The document discusses the role of creative industries in economic development, highlighting their potential for job creation, cultural diversity, and social inclusion, particularly in developing countries. It addresses challenges faced by small and medium enterprises in financing and support, the impact of copyright laws on the creative process, and the evolution of rock bands in terms of revenue generation and audience engagement. Additionally, it emphasizes the importance of cultural assets and intellectual property in fostering innovation and economic growth.

1. Master of International
Business, Group Members:
Department of Commerce, Ajay Singh Duggal
Delhi School of Economics Prapti Aggarwal
S.Jayakar
Sachin Kumar
Sahil Lohra

3. First Appearence
• John hawkins,2001
• Two kinds:
people’s fulfillment as individual and generation of
product
Our Reference point
• UNCTAD

4.  It can foster income generation, job creation
and export earnings while promoting social
inclusion, cultural diversity and human
development.
 It embraces economic, cultural and social
aspects interacting with technology,
intellectual property and tourism objectives.
 It is a set of knowledge-based economic
activities with a development dimension
 It is a feasible development option calling
for innovative, multidisciplinary policy
responses

5. • Convergence of • demographics • Statistics
multimedia and • Changing • Contribution
telecommunicati patterns of • need
on cultural
• Deregulation & consumption
privatisation • Decrease in
• Digital prices and price
technology of consumption
Technology Demand Tourism

8.  Contribution to employment.
 Greater levels of employee satisfaction than
more routine occupations
 Role in fostering social inclusion
 Promoting
 Gender balance in the creative workforce,
particularly in developing countries
 Role of the arts in forming children’s social
attitudes and behaviors

9.  Cultural activities give rise to both
economic and cultural value
 Cultural diversity is a key dimension for
sustainable development and peace

10.  promotes economic diversification, revenues,
trade and innovation
 helps to revive declining urban areas
 world exports of visual arts doubled in six
years, reaching $29.7 billion in 2008
 global entertainment and media industry
alone will be injecting around $2.2 trillion in
the world economy in 2012
 Generate revenues from trade about US$
424 billion/year

12.  The primary input for creative activities is
creativity
 The creative industries production is usually
less dependent on heavy industrial
infrastructure
 Helps in environmental protection and
preservation
 Focus on innovation, and not only to seek out
low-cost solutions
 Vast platform to ethical business

15.  To realize Economies of Scale firms rely
on Chart Rankings
 Loss Bearing capacity of large firms and
incompetency of small firms
 Risk Minimization by distributors
through control of supply chains
 Right Timing and Innovation

16. Small and Public
Medium Institutions
Enterprises Individual
Artists
Large and
Corporation Producers

17.  Large number of Individuals and small
firms
 At the individual level there is a situation
of “Monopolistic Competition” –
differentiated talents, which leads to less
competition and low barriers to entry
 Small firms earn Income from Large firms
also, through sub contracting
 SMEs suffer from the financing problem
which causes hurdle in transformation of
ideas into goods and services

18.  Lack of support network in developing
countries
 Lack of Business Skills in small
enterprises
 Number of talented persons is more
than gatekeepers

19.  Largest producer of creative goods and
services in terms of value
 Have more complex value chains, large
labor force
 Main motivation is profit driven rather
than cultural promotion
 In developed economies, the large
corporations are technologically
advanced and more service oriented

20.  Originating end of the value chain –
dancers, singers, painters, sculptors etc.
 Directly sell their product or provide an
input for the next stage
 Draw the content for creative goods and
services from culture of their community,
country or region
 Due to higher competition, the financial
rewards are lower
 They satisfy at lower incentives due to
gatekeepers and distributors have more
power in the supply chain

21.  Movable and immovable cultural capital of
any country held in museums, galleries,
archives, monasteries, shrines, historic
buildings, heritage sites etc.
 Tourism potential of the countries with
rich cultural and heritage sites is very
high
 Contributing to foreign exchange earnings
of the country

22.  Input Output Analysis
 Constraints are : ignorance of the “art”
under current available I/O tables and
lack of data for estimation
 Spillovers :
› Knowledge Spillover
› Product Spillover
› Network Spillover
› Training Spillover
› Artistic Spillover

24. Copyright laws give statutory
expression to the economic and moral
rights of creators in their creations and
the rights of the public in the access to
those creations. In principle, copyright
assures the ownership of a tradable
right that can be used to secure a
financial return on their investment.

25. The con ce p t of “C op yrig ht an d
Re lat e d Rig ht s ” is d e fin e d in
Nat ion al L e g is lat ion .
The mos t imp ortan t of t he s e i s
t he Be rn Con v e n t ion fo r t he
Prot e ct ion of L ite rary an d
A rt is t ic Works

26.  Exclusive Rights
 Moral Rights
 Exceptions and Limitations to
Copyright
 Enforcement of Copyright

27. Copyright provides exclusivity only over
the form of expression of an idea but
not to the idea itself.
Copyright law protects the owner of
rights in artistic works against those
who “copy”, i.e., those who take and
use the form in which the original work
was expressed by the author

28. The right to claim authorship of a work
and the right to oppose changes to it
that could harm the creator’s
reputation.

29. 1. Free uses
2. Non-voluntary licences

30.  The key issue is not only enforcement but
also the ambiguities of the current IPR
regime, which deserve to be carefully
addressed by governments
 In considering the protection and
enforcement of copyright and related rights,
piracy appears as one of the central issue
 Inadequate enforcement of copyright limits
incentives to develop creative products,
especially for small and medium-sized
enterprises

31. The creative industries commonly seek to
achieve a number of contradictory
outcomes: access and excellence, social
inclusion and profitability, etc. For this
reason considerable care is needed in the
creation of indicators for comparative
work, evaluation and policymaking.

32.  Employment
 Time use
 Trade and value added
 Copyright and intellectual property
rights issues
 Public investment

33. Why the current data is
inadequate..??

34.  Primary
› Consumer survey
› Rock band members interview
 Secondary
› Online research
› UNCTAD creative economy report

35.  Q1. How do you listen to Rock Music?
(Besides Live Performances)
50
44
45
40
35
30
25
Series1
20
15
10
5 3 2
1
0
Official cds/dvds Internet paid sites Internet free download Other

36.  Q2. Are you aware of Intellectual
Property Rights?
6
Yes No
44

37.  Q3. How much do you spend on Rock Music
(CDs/Live Concerts/Merchandise) monthly?
30
27
25
20 18
15
Series1
10
5 3
2
0
0
Nothing 0- 500 500-1500 1500-2500 More than
2500

38.  Have you ever purchased a merchandise of
any Rock Band?
Yes
23
No
27

39.  Do you think Rock Bands help in social
unification irrespective of culture
differences?
14
Yes
No
Can't say
29
7

40.  We interviewed 5 Band representatives:
› Thousand and one
› Harmonic Friction
› Heaven in Violence
› Am I right?
› Sones Aura

41.  Conventional Revenue sources:
 sale of albums(hard copy)
 merchandise-tshirts, posters et al,
 gigs;
 headlining a rock event;
 playing at bars/pubs;
 Songs downloaded from itunes;

42. Like a product life cycle, the bands also are
under introduction, growth, maturity and
decline phases
 Introduction
Characteristics:
› Formation of the band
› Playing at college levels
› 1-2 ocs; rest covers;
› no/very less sources of revenue
› formation of a thematically cohesive band
idea(lyrically and musically)
› low popularity rate

43.  Growth
Characteristics:
› Moderate level of covers and OC's
› increased no. of gigs
› increasing sources of revenue generation
› Participatory in nature(as gigs);
› Willing to compete in college fests, rock
shows etc,
› Increasing rate of popularity
› Introduction of albums/songs/merchandise;
› Signing up with a label

44.  Maturity
Characteristics:
› Transition from covers to OC's
› Preferred presence: Headlining rather than
participating in rock show( gigs)
› strong and significant fan base
› Merchandise and albums have collectible
value
› Increased sales of albums/live show
tickets/merchandise
› Popularity level: high
› Vast sources of steady revenue generation
› Opening for an international band if it
performs in India

45.  Decline
› Band disbands
› Band members take different directions
career wise
› Low presence in events;
› Fan base: very less, band begins to head
towards oblivion
› Popularity level: low;
› sales of albums, merchandises and related
items reduces

46.  CREATION:
The idea of an OC might begin with band
members writing, recording a songand
passing it on to a label which puts it into
tangible form.
 PRODUCTION:
From there, the idea might be realized
as a live performance before an
audience, with the performance
subsequently being recorded and marketed
by the record company.

47.  DISTRIBUTION AND CONSUMPTION
The record will pass through a sequence
of wholesale and retail value-adding until
bought by a consumer or it may be
uploaded onto the Internet and
subsequently accessed by
consumers who pay a price for online
delivery.
Thus the overall chain can become quite
attenuated, one effect of which is to
diminish the relative share of total revenue
accruing to the creator of the original idea.

48.  The object of copyright law is to encourage
authors, composers, artists and designers to
create original works by rewarding them with the
exclusive right for a limited period to exploit the
work for monetary gain.
 It protects the writer or creator of the original
work from the unauthorized reproduction or
exploitation of his materials.
 There is no copyright in ideas. Copyright subsists
only in the material form in which the ideas are
expressed. Works protected by copyright are:
› Original, Literary, dramatic, musical and artistic works;
› Cinematographic film; and
› Records

49.  Musical work- Copyright subsists in original
musical work and
› Includes any combination of melody and
harmony, either of them reduced to writing or
otherwise graphically produced or reproduced.
› An original adaptation of a musical work is also
entitled to copyright.
› There is no copyright in a song. A song has its
words written by one man and it’s music by
another; is words have a literary copyright, and
so has its music. These two copyrights are
entirely different and cannot be merged.
› In cases where the word and music are written
by the same person, or where they are owned
by the same person, he would own the copyright
in the song.

50. In case of literary, dramatic or musical work, A
copyright gives the right to do and authorize
the doing of any of the following
acts, namely-
 to reproduce the work in any material form;
 to publish the work;
 to perform the work in public;
 to produce ,reproduce ,perform or publish any
translation of the work;
 to make any cinematographic film or a record
in respect of work;
 to communicate the work by broadcast or to
communicate to the public by loud-speaker or
any other similar instrument the broadcast of
the work;
 to make any adaptation of work;

51.  RECORDS
 Record means
› Any disc, tape, perforated roll or other
device in which sounds are embodied so as
to be capable of being reproduced
therefrom.
› The sound tract in a cinematography film is
not a record unless it is separately
recorded in a disc tape or other device.
› Where the record is made directly from a
live performance the owner of the disc or
tape in which the recording is made will be
the owner of the copyright.

52.  In the case of a record, copyright gives
the right to do or or authorize the
doing of any of the following acts by
utilizing the record, namely-
› to make any other record embodying the
same recording ;
› to cause the recording embodied in the
record to be heard in the public;
› to communicate the recording embodied in
the record by broadcast;

53.  Creative economy report,2010 :UNCTAD
 Live and virtual survey

54. Thank You!!
Master of International
Business,
Department of Commerce,
Delhi School of Economics