HR Study 2010

> Labour Market Information for Canada's Cultural Sector

Purchase all three documents that make up HR Study 2010 in a printable electronic format

The HR Study 2010 package contains: HR Trends and Issues, Labour Market Information for Canada's Cultural Sector and The Effect of the Global Economic Recession on Canada's Creative Economy in 2009.

Economic Overview of the Cultural Sector - Highlights

Effect of the economic recession

The effects of the 2008 recession reduced the real value-added output, or GDP, of the cultural sector (excluding interactive digital media) by nearly 5 per cent, compared with the growth that may have occurred had there not been a recession.

Household Consumption

Canadian households increased their spending on cultural goods and services by 2.6 per cent in 2008 over the previous year. This was the same rate of growth as the increase in total household spending in Canada for all goods and services.

Cultural Exports

Exports of Canadian cultural goods to the rest of the world have been on a downward trend since 2003. The decline was particularly severe in 2008, when the value of cultural goods exports dropped by 12 per cent from 2007.

Government support

The direct financial support provided to the cultural sector by federal, provincial, territorial, and municipal governments increased steadily between the fiscal years of 2003–04 and 2007–08. In the fiscal year ending in 2008, expenditures by all three levels of government totaled nearly $8.7 billion.

Short term outlook by domain

Film, Radio, TV, and Broadcasting: The short-term outlook suggests further challenges for the financial recovery of the film, radio, TV, and broadcasting domain. While the economic recovery is likely to boost the demand for film, radio, and television, transitional changes in how these media products are created, distributed, and consumed will likely continue to place downward pressure on the revenues of establishments operating in this domain until business models adapt.

Music: While a global economic recovery will boost the potential for revenue growth, the transition to online distribution methods for music and sound recordings will continue to affect the pace of growth, as music establishments continue to adapt to new online and off-line business models. This transition will likely have a greater impact on the revenues of establishments involved in music publishing, sound recording, and record production and distribution than for individual recording artists.

Live Performing Arts: There is a cautious outlook for the financial performance of Canada's live performing arts. This domain's financial prospects are, to some degree, tied to the outlook for Canadian household consumption. However, the availability and frequency of live performing arts programs are generally based on known revenue commitments, especially government support, endowments, and other contributions. Unfortunately, the outlook for growth in these revenue sources is modest, at best, dampening the overall outlook for live performing arts revenues.

Heritage: The financial performance of Canada's heritage domain in the coming years will depend on the financial support provided by the federal government and by provincial governments. Government support will be vulnerable to the shrinking levels of government stimulus funding, as well as the reallocation of government discretionary funds towards debt repayment. Still, as the economy recovers, other revenue streams are expected to grow modestly, including municipal government support, endowments, and other financial contributions by businesses and individuals.

Books and Periodicals: The financial outlook for the books and periodicals domain will continue to be challenged by the weakness in key revenue streams over the short term. While a global economic recovery will help boost the potential for revenue growth, changes in distribution methods for written media products will continue to affect the pace of revenue growth, as business models struggle to adapt to these changes. This is especially true for establishments involved in newspaper and magazine publishing.

Visual Arts and Crafts: The short-term financial outlook for the visual arts and crafts domain is somewhat cautious. This domain's financial prospects will likely be dictated by the pace of recovery in Canadian household spending and, to a lesser extent, foreign demand. The global economic recovery should improve revenue opportunities for Canadian visual art products, although the volatility of the Canadian dollar may dampen some of that potential. Moreover, the availability of Canadian visual arts products may be somewhat curtailed by a reduction in financial support for visual artists, in particular from provincial and federal governments.

Interactive Digital Media: The short-term financial outlook for the interactive digital media domain appears favourable. In addition to receiving a boost from a recovery in the global economy, ongoing changes in the types of entertainment products sought by consumers will continue to fuel the expansion of interactive digital media industries. As the interactive digital media market evolves, Canadian establishments in this domain appear well-poised to capitalize on growing global demand.