Transcript PowerPoint Template

Culture Industry is Hot!
 the Global Entertainment and Media Outlook
report (2006), the worldwide market for cultural
content is worth of 1.6 trillion getting bigger than
conventioanl industries
 - US explains 44%; Japan 8.5%; Korea 2.2%
 Peter Drucker, “The success and failure of each
country will be decided by the cultural industries
in the 21st century. The final battleground is the
cultural industry."
What is Culture Industry?
 also called as leisure industry, information
industry, creative industry or media industry
 the definition and what are included differs by
country
 The GEMO report includes culture industry into
fourteen segments: films, TV network,
broadcast and cable, recorded music, video
games, publishing (magazine, newspaper,
books), amusement and theme parks, sports,
characters, etc – fashions, architecture, design
Market Share of Culture Industry by Country (2003)
45
40
35
30
25
Market Share
20
15
10
5
a
K
or
e
ad
a
C
an
pa
in
S
Ita
ly
na
C
hi
Fr
an
ce
ng
la
nd
E
an
y
G
er
m
Ja
pa
n
U
S
0
Source : Global Entertainment and Media Outlook (2004)
GDP and culture industry growth: 2000~2003
Other countries
Korea
GDP growth rate
Cultural contents growth rate
25
9.2%
4.6%
10
8
6
National Cultural
Economy Contents
4
2
US
Source: Culture Industry White Paper(2004)
Canada
UK
France
China
Source: Global Entertainment and Media Outlook: 2004-2008
Korea’s market share in some manufacturing and
cultural industries in 2003
Unit : hundred million dollar
Manufacturing industries
Culture industries
World Market
Korea M/S
World Market
Korea M/S
Semiconductor
1,607
7.9%
Characters
1,450
2.8%
Memory chips
317
34.5%
Games
621
5.3%
Home
electronics
930
5.4%
TV programs
2,600
2.3%
Mobile phone
745
28.3%
Movies
749
1.6%
TFT-LCD
316
42.0%
Music
320
0.5%
Shipbuilding
596
43.8%
Animations
750
0.4%
Distinctive Features of Culture Industry
 risky business: cultural consumption are highly
subjective and individualistic and changes very
often, therefore hard to predict; a few hits
 heavily dependent on information technology:
but IT killed publishing/music insutries
 very low reproduction (variable) cost with
window effects that highly profitable like a
gambling
 environmentally friendly (less pollution and less
natural resource consumption)
Korean Cultural Wave since 2000
 Before the Korean Wave, Japan had been on
the forefront of the television and film industry in
Asia, followed by Hong Kong and Taiwan
 American films dominate the world: even in
France domestic movies’ market share was 45
percent in 2008 (EU average, about 25 percent)
 Young/talented/new blood came into Korean
movie industry like Kim Ki-Duk, Park ChanWook have stolen the fame of a Japanese
legendary director Akira Kurosawa
Movie Audiences in Korea
Domestic
Movie
Imported
Movie
2001
2002
2003
2004
2005
2006
The Number
Of
Person
448.1
508.2
639.1
809.1
854.4
979.1
Percentage
50.1%
48.3%
53.5%
59.3%
58.7%
63.8%
The Number
Of
Person
445.4
543.1
555.6
549.8
600.8
554.9
Percentage
49.9%
51.7%
46.5%
40.7%
41.3%
36.2%
Total
893.6
1,051.3
1,194.7
1,351.7
1,455.2
1,534.1
Source: 2007 Korean Movie Year Book, Korean Film Council, 2007
Factors for pushing Korean Wave to
Replace Japanese and Honkong’s
 strong government support; culture industry
related budget from US$ 8.5 billion in 1999 to
US$ 43.5 billion in 2003
 the relatively lower price even cheaper than
domestic products
 Korean TV dramas and films retain traditional
values and virtues: family centeredness, respect
for the elderly
 China and Japan relationship got worsened in
the 1990s
Is Korean Wave just a passing fad?
 Are film and drama industries are declining
globally?
 Is the Korean Wave starting to cool down and
already fading away?
 in 2008, which was a very bad year, Korean
cinema took slightly over 40 percent of the
market
 the critical decline in its old markets but recently
spread to new shores like the Middle East,
South America, North Africa and Central Asia
<figure 1> Export and Import of TV Programs in Korea
($1,000)
Export and Import of TV Programs in Korea
Korean Movie Export
2001
2002
2003
2004
2005
2006
Number of
Movies
133
164
193
303
202
208
Export($)
11,249,573
14,952,089
30,970,000
58,284,600
75,994,580
24,514,728
Increase
Rate
59%
33%
107%
88%
30%
-68%
Average
price
110,238
112,422
188,896
301,993
376,208
118,429
Source: 2007 Korean Movie Year Book, Korean Film Council, 2007
Korean Movie Export by Countries
2002
Export
Japan
2003
Shar
e
Export
2004
Share
Export
2005
Share
Export
2006
Share
Export
Share
6,582,103
44
13,893,000
44.8
40,401,000
69.3
60,322,686
79.4
10,382,000
42.4
US
862,000
5.8
4,486,000
14.5
2,361,000
4
2,014,500
2.7
1,959,200
8
France
732,415
4.9
709,000
2.3
2,084,000
3.6
1,504,820
2
1,285,000
5.2
Thailand
823,217
5.5
1,448,500
4.7
1,771,500
3
1,520,000
2
3,324,500
13.6
Germany
461,770
3.1
1,908,500
6.2
1,558,000
2.7
1,237,250
1.6
1,293,209
5.3
Taiwan
179,254
1.2
906,500
2.9
1,069,000
1.8
997,000
1.3
533,000
2.2
China
379,000
2.5
805,500
2.6
206,000
0.4
206,000
0.7
435,659
1.8
Hong
Kong
1,483,000
9.9
834,500
2.7
702,000
1.2
1,145,500
1.5
708,000
2.9
Others
3,449,330
23.1
5,987,500
19.3
8,132,100
8.8
6,722,324
8.8
4,591,160
18.7
14,952,089
100.0
30,979,000
100.0
58,284,600
100.0
75,994,580
100.0
24,514,728
100.0
Total
Source: 2007 Korean Movie Year Book, Korean Film Council, 2007
Threats for the Korean Wave
 some Asian countries have started to consider
the Korean Wave as a cultural invasion, some
even calling for a ban on the import of Korean
pop culture
 China in 2005 cut airtime for Korean dramas by
50 percent because of an unbalanced trade of
cultural products: the ratio of the industrial trade
deficit to the cultural trade deficit is 1:10
Sharing Resources and Market in Asia
Threats for the Korean Wave
 statistics have shown that in 2004 there were
about 12,000 drama episodes made by Chinese
producers, while there was only airtime
available for 5,000 episodes. This resulted in a
financial loss of 427 million US$ every year
 'Manga Kenkanryu' which is used to describe
the Anti-Korean Wave, and can be translated as
'the Hating Korea Wave'. It started as a web
comic, and triggered a Japanese internet
movement after being released in 2005
Who will lead the next Asian cultural wave?
 China with its 1.3 billion of population will be
most likely if it further achive economic
prosperity
 share our resources and avoid unnecessary
competition among us; US is now dominating
almost half of global culture market
 Asian cultural content, if we cooperate with each
other, could be nearly as competitive as
predominat US cultural products
Toward the Future 1
 shrare our experiences/know-hows: Korean pop
stars used to be trained in Japan till late 90s;
Chinese future-to-be stars are now under
trainning in Korea
 share human and financial resourses as well as
market to comepete with US: Asia accounts for
more than one third of global culture industries
in terms of population size and expentiture
 Late-comers are often perfoming better; through
copperation, all can move into frontier sectors of
culture industries
Towards the future 2
 not all culture industries are booming; declining
sectors like publishing and music are declining
and so-and-so like film (3%) and broadcasting
(7%) according to the 2008 GEMO report
 However, some sectors are really hot: for
instance online and mobile game industries are
growing fast by more than 15 percent every
year where Korea is a frontrunner
Towards the future 3
 characters, animation, most up-to-date IT
industries are still growing past more than 10%
per year where Japan is an invincible leader
 cooperative production of various cultural
products between Asian countries will be most
economical way of competing with US
dominance in the field and will bring all of us
winners of the 21st century culture industry