cultural insights - peltoniemi, 2015

Question 1

creative market dynamics

Answer 1

preferences and how you manage them

Question 2

sources of revenue

Answer 2

selling creative goods
product placement
subsidies
revenues from goods and others offered on the side e.g. msuem + gift shop

Question 3

product placement

Answer 3

advertisin goods of other producers

Question 4

cultural industries

Answer 4

produce experience goods with considerable creative elements and aim these at the consumer market via mass distribution
e.g. book and magazine publishing, TV and radio

Question 5

subsiedies

Answer 5

other support for what we are
grants, foundations, sponderships

Question 6

cultural goods purposes

Answer 6

purpose of entertainment
identity building
social display

Question 7

cultural goods characteristics

Answer 7

low utilitarian value
high aesthetic
symbolic
social meaning
social display value
catering entertainment and identity building needs

Question 8

cultural goods as experimental

Answer 8

judged on ability to offer fun, enjoyment, pleasure

Question 9

cultural goods as innovation

Answer 9

constantly introduce different types of goods to please diverse taste

Question 10

biggest issue of creative industry/goods

Answer 10

persistent oversupply of creative labour, idependent of economic cycles

Question 11

reason for persistent oversupply

Answer 11

extreme uncertainty of success of potential product
consumers do not have complete information prior to consumption

Question 12

mass distribution

Answer 12

storage and delivery where economies of scale play an important role

Question 13

product market characteristic

Answer 13

taste
popularity
gatekeeping

Question 14

taste

Answer 14

preferences that consumers report cumulatively or inherent

Question 15

upper class vs lower class taste

Answer 15

highbrow enjoy many different types of products
lowbrow tend to enjoy only a specific type

influence each other
can go from high to low and vice versa
omnivorous

Question 16

acquisition of cultural taste view

Answer 16

more critical over time
rate prodcts higher specialising in particular genre
nostalgia effect: inheret from parents

Question 17

Evidence for taste is inate view

Answer 17

predates consumption
evolves in dormant state

• report generally stable genre preferences over time
• neural responses of indv. predict future sales of music

Question 18

taste separates

Answer 18

accumulating cultural capital vs immediate enjoyment

Question 19

taste general findings

Answer 19

prefer films with younger
opposite gendered leads
older directors
unfamiliar temporal settings
- star power
- bias towards make artists especially with male consumers

Question 20

popularity

Answer 20

sales that goods with particular characteristics achieve
hits/misses

Question 21

5 popularity characteristics

Answer 21

information cascades
intention to purchase
trendsetters
positive word of mouth
investing in advertistment

Question 22

popularity as signals eg-superstars

Answer 22

superstars and exotic locations
superstar phenomenon

Question 23

familiarity vs novelty in popularity

Answer 23

to understand vs to enjoy

prequels > book-based fims
greates album hits > recent

Question 24

popularity and unpredictability of demand

Answer 24

lack of correlation between popularity and quality
information cascades assume similar taste of friends
familiar products less sensitive to information cascades?

Question 25

gatekeeping + oversupply

Answer 25

as production of culture views filtering system needed to reduce number of products reaching the market due to oversupply, experiential nature, limited sense-making resources extreme variance in sales, heavy upfront investment, production companies reject most aspiring artists

Question 26

upstream selectors in gatekeeping

Answer 26

companies making contracts financing creative projects e.g. labels large generalists vs small specialists larger advertising budget - increases sales, retun on advertising dependent on product selection performance

Question 27

small specialists characteristics

Answer 27

superior cultural capital dense information sharing networks pre-selected arists --> slower to succeed BUT longer lasting

Question 28

selection performance in upstream selectors

Answer 28

based on artists conforming to genere, not imitatin others, good reputation, conforming to creative prototypes

Question 29

downstream selectors

Answer 29

decide whether product reaches completion and audience e.g. media retailers

Question 30

power of downstream selectors

Answer 30

(+) reviews increase sales, grows with product age, greater for less familiar (-) influence on consumer expectation

Question 31

bias of downstream selectors

Answer 31

prefer certain products earlier collaborators payola - incentives offered to selectors to cause favor

Question 32

people characteristic in reaction to downstream selectors

Answer 32

personality traits affect whether you listen to critics awards differ in effet when granted by consumers, peers or experts lay critics online influential on niche products mainstream - volume niche goods - valence

Question 33

Two-way relationship between critic and consumer

Answer 33

Critics need to appear knowledgeable → align with consumer taste

Question 34

management challenges

Answer 34

reconciling artistic and profit goals suits and creatives creative labour work allocation industry dynamics sensemaking within the community interdependence in communities industry structure and creative outcomes majors and independents concentration and diversity flexible specialisation digital distribution

Question 35

art for art's sake and art for profit

Answer 35

tension between artistic ambition and financial gain

Question 36

Reconciling artistic and profit goals - mutually exclusive

Answer 36

Profit motive is absent in sectors where profit opportunities are minimal, prefer wide distribution to profit Company strategy focused on artistic intent, market considerations

Question 37

Reconciling artistic and profit goals - complementary

Answer 37

Artist value combination of artistic freedom and pecuniary rewards Work responds to economic incentives Validation for creative skills

Question 38

suits and creatives

Answer 38

Relentless new genres, formats and products, virtually unlimited aesthetic choices, difficulties in monitoring such processes Ongoing convergence of different cultural sectors Symbol creators granted autonomy bc of originality and novelty Managers + corporation have power to redirect and block creative activity Cultural production companies → dual leadership Manager with creative backgrounds → innovative performance ' Power relations → moderator for art + profit motives + related outcomes

Question 39

Creative labour → inferior working conditions

Answer 39

Low wages, long working hours, structured job insecurity Repeatedly drawn back to industry by financial, creative, social and emotional rewards Stress, anxiety, poor employment relationships Absence of mentors Copyright Artist earn little, corporations earn a lot

Question 40

Work allocation

Answer 40

Informal networks → path-dependent networks Inclusion or exclusion? Repeated collaboration, mutual trust Career success predicted nu contacts with professionals rather than talent Gender inequality and discrimination Women → typecasted

Question 41

Industry dynamics

Answer 41

Cultural industries as communities Industry system and organisational field

Question 42

Sensemaking within the community

Answer 42

Popularity charts, events and award rituals Fragmentation of styles within a sector Trade fairs and fashion weeks generate visibility for field, create global circuit Industry-level sensemaking → encourages homogenization Change in sense-making → change in selection criteria as upstream selectors want to align with consumer preferences

Question 43

Interdependence in communities

Answer 43

Actions and outcomes of complementors and competitors, dependence on distributors and platform providers Local audiences Less developed taste enable industry emergence Value chain envy One stage in chain capturing more than fair share of profit Within company → homogeneity in production capabilities and organisational structures within an industry Similarity and differences Need optimum level of differentiation for uniqueness but sufficiently similar to stay legitimate

Question 44

Industry structure and creative outcomes

Answer 44

Majors (proven solution) and independent (specialised styles) Cultural diversity and industry concentration Majors → secure cash > artistic values → high homogeneity Flexible specialisation offer specialised inputs Digitalization

Question 45

Majors and independents

Answer 45

Skewed distribution in company size Firms grow faster than employment Majors grow via acquisitions and partnerships + level of horizontal integration Artistic and business resources placed in different companies to avoid cross-contamination Highly differentiated inputs encourage vertical disintegration Allows majors to cut costs and control markets

Question 46

Concentration and diversity

Answer 46

High concentration → low diversity and vice versa Standardisation matter of ownership, result of large markets

Question 47

Flexible specialisation

Answer 47

Industrial organisation where specialised firms involved in production frequently change to create variety of outputs Motivated labour unions

Question 48

Digital distribution

Answer 48

Very narrow loophole to escape corporate control Need to fulfil consumer need of collecting, ownership ritual for buying, enjoyment from the look, feel, smell of original product