The “Highlights of the Literature Review” of Face of the Future by the Cultural Human Resources Council has a section on the new media industry which has an interesting subsection on definition. One of the key problems with this sector is defining it. Does it include the ICT (Information and Communications Technology), for example? Or is it just the creation, production, and distribution of content?
Highlights of the Literature Review 29
7. NEW MEDIA
7.1 General Findings
_ The new media industry is young, growing rapidly and difficult to define; in Canada, this
sector represents a small market.
_ The industry encompasses arts, science and technology, and has an impact on economic and
social sectors ñ culture, entertainment, education and training, health, communications, and
trade. Artists are involved at all levels.
_ Collaboration on the part of stakeholders (creators, performers, workers, employers,
government, training institutions) is a key factor in the success of this industry at the
international level.
_ There is a great need for financial support, both public and private.
_ With the explosion of new technologies, the new media sub-sector holds great market
opportunities for artists, but also presents some of the greatest challenges.
_ With new media eroding traditional boundaries between artistic media and global
communications dissolving geographic borders, creative content is being dealt with in a
complex and rapidly changing environment where there are few established guideposts.
7.2 Definition
_ Often called ìdigital mediaî or ìmultimediaî, new media has been variously defined as
either:
ï artistic forms and outputs that are entirely new; or
ï new means and methods of creating, presenting, preserving, promoting or distributing
what are essentially traditional products or outputs from cultural industries
ï the federal government has adopted the following definition:
ìNew media [involves the] growing use of three essential elements: digitization,
interactivity, and interconnected networksÖ The combination of the first two elements
(and increasingly the third element) separate ëoldí from ënewí media.î
_ The absence of a common definition represents a major challenge when one attempts to
identify policies, analyze the sub-sector or manage its growth.
7.3 Profile of the Industry
_ Although the evolution and growth of the new media make it difficult to quantify and
analyze this sub-sector, the literature reveals the following:
ï In 2002, there were 2,300 companies related to this sector in Canada, and total revenue
was approximately $3.5 billion.
Face of the Future: A Study of Human Resources Issues in Canadaís Cultural Sector
Highlights of the Literature Review 30
ï Close to half these companies have less than 10 employees, and another third have
between 10 and 30 employees.
ï Over half serve the American market.
ï About half derive 100% of their revenue from multimedia related activities.
ï The sub-sector appears to be dominated by small businesses, and there does not seem to
be a generic business model.
ï There is a trend toward concentration in three provinces: Ontario (40%), Quebec (28%)
and British Columbia (13%).
ï Although it is still growing, the industry is presently going through a period of
consolidation (mergers and acquisitions).
ï There are numerous challenges in terms of human resources and marketing.
ï Although there is some degree of presence on the international scene, very few products
have Canadian content. American interests dominate the market.
7.4 General Trends
_ Economic preoccupations and emphasis on profitability in this sub-sector create some
concern that there is a shift in the value of the artist in our society from ìartist as creatorî
towards artist as ìfacilitatorî of job creation and return on investment.
_ The Internet is increasingly becoming a point of convergence. This presents not only the
challenge of access to high-speed networks, but also that of controlling content, production
and distribution.
_ Within the context of globalization, the sub-sector is faced with the challenge of reflecting
Canadaís cultural diversity by maximizing Canadian content.
_ The major financial requirements involved represent a huge challenge to creators, who are
obliged to turn to government support.
_ In terms of distribution, there is no shortage of major challenges and questions, as four or
five huge foreign production/distribution companies control 80% of the Canadian market.
_ With the Canadian market extremely limited, the industry must increasingly rely on
exporting, which raises a major issue of financing.
_ The Interactive Multimedia and Technology Association (IMTA) believes that the best
strategy for accessing markets is based on creative planning and cooperation between
stakeholders, combined with effective coordination.
_ In order for creators in the industry (who are most often self-employed or workers in microcompanies)
to carve out a position in this world of behemoths, they will have to group
together, forming alliances and partnerships.
7.5 Intellectual Property Rights
_ The protection of artistsí intellectual property rights is threatened by the development of
new media, as much of the debate surrounding electronic commerce and the new economy
has taken place with little attention to their interests or circumstances.
_ The Copyright Act, while it has evolved, is not the only means to ensure protection of
intellectual property. Among other safeguards are:
ï the development of universal standards regulating production, distribution and licensing
agreements;
ï effective advocacy by arts organizations for the protection of their members; and
Face of the Future: A Study of Human Resources Issues in Canadaís Cultural Sector
ï the control of access to and reproduction of protected works through the implementation
of effective technological tools.
7.6 Human Resources
_ Most workers for companies in the sector are male.
_ Difficulty in recruiting is related to a lack of qualified candidates, competition between
companies (turnover) and salary demands.
_ The highest salaries are paid to project managers, integrators and then artistic directors.
_ The vast majority of positions in this milieu require university education.
_ The great majority of workers are located in the countryís major urban centres.
_ In 1999, in Canada:
ï 33% of employees were hired on a contract basis
ï 26% of employees worked in the creation department.
ï 22% worked in the technical department.
ï 20% worked in the management department.
_ We see artists, universities and industries creating alliances to attract research and
development sites (Hexagram, Studio XX, Banff New Media Institute).
_ In artistsí centres devoted to media arts and new media, women are much more active than
in the industrial or commercial settings of the sub-sector.
_ The use of new technologies represents an effective and appropriate response to the need
for training and exchanges of artists and cultural workers living in isolated or minority
communities.
_ Among training and professional development needs are the development of skills in
business, marketing, exporting, international law and artistic product distribution.
7.7 Avenues for Analysis
_ Work to arrive at a common definition of ìnew mediaî in order to foster more consistency
in the development of policies and management in the sub-sector.
_ Analyze artistsí roles and contributions in the definition and establishment of development
policies and strategies in the industry.
_ Analyze training needs and solutions to the problems of skills shortages in the sub-sector.
_ Analyze issues of inclusiveness of artists from Canadian aboriginal and minority
communities.
_ Investigate the government support required to support emerging partnerships in the
industry to counter-balance the domination of the industry by large corporations.
_ Generally update the existing data to reflect the current reality of the sub-sector.