The Stationers' Company

35 Appendix I.

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Results

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The method described above was used in order to obtain figures for the years 2010- 2012. Thus, a comparison can be made between the years. Furthermore, WIPO publishes collective data from the countries which produce reports under the protocols discussed above, allowing for easy comparison between countries. Thus, using the WIPO framework allows for comparison not only with previous years of UK industry figures but also with other WIPO countries for the same period. WIPO publishes collective economic analyses on a regular basis. For the purposes of comparison, this study uses the January 2014 release36 The WIPO comparison documents analyse the data produced by WIPO studies in a variety of interesting ways, of which several can be adapted to include the study conducted for this paper.

Firstly, and most basically, the study conducted for this chapter gave a total value of £86,480 million for the core copyright industries in 2012. As a percentage of GDP, this stood at 6.25% in 2012. This was an increase of 0.8% on the 2011 figure of 6.17%, using the same study framework. In each year, certain figures were not available in the ABS, whether for the purposes of avoiding disclosure, or because the figures were not available, thus the different years are not entirely congruent, but the difference is small – even this limited assessment shows not only that the core copyright industries were a vital part of the UK economy (more than a twentieth of total GDP), but also that they were growing year-on-year. Although the figures for all copyright industries (core and non-core) in the WIPO collected results show that core copyright industries accounted for roughly 50% of all copyright industries, the EPO/OHIM report, discussed later in this chapter, showed that the core copyright industries in the UK were roughly 75% of total copyright income. Adapting this to the UK figures obtained here, the total contribution of copyright industries to GDP could be anywhere from 8.3% to 12.5% of UK GDP.

In using the study conducted for this chapter, one can see that the percentage contribution to GDP of the core copyright industries was increasing year-on-year.

36 WIPO Overview (n 28).

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The breakdown of GDP can be effected in several ways – the simplest being by industrial code. Through this, one may observe the growth and shrinkage of different industries in the distribution of the core copyright industries, and compare them over the course of the three years studied. From the three charts in figure 2: Percentage of GDP by Industrial Codes 2010- 2012, we can see that there was a change of less than 1% in all three years – the distribution remained almost entirely the same. This is surprising, especially in terms of print and publishing activities.

It is clear from all three graphs in figure 2 that computer programming and related activities were a vital part of the core copyright industries’ contribution to UK GDP, standing at 45% in 2012. However, it is important also not to deny the contribution made by the print industries, which were holding steady at 12-13% of core copyright industry contributions.

Figure 2: Percentage of GDP by Industrial Codes 2010-2012 represents percentage of GDP by industrial code – this is different to the classification offered in the WIPO framework due to the interaction of SIC codes and different categories from the WIPO classifications. It must be noted that by creating graphs using SIC codes certain aspects of different creative industries are merged – for example, category 90 encompasses literary, artistic and other forms of creation. This is a necessary function of the data collection performed for this chapter, as further breakdown of information into different categories was not available. However, it makes it more difficult to compare with the WIPO collected results. An alternative to this will be discussed in the DCMS Industry Estimates section.

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Figure 1: Percentage Contribution to GDP                   Figure 2 Percentage of GDP by Industrial Codes 2010-2012         

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18 Printing and reproduction of recorded media 58 Publishing Activities

59 Motion picture, video and television programme production, sound recording and

music publishing activities
60 Programming and Broadcasting Activities

62 Computer programming, consultancy and related activities

63 Information service activities
90 Creative, arts and entertainment activities Others

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Although in some ways it is not an ideal method of assessment, the use of the WIPO guidelines allows for easier comparison with other countries using the same framework. International comparability is an important part of any assessment – knowing what proportion of the UK economy relied on copyright industries becomes even more powerful when we can also compare what proportion of other economies relied on the same frameworks.

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Comparisons to other Countries

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The use of WIPO guidelines on economic contribution analysis allows data to be compared with similar WIPO studies conducted around the world. Even more helpful is the fact that WIPO collects the data from studies into a single document.37 The version discussed here is built on data from 42 different national studies, from a variety of different countries around the world, including developed and developing countries. As the UK did not at the time produce a WIPO- compliant study, only certain parts of the overview could be directly compared with the original data analysis completed for this thesis, but nonetheless, this comparison can be beneficial, allowing for discussion of what data has been collected and assessed.

Figure 3: Contribution of Core Copyright Industries to GDP by Country      Figure 4: Core Copyright Contribution to GDP

The graph above in figure 3, which is taken directly from the WIPO comparison document,38 compares the contribution of the core copyright industries to GDP in 2012 of the 42 studies collected, with the US sitting in the left-most position, with a contribution of 6.48%. The graph also contains an average (mean) line, which shows that the mean contribution of core copyright

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37 ibid.
38 ibid 15.

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industries to GDP was 2.77%. If we re-form this graph to include the UK figures (figure 4), we can see that the UK sits very firmly above the average, and tends greatly towards the higher end of the graph. Figure 4 contains two average lines, one which matches the graph in figure 3, and another which recalculates the mean with the inclusion of the UK’s core copyright contributions. Falling into place behind only the US in terms of percentage contribution to GDP, the UK’s creative industries were at the time one of the strongest contributors to a national economy among the studies conducted through the WIPO framework. Given, however, that the WIPO studies looked at only a select number of countries, this information must be taken into account as part of a selection of countries which did not all have a similar economic structure to the UK. A comparison with other EU countries along similar lines can be seen later in this chapter.

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There are certainly limitations to the WIPO methodology, but it is still a comparison which allows us to see that the UK is very strong in terms of copyright contribution to GDP, and thus this should serve as a reason to carefully consider anything which would change the landscape of copyright industries – research into whether and how certain changes would impact on GDP

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USA United Kingdom Panama Autralia St Lucia St Kitts/Nevis Hungary Netherlands Canada Finland Romania Philippines Korea Singapore Argentina Slovenia Tanzania China Croatia Latvia Malaysia Lithuania Bulgaria St Vincent Lebanon Russia Kenya Thailand Grenada South Africa Bhutan Colombia Jamaica Mexico Ukraine Jordan Trinidad and Tobago Pakistan Dominica Peru Indonesia Brunei Malawi contribution as well as employment should be conducted and verified before any changes are made.

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Other Research

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Copyright has been studied from an economic perspective for many years – Arnold Plant’s study in the 1930s is just one early example of this.39 Plant did not stand alone, with much other journal and textbook literature available on the economics of copyright and other IPRs.40 Considering copyright as an economic force allows us to synthesise the value of industries that are concerned mostly or wholly with copyright, and estimate the contribution of those industries to economic performance indicators such as GDP, employment and trade. In 2009-2015, much research was conducted on the economic impact of the copyright industries. However, there was less research done on how changes to copyright legislation may affect this economic impact. Copyright research was not isolated to the UK, with many countries producing WIPO-guideline-compliant reports, as discussed above. There was also a variety of other reports on the economic contribution of various sectors, including publishing, digital books and the media and content industries. This section of this chapter will concentrate on the research from the late ‘00s and early ‘10s which discussed the impact of digital on and possible future development of the media and content industries, and consider how their combined information could help us to paint a picture of the contribution of the publishing and printing industries to the UK economy in those years. It will also point out some gaps in the research, and make recommendations for what other research should be conducted before copyright legislation is further modified.

Hargreaves Impact Assessments and Oxford Economics Report

As mentioned earlier in this thesis,41 2011 was the date of Professor Ian Hargreaves’ assessment of intellectual property growth in the UK.42 As part of the supporting documentation of the Hargreaves Review, several economic impact assessments (IA) were published.43 These assessed the potential cost saving and growth impact, per annum, of each of Hargreaves’

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39 Arnold Plant, ‘The Economic Aspects of Copyright in Books’ (1934) 1(2) Economica New Series 167.
40 See, for example, William Landes and Richard Posner, The Economic Structure of Intellectual Property Law (Harvard University Press 2003); Richard A Posner, ‘Intellectual property: the Law and Economics Approach’ (2005) 19(2) Journal of Economic Perspectives 57.
41 The Hargreaves Review is discussed many times throughout the thesis. See, for example, the Literature Review.
42 Ian Hargreaves, ‘Digital Opportunity: A Review of Intellectual Property and Growth’ (2011).
43 IPO, ‘Supporting document EE: Economic Impact of Recommendations’ (2011) <http://webarchive.nationalarchives.gov.uk/20140603093549/http://www.ipo.gov.uk/ipreview-doc- ee.pdf> accessed 27 November 2014.

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recommendations. For many of the proposed copyright exceptions these savings and growth were stated as ‘social innovation’ or ‘not quantified’.44

The quality of these IAs has been subject to some criticism, including by the Oxford Economics Consultation on Copyright: Comments on Economic Impacts.45 This report, which was commissioned by the Alliance against IP Theft (now known as the Alliance for Intellectual Property), analysed the IAs published in support of the Hargreaves Review and pointed out several ways in which the IAs made unsupportable conclusions. The Oxford Economics report pointed out a variety of issues, including lack of net costing,46 faulty assumptions about market size,47 and selection of alternatives where maintenance of the status quo would be more logically beneficial.48

The report concluded by stating that further research was needed before changes could be made, as economic legislation should be based on robust economic research. It also recommended that the status quo be maintained in situations where no convincing evidence could be offered as to the benefits of legislative change. This more cautious approach to copyright legislation was mirrored in the Pricewaterhouse Cooper reports commissioned by a member of the Alliance for IP, the Copyright Licensing Agency which are discussed infra.

Despite the advocacy for caution, the impact assessments in the Hargreaves Review were used to back up several changes in legislation – even as far as the IPO’s annual report in 2014,49 and the same figures were used to estimate the potential for growth in the economy. They also supported the private copying exception which was quashed less than 12 months after implementation.50

Pricewaterhouse Cooper Reports 2011 and 2012

In 2011 and 2012, in response to the movement towards exceptions to copyright law, the Copyright Licensing Agency (CLA) commissioned Pricewaterhouse Cooper (PwC) to produce two studies that considered the economics of copyright, secondary copyright, collective licensing and education exceptions. These two reports, An Economic Analysis of Copyright,

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44 ibid 3.
45 Oxford Economics, ‘Consultation on Copyright: Comments on Economic Impacts’ (2011).
46 ibid 11.
47 ibid 13.
48 ibid 26.
49 IPO, ‘Supporting Innovation and Growth: a report on the work of the IPO 2013/14’ (2014), 15. 50 This is more fully discussed in Chapter 6.

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Secondary Copyright and Collective Licensing51 and An Economic Analysis of Education Exceptions in Copyright,52 were prepared as part of the CLA’s response to the Hargreaves Review and its recommendations for copyright exceptions.

The first report considered the economic rationale for copyright, in that it acts as an incentive to create content – copyright needs to walk the fine line of finding a balance between incentivising creators to continue producing content and allowing potential consumers access to that content. This, however, is not as easy as one might think – as such a balance can be a fragile equilibrium which maximises both consumer welfare and creator incentives. Without one, of course, the other could not continue.

The report analysed the contribution of the core and dependent sectors in the UK, and suggested that they were the largest in Europe, following the WIPO classification guidelines, at 8.4% of GDP.53 It also pointed out the need for further research on the incentive effects of copyright on creators and the scale and value of orphan works. It stressed that these gaps needed to be filled before policy decisions were made.54

The following year, in 2012, the second CLA-commissioned PwC report was published. This focused on the economic impact of the proposed educational exceptions put forward by the Hargreaves Review. It analysed not only the economics of the educational publishing sector, but also the role of copyright in that sector. This is something that many other economic analyses fail to do, often by virtue of the difficulty of disentangling the impact of copyright legislation from the underlying business structures, but it is particularly relevant for educational publishing. Unlike many artistic and creative forms of copyright, educational publishing is less likely to be created as art for art’s sake, and is thus a good test area to investigate the impact of copyright legislation on willingness to publish. The report found that some 54% of the members of the ALCS who are the highest-earners of CLA income, considered secondary licensing and collective licensing (both of which rely on the copyright law framework) to be ‘essential’ and a further 36% indicated that it was ‘important’. For almost 25% of those authors, this represented more than 60% of their income.55

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51 Pricewaterhouse Cooper, ‘An Economic Analysis of Copyright, Secondary Copyright and Collective Licensing’ (2011).
52 Pricewaterhouse Cooper, ‘An Economic Analysis of Education Exceptions in Copyright’ (2012).
53 PwC, An Economic Analysis of Copyright, Secondary Copyright and Collective Licensing (n 51) 20. 54 ibid 6.

55 PwC, Education Exceptions (n 52) 2.

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These two reports, which the CLA submitted to government, counselled of the need for caution before implementing copyright reforms or exceptions, stating that there was a need for greater economic research into the impact of potential exceptions. Ultimately, however, this was not the case, and all of the Hargreaves exceptions were implemented in 2014.56 Two of those exceptions are discussed in more detail in the next chapter.

Statistical, Ecosystems and Competitiveness Analysis of the Media and Content Industries

The Joint Research Council (JRC), the European Commission’s in-house science service, employs scientists to provide independent advice and support to EU policy. As a part of this, under the heading of Information and Communication technology, the JRC conducted a quantitative overview in 2011 of the media and content industries (MCI). Published in 2012, the survey was titled ‘Statistical, ecosystems and competitiveness analysis of the media and content industries.’57 It was composed of a quantitative overview and several sector analyses, including the film sector, music industry, newspaper publishing industry, and book publishing industry.58 All the reports were based on both official (OECD and Eurostat) and non-official data sources, giving great scope to the analysis within.59 It is worth noting that this particular study as concerned with the media and content industries, rather than copyright industries, meaning that information and communication technologies were excluded, as they were subject to their own set of reports. It is also important to note that copyright and copyright legislation was not within the ambit of these reports, and thus they did not quantify the impact of copyright legislation on the industries concerned. The reports produced a profile of the media and content industries for the EU27, the US, Japan, India, and China. The two sub-reports in this series relevant to this thesis on a greater scale – on the newspaper publishing industry and the book publishing industry – each also produced a comprehensive investigation of their relative industries.

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56 The Copyright and Rights in Performances (Research, Education, Libraries and Archives) Regulations 2014, SI 2014/1372; The Copyright and Rights in Performances (Disability) Regulations 2014, SI 2014/1384; The Copyright (Public Administration) Regulations 2014, SI 2014/1385; The Copyright and Rights in Performances (Quotation and Parody) Regulations 2014, SI 2014/2356; The Copyright and Rights in Performances (Personal Copies for Private Use) Regulations 2014, SI 2014/2361.

57 Andra Leurdijk and others, ‘Statistical, ecosystems and competitiveness analysis of the media and content industries’ (2012).
58 ibid 18
59 ibid 5.

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The report in general produced some interesting facts for consideration – such as the fact that the UK was one of the largest markets in the EU27, based on value added, being in the top six for all subsectors.60 It also pointed out that, across the EU, publishing of newspapers was the largest publishing sector, followed by publishing of journals and periodicals. This did not hold true for newer EU Member States though, where books held a higher share of publishing than journals and periodicals.61 Similar to the aforementioned educational publishing report, newspapers were not art published for art’s sake, and relied heavily on copyright to provide financial incentives.

The Book Publishing Industry

Moving on to the book publishing sector, this 2012 report, authored by Jean Paul Simon and Giuditta de Prato,62 broke down the global and European book market by sector, country and type, while analysing its contribution to turnover and employment. The data included in the report covered the period up to 2009, with forecasts being made as far as 2015. It discussed the appearance and impact of digital also, especially the advent of large players like Apple and Google. Parts of the report have become outdated, even in the relatively short time since its publication, including its reference to the Google Books case between publishers and Google.63 The rapid development of digital in the early 2010s led to the rapid obsolescence of much research, and this applies in part to this report. However, it is still useful to provide certain facts, such as the fact that, in 2009, the publishing sector accounted for just under 8% of media and content industries total revenue, at US$109 billion.64 Furthermore, it also noted that book publishing was one of the only industries in which the EU outranked the US, a fact which had remained true for several years.65 However, the report also noted that the US was flourishing in terms of ebook sales, with 57% of global sales in the US.66 It also offered specific statistics on the UK, stating that the UK had 1.5% of the total ebook market in 2009, selling an estimated 763 million books in 2009.67

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60 ibid 7.
61 ibid 7.
62 Jean Paul Simon and Giuditta de Prato, ‘Statistical, Ecosystems and Competitiveness Analysis of the Media and Content Industries: The Book Publishing Industry’ (2012).
63 ibid 76.
64 ibid 25.
65 ibid 28.
66 ibid 28.
67 ibid 52.

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The report concluded by offering a summary – the new players in the book market, including Amazon, Google, and Apple, caused a power struggle in the book industry. It also suggested that digital and print book industries operated on different logics: economics of production in the case of printed books, and economics of distribution for ebooks.68 The report suggested that harmonisation at EU level would help to smooth out these differences and ease the transition into the digital world.69 This suggestion was taken on board at a European level, with copyright harmonisation being a priority for the Digital Single Market strategy.70

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The Newspaper Industry

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The subsidiary report for the statistical, ecosystems and competitiveness analysis of the media and content industries newspaper industry report was authored by Andra Leurdijk, Mijke Slot and Ottilie Nieuwenhuis.71 It put forward the idea that the newspaper industry, more than the book industry, had been hit by the move to digital.72 While Europe’s was the largest print newspaper industry in the world in 2009, newspaper industries across the EU27 had shown a steady decline since the 1990s.73 The total average circulation per day in Europe dropped by 11 million in the four years from 2005 to 2009 – from 85 million average to 74 million average.74 News consumption was and still is consistently threatened by newcomers to the arena – from radio and television to online news. It is the latter, however, which had the greatest effect on traditional print newspapers. While the majority of people aged 25-65 got their news from television, younger people (14-24) turned to the internet for news.75 Advertising revenue on the internet was in 2009 the fastest-growing advertising segment, which was consequently also affecting newspaper advertising revenues.76

The report considered how traditional newspapers adapted to new challenges, including moving to online, changing format, introducing new sections and magazines, including weekend magazines, offering tie-in exploitation of brand name and integrating more strongly with their commercial possibilities. Legacy broadcasting and newspaper websites remained

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68 ibid 89.
69 ibid 92.
70 Commission, ‘A Digital Single Market for Europe: Commission sets out 16 initiatives to make it happen’ (Press Release, 6 May 2015).
71 Andra Leurdijk, Mijke Slot, and Ottilie Nieuwenhuis, ‘Statistical, Ecosystems and Competitiveness Analysis of the Media and Content Industries: The Newspaper Publishing Industry’ (2012).
72 ibid 53.
73 ibid 31.
74 ibid 31-35
75 ibid 42.
76 ibid 62.

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among the most visited news providers online. Newspapers had also embraced the idea of news apps on tablets and smartphones.77

There were, however, some concerns about the quality of output. While consumers benefit from increased availability of ‘free’ news and the option to tailor news to their preferences, vulnerable news areas, such as investigative journalism and local news, may suffer or struggle to survive.78 While the US had some success with crowd funding and sponsorship, this had not been easily replicated in Europe.79

Measurements of economic health of the newspaper industry in Europe showed a decline in circulation and employment, although not as steeply in the US. It was suffering more than the major Asian markets (Japan and China) though. Language and cultural differences mean that a single European market seems unlikely, which in turn means that intra-European trade will likely continue to be only a niche market catering for business people, expats, etc.80

According to the report, newspapers were undergoing a transitional period, in which they were forced to adapt to new business models as their legacy business declines. New players entered the market, from news aggregators like Yahoo! News and Google News to online-only content creators, and they were able to adapt faster than legacy newspapers, which still needed to support their traditional business models. Consumer behaviour changed, and advertising revenues declined for legacy newspaper printing. However, there was still not sufficient data to comprehensively assess that transformation and its subsequent effects, and thus more data is required in order to understand ‘whether journalism will be able to continue to fulfil its democratic functions.’81

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Rüdiger Wischenbart

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Rüdiger Wischenbart, a content and consulting firm based in Austria, is responsible for the annual publication of the Global eBook Report. The organisation specialises in publishing and international markets and is responsible for not only the Global eBook Report but also a statistical survey of publishing markets for the International Publishers Association (IPA), and the Global Ranking of the Publishing Industry. The Global eBook Report, authored by the titular consultant, in combination with Carlo Carrenho (Brazil), Javier Celaya (Spain), Veronika Licher

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77 ibid 53-68. 78 ibid 57.
79 ibid 66.
80 ibid 78-79. 81 ibid 11.

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(China), Miha Kovac (Central and East Europe), and Vinutha Mallya (India), which was first presented at the Frankfurt Tools of Change conference in 2011, is updated twice yearly with new data and discussion. The report attempted to map and understand developments in global ebook markets using actual data (not predictions) from a variety of sources and backed up by expert interviews.82

The Spring83 and Fall84 2014 updates of the report focused particularly on the European, US, and UK markets, pointing out especially that Germany was ahead of most of Europe in terms of embracing digital trade ebooks, but still lagged behind the US and the UK.85 The report covered all aspects of the digital ebook market, from the impact of new digital players such as Amazon and Apple to the shifting landscape of legacy print publishers, most notably the merger of Penguin and Random House and how that affected the publishing arena. There were also commentaries on ebook pricing strategies, the divergence between ebook and print book bestseller lists and how infrastructure affected the development of ebook industries – far easier, certainly, to download an Amazon app than to build a network of bookstores.

An interesting point raised by the report was that self-publishers, if taken as a single publishing entity, published more titles in 2013 than any established publishing house.86 The US self- publishing market at that point was estimated at around 11% of total ebook market value, according to Wischenbart, with UK self-publishers holding some 12% of all ebook sales.87

The report also considered flat rate subscription services, a ‘Netflix for books’ idea which had appeared in the previous few years. It gave a short overview of the different subscription models which are available around the world, from Scribd’s branding as a ‘personal digital library’ to Amazon Prime’s bundling of ebook lending with other premium content and expedited delivery of purchases. The subscription costs for all of the services discussed (eleven in total) were extremely low, at around $10/€10 per month – this then would make it challenging for publishers to earn revenues to support themselves.88 The relative youth of those developments meant that the report could not assess their future impact, but it is worth noting that the variety of

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82 Rüdiger Wischenbart and others, ‘Global eBook: A report on market trends and developments. Update fall 2014’ (2014).
83 ibid.
84 ibid.

85 ibid 31-34. 86 ibid 107.
87 ibid 108.
88 ibid 111-115.

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subscription services and their popularity for other media formats meant that it seemed likely that they would be here for some time yet.

Wischenbart, the lead author on the Global eBook Report, also presented a White Paper at the Frankfurt Book Fair 2014, as part of a panel on publishing trends and statistics.89 This White Paper differed from the previously discussed Global eBook Report in that it did not focus solely on ebooks, but instead considered publishing as a whole. The statistics it presented were comprehensive and painted a picture of an industry that had been affected by the shift to digital and thus underwent a transformation.90 However, it is important to note that such transformation is affected significantly by regional differences. While global players and international consolidation both played a role in the transformation of the publishing industry, the presence or absence of those things in particular territories could have a significant effect. For economies with a growing middle class, such as China, India and Brazil, it stated, publishers could cater to the rising demand for culture and entertainment that appears along with this emerging middle class.91 Furthermore, while the decline in print seems inevitable, a reluctance to embrace digital (as can be seen in the case of France92) may ultimately be detrimental to what was one of the strongest publishing industries in Europe.

The White Paper concluded by offering the suggestion that the publishing industry may become more and more difficult to define as a single separate cultural sector as the demand for culture, entertainment and media grows and merges through the increased availability of subscription- based content streaming.93 One important point offered, though, is that the change to digital and the shifting of cultural norms is not something which will happen in the future – it was happening now, here, and in the present, every day around us.94 This point remains true even into 2015 and 2016 – the changes in copyright do not cease at the end of a PhD research period, and will continue to occur for the foreseeable future.

89 Rüdiger Wischenbart, ‘Global Trends in Publishing 2014: An overview of current developments and driving forces in the transformation of the international publishing industry’ (Frankfurt Book Fair, 7-12 October 2014) <http://www.pik.org.pl/upload/files/Global_Trends_in_Publishing_2014.pdf> accessed 7 January 2016.

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90 Wischenbart (n 89) 12. 91 ibid 15.
92 ibid.
93 ibid.

94 ibid.

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PA Statistics Yearbook

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The Publishers Association (PA) Statistics Yearbook is, as the name suggests, an annually published collection of statistics relating to the publishing industry. It claims to be an ‘authoritative analysis and measurement of publishing activity’ in the UK.95 The PA Statistics Yearbook deals only with book and journal publishing, and does not consider its cousins in the newspaper and magazine publishing industry. In 2013, according to the Yearbook, book and journal publishing was a £4.3 billion sector of the UK economy – fully 7% of the creative industry estimates discussed the following section.96 It is important to note that the PA Statistics Yearbook is one of the only collections of data in this chapter that considered the year 2013; thus, it must be considered in isolation from other data. The 2013 Yearbook painted a positive picture of the publishing industry, as an industry which ‘has a strong future in the mixed-mode economy.’97 This is without taking into account the influence on the industry of self-publishing authors, Amazon editions, or new digital-only media companies, as these were not considered by the PA survey.98

The PA Statistics Yearbook provided a wealth of information about the book publishing industry, breaking it down by sector, by type and by export vs home market, all of which is important when considering the size and nature of the industry. Salient points included the growth of digital over the previous five years (digital performance saw a 305% growth in the five years from 2009-2014).99

While the PA Statistics Yearbook is published every year, 2013 was the first year in which journals were considered; the data related mostly to 2011 and 2012. The effect of the introduction of Open Access policies will be seen in the years immediately following. The data included in the survey set a value of £924m on the journals surveyed.100 However, that data constituted only around 70% of the journal industry in the UK. Thus, by extrapolation, it can be assumed that the journal industry was worth more than £1 billion in 2013. Of the data collected, it can be noted that fully 75% of journal subscriptions were digital-only – from this, we can see that the journal publishing industry adapted excellently to the digital shift.101

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95 Publishers Association, ‘PA Statistics Yearbook’ (2013), ix. 96 ibid ix.
97 ibid 2.
98 ibid 90.

99 ibid 1. 100 ibid 70. 101 ibid 69.

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An interesting point noted in the section that discussed English Language Teaching (ELT) was that the concept of the book was rapidly losing relevance. There was a visible move towards flexible, modular learning, which is blended and online.102 The market was able to adapt to this, though, as growth figures for digital showed. In 2013, digital sales in fiction grew by 14%,103 in children’s fiction by 28%,104 in school books by 18%,105 and in ELT by 45%,106 all of which showed that digital offerings were available, and were being taken up by the consumer. Worth noting is that the definition of digital in this instance included digital audiobooks, ebooks, subscriptions, downloads and wholly digital material delivered online.107

The take-away from the PA Statistics Yearbook 2013 was that the UK publishing industry was maintaining value, with growth in digital and steady physical exports largely offsetting the decline in the home physical market.108 This is expected to continue into 2015 and beyond.

DCMS Industry Estimates

In January 2014, the Department of Culture, Media and Sport (DCMS) published their Creative Industries Economic Estimates.109 A comprehensive mapping of what the creative industries and the creative economy are, as well as their contribution to the UK economy, these estimates were the first of what may well become a benchmark of analysing the value of creative content industries to the UK.

These estimates identified the ‘Creative Industries’ in the UK, according to the government’s 2001 Creative Industries Mapping Document110 as ‘those industries which have their origin in individual creativity, skill and talent and which have a potential for wealth and job creation through the generation and exploitation of intellectual property.’ It is important to note that this particular definition did not refer solely to copyright, but to the wider IPR spectrum, and thus its ambit was wider than the WIPO Guidelines. Salient points from the estimates included

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102 ibid 53.
103 ibid 25.
104 ibid 41.
105 ibid 47.
106 ibid 53.
107 ibid 90.
108 ibid 13.
109 Department for Culture, Media and Sport, ‘Creative Industries Economic Estimates January 2014 Statistical Release’ (2014) (DCMS Economic Estimates) <https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/271008/Creative_Ind ustries_Economic_Estimates_-_January_2014.pdf> accessed 8 January 2016.

110 Department for Culture, Media and Sport, ‘Creative Industries Mapping Document’ (2001) <https://www.gov.uk/government/publications/creative-industries-mapping-documents-2001> accessed 8 January 2016.

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that the creative economy accounted for 2.55 million jobs in 2012, which is 1 in every 12 jobs.111 Furthermore, the GVA of the creative industries was £71.4 billion in 2012, which was 5.2% of the UK economy that year.112

The Creative Industries Estimates offered a definition (complete with illustrative diagrams)113 of what the creative industries are, and how they differ from the creative economy as a whole. Simply put, the creative economy is comprised of those people working in creative industries, and those working in creative jobs in non-creative industries (eg self-employed authors, artists, designers, or creative employees working in industries that are not themselves creative). The creative industries are a subset of the creative economy, being those industries where more than a certain proportion of employees are engaged in creative work – ie that they have a high degree of ‘creative intensity’. While the industry must have a proportion of creative work in it, the creative industry designation then applies to everyone employed in that industry – ie for publishers, it also would include administrative staff, not just authors, and editors.114

The economic estimates of the DCMS were provided in three different ways – GVA, employment, and exports of services.115 In doing this, not only did they classify creative industries (using UK SIC 2007),116 but they also classified what they considered ‘creative occupations’ using SOC (Standard Occupational Classifications) codes,117 allowing them to create the intersection between creative industries and creative occupations, and gain a greater view of the creative economy as a whole.

As regards industries, DCMS divided them into nine groups:

•   Advertising and marketing

•   Architecture

•   Crafts

•   Design: product, graphic and fashion design

•   Film, TV, video, radio and photography

•   IT, software and computer services

•   Publishing

•   Museums, galleries and libraries111 DCMS Economic Estimates (n 109) 10. 112 ibid 7.
  113 ibid 5.
  114 ibid 4.

   

  115 ibid 7. 116 ibid 26. 117 ibid 25.