Building-A-Digital-Economy

Building A Digital Economy: The Importance Of Saving Jobs In The EU's Creative Industries

17 Mar 2010

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This new study (publ. March 2010) predicts losses due to piracy to reach as much as 1.2 million jobs and €240 billion in retail revenue by 2015 in the creative industries most impacted, based on current trends and assuming no significant policy changes.

The study shows that this sector is already experiencing substantial losses. In 2008 the creative industries most impacted by piracy (film, TV series, recorded music and software) experienced retail revenue losses of €10 billion and losses of more than 185,000 jobs due to piracy.

Major trade unions representing workers in the creative industries, including Union Network International-Media Entertainment Industries – UNI-MEI –(representing unions and guilds in media, entertainment and arts) and the International Actors Federation – FIA – and their national affiliates in the major countries, support this study, which reveals the dramatic effects of illegal file-sharing on employment in the creative sectors. Major employer organisations representing the creative industries are also supporting this study, including the International Federation of Film Producers’ Associations – FIAPF.

“…We’re approaching a tipping point where investment in our talent will dry up due to mass illegal downloading” – Geoff Taylor, BPI

Objectives of the Study:

  • The production and distribution of works by creative industries, including movies, music, television programmes and software, has been recognised as having a positive effect on economic growth and the creation of jobs.  Unfortunately, over the last decade digital piracy (copyright infringement of digital media) has increasingly threatened the economic performance of the industries responsible for these creative works.
  • For this reason, stemming the rising tide of digital piracy should be at the top of the agenda of policymakers in the European Union and elsewhere. But to make well-informed decisions in this area, policymakers would benefit from understanding the extent of the economic contributions of these industries and of the losses resulting from digital piracy.

Findings of the Study:

The study focuses on three questions:

  1. What is the contribution of the creative industries to the European economy in terms of GDP and jobs?
  2. What are the consequences of piracy on retail revenue and jobs?
  3. If current policies do not change in the EU, what will these losses be by 2015?

The analysis determined the following:

  • In 2008 the European Union’s creative industries, based on the more accurate and comprehensive definition, contributed 6.9%, or approximately €860 billion, to total European GDP, and represented 6.5% of the total workforce, or approximately 14 million workers.
  • In 2008 the European Union’s creative industries most impacted by piracy (film, TV series, recorded music and software) experienced retail revenue losses of €10 billion and losses of more than 185,000 jobs due to piracy, largely digital piracy.

Based on current projections and assuming no significant policy changes, the European Union’s creative industries could expect to see cumulative retail revenue losses of as much as €240 billion by 2015, resulting in 1.2 million jobs lost by 2015.

This study was conducted by TERA Consultants, an independent Paris-based consultancy.

The study was commissioned by the International Chamber of Commerce’s BASCAP initiative – Business Action to Stop Counterfeiting and Piracy.

Morehttp://www.iccwbo.org/bascap/id883/index.html