Crea%ve  Industries  Measurement    in  CARIFORUM  

Presented  to  WTO/CARICOM  Workshop  on  Sta8s8cs  of  Int’l  Trade  in  Services  &  Crea8ve  Industries,  March  13-­‐16,  2012  

Dr.  Keith  Nurse  Director  

Shridath  Ramphal  Centre  for  Interna8onal  Trade  Law,  Policy  and  Services  The  University  of  the  West  Indies,  Cave  Hill  Campus,  Barbados,  W.I.  

keithnurse@mac.com    

2  

Global  Economic  Context  for  Crea8ve  &  Cultural  Industries  

•  Rapid  techno-­‐economic  change  in  products,  distribu8on  &  marke8ng  (e.g.  ebooks,  iPods,  iTunes,  YouTube,  MySpace,  Amazon.com,  webcas8ng,  iCloud).  

•  The  convergence  of  media  and  the  emergence  of  new  business  models  are  driven  by  the  process  of  digitaliza8on.  

•  Digital  rights  management  and  lifestyle  merchandising  are  key  growth  elements  in  the  crea8ve  industries.    

Copyright  Industries’  Contribu8on  to  Select  La8n  American  and  Caribbean  Economies  

(Source:  WIPO)    

0!

2!

4!

6!

8!

10!

12!

Jamaica! Mexico! Brazil! Uruguay! Chile!

GDP!

Employ!

4  

Income  Streams  in  the  Crea8ve  Industries    

Goods

Visible Earnings

Books CDs DVDs Paintings Music instruments Garments & jewelry

Services

Invisible Earnings

Live performances Design services Record engineering Legal services

Intellectual property

Invisible Earnings

Royalty income Licensing fees Collective administration Digital rights management

Experien8al  Economy:    Media  Value,  IP  &  Des8na8on  Branding,    

Keith  Nurse,  IIR,  UWI   5  

The  Trinidad  &  Tobago  Carnival:  Industry  Structure  &  Economic  Flows    

Carnival  Industry  

Fes8val    Tourism   Accommoda8on   Travel   Hospitality  

Cultural  Industries   Recorded  Music   Steelpan   Mas   Audio-­‐visual  

Media  Value   Des8na8on  brand   Media  content   Corporate          sponsorship  

Ancillary  Sectors   Food  &  beverage   Auto  Rentals   Broadcas8ng   Telecoms  

Es8mated  Economic    Impact  (US$60m):   Fes8val  tourism  $25m   Cultural  industries  $12-­‐15m   Air  Travel  $10m   Media  Value  $2-­‐3m   Taxes  $5-­‐7m  

CREATIVE  GOODS  

183  

413  

688  

1115  1040  

1244  

26  126  

61  

648  

458  551  

0  

500  

1000  

1500  

2003   2004   2005   2006   2007   2008  

Expo

rts  (f.ob.,  in  millions  of  $

)  

Caribbean  Crea7ve  Goods  Imports  and  Exports  in  US$  million    

(source:  UNCTAD  2010)  

Imports  

Exports  

0  

500000  

1000000  

1500000  

2000000  

2500000  

3000000  

3500000  

4000000  

1999   2000   2001   2002   2003   2004   2005   2006  

Steelpan  Exports,  1999  to  2008  TT$  (CSO  several  years)  

Series2  

Caribbean  Exports  &  Imports  of  Books,  2002  

1.3

169.4

0.2 2.59.6

64.5

7.92.7

0

20

40

60

80

100

120

140

160

180

Expo

rts

(US$

000

's)

Anguil

la

Barbad

osBeli

ze

Dominic

a

Grenad

a

Guyan

a

Jamaic

a

St. Lu

cia

St. Vinc

ent &

Gren

adine

s

7,479.10

38,202.00

0

5000

10000

15000

20000

25000

30000

35000

40000

Impo

rts

(US

$ 00

0's)

Anguill

a

Barbad

osBeliz

e

Domini

ca

Grenad

a

Guyan

a

Jamaic

a

St. Luc

ia

St. Vinc

ent &

Gren

adine

s

Source: Adapted from UNESCO (2005) Study on International Flows of Cultural Goods between 1998–2002.

CREATIVE  SERVICES  

11

Trade  in  Services  -­‐    Four  Modes  of  Supply  

Mode of Supply Description Caribbean exports

Cross-border supply (I)

Sound engineering or fashion design services supplied via Internet.

Low

Consumption abroad (II)

Activities like cultural, festival, heritage tourism.

High

Commercial presence (III)

Establishment of a branch, subsidiary to provide services.

Low

Movement of natural persons (IV)

Travel abroad by artist or band to provide services, e.g. tour.

High

There  is  no  data  on  crea8ve  services  exports  outside  of    fes8val  and  heritage  tourism  earnings.  

12

Growth  in  T&T  Carnival  Visitor  Arrivals  &  Expenditures,  1997  -­‐  2006  

•  Arrivals  have  grown  from  27,414  (1997)  to  a  peak  42,646  (2000)  and  41,955  (2006).  

•  Visitor  expenditures  have  grown  from  TT$  64.3  mn  in  1997  to  an  es8mated  TT$173.2  mn  in  2006.  

0

20

40

60

80

100

120

140

160

180

200

1997

1998

1999

2000

2001

2002

2003

2004

TT

$ (

mil

lio

ns

)

0   200,000   400,000   600,000   800,000   1,000,000   1,200,000   1,400,000   1,600,000   1,800,000   2,000,000  

1999  

2000  

2001  

2002  

2003  

2004  

2005  

2006  

2007  

2008  

2009  

On-­‐Loca7on:  Foreign  Film  Crew  Expenditures  (US$),  1999  -­‐  2009  

Source:  TTFC  

Carnival   Total  Expenditures  

CREATIVE    INTELLECTUAL  PROPERTY  

0  

500  

1000  

1500  

2000  

2500  

3000  

3500  

4000  

4500  

5000  

2007  2008  

2009  

Euro's  in  th

ousand

s  ('0

00)  

Year  

Royalty  collec7on  by  Caribbean  Copyright  socie7es  2007-­‐2009  

Total  Collec8on  

Top  Selling  Caribbean  Ar8sts  in  the  US  Market  

24

12

8.5

6.5 6.56

4 3.5 32.5 2 2

0

5

10

15

20

25

Uni

ts

(in m

illio

ns)

Bob Marle

y

Shaggy

Billy O

cean

Baha Men

Wyc

lef J

ean

Sean Paul

Juan L

uis G

uerra

Celia C

ruz

Harry B

elafo

nte

Rihanna

Peter T

osh

Eddy G

rant

Source: RIAA.com * The RIAA®'s certification levels are based on unit shipments (minus returns) from manufacturers to a wide range of accounts, including non-retail record clubs, mail order houses, specialty stores, units shipped for Internet fulfilment or direct marketing sales, such as TV-advertised albums.

CREATIVE  BRANDING  

18  

Heritage  and  Des8na8on  Branding  

Bob  Marley  Managed  by  James  Salter  &  Hilco  Brands,  LLC.  on  behalf  of  The  House  Of  Marley.  Bob  Marley  is  a  lifestyle  brand  that  represents  the  way  he  lived  his  life.  It  is  a  celebra8on  of  his  messages  of  unity,  empowerment,  and  love  that  are  as  relevant  today  as  ever.  The  Bob  Marley  brand  is  earthy,  natural,  socially  conscious,  an  extension  of  his  vision  of  freedom,  authen8city,  and  one-­‐of-­‐a  kind  style.  It  is  a  global  21st  century  brand  that  is  inclusive,  upliging  and  commihed  to  a  beher,  more  beau8ful  world.  The  Bob  Marley  Brand  transcends  genera8on,  ethnicity,  gender  and  geography.  www.bobmarley.com    

The  Bob  Marley    Estate  is  worth    US$  30  million    and  the  music    catalogue  is    worth  $100  million.  

TRADE  POLICY    CONTEXT  

21

Creative Industries and the Global Trade Policy Context    

CULTURE INDUSTRIES & INTERNATIONAL TRADE

GOODS > Market Access

> Piracy & Infringement

SERVICES > GATS

> Immigration Policy

E-COMMERCE > Digital rights management

> Information & Communication

Technologies (ICTs)

INTELLECTUAL PROPERTY

> TRIPS > Rights Owners

> Collective Administration

UNESCO

Convention on the Protection and Promotion of the Diversity of Cultural Expressions (2005)

WTO

EPA

US Bilateral

WIPO > WIPO Copyright Treaty (WCT)

> WIPO Performances and Phonograms Treaty (WPPT)

22  

Trade  Policy  Measures  and  Incen8ve  Regimes  

Trade and border measures Do existing measures raise transaction costs, inputs/imports and retard competitiveness and exports?

•  tariffs •  duties •  other taxes

Incentives regime What types of incentives are available to the sector and level of accessibility and effectiveness?

•  content regulations •  subsidies •  rebates

Crea8ve  Capital  

Crea8ve  Economy  

Crea8ve  Industries  

Crea8ve  Arts  

The  Nexus  between  Crea8ve  Arts,  Industries,  Economies  &  Capital  

Arts  administra8on  and  Development  of  Ar8sts    (1960/70/80s)  

Industrial,  trade,  IP,  enterprise  &  industry  assoc.  (1980/90s)  

Synergies  between  CE  &    tourism,  media,  man’f,    Internet)    (1990/00s)  

Crea8vity  as  innova8on  Digital  trade,  iCloud,    IP  &  des8na8on  branding  (2000/10s)