Creative industries are stronger than ever

A new report shows why "the internet is killing the entertainment industry" is as true as "home tapi

The founder of Techdirt, Michael Masnick, has released a provocative new report (pdf) called The Sky is Rising!, in which he argues that the degree to which the internet is harming the creative industries has been grossly overstated.

The most striking figure is that between 2000 and 2008, the proportion of American household expenditure going on entertainment didn't just rise, but rose by 15 per cent, from 4.9 per cent of the total to 5.62 per cent. This is over the period of YouTube, Kazaa, Bittorrent, iTunes, Netflix, Kindle, the Pirate Bay – the list of things which didn't kill the creative arts is exactly as long as the list of things which we were told would.

Employment in the sector rose too, by 20 per cent. And the size of the entertainment industry (which is, admittedly, bouyed up by a generally exuberant economy over that period) went from $449bn to $745bn in the 12 years 1998 to 2010.

This is Masnick's key point: that when you look at the industry as a whole, it is booming. It's only when you look at the old titans, especially those which were too slow to adapt, that you see the narrative which has been accepted as true for the whole sector. The report concludes:

Rather than decrying the state of the entertainment industry today and seeking new laws to protect certain aspects of the industry, we should be celebrating the growth and vitality of this vibrant part of our economy -- while consumers enjoy an amazing period of creativity.

We hope that this report will help shift the debate away from a focus on a narrow set of interests who have yet to take advantage of the new opportunities, and towards a more positive recognition of the wide-open possibilities presented by new technologies to create, promote, distribute, connect and monetize.

It would be interesting to see a similar study aimed at the UK. Compared to America, we have one hugely distortive player: The BBC. Freed from the need to make short-term profits, they were able to force the "legacy" entertainment industry to go digital far earlier than it did in the US, with the result that sites like iPlayer, and 4OD are far more popular than their direct equivalent, Hulu, is across the Atlantic. At the same time, however, the BBC set a price tag that others simply couldn't compete with, and may have hindered the success of our own version of streaming-video business Netflix. Lovefilm offers the same service (and so too does Netflix UK now) but it hasn't taken off.

Below is an infographic which sums up some of the key data Masnick relies on. Click to see it larger:


Star impersonators wait outside Mann's Chinese Theatre. Will they have a career in a decade? Yes. Credit: Getty

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

Photo: Getty
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Like it or hate it, it doesn't matter: Brexit is happening, and we've got to make a success of it

It's time to stop complaining and start campaigning, says Stella Creasy.

A shortage of Marmite, arguments over exporting jam and angry Belgians. And that’s just this month.  As the Canadian trade deal stalls, and the government decides which cottage industry its will pick next as saviour for the nation, the British people are still no clearer getting an answer to what Brexit actually means. And they are also no clearer as to how they can have a say in how that question is answered.

To date there have been three stages to Brexit. The first was ideological: an ever-rising euroscepticism, rooted in a feeling that the costs the compromises working with others require were not comparable to the benefits. It oozed out, almost unnoticed, from its dormant home deep in the Labour left and the Tory right, stoked by Ukip to devastating effect.

The second stage was the campaign of that referendum itself: a focus on immigration over-riding a wider debate about free trade, and underpinned by the tempting and vague claim that, in an unstable, unfair world, control could be taken back. With any deal dependent on the agreement of twenty eight other countries, it has already proved a hollow victory.

For the last few months, these consequences of these two stages have dominated discussion, generating heat, but not light about what happens next. Neither has anything helped to bring back together those who feel their lives are increasingly at the mercy of a political and economic elite and those who fear Britain is retreating from being a world leader to a back water.

Little wonder the analogy most commonly and easily reached for by commentators has been that of a divorce. They speculate our coming separation from our EU partners is going to be messy, combative and rancorous. Trash talk from some - including those in charge of negotiating -  further feeds this perception. That’s why it is time for all sides to push onto Brexit part three: the practical stage. How and when is it actually going to happen?

A more constructive framework to use than marriage is one of a changing business, rather than a changing relationship. Whatever the solid economic benefits of EU membership, the British people decided the social and democratic costs had become too great. So now we must adapt.

Brexit should be as much about innovating in what we make and create as it is about seeking to renew our trading deals with the world. New products must be sought alongside new markets. This doesn’t have to mean cutting corners or cutting jobs, but it does mean being prepared to learn new skills and invest in helping those in industries that are struggling to make this leap to move on. The UK has an incredible and varied set of services and products to offer the world, but will need to focus on what we do well and uniquely here to thrive. This is easier said than done, but can also offer hope. Specialising and skilling up also means we can resist those who want us to jettison hard-won environmental and social protections as an alternative. 

Most accept such a transition will take time. But what is contested is that it will require openness. However, handing the public a done deal - however well mediated - will do little to address the division within our country. Ensuring the best deal in a way that can garner the public support it needs to work requires strong feedback channels. That is why transparency about the government's plans for Brexit is so important. Of course, a balance needs to be struck with the need to protect negotiating positions, but scrutiny by parliament- and by extension the public- will be vital. With so many differing factors at stake and choices to be made, MPs have to be able and willing to bring their constituents into the discussion not just about what Brexit actually entails, but also what kind of country Britain will be during and after the result - and their role in making it happen. 

Those who want to claim the engagement of parliament and the public undermines the referendum result are still in stages one and two of this debate, looking for someone to blame for past injustices, not building a better future for all. Our Marmite may be safe for the moment, but Brexit can’t remain a love it or hate it phenomenon. It’s time for everyone to get practical.