The Measurement of Digital Culture Products at Statistics Canada

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1 The Measurement of Digital Culture Products at Statistics Canada Presented by Lucy Chung, Demi Kotsovos and Mark Uhrbach May 10, 2016 International Symposium on the Measurement of Digital Cultural Products

2 Overview Definitions and Framework Culture Industries Surveys Measurement considerations Moving Forward Household surveys Measurement considerations Moving Forward Culture Satellite Account Partnerships- Internal and External 2

3 Canadian Framework for Culture Statistics 2011 Canadian Framework for Culture Statistics (CFCS 2011) Developed by Statistics Canada in consultation with Canadian Heritage and other culture stakeholders Provides definitions for culture Criteria for inclusion Domains and sub-domains 3

4 Some key culture concepts/definitions Culture: creative, artistic activity and the goods and services produced by it, and the preservation of heritage Culture product is a good or service resulting from creative, artistic activity Culture industry is one for which culture products (goods or services) make up a significant part of its output 4

5 Culture Measurement Framework Culture Satellite Account Tax information (T1, T2, GST etc) Supply Surveys Service industries surveys, Retail trade, Wholesale trade, Annual Survey of Manufacturing Supply and Use Tables Canadian Macroeconomic Accounts Reconciliation Process Labour information Labour Force Survey, Survey of Employment, Payroll and Hours, Industry surveys Other information Such as Profits, capital investment, International trade data 5

6 Culture Industries Surveys Nine biennial culture surveys Latest estimates for reference year 2013 Periodical Publishing Film and Video Distribution Film, Television and Video Production Film, Television and Video Post-production Sound Recording and Music Publishing Latest estimates for reference year 2014 Book Publishers Newspaper Publishers Performing Arts Motion Picture Theatres 6

7 Information on digital culture products Aside from the standard collection of revenue and expense information, Statistics Canada also collects information pertaining to the particular industry. Examples of information collected relating to digital culture products: 7 Sound Recording and Music Publishing Sales and number of units sold by format including digital musical recordings Newspaper Publishers Breakdown of circulation sales by print and digital Book Publishers Percentage of sales attributed to e-books Film and Video Distribution Market distribution of feature films by platform including internet download and streaming Periodical Publishing Percentage of advertising sales attributed to online or digital sources

8 Measurement Considerations Classification North American Industry Classification System (NAICS 2012) Current: businesses classified into industries according to main source of revenue AND, in some cases, according to the format of their products. NAICS 2022 needs to be updated such that businesses are classified according to their main business activity REGARDLESS of their product formats. North American Product Classification System (NAPCS 2012) Current NAPCS (2012) Proposed NAPCS (2017) Newspapers Newspapers Daily Newspapers Daily Newspapers a Physical Daily Newspapers b Digital Daily Newspapers Community Newspapers Community Newspapers a Physical Community Newspapers b Digital Community Newspapers Other Newspapers Other Newspapers a Physical Other Newspapers b Digital Other Newspapers

9 Measurement Considerations Concepts Digital products vs. digital transactions Exclusions in the sound recording and music publishing industries Number of digital products sold Collection Poor response rates Consistency in responses Lag in collection 9

10 Moving Forward Consultation with respondents and stakeholders on collection of information on digital culture products Update questionnaires and statistical classifications to capture digital component Publication of more information on digital culture products 10

11 Household Surveys The purchase and consumption of digital culture products is measured through demand-side surveys Canadian Internet Use Survey (2012, ad-hoc survey) General Social Survey (annual, rotating content) Challenges to the this type of data collection but provides valuable context and understanding of changing patterns Changing technology Defining technology to respondents Respondent recall 11

12 90 Percentage of Internet Users Consuming Culture Products Online by Age, All Ages 16 to to to to to to and older To read or watch the news To obtain or save music To listen to the radio online To download or watch TV online Source: Canadian Internet Use Survey, 2012

13 Moving Forward Addressing data gaps Redesign of household surveys Emergence of new formats of content (e.g. podcasts) Use of Virtual Private Networks (VPNs) and geoblocking software Digital Economy Measurement Framework An assessment of the current state of measurement for the digital economy Digital culture products continue to drive the evolution of the digital economy and measurement 13

14 What is the Culture Satellite Account? The Culture Satellite Account is about extracting economic information on culture from the Canadian System of Macroeconomic Accounts It uses the same measures of inputs, outputs, and GDP as the Canadian System of Macroeconomic Accounts. It reorganizes information on culture following the Canadian Framework for Culture Statistics

15 Gross domestic product at basic prices in culture industries, total economy, Quebec, 2010 Culture industries Other industries 1 Total industries $millions Culture products 9,431 1,450 10,882 % of provincial economy All other products 2 3, , ,177 % of provincial economy Total products 12, , ,059 % of provincial economy Notes: Totals may not add due to rounding 1. Other industries are the remaining industries in the economy once culture industries have been excluded. 2. All other products are the remaining products in the economy once the culture products have been excluded (i.e. non-culture products). Source: Statistics Canada, Provincial and Territorial Culture Satellite Account, 2010

16 Partnerships Internal and External Partnerships - Internal Distinct areas of the agency working together on this subject matter in a subject matter working group Partnerships - External Collaborating with Department of Canadian Heritage Provincial and territorial ministries of culture and/or heritage Many other partners 16

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