Europe's Creative Hubs Update 2018 | Jul 2018
This third edition of Europe's Creative Hubs, produced on behalf of Bertelsmann, highlights the challenges of the digital age for enterprises of the creative industries of France, Germany and the UK from new consumer behaviours and the advent of new competitors and new forms of competition for users and customers from tech giants, Amazon, Facebook, Google and Netflix. The report calls upon policymakers in Europe to ensure a level playing field for traditional media in the key areas of taxation, competition law, privacy and data protection, highlighting the interaction of these three in the market for online advertising.
Some key takeaways from the report:
- The creative industries are of key social and economic importance. Enterprises of the sector produce, publish and distribute news, magazines and books, music and audio-visual works, games, and the sector includes agencies providing advertising and marketing services. The creative industries in France, Germany and the UK generated a combined total GVA of €161 billion in 2015, the last year of available data. This value was created by the activity of 453,000 "employer" enterprises and their staff of 2.2 million, and excludes the activity of freelancers and micro-enterprises, a characteristic feature of the sector
- The UK is the top creative hub in Europe, with an estimated €1,164 in GVA per head in 2015, compared to €641 and €501 per head in Germany and France respectively. Reasons include the UK’s earlier recovery from the 2008-09 recession, relatively high domestic consumer expenditure on recreational and cultural services, and the strength of exports of English-language AV and advertising products. This relatively robust performance in the UK highlights the risks of Brexit to the creative industries from the possible loss of regulated market access for AV products and the possible end of free movement of talent and service providers
- France, Germany and the UK share many common trends since 2010. The most important is that online display advertising is insufficiently productive to fund professionally produced news, threatening the sustainability of journalism, the bedrock of democracy. Publishers cannot rival the data-rich advertising propositions of each of Facebook and Google, and regulatory change further threatens to skew the playing field