www.forum-avignon.org

ACCOUNT

Le Forum dAvignon at Futur en Seine

Has the Internet taken control of the

cultural economy?

June 12th, 2015

Account Futur en seine June 12 CNAM

ACCOUNT of the Forum d'Avignon at Futur En Seine

- June 12 - CNAM, Amphi Fourasti -

Has the Internet taken control of the cultural economy?

The question of integrating culture within the single digital market is causing debate... To examine this, the Forum d'Avignon chose to put together the verbatims of two debates that took place at Futur en Seine [1. The place of the authors/artists in the digital single market? and 2. The remuneration of the creator in the digital era] to brush through the main issues and perspectives pertaining to the cultural entrepreneur adapting to pressures from the internet. In the debates, Cartooning for Peace, indispensable to the Forum dAvignon, and its talented cartoonists Louison and Pascal Gros. The debates were also boosted by the artistic performance of Albertine Meunier and accomplices reading the manifesto Datadada .

1era perspective: Internet has shaking up the place of the artist and the distribution of the added value in creation.

- Digital is a new technique for artists

Caroline Champion [Explorer of flavors, Convergences culinary Designer, author of "Hors d'oeuvre, essay on the relationship between arts and cuisine" (2010, ditions Menu Fretin) ] recalls that a common etymology unites the history of art (" ars ") to that of the technique (" techne "). A major invention like that of photography opened a field of creation where artists were quickly able to take advantage. The development of the art market was always and still is dependent on technical progress. For example, the printing technology combined with the practice of signatures resulted in the development of a market for copy.

Account Futur en seine June 12 CNAM

- With digital, the job of composer is open to new profiles of musicians. Eric Serra [composer, musician ] Before, we recorded over a limited number of magnetic tracks (24 or 32) and, whenever one re-recorded or one received a track, we would lose quality. With digital, no more limits on track numbers, no loss of quality regardless of the number of records; For me I often for example exceed 100 tracks with an ultra-professional quality and very low costs. What I do now with my mac book is of better quality than with a digital magneto bought for more than one million francs in the 1990s.

Digital also allowed to model the sounds; for example those of a symphony orchestra can now be controlled on a keyboard, which allows - with an unlimited number of tracks to compose instrument by instrument a symphonic music, and listen to the result at each step. When its good, I can print the score and individual sheets for each instrument, that I distribute to the entire orchestra for the recording studio. Modeling does not replace real sound (for example the sentence of the violin is not easily reproducible by the keyboard) but it allows me to enter the studio already knowing how it will sound.

These innovations enable an self-taught musician to have access to the composition of symphonic music. Before he had to write all the instruments one by one without hearing the resulting sound that we only found out once in the studio. By enabling symphonic mock-ups, digital is a boon for a new generation of composers.

-A new proximity with the public is constructed through social networks.

The latter continues Eric Serra indeed empower artists to send direct messages to their audience instantaneously. One would then assume that the role of talent agents to be significantly reduced. But rather than a total disappearance of their profession, it is rather their transformation that we observe according to Eric Serra. In his eyes, record labels or the "pure players" as Google or Apple will perhaps play this new role of "communication agents.

- Digital generated its own art form: digital art.

"Digital art is demanding as it requires reuniting multiple skills around a project explains Malo Girod de L'Ain [founder CEO, Digitalarti, specialist in digital art and innovation]. As these projects are sometimes ephemeral and have their own economic model.

On the other hand, digital art has the ability to reach a very wide audience. This is the objective of the work of art project digital 'One heart, One tree' of the digital artist Naziha Mestaoui : a monumental work of art creating a forest of light on top of the monuments in Paris during the Conference on climate of the United Nations Climate Conference in 2015 (COP21).

For this reason, digital art awakens the interest of many actors be they public or private. The Digitalarti Agency has in this light signed sales contracts for works of interactive art with city of Metz or the Airport of Paris.

- Digital has enabled video games to include players in their creative process For Nicolas Gaume [Director of developers and ecosystem of Microsoft France, Vice President of the national Union of the game - SNJV], the digital single market allows video game studios to both renew and sustain their creation. In a context of relatively rigid cost structure which is that of the video game studios (permanent job model, teams associated around a studio), the digital

Account Futur en seine June 12 CNAM

dematerialisation allowed people to constitute platforms for co-creation with game players. The latter allows to constantly revive creativity and develop a single game over several consecutive years as is the case of Minecraft. Finally: there's no barrier in video games, it feeds on other creations, its the new latin.

- Many lesser-known other art forms of the public take up digital In particular, the interactive multimedia works and web-documentaries developed thanks to the technologies offered by digital explains Laetitia Moreau [author, Director, administrator of Scam and member of the Committee Ecritures et Formes mergentes]. The framework for such works in the digital single market is developed by the SCAM (civil society of digital authors). The digital market may be discriminating against certain forms of creativity - In particular, the taste is not fully scannable

Caroline Champion, follower of unpublished and innovative experiences (what taste has the red of a Picasso painting? ) explains that the culinary art represents a challenge for the digital both at the level of dining experience and its promotion on social networks: "the boundaries of the digital single market, if they are moving to the extent to which the arts shall commit, are sometimes unable to take into consideration certain practices. Furthermore, recipes cannot be copyrighted and be the subject of intellectual property - which is not a problem - the artists using taste as their privileged medium can have recourse to other forms of compensation, becoming real artist-entrepreneurs, multiplying activities (teaching, consulting companies or institutions, performance) and the associated legal statutes. An administrative headache that complicates the development of the role of the artist in the digital market.

The authorship of a work is a fundametnal moral rights, claims Laetitia Moreau. The valorisation of works i in French and European law is based on this recognition. The issue of copyright is not only that of a legitimate value compensation but of an overruling ethical claim. Thus, approaching it only in economic terms risks relegating to the second plan the moral struggle that they lead.

The need to enforce copyright law not only when it is used for profit but also when for nonprofit. Therefore, the mention of credits must be the first horse of battle in order to create awareness and

Account Futur en seine June 12 CNAM

educate future generations. In this context, the 'creative commons' frame distribution works for non-profit purposes.

But such an approach presupposes of course a reposition of the debate : focused on the specificity of cultural goods and services, according to Laetitia Moreau. It is in particular about not thoughtlessly using the term consumer but rather that of reader, spectator, auditors, etc.

2th perspective : Internet shifts the remuneration models of the artist

'The impact of hybridizing economic models on cultural diversity is still ambiguous according to Vronique Pellet, Senior Manager at the pole Strategy, Telecom, Media & Entertainment [excerpts from the presentation of Kurt Salmon, whose study is forthcoming for the Forum dAvignon to see the full presentation, cf. press release] "In General, the distribution of the value generated by new business models is more favourable to the beneficiaries: for example in France authors capture 11% of revenues generated by the sale of a book (physical model) while they "capture" 15% of revenues generated by the sale of an e-book (new digital model). Nevertheless, prices are generally lower on the digital models and the volume effect of new models must be large in order for the overall distribution of value to be distributed to an artists advantage (and mainly popular artists, more precisely very popular artists who generate large volume effects).

We must in fact distinguish 'produced' and 'consumed' cultural diversity. Although accessibility to culture induced by digital is diversifying the cultural offer, yet cultural practices seem to focus on a restricted group of goods and cultural services. Digital, and hybridization of the models that it accelera, thus 'produces' diversity, but weighs little on how this diversity is "consumed". For example, with regard to produced diversity it is noted that 40% of the revenue from e-books on Amazon are recouped by self-published authors or even the 2 million titles available on Spotify. But regarding consumed diversity, we must bear in mind that 20% of Spotifys catalog has never been listened to! Alternatively, when in 2000 1% of artists captured 70% of the revenues generated by recorded music worldwide, today 1% of artists capture 77% of such revenues.

The remuneration of the artist on the digital single market suffers from legal uncertainties - The majority of the artists today consider their pay in the internet as symbolic. To illustrate this observation, Eric Serra describes the fallout for his own remuneration: while previously it comprised of the proceeds from physical record sales (90% of total compensation) and copyright (10% of total compensation), these proportions are now reversed. But above all, they all cover much smaller volumes. Although he personally hasnt used it, participatory financing appears to him as a solution even though many initiative fail with this financing. - Artists sometimes face an uncertain legislative framework, some say non-existent, particularly for digital art.

Just as for the aesthetics "of the Explorer of flavors" deployed by Caroline Champion in her many activities, Malo Girod de L'Ain explains that digital artists often encounter underfined legal statutes: 'this all the more so if they work on an international scale. For example, social networks often benefit from many amateur fan copies of a work, or rights related to copyright are still under-developed, atleast definitely so for digital works.

Account Futur en seine June 12 CNAM

We can observe a hybridization of artist remunerations in the digital single market - The role of major broadcasters is decisive on the question of artist remunerations.

In reality, their global influence and financial power leave a minimal part for negotiation, or even non-existent for the artists, explains Malo Girod de L'Ain. Presently, this source of revenue therfore no longer appears sustainable nor sufficient. The remuneration of artists is more variable and relative to the project they are representing.

- There is a revival of importance of live performance ins the remuneration of artists

Yves Michaud [writer, philosopher] notes that "Apart from the proceeds from the reproduction rights, quotation, photocopying etc, the increasing share of ones earnings come from the conferences in which they participate to present ones books. The reason: literature is arrving at its end as were illuminations in their time, people no longer want to read, they want to hear the history of the book in a conference! In other words, artists must seize, in their interest, the shift from culture towards the need to feel, to experience because 'on live' earns more more than books! Paradoxically, culture buckles the circle: from the real object to the virtual object until we arrive at "live experience".

The role of the major broadcasters redefining itself under new responsibilities - The major broadcasters must meet the challenge for paid digital cultural goods and services :

Laurence Ny [Director music and culture, content direction, Orange] sees there "a major issue especially with regard to different generations and especially the Y generation that are used to accessing for free cultural goods on the digital market . While working for Orange, she asked herself the question of transformation the a 'free' active subscriber base (service package that includes a data subscription) to pay Premium services: "a subscriber base that has a critical size is a great asset, this was in fact the initial Deezer strategy" From her persepctive, the first key to success is the ability to develop mboile services such as listening to music in the "offline" mode, with a price suited to various markets. Apple Music, with the launch of its offer 'Family' has a very attractive price, will definately reshuffle the deck.

Account Futur en seine June 12 CNAM

The appetite for music streaming becomes inevitable and an operator like Orange present in several countries in Africa and the Middle East has a key role to play in content based service distribution: we still need to confirm the relevance of the models faced with the fundamentals of these markets: local catalog, economic model adapted to uses (prepaid and subscription day/week...weak ARPU). In music, the labels have a real leading role to play in this ecosystem!

One should not underestimate insists Laurence Ny, the contribution of major broadcasters/distributors of digital content for the funding of cultural industries. All contributors have thus had to pay substantial income to the beneficiaries in the context of distribution agreements and this contributed to the development of the legal offers. Orange is one of the most important players funding cultural industries in France through the distribution of services of digital content (cinema, Vod/Svod, games, music, culture, infotainment, news, TV...).

The important issue to preserve the European model for cultural industries is to offer competitive services while promoting artistic creation and defending the interests of creators. This can only be done by support at all stages of development for our future European champions.

Support is required to help artists to fully find their place in this market

According to Maud Franca, [Director in charge of the digital, Future Investment Program at the BPI - Caisse des dpts] this support represent above all by an training effort for the artists. It should particularly address the issue of digitalisation and the related hybrid business models. Such an approach seems to bear fruit when it is elaborated in the context of an ecosystem dedicated to cultural and creative industries. It means introcuted project tenders to devoted tools, as is the case of future investments dedicated to the cultural sector, investments made by the Caisse des dpts and Bpifrance on behalf of the State and the Commissioner-General for Investment.

Pascal Keiser [Director Technocit Mons 2015] adds that training also is a relevant method to accompany artists in the digital single market. The city of Mons for example created a training centre dedicated to the cultural and creative industries for its project as the 2015 European Cultural Capital. Thus, if the digital single market is part of the virtual realm, finding a place within it presupposes an accompaniment that is part of territorial anchorage. Again, the example of the city of Mons and its "digital innovation valley" label appears very telling.

- The digital single market adds a new production constraint for the artist

For Yves Michaud, while making the observation that : people no longer want to read: they want to hear the history of the book in a conference!" and that 'literature is at its end as were the illuminations in their time", a new conception of culture seems to emerge with the digital single market: "we have moved on from seeing culture as a the creation function towards culture as a production function. This doesnt mean that the artists of the past were not as prolific as current artists - "Handel was the first DJ: he wrote operas in 15 days and recycled them permanently! '- but instead the dimensions of leisure and sociability, today cultural experience appears to be the key to success.

Prospects: Some tips for cultural entrepreneurs

Account Futur en seine June 12 CNAM

Dare. Be inspired by the adage: they didnt know it was impossible so they did it. Nicolas Gaume

Curiosities, openings, travels, encounters... Maud Franca

Cultural demand exists and is even strong, but it is demanding: it is related to offers and models that are in phase with the publics changing practices, which are increasingly becoming digitalized. The economic model should serve your work or your offer: the good economic model guaranteed for good no longer exists, one must accept to be very innovative and agile on the subject. Vronique Pellet

If you want to win money highlight the connection between a demand and the resources; If you want to do something creative, take risks, do something that you are passionate about with the risk of not making any money. Yves Michaud

Retrieve control over digital while being curious about its potential. Do not be afraid, this is a way to spread the art. Let us dream that cultural venues will be served by technology and not vice versa. Designers should reclaim power! Laurence Ny