OECD/ OCDE Dec. 4-5, 2006
Measuring Cultural Trade: The Case for Including Craft and
Interactive Digital Media, and for Identifying Domestic Content
hugh_scheuerman@pch.gc.ca
Department of Canadian Heritage
Notes, Bibliography, and Reading
The Government of Canada and the Department of Canadian Heritage do not necessarily endorse any of
the following companies or organizations, which are listed for information or comparative purposes only for
the purposes of this discussion.
Please note that the statements and views of the author expressed herein may not necessarily state or
reflect those of the Government of Canada or the Department of Canadian Heritage.
Acronym List:
BN: Business Number
DRM: Digital Rights Management
ICT: Information and Communications Technology
IDM: Interactive Digital Media, or new media
IP: Intellectual Property
NAICS: North American Industry Classification System
NAPCS: North American Product Classification System
PCH: Department of Canadian Heritage/Patrimoine canadien
SCIAN: Le Système de classification des industries de l'Amérique du Nord (NAICS)
STC: Statistics Canada
VOD: Video on Demand
Notes to Accompany Selected Slides:
Slide 3:
Culture sector definitions from
Statistics Canada; Canadian Framework for Culture Statistics (2004)
http://www.statcan.ca/cgi-bin/downpub/listpub.cgi?catno=81-595-MIE2004021
Statistique Canada, Cadre canadien pour les statistiques culturelles (2004)
http://www.statcan.ca/cgi-bin/downpub/listpub_f.cgi?catno=81-595-MIF2004021
Occupations in Canadian art, culture, recreation and sport:
ENGL: http://stds.statcan.ca/english/soc/2001/nocs01-title-search.asp?cretaria=f
FR: http://stds.statcan.ca/francais/soc/2001/nocs01-title-search_f.asp?cretaria=f
Cultural services export/import data is from 2003, from Statistics Canada cultural services data
tables 87-213-XWE/XWF.
http://www.statcan.ca/Daily/English/060328/d060328b.htm
Hugh Scheuerman
Department of Canadian Heritage
hugh_scheuerman@pch.gc.ca
1
Cultural goods export/ import data is from 2005, from Statistics Canada cultural goods data tables
87-007-XIE.
http://www.statcan.ca/Daily/English/060612/d060612b.htm
Slide 7:
For live-action film and TV productions, the 10-point Canadian content rules are followed.
For sound recording, a 4-point Canadian content system (MAPL) is used; Music, Artist,
Production, Lyrics.
ENGL: http://www.pch.gc.ca/progs/ac-ca/pubs/can-con/can_con.html
FR: http://www.pch.gc.ca/progs/ac-ca/pubs/can-con/con_can.html
Canada’s Film Industry: Profile from Canadian Film and Television Production Association
(CFTPA)
http://www.cftpa.ca/newsroom/pdf_profile/profile2006-french.pdf
http://www.cftpa.ca/newsroom/pdf_profile/profile2006-english.pdf
Slide 8:
UNESCO Convention on the Protection and Promotion of the Diversity of Cultural Expressions
ENG:
http://portal.unesco.org/culture/en/ev.phpURL_ID=29123&URL_DO=DO_TOPIC&URL_SECTION=201.html
FR:
http://portal.unesco.org/fr/ev.phpURL_ID=31038&URL_DO=DO_TOPIC&URL_SECTION=201.html
Slide 10:
Canadian Craft Federation: Profile and Development Strategy for Craft in Canada
ENG:
http://www.canadiancraftsfederation.ca/pdfs/Profile%20%20Strate%c9AL%20Feb%202004.pdf
FR: Portrait et stratégie de développement des métiers d’art au Canada
http://www.canadiancraftsfederation.ca/pdfs/Profile%20Strat%8eg%c9s%20F%8ev%2020041.pdf
Face of the Future: A study of human resource issues in Canada’s cultural sector
http://www.culturalhrc.ca/research/faceFutureExecutiveSummary-e.asp
Occupational classifications for crafts. Click link inside doc for long list.
http://stds.statcan.ca/english/soc/2001/nocs01-class-search.asp?cretaria=F144
Slide 11:
Handcrafted ceramic bowls should not be classified with toilet bowls:
NAICS 32711
Pottery, Ceramics, and Plumbing Fixture Manufacturing
This industry comprises establishments primarily engaged in shaping, moulding, glazing and
firing pottery, ceramics and plumbing fixtures These products may be made of clay or other
materials with similar properties. Establishments that fire and decorate white china (whiteware)
for the trade are included.
http://stds.statcan.ca/english/naics/2002/naics02-class-search.asp?criteria=3271
Hugh Scheuerman
Department of Canadian Heritage
hugh_scheuerman@pch.gc.ca
2
SCIAN 32711
Fabrication de poteries, d'articles en céramique et d'appareils sanitaires
Cette classe comprend les établissements dont l'activité principale consiste à façonner, mouler,
émailler et cuire des poteries, des articles en céramique et des appareils sanitaires. Ces produits
peuvent avoir été fabriqués à partir d'argile ou de produits possédant des propriétés semblables.
Sont inclus les établissements qui se spécialisent dans la cuisson et la décoration de la
porcelaine grand public (vaisselle en porcelaine blanche).
Slide 12:
Marketing Crafts and Visual Arts: The Role of Intellectual Property: A practical guide
http://www.wipo.int/sme/en/documents/guides/guide_marketing_crafts.html
Le marketing des produits de l'artisanat et des arts visuels : Le rôle de la propriété intellectuelle
http://www.wipo.int/ebookshop?lang=fre;cmd=display_pub;cat_id=1200;cart_id=39582721945190
Government of Canada, Dep’t of Indian and Northern Affairs; Frequently Asked Questions about
the North
http://www.ainc-inac.gc.ca/pr/info/info115_e.html
Bird, Phillip; Intellectual Property Rights And The Inuit Amauti: A Case Study
http://www.wipo.int/tk/en/igc/ngo/wssd_amauti.pdf
Protection of indigenous women’s IP
http://www.ichrdd.ca/english/commdoc/publications/indigenous/introEnglish.html
Women and Traditional Knowledge
http://www.wipo.int/women-and-ip/en/programs/tk.htm
Slide 13:
World Customs Organization:
The Customs Co-operation Council (the official name of the World Customs Organization) asked
member countries to measure Craft in their statistical nomenclatures, at:
http://www.wcoomd.org/ie/En/Recommendations/recommendations.html
So did UNESCO, at
UNESCO: International Flows of Selected Cultural Goods and Services, 1994-2003
http://www.uis.unesco.org/ev_en.php?ID=6372_201&ID2=DO_TOPIC
UNESCO: Échanges internationaux d’une sélection de biens et services culturels 1994-2003
http://www.uis.unesco.org/ev_fr.php?ID=6372_201&ID2=DO_TOPIC
Hugh Scheuerman
Department of Canadian Heritage
hugh_scheuerman@pch.gc.ca
3
Slide 14:
Global Entertainment and Media Outlook: 2006-2010
http://www.pwc.com/extweb/pwcpublications.nsf/docid/5AC172F2C9DED8F5852570210044EEA
7?opendocument&vendor=none
See also: The Economy of Culture in Europe, at
http://www.keanet.eu/
Slide 15:
From Canadian Interactive Alliance Interactive canadienne, at
www.ciaic.ca/
Ubisoft and Electronic Arts Company annual reports:
www.ubi.com/ENCA/default.aspx
www.ea.com/home/home.jsp
The economy of culture in Europe, Annex 1, p. 279
http://www.keanet.eu/
New Media BC white paper: An Integrated Strategy for BC’s Technology Clusters
http://www.newmediabc.com/downloads/Integrated%20Tech%20Strat%20White%20Paper.pdf
Numerous Alliance numériQC studies found at
http://www.numeriqc.ca/etudes/
The ‘Long Tail’ of Technology Changes
http://www.thelongtail.com/about.html
Slide 20:
Aufrant, M. and Nivlet, J-M; Towards an Information Society Aggregate in ISIC 2007
http://www4.statcan.ca/english/voorburg/2002%20nantes/papers/2002-043.pdf
OECD Working Party on the Information Economy: Content As A New Growth Industry
http://www.oecd.org/dataoecd/32/48/2094064.pdf
The Multimedia and Interactive Digital Content Industry
http://www.fiam.org/en/MIDC-Industry%20classification-4.pdf
Aufrant, Marc; Nivlet, Jean-Marie; Some Concepts For Information Economy Measurement:
ICT and Content Sectors.
http://www.insee.fr/en/nom_def_met/colloques/acn/colloque_9/aufrant_nivlet_en.pdf
Hugh Scheuerman
Department of Canadian Heritage
hugh_scheuerman@pch.gc.ca
4
Slide 21:
Types of video games
Video games may be divided into 4 types:
Console games
PC games
Online games
Wireless games
A similar division is presented in
The economy of culture in Europe, Annex 1, p. 270 (http://www.keanet.eu/)
and in PricewaterhouseCoopers’ Global Entertainment and Media Outlook: 2006-2010
http://www.pwc.com/extweb/pwcpublications.nsf/docid/5AC172F2C9DED8F5852570210044EEA
7?opendocument&vendor=none
See also OECD Working Party on the Information Economy DIGITAL BROADBAND CONTENT: The online computer and video game industry
http://www.oecd.org/dataoecd/19/5/34884414.pdf
A single game may be released in up to 32 different formats, depending on the number of
platforms and versions (console, online, PC, and mobile versions; with console platforms from
Sony, Nintendo, and Microsoft, with numerous iterations). These games should perhaps be
treated as one entity, and not several entities based on the delivery method. The Internet may be
seen as a pipeline that delivers content.
Culture Components And ICT Components In Video Game Development
NAICS classifies business establishments by economic activity. It can be argued that the creation
of video games has more in common with the creation of an animated feature film, than with the
creation of software. Here are some of the more common ways of examining the differences
between the Culture components and the ICT components.
Staff Team Leads Commonly Found in Game Development:
 Lead programmer (ICT)
 Lead producer (Culture)
 Lead artist (Culture)
 Art director (Culture)
 Lead designer (Culture)
The Four Major Areas of Game Development
 Art (in Culture)
 Design (in Culture)
 Production (in Culture)
 Computer Programming & Coding (in ICT)
Intellectual Property Rights and the Video Game Industry
The intellectual property in video games contains combinations of copyrights, trademarks,
patents, and trade secrets, which fall into four broad areas: Code, Art, Audio, and Design. One of
these (Code) is part of Information and Communications Technology (ICT); the other three
represent areas within Arts and Culture.
International Game Developers Association
http://www.igda.org/ipr/IGDA_IPRights_WhitePaper.pdf
Hugh Scheuerman
Department of Canadian Heritage
hugh_scheuerman@pch.gc.ca
5
Game Development: Culture Industry or ICT Industry?
First steps
We will use the example of the action game Call of Duty© (by Infinity Ward) to illustrate in a
simple form the game development occupations, giving a view toward the production processes
for a game that cost about $10 million to develop, a cost in the lower middle range of
development budgets. (For comparison, Halo 2©, the most expensive console game to develop
in 2004, saw development costs of over US$40 million, and required the efforts of the 190 people
listed in its credits, and needed three years to complete.)
Of the 60 staff that developed the Call of Duty© game, 42 positions, or 70% of the total,
represented occupations and activities already classified within Culture. No breakout by hours or
development salaries is available.
Cultural occupations
The development costs associated with activities commonly found in existing culture or creative
industries should be attributed to the Culture sector.
About 70% (42 positions) of total employment in game development included:
1 Chief Creative Officer
3 Producers
14 Designers, for design of levels and action
15 Artists, from Environment to Visual FX
7 Animators
2 Sound designers
ICT occupations
Twelve staff, or 20% of total employment, were from the ICT sector:
1 Chief Technology Officer
11 Software engineers and programmers
Additional ICT costs: Game development includes the use of middleware (specialized software
used to coordinate the game sections, animations, music, sound, characterization, and scoring).
The game engine software licensing cost is around $750,000, or a percentage of royalties.
Other middleware includes an audio engine, a highly specialized software that enables the game
audio (voice, music and sound effects) to be co-ordinated around a common frame. The costs of
this middleware and the production costs associated with Coding and Computer Programming
should be assigned to the ICT sector.
‘Neutral’ Occupations (not attributable to either Culture or ICT)
The remaining 6 staff, or 10% of the total, were ‘neutral’, representing administrative positions,
such as President, Executive Assistant, Office Manager, and Talent Consultant.
Next Steps
Although this is simple and somewhat naïve example, a future examination of a game’s actual
production costs, economic activity and economic impact, production processes, and occupation
classifications attributable to both the Culture and ICT sectors would prove helpful.
Hugh Scheuerman
Department of Canadian Heritage
hugh_scheuerman@pch.gc.ca
6
Slide 24:
See Online Media Measurement by one company: Big Champagne. No mention of culture trade
(exports/imports), as it may not yet be possible to measure downloads crossing international
boundaries
http://www.bigchampagne.com/faqs.html#data
Some classification systems already reflect the Craft and New media categories:
Système De Classification Des Activités De La Culture Et Des Communications Du Québec 2004
http://www.stat.gouv.qc.ca/observatoire/scaccq/principale_en.htm
Comparison of classification systems identifying the contribution of copyright collection societies,
and other gaps in culture measurement:
The Economy Of Culture In Europe, Annex 1, pp. 245-249
http://www.keanet.eu/
Hugh Scheuerman
Department of Canadian Heritage
hugh_scheuerman@pch.gc.ca
7