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From Dinosaurs to Digital – innovation in the copyright industries

Nick | 09 Jan 2009, 12:24

Andrea Siwek of the US-based Progress and Freedom Foundation (a “market-oriented think tank that studies the digital revolution and its implications for public policy”, supported by a range of multi-national media and technology companies) has published a study of business-model innovation in the copyrighted industries entitled “From ‘Dinosaurs’ to Digital.“

The study is a retort to market commentators who argue that the copyrighted industries in the creative economy (such as music, film, television and publishing) have been too slow to respond to the reality of the digital age. Siwek argues:

“Copyright industries are experimenting with production and distribution innovations with the intent of staying connected with consumers. The various distributors are giving consumers a wide variety of platforms to enjoy traditional media as well as new media based on the consumers preference. The digitization of copyright products is meant to increase convenience for consumers by giving them more control over how, when and where they enjoy these works. The bundling of these products is also verifying that copyright industries are striving to please consumers… the copyright industries have adopted multiple strategies to evolve and innovate in the emerging digital environment.“

The paper describes three broad categories of innovation, including: digital distribution of single products (eg: CinemaNow and iTunes), bundling online and offline products (eg: magazine publishers’ dominant advertising model), bundling of digital content (multiplatform services such as GuardianUnlimited and branded destinations such as WBTVG’s plans for branded channels).

But as Siwek concludes, not only are new distribution models unproven in terms of their ability to replace traditional revenue streams, they also remain reliant on effective copyright protection and enforcement:

“The problem of piracy is ongoing and policy makers should not lose focus on the problem of digital piracy regardless of the steps these industries have taken.“

The paper expresses a similar dichotomy to that which characterised much of the debate at the first c&binet dinner.

While there were attendees from companies like LastFM, Nitro and Fallon, which are working with copyright owners and advertisers to explore and new business models, there was also a strong belief from many at the table that the potential to develop new business models was often overstated and had been an unhelpful distraction in the debate about IP protection. As Patrick Ross argues for the Copyright Alliance:

“We’ll likely see a different handful of choices in different creative industries, but that’s the way it was in the distribution of physical goods. Again, as the digital marketplace matures, it will form itself around the same consumer preferences we have always had for creative works.“

“From Dinosaurs to Digital” attempts to draw both sides of the equation together. While consumer-focused innovation is absolutely essential, so too is a pragmatic debate about the enforcement of property rights.

Zaha Hadid calls for more public competitions for architecture commissions

Nick | 09 Jan 2009, 10:00

Leading architect Zaha Hadid has called for the UK’s public sector to hold more open competitions for building commissions as a way of encouraging a higher standard of modern architecture in the country.  She believes the UK market lags behind Europe in this respect.

Speaking to BBC radio recently, the Iraq-born, US-educated and UK-based architect said:

“I think the advantage Europe has is that they really took seriously the law that says, to build a public building you have to go through a competition. In the UK, first of all, there are not as many public works which go through competitions like that. The advantage in Europe is that there is a process of competition which gives you the right to do public work building.“

Critics have pointed out that many public buildings in the UK are subject to public competitions and that the UK has embraced modern architecture far more than her comments suggest. Nonetheless, it does highlight a broader point about the ability of governments to shape the growth of the creative economy through micro-economic policy.

Governments are the biggest customers for many of the creative industries, including architecture and advertising. While much of the c&binet forum discussion about the role of government is likely to focus on regulation and fiscal structures, there is also an opportunity for creative business leaders to present their ideas about how governments can use their spending power most wisely to promote the development of world-class creative companies and products.

Hadid is the architect of the aquatics venue for the London 2012 Olympic Games.