1. Cultural industries in Poland the current challenges Elaborated by Pro Cultura Foundation

2. Cultural industries in Poland One of the most dynamic labour market The most developed are the film, publishing, press and phonographic industries Cultural industries related to applied art, pattern design, software are starting to develop Knowledge on cultural industries is derived mainly from research of a marketing character

3. In Poland the issue of cultural industries was examined earlier than in other post-communist countries 1996- first comprehensive research on cultural industries 1997- first seminars 2001- Culture and its industries as a development chance for Poland, economists’ meetings Unfortunately… No legal instruments were elaborated Culture was not perceived as an element of development Culture was not treated as a factor which influence the production of economic values

4. Kern Report In 2003 cultural industries contributed to 1,2% of Polish GDP (the EU average- 2,6%) In 2004- 230,8 thousand people were employed in cultural industries (1,7% of all employees in Poland) Ministry of Culture 2000- cultural industries contributed to 4,5% of Polish GDP Different ways of calculation

5. Cinematography 2005- a new Act on Cinematography was passed Polish Film Institute was founded –Polish Film Institute it is a national institution not a quango organisation –The participants of audiovisual market pay 1,5% of their income to the Institute’s account (about 18 million € ) –State film institutions pay 50% of income from financial copyrights to films which were produced before 31 st of December 1989 –Expert teams, Director decide on grant distribution –The Institute has a yearly budget of 25,5 million € (in 2001 only 1.8 million € were granted to cinematography

6. Operational Programmes of Polish Film Institute Funds for cinematography in 2007 : Project Development (1,1 million €) Film Production (16,1 million €) Popularising Film Culture (2 million €) Promotion of Polish Films Abroad (2,2 million €) Cinema Development and Film Distribution (1 million €) Vocational Advancement (900 thousand €) All together about 23,3 million € In 2006 five sessions were conducted

7. About 400 independent production companies operate on the Polish market –Half of them employ from 3 to 5 people. Their yearly turnover does not exceed 260 thousand Euro –One third employ from 5 to 10 people. Their yearly turnover does not reach 5 mln €. Large distribution companies launch premieres at the same time as in London or Paris

8. Publishing market 2005- increase by 11% - New products and distribution systems (e.g. books attached to newspapers) - Publications about Pope John Paul II Unstable reason of growth Fixed tendencies: Increase of interest in literary fiction and children books Demand for specialist literature Decrease of turnovers on the textbooks market Growth in the Internet distribution platform Largest publishing houses as multimedia companies

9. In 2005 about 6 thousand people were employed in the publishing industry Average revenue per one employee increased –2005- 100 thousand Euro (2003- 80 thousand €, 2004- 85 thousand € ) Large and stable group of recipients Book as a desired good and media event (promotion, top lists, billboards etc.) Publishing houses benefit from EU Funds

10. About 20 thousand publishing houses are registered in Poland –About 3000 produce at least 2 books a year –About 450 produce more than 10 books every year –About 200 generate more than 260 thousand € per year –About 135 generate more than 510 thousand € The largest ones have a stable financial situation Middle-sized companies are in danger Small enterprises are in a good situation

11. 200 largest publishing houses constitute 98% of the whole publishing market –the market share of the largest companies was never so high There is a tenfold disproportion in the turnover between the largest and the smallest companies

12. Book Institute Created in 2004 Programmes Translation Programme ©POLAND –It covers 100% of translation costs and the licence purchase Development of the book sector and the promotion of readership (II priority of operational programme „Promotion of readership”) –3 calls for applications Sample Translations ©POLAND –The purpose is to promote Polish literature abroad

13. Prognoses for the publishing market Stabilisation of publishing production Largest companies will be taking over the smaller ones Investments in on-line services and information portals will increase Direct sale will be still increasing Decrease of the textbook market Fall of the number of new positions Decrease in the number of bookshops Alarming plan of introducing 7% VAT rate for books in 2008

14. Future of the cultural industries in Poland Culture sector should be treated as an economy growth factor A better strategy, on the micro and macro level, should be elaborated The State should create a better system of indirect support for cultural industries Comprehensive research must be conducted in order to make rational decisions!

15. Fact that cultural industries and subsidised culture are complementary is accepted However, the State do not base its actions on systematic research

16. Following scope should be analysed: Organisation of cultural industries, including its spatial infrastructure, financing The ownership structure, including the attendance of foreign capital State Interventionism Offer The significance of particular cultural industries in economy (its contribution to GDP, etc) The current state and perspectives of the employment and the prognosis for new professions in cultural industries

17. EU standards and the future of Polish cultural industries The place of cultural industries in the regional development operational programmes Relation between cultural industries and subsidised culture The participation of information technologies in the development of cultural industries Advantages and disadvantages of regulations in the Polish law for cultural industries referring to the cultural activity, protection of national heritage, tax law, etc...