Presentation to CUC Students in Beijing

New Media Policies: Creative industries and new technologies

shifting the balance between regulation and promotion

Presentation to Communication University of China, Beijing, China, 10 October 2010

Professor Terry FlewCreative Industries FacultyQueensland University of Technology (QUT)Brisbane, Australia

Contact: t.flew@qut.edu.au

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John Maynard Keynes and the Origins of Cultural Policy

Cambridge economist who recommended public spending to resolve Great Depression of 1930s

Most famous economist of the 20th century

Political liberal – favoured reformed capitalism with greater role for government

Established field of cultural economics as head of UK Arts Council during WWII

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Joseph Schumpeter: “creative destruction”

Austrian economist who emphasised role of innovation and entrepreneurship

Crisis and renewal in capitalist economies: “creative destruction”

While he thought capitalism was better than socialism, he could see how capitalism creates its own enemies by reducing human values to money values

Influences on media policy

Keynesian thinking has most influenced arts and cultural policy – governments must provide what the market will not deliver

Schumpeter – economics of innovation – profit motive drives technological innovation

The Internet: shaped historically by government (US military), business (Microsoft, Google etc.) and science (open system)

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How the Internet is changing media

“The Internet as a new creative outlet has altered the economics of information production and led to the democratization of media production and changes in the nature of communication and social relationships (sometimes referred to as the ‘rise - or return - of the amateurs’). Changes in the way users produce, distribute, access and re-use information, knowledge and entertainment potentially gives rise to increased user autonomy, increased participation and increased diversity”

Organisation for Economic Co-operation and Development 2007, p. 5.

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How the Internet is changing media

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How the Internet is changing media

How the Internet is changing media“What we are presently experiencing is the shift away from a top-down business model being imposed on consumers by the producers and distributors of media to a bottom-up business model emerging out of the consumption behavior of media users. The era in which a privileged few accessed tools to facilitate the publishing of content for distribution over exclusive distribution networks reaching the masses is being eroded by both efficient production tools and peer-to-peer communications that can provide anyone with the ability to communicate their ideas to anyone else, any where, any time.”

US media industry leader Joshua Levin, in J. Holt and A. Perren, Media Industries, 2009, p. 258.

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Why do governments regulate media?

Concerns about media content

Protection of children

National cultural identity

Providing accurate information for citizens

Media as a public good

Controlling unaccountable media power

Economic pressures on media ownership

Provision for all parts of the country and all sections of the community

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Goals of media policy

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Europe and the US: the great divergence

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Pressures for media policy change

“Policy has generally to follow the logic of the marketplace and the technology and the wishes of consumers (and citizens) rather than impose its own goals” (van Cuilenberg and McQuail)

Focus on competition policy

Media convergence

How can policy promote digital content innovation?

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1990s – Information Policy

Driven by convergence and rise of the Internet

Enabling shifts for a global information society

High-speed broadband

“National champions” in ICT sector

Lack of focus on media content for “fat pipes”

Too much focus on established media businesses

Underestimated significance of new start-ups and user-led innovation (Web 2.0)

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2000s – Creative Industries Policy

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Culture Cycle

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Distinctive Features of Creative Industries Policy

Attempting to think across industries, sectors and ministries

Cultural “software” and technical “hardware”

Disruptive innovation driven from the margins: start-ups, user-led innovation

Policy shift to cities and regional, provincial and state governments

Promotion of culture in creative cities – creative cluster development

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Examples from Australia“Queensland Model” – Creativity is Big Business, 2004 State Development report

ARC Centre of Excellence for Creative Industries and Innovation at QUT

Creative Industries Innovation Centre (CIIC) based in Sydney – Enterprise Connect– Assist firms in CI sector to make greater contribution to

Australian economy– Provide professional business advisory services to small to

medium sized businesses– Promote collaboration between researchers and business

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Changing Landscape of Media Policy

Content and channel proliferation

No longer a small number of powerful media producers and a large number of powerless media consumers

Greater engagement of the public as content co-creators (“produsers”) – pro-ams

Multichannel environment – “three screens” of TV, Internet, smart phones (Apple iPad as “fourth screen”?)

Need for incumbent media to innovate with new models and new ways of engaging the public e.g. ABC iView, Unleashed, Pool

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