PricewaterhouseCoopers (2015)

From Copyright EVIDENCE

Advertising Architectural Publishing of books, periodicals and other publishing Programming and broadcasting Computer programming Computer consultancy Creative, arts and entertainment Cultural education

Film and motion pictures Sound recording and music publishing Photographic activities PR and communication Software publishing (including video games) Specialised design Television programmes Translation and interpretation

1. Relationship between protection (subject matter/term/scope) and supply/economic development/growth/welfare 2. Relationship between creative process and protection - what motivates creators (e.g. attribution; control; remuneration; time allocation)? 3. Harmony of interest assumption between authors and publishers (creators and producers/investors) 4. Effects of protection on industry structure (e.g. oligopolies; competition; economics of superstars; business models; technology adoption) 5. Understanding consumption/use (e.g. determinants of unlawful behaviour; user-generated content; social media)

A. Nature and Scope of exclusive rights (hyperlinking/browsing; reproduction right) B. Exceptions (distinguish innovation and public policy purposes; open-ended/closed list; commercial/non-commercial distinction) C. Mass digitisation/orphan works (non-use; extended collective licensing) D. Licensing and Business models (collecting societies; meta data; exchanges/hubs; windowing; crossborder availability) E. Fair remuneration (levies; copyright contracts) F. Enforcement (quantifying infringement; criminal sanctions; intermediary liability; graduated response; litigation and court data; commercial/non-commercial distinction; education and awareness)

Source Details

PricewaterhouseCoopers (2015)
Title: The Economic Contribution of Australia's Copyright Industries 2002-2014
Author(s): PricewaterhouseCoopers
Year: 2015
Citation: The Economic Contribution of Australia's Copyright Industries 2002-2014, PricewaterhouseCoopers (2015)
Link(s): Definitive , Open Access
Key Related Studies:
Discipline:
Linked by: PricewaterhouseCoopers (2016)
About the Data
Data Description: This report analyzes the economic contribution of Australia's copyright industries over 12 years, using WIPO's classification of copyright industries: core, partial, interdependent, and non-dedicated support.
Data Type: Secondary data
Secondary Data Sources:
Data Collection Methods:
Data Analysis Methods:
Industry(ies):
Country(ies):
Cross Country Study?: No
Comparative Study?: No
Literature review?: No
Government or policy study?: No
Time Period(s) of Collection:
  • 2015
Funder(s):
  • Australian Copyright Council

Abstract

In Australia, the Copyright Act 1968 gives exclusive (but limited) rights to copyright owners as to how their material may be used. These rights include the right to copy, adapt, publish, communicate to the public and publicly perform the copyright material. To balance the rights of copyright owners with the needs of the general public, the Copyright Act provides a number of exceptions to the general rules regarding infringement of copyright. The appropriate role and scope of these exceptions has been an ongoing matter for debate, particularly with the advent of digital copying (see ALRC 2013).

Consistent with an emerging interest in better understanding the size and economic contribution of those industries which rely, to varying degrees, on copyright law, this study uses the global framework (WIPO 2003) to document the economic contribution of Australia’s copyright industries over time. Due to data classification variations, the results presented in this report differ somewhat from previous estimates.

This is the fourth copyright industries economic contribution study supported by the Australian Copyright Council (see Allen Consulting Group 2001, PwC 2008, PwC 2012). It is important to appreciate that while the focus of this report is on the economic activity reliant to some degree on the institutional support provided by copyright law, there are a range of cultural, social and other benefits associated with the creation of copyright protected material that are not necessarily captured in the reported figures. That is, elements of copyright material - such as arts, which are seen as an important part of Australian lives - may generate benefits (e.g. cultural) that are not necessarily reflected in the market value for the goods or services (Towse 2000, p 115) ;(Australia Council 2014, p 10).

In compiling this report it is difficult to not consider the forces that have emerged to shape Australia’s copyright industries in recent years:

  1. Over the period considered in this study the demand for Australia’s natural resources, principally to support the rapid growth of China, has meant that the Australian Dollar has been above its historic average value. As a consequence, imports have become cheaper, to the point that we have seen deflation across a range of imported products, and a continued decline in Australia’s copyright industry manufacturing base.
  2. Many copyright products (e.g. music, movies, games, software, books, newspapers, etc) are continuing to move from physical distribution to electronic distribution, enabling the disintermediation of the supply chain (e.g. lessening the need for a physical retail presence) as consumers have shifted their consumption to digital versions and online delivery
  3. There has been an increased risk of unauthorised copying because of the low cost of reproduction of perfect digital copies. Indeed the value of the production of unauthorised copyright products is not included even though they should possibly be considered part of the copyright industries.

In this changing and challenging environment there is a continued need for copyright industries to develop, supported by copyright law, which provides certainty and the incentive to innovate and grow.

Main Results of the Study

This study shows that Australia’s copyright industries - many of which are undergoing significant change to their traditional business models as they continue to embrace digitisation - continue to be a key piece of infrastructure which support the Australian economy. In the most recent year for which data is available (2013-14), Australia’s copyright industries:

  • Generated economic value of $111.4 billion, the equivalent of 7.1 per cent of gross domestic product (GDP), which is greater than the manufacturing and health care sectors.

While still significant, growth in Australia’s copyright industries has been challenged in recent years:

  • Over the period 2001-02 to 2007-08 the real (i.e. inflation adjusted) compound annual growth rate (CAGR) for value add generated by copyright industries was 3.7 per cent, with the core copyright industries growing 3.2 per cent per year.
  • Over the subsequent period 2008-09 to 2013-14 the real value add CAGR for all copyright industries was zero per cent, and 0.3 per cent for the core copyright industries.
  • Employed just over 1 million people, which constituted 8.7 per cent of the Australian workforce. On average, copyright industry jobs are relatively well paid: the real average wage for people employed in the copyright industries has also increased from $59,500 in 2004-05 to $68,960 per employee in 2013-14 .
  • Generated just over $4.8 billion in exports, equal to 1.8 per cent of total exports. The relative value of copyright exports has declined as a proportion of total exports in recent years.

In this regard, Australia’s copyright industries continue to be a significant contributor to the Australian economy and our current and future national prosperity.

Policy Implications as Stated By Author

Copyright industries should be encouraged legally and financially due to the rising and substantial contribution to the Australian economy.


Coverage of Study

Coverage of Fundamental Issues
Issue Included within Study
Relationship between protection (subject matter/term/scope) and supply/economic development/growth/welfare
Green-tick.png
Relationship between creative process and protection - what motivates creators (e.g. attribution; control; remuneration; time allocation)?
Harmony of interest assumption between authors and publishers (creators and producers/investors)
Effects of protection on industry structure (e.g. oligopolies; competition; economics of superstars; business models; technology adoption)
Green-tick.png
Understanding consumption/use (e.g. determinants of unlawful behaviour; user-generated content; social media)
Coverage of Evidence Based Policies
Issue Included within Study
Nature and Scope of exclusive rights (hyperlinking/browsing; reproduction right)
Green-tick.png
Exceptions (distinguish innovation and public policy purposes; open-ended/closed list; commercial/non-commercial distinction)
Mass digitisation/orphan works (non-use; extended collective licensing)
Licensing and Business models (collecting societies; meta data; exchanges/hubs; windowing; crossborder availability)
Fair remuneration (levies; copyright contracts)
Enforcement (quantifying infringement; criminal sanctions; intermediary liability; graduated response; litigation and court data; commercial/non-commercial distinction; education and awareness)

Datasets

Sample size: 4
Level of aggregation: Australian copyright industries
Period of material under study: 2002-2014