OTN - Private Sector Trade Note - Vol 1 2013


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This issue of the Private Sector Trade Note speaks about CARICOM's Entertainment Services trade.

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OTN - Private Sector Trade Note - Vol 1 2013

  1. 1. A product of the Private Sector Outreach of the Office of Trade Negotiations (OTN), formerly the + CRNM Private Sector Trade Note CARICOM’s Trade Entertainment Services1 GLOBAL TRADE OVERVIEW The CARICOM entertainment services industry Trade in the Creative industries including the activity in this area (Conceptualisation Inc,continues to be an important international entertainment sector reached US$592 billion in 2011). However, the UNCTAD/UNDP Creativebusiness. There is a view that policy focus on 2008, with an annual growth rate of 14% since economy report (2010) indicates thatthe music industry continues to overshadow the 2002. Exports of creative goods from developing CARICOM’s earnings were negligible relative toother segments of the entertainment services countries totaled US$176bn in 2008 and the Dominican Republic’s earnings fromindustry. This trade note provides global market accounted for 43% of the global trade in the entertainment services (see figure). In 2008,information on the non-music2 segments of the creative industries. South-South trade (i.e. trade Barbados was the top CARICOM exporter ofentertainment services industry and highlights amongst developing countries) increased from entertainment services earning US$26mnproposals for further market development in US$7.8bn in 2002 to US$21 bn in 2008. (UNCTAD/UNDP, The Creative Economy 2010).Canada. CARICOM has demonstrated competitiveThe entertainment industry is treated as a sub- advantage in this industry, and there seems to besector of the wider cultural industries and is possibilities for enhancing value added economicspecifically defined as follows: the Music ____________________________Industry, including recording, live performance, 1 Data extracted from Conceptualisation Inc, 2011.and music publishing; the Film and Television 2 Trade revenue generated by global recorded music sales totaled $15.9 billion in 2010, according to the Internationalindustry, including on-location productions; the Federation of the Phonographic Industrys (IFPI) annual report. That represents a year-on-year decline of 8.4% compared toBook and Magazine publishing industry; the 2009, when global sales amounted to $17.4 billion. IFPIs annual "Recording Industry in Numbers" study also states that physical format sales once again slumped by 14.2% globally, falling from a trade value of $12.2 billion in 2009 to $10.4 billion.Performance Arts; the Visual Arts; Festivals The U.S and Japan, the worlds two largest music markets respectively, accounted for 57% of the global decline in 2010,and Cultural tourism; the Fashion and Glamour compared with 80% in 2009, says IFPI. Recorded music sales in the States were down 10% to $4.17 billion (compared toindustry; and Collective Management of $4.63 billion in 2009), while Japans market dropped 8.3% to $3.96 billion (from $4.32 billion in 2009). For information on theCopyright and Related Rights. Caribbean music industry see: http://www.carib-export.com/SiteAssets/The%20Caribbean%20Music%20Industry.pdf www.crnm.org
  2. 2. OVERVIEW OF ENTERTAINMENT financial support with the recent announcement markets for art in 2008 were the USA and the SERVICES SUB-SECTORS (EXCEPT MUSIC) that it would offer financial assistance to the UK, which jointly accounted for 47% of fashion industry including tax credits for the international sales. The major hubs were 2.1 Fashion production of clothing materials and direct London, New York, Paris, Berlin, Geneva and Fashion describes the clothing, apparel and government funding for small and medium Tokyo. fashion accessories and jewellery design sized fashion enterprises with the aim of industries as well as modeling. The clothing and safeguarding the “Made in Italy” brand and to apparel industry was expected to grow to allow companies to be competitive. Figure 1: Global creative Industry exports US$1,781 bn at the end of 2010; the fashion 2.2 Visual Arts (VA) 2.3 The Book and Magazine accessories sub-sector of which, includes bags, The Visual Arts comprise: antiques, painting, Publishing Industry belts, hats, fashion eyewear and watches has an sculpture and photography as well as the The global market for internationally traded estimated value of approximately US$1.5bn at “other visual arts: a loose category consisting goods from the publishing and printed media the end of 2006, with an estimated growth rate of engravings, carvings, lithographs, collages industries totaled US$48bn in 2008 compared of 4.6% and was estimated to reach a value of and other ornaments. to US$30bn in 2002. The most traded product US$1.85bn at the end of 2010. was books, which had an increase in exports The global trade in visual arts increased from US$11bn in 2002 to US$19bn in 2008. The  The European fashion industry is internationally US$15bn in 2002 to U$30bn in 2008 and export market for publishing and printed recognised and is one of its most important accounts for 5% of total exports of creative media was dominated by developed sectors responsible for the largest share of total goods. Paintings was the largest visual arts economies which accounted for 80% of world revenue of the cultural and creative industries, market and increased from US$6.3bn in 2002 exports in 2008. Nonetheless, exports from estimated at 24%. Previously, the Italian fashion to US415bn in 2008, whilst sculpture was the developing countries increased during 2002 to industry grew without strong government second largest VA market with exports 2008 from US$3.2bn to US$8.1bn. Books investment. However, the current economic reaching US$9bn in 2008 with half of this accounted for the greatest market share crisis has caused the government to provide originating in developing economies. The main increasing from US$2.1bn in 2002 to US$5.1bn in 2008. www.crnm.org
  3. 3. 2.4 Collective Management services proposals being considered to  Conclude The CARICOM model Co-In 2008 authors societies (222 societies increase market access to Canada based on Production Treaty (CPT) urgently soworldwide) collected over €7bn in royalties industry consultations in some of the non- that that can be proposed as thewhich represented a drop of 1.5% after four music sub sectors: platform for the CPT with Canadayears of continued growth. 64%of the collections  Implement CARICOM Cultural Policieswere made in Europe and 71% were from public 3.1 AV/Film Sector and ensure that the Audiovisualperformance (including nightclubs, shops, Joint ventures to develop regional film Sector is suitably includedrestaurants, hotels and broadcasters), which animation capabilities’ and to develop the represented a 2.3% growth rate. Broadcasters capacity and technical capabilities of local accounted for almost 60% of these collections practitioners in video art and animation 3.2 Publishing Sectorwhile live performances were just under 12%. techniques. The recommendations from the Development of a co-publishing agreement87% of the collections were from the musical Audiovisual sector roundtable in the between Canadian publishers and therepertoire while non-musical collections CARICOM-Canada Trade Development Forum Caribbean Publishers network to collaborate onincreased by 11%. In terms of related rights of (TDF), held in November 2011, compliment the e-book dissemination; technical assistance toperformers and producers of sound recordings, proposal. The TDF AV roundtable proposed develop specialty format printing capabilities;global public performance licensing revenue the following: development of a French language Institute forincreased by 7.6% in 2009. With reference to training of Culture practitioners to enable greaterreprographic rights, the International Federation  Conduct an Economic Impact market access to Francophone regions.of Reprographic Rights Organisations (IFRRO) Assessment of the contribution of thereported just under €600 million in licensing Audiovisual Sector in the Caribbean 3.3 Visual arts sectorrevenue. to identify opportunities for Cultural cooperation to strengthen the artists-in- collaborations with countries like residence and internship programmes at2.5 Audiovisual Industry Canada. regional and national colleges; and capacityThe AV industry includes film, television, radio  Conduct a study tour to explore building to train the staff of national galleries inand its scope of activities include writing, Canada’s Audiovisual Sector. This the region in art conservation and preservationdirecting, acting, motion picture and video could include The Canada Media techniques.production and distribution, video rentals and Production Association(CMPA),sales (including video on demand), and allied Caribbean Film Institute(CFI), What are your views?services including technical services. Valued at Institute National de L’image et duUS$471bn in 2009, the global AV market is Son(INIS), National Film Board ofprojected to grow to US$550bn in 2013 despite Canada, National Screen Institute, Bibliographythe ongoing financial and economic recession. Universities and Colleges(inc Conceptualisation Inc. (2011). Final ReportIn terms of sub-sectors, the global television Vancouver Film School and CISP/OTN/2.2.1b/SER09.10 Consultancy for themarket is estimated to have a value of Ryerson), Audiovisual Practitioners CARIFORUM Prospects in the EU Markets forapproximately U$195bn. within Canada’s Caribbean Entertainment Services. Bridgetown: CARICOM Office of Trade Negotiations. Community including the blackThe audiovisual sector is expected to business and professionalsexperience a growth rate of 3.7% compounded association (which offersannually. India is the largest producer of films scholarships), to explore relevant(i.e. in terms of number of films) but the training programmes andAmerican market has 24 times the value of the opportunities (including short andIndian market and the USA continues to medium term training)dominate film distribution.  Update, expand and consolidate the Caribbean database of creativeOVERVIEW OF ENTERTAINMENT industry resources at the Cave HillSERVICES SUB-SECTORS (EXCEPTMUSIC) CampusWhilst the music industry remains a leading Produced by the OTN Information Unit, 2012entertainment service based on factors includingits employment capacity, the other DIRECT ALL COMMENTS OR QUERIESentertainment sub sectors are buoyantinternational trade options, and the AV sector Mr. Lincoln Pricedwarfs the music industry in terms of size of Private Sector Liaison lincoln.price@crnm.orgearnings.The following are some of the entertainment www.crnm.org