Cultural and creative industries
as a reforming force of the third millennium 

Cultural and creative industries (CCI)

Creative people are the basis of the cultural and creative industry: Authors, moviemakers, musicians, visual and performing artists, architects, designers and developers of computer games and movies are creating artistic quality, cultural diversity, creative innovation reflecting the dynamic of an economy that is based on knowledge and innovation. The global cultural and creative industry plays anessential role in the emerging knowledge and content driven Society. Above that, upcoming generations are driven by a different set of values shaping new ways for economical, social and cultural development. Richard Florida defined the rise of a new creative class being focused on 3 T´s: Technology, Talent and Tolerance. 

UNESCO

UNESCO defines cultural and creative industries as activities “whose principal purpose is production or reproduction, distribution or commercialization of goods, services and activities of a cultural, artistic or heritage-related nature.”

Economical relevance 

The economic importance of the international culture and creative industry has increased significantly in recent years, its potential for the future is tremendous and will shape the society of tomorrow. The global cultural and creative industry is driven by a countless number of individuals and small companies among major players in each sector. This has long prevented the recognition of its economical relevance and growing future potential. In recent years, new statistics and data have been released and Governments foster the development of the sector. By way of example, the German Government launched an initiative for the sector that is driven by both the cultural and economic ministry. 

The Cultural and creative industries are an integral, massive and universal cornerstone of the global economy. In 2013, they generated US$2,250b of revenues (3% of world GDP) and 29.5 million jobs.

Source: Cultural times, the first global map of cultural and creative industries, EY, 2015

Detailed look at Germany: The cultural and creative industry generated in 2019 a total revenue of EUR 174.1b, accounting for EUR 106.4b (3.1%) of the countries gross value added. 

In terms of value added, the cultural and creative industries have thus surpassed other important sectors such as the chemical industry, energy suppliers and financial service providers.

Source: Bundesministerium für Wirtschaft und Energie

The 11 CCI sectors and their related activities 

According to recent research and data, the cultural and creative industry is divided into 11 sectors. The sectors follow different structures, reflect different stages of structural and economic development and show a diverse potential regarding future growth potential and market volume. 

Global cultural and creative market

In recent years, a larger number of reports and market data became available due to the growing efforts of Governments to foster the sector. Above that, the UNESCO and other stakeholders put a focus onto the sector since its economic relevance emerges. 

Thanks to this development, the inside and classification of the diverse and often fragmented global industry provides a better foundation for business development and to improve market conditions through Government regulations. 

By way of example the 2015 report Cultural times: the first global map of cultural and creative industries conducted by EY, under the mandate of CISAC (International Confederation of Authors and Composers Societies), provides a first global view and data that confirms the economic relevance of the cultural and creative industry. 

Chart 2 displays the key data regarding revenues and employment within the eleven sectors. 

Above that, recent research of the European Investment Fund attested the cultural and creative sector a durability during economically challenging times such as the financial crisis in 2008. This robustness may be based on its grass root structure, consisting of many creative individuals and SME’s who can adjust more easily with changing market conditions. This robustness will help the cultural and creative industries continue their growth unabated in the post-Covid period.

Target market for our projects

We have defined the target market as part of our business strategy as well as in accordance with underlying structures and business pattern within the market. Our focus lies on initiating, developing and financing of new or existing Intellectual Property Rights, that can be utilized across formats and platforms.

Target market volume

Our target market volume of US$ 780b (last known global figure from 2013) consists of all global revenues generated by the sectors of movies, music, books, gaming, performing arts and architecture. Chart 3

Chart 4 displays the common composition in research of global regions as there are: North America, Europe, Asia-Pacific,  Latin America and the Caribbean as well as Africa and the Middle East. 

Chart 5 breaks down global revenues by sectors and global regions and proofs that in overall revenues Asia-Pacific is the biggest CCI market with the largest consumer base followed by North America and Europe. However, looking at the sectors within the different regions reveals a more complex and colorful canvas. 

Cultural and creative industry sectors by revenue and jobs

Globally, 2013 / * US$b / ** (number of jobs)

WAVE ONE cultural and creative industry sectors

Source: Cultural times, the first global map of cultural and creative industries, EY, 2015

SectorRevenues *Employment **
Television4773,527,000
Visual Arts3916,732,000
Newspapers and magazines3542,865,000
Advertising2851,953,000
Architecture2221,668,000
Books1433,670,000
Performing Arts1273,670,000
Gaming99605,000
Movies772,484,000
Music653,979,000
Radio46502,000
Total (before removing double-counting)2.28531,524,000
Total (minus double-counting)2.25329,507,000

Common composition of the five 5 global regions

Source: Cultural times, the first global map of cultural and creative industries, EY, 2015

Global Map

Selected sector revenues by global regions

Globally, 2013, in US$b

Source: Cultural times – the first global map of cultural and creative industries, EY, 2015

Sector Revenues Global Regions

Our goal

The highest asset in our target market segment lies within the development, ownership or participation in Intellectual Property Rights. 

Intellectual Property Rights, say of a worldwide know musical, can not only be utilized through licensing, merchandising and the likes but can also become the underlying right to other entertainment products (e.g., a musical or book may be turned into a movie).

Our goal is to identify new and seasoned creative talent in our business fields and develop projects with them that aim at long-term international success. Therefore, we are committed to support our creative talents and finances the development and utilization of their projects within the global market. 

Moreover, in our development processes, we are always looking for opportunities to rethink and reform existing business models and business structures in order to increase the positive impact and economic success of our joint work. 

Rules of the road

Marshall McLuhan, a Canadian professor of Sociology and Media pioneer, was best known for popularizing views on the effect of the new communication technologies of television and radio on a society’s culture. He introduced the public to such terms as the ‘global village’ and the ‘message is the medium’.

As a Law of the media, he early noted that “the content of any medium is always another medium”. In other words, each medium, whether it be books, music, film, games, or theater borrows from the other and is interdependent: The content of the movie may be a novel, or the novel may create the movie or the song. The Lion King animated movie, for example, let to the introduction of a children’sgame, while the video game Mortal Combat ended up being made into a movie. Chicago began as a theater play before it was turned into a Broadway musical and a movie. And Disney’s Pirates of the Caribbean  started off as a theme-park attraction before its launch as a successful movie series. 

Would you like to learn more?

We have taken a comprehensive look at the international culture and creative industries and are monitoring developments in our segments in particular. If you are interested, we are at your disposal for an exchange on our market assessment. Please contact us by e-mail at cci@waveone.xyz or use the contact form.