A second study, The Internet and the creative industries: measuring growth within a changing sector ecology, examines current approaches to measuring the ‘creative sector’; and the impact of the internet on the role of independent artists and small businesses in the business of culture. Drawing on case studies from the UK, France and Sweden, the research finds that the Internet has increased the numbers of creative sector SMEs and 'sole traders.'

In the music industry of twenty years ago, for example, a single record label hired lawyers, accountants, cafeteria workers. Today, many of these roles are distributed among small businesses and independent players. A band might be discovered on YouTube, hire professionals on an hourly basis to handle contracts, self-publish and self-market.

Until now, most research has failed to take into account this structural shift toward ‘unorganized content producers,’ suggesting that they fail to capture a great deal of activity.  See below.

What is needed, the researchers conclude, is a new way of measuring the culture industry. Specifically, this new measurement must identify and measure the contribution of SMEs and sole traders. Only when we have reliable statistics can we truly understand the Internet’s impact on the business of news and culture.

Posted by Simon Morrison, Public Policy and Government Relations Manager