Creative Industries Strategy 2013-2016 PDF
Creative Industries Strategy 2013-2016 PDF
Creative Industries Strategy 2013-2016 PDF
Strategy
2013-2016
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EXECUTIVE SUMMARY
Since the publication of our 2009 creative
industries strategy, the major trends
have been the continued digitisation
of the sector, audience fragmentation,
convergence and disintermediation
all of which have led to a landscape of
increased connectivity, complexity and
growth. Our consultation and analysis
has suggested that there are significant
opportunities for businesses able to
capitalise on these trends.
The Technology Strategy Board has a
critical role to play in helping the sector
realise its potential. We are investing in
research and development and support for
creative businesses, particularly start-ups
and small and medium-sized enterprises
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O U R S T R AT E GY
Opportunities
Convergence
Data
Cross-cutting themes
Alongside these, there are four crosscutting themes that we believe recognise
the unique opportunities that the creative
industries have in working together and
with other sectors:
Transaction
knowledge sharing
cross-sector innovation
design
sustainability.
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O U R S T R AT E GY
continued
Convergence
Transaction
In convergence we will:
In transaction we will:
Data
In data we will:
support the development of improved
data and metadata tools and
technologies to enhance the value of
creative products and services.
Cross-cutting themes
In design we will:
In sustainability we will:
work to promote our Horizons tool
and stimulate creative applications of
technology for sustainability in order to
enhance UK competitiveness.
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A world-class sector
The creative industries are recognised
globally as one of the UKs leading sectors.
Many creative industries sub-sectors
are world leaders, and having one of the
leading creative economies provides UK
companies with a higher and more positive
profile than many of their competitors. This
makes the UK a more attractive place to
live, work, visit and in which to invest12.
Growth despite
economic uncertainty
The prospects for the creative industries
are good and they are considered to be
one of the sectors that can help to push
the UK into a sustained economic recovery
PwC has forecast a compound annual
growth rate of 4.2% for the UKs media
and entertainment sector to 2016, higher
than Germany or France13. This will build
on impressive performance over the last
decade, with creative jobs growing by
9% between 2004 and 2010, compared
with 1.6% for all jobs14. Exports have also
flourished; the value of UK TV exports
increased by 127% between 2006 and
2009 putting us second only to the US in
terms of international sales15.
Economic importance
at a glance
the creative industries contribute 5.3%
of UK GVA, and employ 1.4m
the UKs entertainment and media
market is the fifth largest in the world5
the UK exports more than 100m in
design services each year6
the UK film industry contributed over
4.5bn to UK GDP in 20097
the UK is one of only three countries
(along with the US and Sweden) to be
a net exporter of music8
the UK has the largest publishing
industry in Europe, exporting more books
than any other country in the world9
the UK advertising industry is worth
16bn a year. Over two-thirds of
global advertising agencies have their
European headquarters in London10
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W H AT A R E T H E C H A L L E N G E S
AND OPPORTUNITIES?
Major trends changing the creative
industries include the continued
digitisation of the sector, audience
fragmentation, convergence and
disintermediation all of which have
contributed to the emergence of a digital
landscape of increased connectivity,
complexity and growth18. However,
digital technologies themselves are
not what make the market. Rather,
it is compelling content that attracts
consumers and audiences, and
which gives creative businesses the
opportunity to transact over digital
platforms, using data to maximise value.
Our consultation with businesses has
suggested that there are significant
opportunities for businesses able to
capitalise on these trends. Analysts
Booz & Co argue that significant growth
in the creative industries is driven by
digital technologies and estimate this will
be worth an additional 5bn to the UK
economy19. Based on this consultation and
our own analysis, we see four main areas
of particular relevance to the
creative industries.
Convergence
a defining trend
The migration of content across different
media networks and platforms offers creative
businesses opportunities to
extend services, interact more with
audiences, target new demographics
and develop completely new service and
experience formats.
Streaming audio and video now dominate
net traffic, constituting around half of all data
on tablets and smartphones. Advances in
compression, the spread of wi-fi, mobile
connectivity, and the proliferation of devices
have created commercial potential but also
pose threats to some existing businesses.
For the music industry in particular, this has
proven to be extremely disruptive, with record
labels experiencing what the BPI has called
the perfect storm for music consumption20.
As a result of this, cross-platform production
is becoming increasingly central to content
businesses. However, it is still an emerging
field and many businesses, established in
distinct sectors, are struggling to respond
to the opportunity. This is not just a creative
challenge. Even those such as newspapers,
which have succeeded in producing
compelling digital media content and
building up large readerships, are still trying
to identify sustainable business models in the
context of cross-platform production.
Businesses are adapting to convergence in
other ways, by providing new experiences
using pervasive media (delivering mobile
Case study
07
Case study
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W H AT A R E T H E C H A L L E N G E S
A N D O P P O R T U N I T I E S ? continued
New approaches to data
Across the economy, data has become
recognised as crucial to business success.
With increased connectivity has come
an increase in available data, and more
opportunities to manage and capture value
from it. When this data is embedded in instant
or near real-time decision making, it becomes
even more powerful, with commentators
forecasting a shift towards embedding data in
decision-making and strategic processes24.
Use of metadata, the importance of which
was identified in our 2009 strategy, has
mushroomed, with metadata solutions
enabling new ways of driving content
discovery, licensing, consumption and new,
as yet undetermined, business models.
Metadata is no longer a niche interest it
is now mainstream. Analytics and metrics
have become contested areas, with issues
Cross-cutting themes
Knowledge sharing and cross-sector
innovation
The creative industries are increasingly
recognised for the wider value they bring
to the UK economy as a whole. Whether in
the connections between film and tourism,
designer fashion and retail or architecture
and construction, the creative industries
have strong commercial networks and
links across the economy. Such links
can be found at the very forefront of
technological innovation for instance, the
novel application of 3D gaming engines in
medicine and engineering.
Case study
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Case study
Creative content drives
technological development
There is a close relationship between
content production and technological
innovation. This is a result of consumers
demanding new ways of interacting with
content30, but also comes directly from
creative professionals. From the Lumiere
brothers through to Charlie Chaplin,
David Lean and Ridley Scott, film makers
have driven technological development,
challenging inventors, scientists and
engineers to meet their creative vision.
Similarly, advances in sound engineering
and music technology were led by the
creative experiments of such talents as
the BBC Radiophonic Workshop, George
Martin, Trevor Horn and Brian Eno.
IC tomorrow: BioBeats
BioBeats has expertise in music, computer science and medicine, and
develops technology powered by physiological data for applications in
healthcare. It managed to visualise and sonify brainwaves using a custombuilt headset and an iPhone, and progressed to capturing a persons
heartbeat using an iPhone alone in order to create experiential music. By
collecting cardiovascular data in this way, they realised that they were able
to gain insights into a range of health conditions. A successful submission
to our IC tomorrow programme has allowed them to work with University
College London and BUPA to begin development of a mobile and cloudbased service that offers both stress management solutions to patients and
clinical information to mental health care providers.
The opportunity to work with a leading academic medical centre and insurer
at this early stage of our development allows us to focus confidently on
healthcare and to demonstrate to our investors and ourselves that the road
to clinical validation and reimbursement might not be as long and dark as it
seems. Dr Kristin Shine, chief medical officer, BioBeats
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Convergence
Making choices
In convergence we will:
Transaction
Data
In transaction we will:
In data we will:
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Cross-cutting themes
In design we will:
continue to encourage the use of
design earlier in the R&D process,
including through the Design Option
pilots and the Design Special Interest
Group, so that firms save time and
money, and have a better chance of
commercial success
build up a body of evidence and
success stories in collaboration with the
research councils and other bodies to
demonstrate the value of the early use
of design in the innovation process
support UK business innovation by
building a community of designers and
technology innovators to engage with
our design in innovation activities.
In sustainability we will:
work to promote our Horizons tool
and stimulate creative applications of
technology for sustainability in order to
enhance UK competitiveness.
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REFERENCES & SOURCES
Consultation
The development of this strategy has been
informed by a consultation process including
round tables and one-to-one consultation
with creative businesses and sector bodies
from January to March 2013. An online
survey was also circulated to Creative
Industries Knowledge Transfer Network
members to gain a wider industry view.
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15
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17
http://www.prsformusic.com/
creators/news/research/Documents/
AddingUpTheUKMusicIndustry2010.pdf pg. 5
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Images:
Thank you to our partners for the use images to
illustrate this strategy.
Page 2 (left) Usher Looking 4 Myself. Courtesy
of Samsung, Framestore. Page 2 (right)
Courtesy of Moving Picture Company. 2013
Warner Bros Entertainment Inc and Legendary
Pictures Funding. Page 4 (left) Courtesy of
Ncam Technologies and Nvizible. Page 7
Vicon Blade software. Courtesy of Vicon/The
Imaginarium. Page 9 Courtesy of Moving Picture
Company. 2013 Disney Enterprises Inc.
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The Technology Strategy Board is a business-led executive non-departmental public body, established by the Government. Its role is to promote and support research into, and development and exploitation of, technology and innovation for the benefit
of UK business, in order to increase economic growth and improve the quality of life. It is sponsored by the Department for Business, Innovation and Skills (BIS). T: 01793 442700 www.innovateuk.org