Presentation to Masters students at the Communication University of China, Beijing, October 11, 2010. Based on my "New Media Policies" chapter in Mark Deuze (ed.), Managing Media Work (Sage, 2010).

1. New Media Policies: Creative industries and new technologies shifting the balance between regulation and promotion Presentation to Communication University of China, Beijing, China, 10 October 2010 Professor Terry Flew Creative Industries Faculty Queensland University of Technology (QUT) Brisbane, Australia Contact: t.flew@qut.edu.au

2. John Maynard Keynes and the Origins of Cultural Policy Cambridge economist who recommended public spending to resolve Great Depression of 1930s Most famous economist of the 20th century Political liberal – favoured reformed capitalism with greater role for government Established field of cultural economics as head of UK Arts Council during WWII 2

3. Joseph Schumpeter: “creative destruction” Austrian economist who emphasised role of innovation and entrepreneurship Crisis and renewal in capitalist economies: “creative destruction” While he thought capitalism was better than socialism, he could see how capitalism creates its own enemies by reducing human values to money values 3

4. Influences on media policy Keynesian thinking has most influenced arts and cultural policy – governments must provide what the market will not deliver Schumpeter – economics of innovation – profit motive drives technological innovation The Internet: shaped historically by government (US military), business (Microsoft, Google etc.) and science (open system) 4

5. How the Internet is changing media “The Internet as a new creative outlet has altered the economics of information production and led to the democratization of media productionand changes in the nature of communication and social relationships (sometimes referred to as the ‘rise - or return - of the amateurs’). Changes in the way users produce, distribute, access and re-use information, knowledge and entertainment potentially gives rise to increased user autonomy, increased participation and increased diversity” Organisation for Economic Co-operation and Development 2007, p. 5. 5

6. How the Internet is changing media 6

7. How the Internet is changing media 7

8. How the Internet is changing media “What we are presently experiencing is the shift away from a top-down business model being imposed on consumers by the producers and distributors of media to a bottom-up business model emerging out of the consumption behavior of media users. The era in which a privileged few accessed tools to facilitate the publishing of content for distribution over exclusive distribution networks reaching the masses is being eroded by both efficient production tools and peer-to-peer communications that can provide anyone with the ability to communicate their ideas to anyone else, any where, any time.” US media industry leader Joshua Levin, in J. Holt and A. Perren, Media Industries, 2009, p. 258. 8

9. Why do governments regulate media? Concerns about media content Protection of children National cultural identity Providing accurate information for citizens Media as a public good Controlling unaccountable media power Economic pressures on media ownership Provision for all parts of the country and all sections of the community 9

10. Goals of media policy 10

11. Europe and the US: the great divergence 11

12. Pressures for media policy change “Policy has generally to follow the logic of the marketplace and the technology and the wishes of consumers (and citizens) rather than impose its own goals” (van Cuilenberg and McQuail) Focus on competition policy Media convergence How can policy promote digital content innovation? 12

13. 1990s – Information Policy Driven by convergence and rise of the Internet Enabling shifts for a global information society High-speed broadband “National champions” in ICT sector Lack of focus on media content for “fat pipes” Too much focus on established media businesses Underestimated significance of new start-ups and user-led innovation (Web 2.0) 13

14. 2000s – Creative Industries Policy 14

15. Culture Cycle 15

16. Distinctive Features of Creative Industries Policy Attempting to think across industries, sectors and ministries Cultural “software” and technical “hardware” Disruptive innovation driven from the margins: start-ups, user-led innovation Policy shift to cities and regional, provincial and state governments Promotion of culture in creative cities – creative cluster development 16

17. Examples from Australia “Queensland Model” – Creativity is Big Business, 2004 State Development report ARC Centre of Excellence for Creative Industries and Innovation at QUT Creative Industries Innovation Centre (CIIC) based in Sydney – Enterprise Connect Assist firms in CI sector to make greater contribution to Australian economy Provide professional business advisory services to small to medium sized businesses Promote collaboration between researchers and business 17

18. Changing Landscape of Media Policy Content and channel proliferation No longer a small number of powerful media producers and a large number of powerless media consumers Greater engagement of the public as content co-creators (“produsers”) – pro-ams Multichannel environment – “three screens” of TV, Internet, smart phones (Apple iPad as “fourth screen”?) Need for incumbent media to innovate with new models and new ways of engaging the public e.g. ABC iView, Unleashed, Pool 18