management).

ANALYSES BY INDUSTRY: Film and Television: Xavier Cubeles. Department of Journalism and Audiovisual Communication. Pompeu Fabra University.

Media: Joan M. Corbella.

Department of Journalism and Audiovisual Communication. Pompeu Fabra University.

Publishing: Xavier Cubeles and Gemma Sala. BCF Consultants.

Music: Xavier Fina, Eulàlia Formiguera, and Begoña Sanchis. ICC Cultural Consultants.

Stage Productions: Xavier Fina, Eulàlia Formiguera, and Josep M. Codinach. ICC Cultural Consultants.

Visual Arts: Antoni Laporte and Joaquina Bobes. ARTImetria.

New Multimedia Art: Lluís Codina and Xavier Cubeles. Communications Station. Pompeu Fabra University Foundation.

CROSS-ANALYSIS: Commercialization and Foreign Promotion: Xavier Cubeles and Emma Rué. BCF Consultants.

Competition, Business Concentration, and Cross-Business Alliances: Xavier Cubeles and Gemma Sala. BCF Consultants.

Professional Training and Job Placement: Fèlix Manito and Roser Bertran. Kreanta. Culture, Information, and Communication.

Investment and Financing: Xavier Fina, Eulàlia Formiguera, and Begoña Sanchis. ICC Cultural Consultants.

Territorial Structure: Xavier Fina and Eulàlia Formiguera. ICC Cultural Consultants.

Impact of New Technology: Enric Marín. Department of Journalism and Communication Sciences. Autonomous University of Barcelona.

Audience Development: Antoni Laporte. ARTImetria.

Catalan Language in Cultural Products and Markets: Jordi JuanTresserras and Núria Llorach. University of Barcelona.

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FOREIGN EXPERIENCE: Illustrative experiences: Anna Villarroya, Enric Andreu, and Jorge Fuentealba. University of Barcelona.

International Technology.

report:

Mark

Schuster.

Massachusetts

Institute

of

International report: Andy Pratt. London School of Economics ANALYSES, STRATEGIES, AND PROPOSALS FOR INTERVENTION: Integrated Analysis: Lluís Bonet, Albert de Gregorio, and Anna Villarroya.

University of Barcelona.

Strategies for Governmental Intervention: Lluís Bonet, Albert de Gregorio, and Anna Villarroya University of Barcelona.

Conclusions and Proposals for Intervention: Lluís Bonet. University of Barcelona.

? Institut català de les indústries culturals. Universitat de Barcelona (2002). Direcció: Lluís Bonet

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