The cultural sector needs support in order to benefit from a digital remake

The cultural sector needs support in order to benefit from a digital remake

By Ricard Gil, Associate Professor, Smith School of Business

April 1, 2022

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A man records a Concert with his phone
The pandemic shifted many concerts, events and performances online. (Unsplash/John Mark Arnold)

The COVID-19 crisis has dealt a massive blow to the and around the world. The impact was .

In 2020, museums were closed for an average of more than 155 days, and in 2021, many of them had to shut their doors again, resulting in a 70 per cent drop in attendance.

The film industry, which relies heavily on box office revenue, has . The crisis , putting smaller publishers at risk and delaying the launch of several new books and literary works. , delayed or cancelled and many artists had to find other work.

When these sectors hurt, Canada hurts.

Creative industries have long been one of the leading drivers of innovation and economic growth in this country, making up . By promoting social inclusion and social capital, the cultural sector is a key contributor to well-being as well. Our culture drives our identity as community and as country.

Just above survival level

The pandemic has exposed the structural fragility of the businesses and people foundational to supporting the cultural and creative sectors.

For the most part, small businesses, non-profit organizations like art centres, fairs, festivals, museums or theaters and independent artists and creative professionals like writers, painters or musicians — many who are operating just above survival level.

The pandemic has removed their main sources of revenue but has not diminished their costs of creation. If they go under, they may never recover. This would create a long-lasting dent in the production of cultural content in Canada.

Even though the federal and provincial governments have implemented for organizations and professionals affected by the pandemic, the measures have not adapted to the new reality.

Supports also appear to be poorly targeted and fail to account for the medium- and long-term on how we produce and consume cultural products and experiences.

For many arts institutions and creative professionals, continued survival and relevance will hinge on how well they can transition from in-person to digital. Doing so will build their resilience to face future shocks and offer an economical pathway to reach larger audiences.

Supply and demand

In the near future, emerging technologies such as virtual and augmented reality have the potential to that can be marketed not only to large audiences but also to new audiences who were not consuming the cultural content before.

In economic terms, digitalization has affected both the demand and supply for cultural content. Thanks to increasingly sophisticated technology and the adoption of digital devices to experience things remote because of the pandemic, consumers have for new ways to “tour” museums, “attend” theatre and participate in book readings.

For culture producers, this has forced them to re-imagine not only but also their business methods, distribution channels, advertising and funding.

Digitalization of cultural experiences

The digitalization of cultural experiences takes many shapes and forms: musicians streaming concerts when live concerts aren’t possible, or online book releases with authors reading from their homes.

The pandemic forced cultural producers to think about how they might transition the delivery of their cultural content from in-person to digital in ways that wouldn’t diminish the experience of cultural consumers.

Digitalization has affected competition as well, in cross-cutting ways. It has , which should spur competition. But it has also led to greater concentration among those who are able to adapt to the digital world, adding to the decade-long trend of .

Greater market concentration usually leads to , with serious long-term consequences for access and diversity of content — that is the most worrisome.

Access to culture and the guarantee of respect to one’s culture are not only by the and promoted by the United Nations and UNESCO, but they are quintessential to our identity as a community and country.

Policy interventions

Given the importance of access to culture, must aim to support the digitalization of cultural experiences as one way to help face the uncertainty of the future.

Even in stable times, to the . That needs to change.

The form of measures and aid provided can vary but two objectives must be prioritized.

One, the aid must help to guarantee the survival of companies and organizations, employees and artists who make access to culture possible. Cultural producers — particularly those that are small and independent — will need help to build their digital skills.

And two, looking to the future, the aid must be competition-neutral — business and organizations must not be favoured over others — to ensure lively innovation by new entrants. If necessary, anti-competition law should be applied to avoid abusive practices that reduce access to culture.

With the fulfilment of both conditions, we can emerge from this crisis a culturally stronger and more forward-looking and resilient country than before.The Conversation

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, Associate Professor, Smith School of Business,

This article is republished from under a Creative Commons license. Read the .

The Conversation is seeking new academic contributors. Researchers wishing to write articles should contact Melinda Knox, Director, Thought Leadership and Strategic Initiatives, at knoxm@queensu.ca.
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