Satellite account for culture and media 2018

3. The culture and media sector itself

This chapter gives a broad outline of the development of the culture and media sector from 2015 to 2018. The nature and size of the culture and media sector for 2018 are then described in more detail, using a short fact sheet that presents the characteristics of each subdomain, followed by an estimate of the value added and employment by domain and subdomain. These indicators should be seen as beta indicators: indicators which are not compiled as standard for the national accounts. Whereas the national accounts calculate value added and employment by branch of industry, the domains and subdomains used in this satellite account are a collection of goods and services. However, this approach does add informative nuances to the contribution of the various domains and subdomains to the Dutch economy. The chapter ends with a summary description of the key developments in the various domains and subdomains within culture and media.

3.1 Culture and media – total

How did the various macroeconomic figures within culture and media develop in 2018 compared to 2015? Domestic production of cultural and media products increased from EUR 43.8 billion in 2015 to EUR 53.9 billion in 2018, while imports increased from EUR 19.6 billion to EUR 26.2 billion. This total supply of cultural and media products at basic prices is increased both by the balance of taxes and subsidies on products and by the trade and transport margins to determine the supply of cultural and media products at purchase prices. The supply at purchase prices increased between 2015 and 2018 from EUR 68.8 billion to EUR 85.9 billion.
In addition to cultural and media products, the satellite account also includes the ancillary revenues of cultural institutions and culture-related investments as culture and media. The reasoning behind this is that these items are so intertwined with the cultural and media products themselves that the products would not exist without them. The ancillary revenues of cultural institutions consist of income from any museum shops, associated catering, teaching courses and income from renting out all or part of the buildings for events. Culture-related investments concern items such as museum buildings. Finally, the consumption of cultural and media products by residents of the Netherlands abroad is added to ensure that these figures continue to align with the national totals. This item is not structured by product groups in the national accounts. So the total range of cultural and media products is supplemented by a number of items that are not in themselves cultural or media products, but are nevertheless included for the purposes of this satellite. Trade and transport margins are included in addition to taxes and subsidies on products in order to bridge the ‘accounting gap’ between what producers receive for their products and what users must pay for them. The total supply at purchase prices increased between 2015 and 2018 from EUR 70.2 billion to EUR 87.6 billion.
Please note that, in 2018, 8 percent of the total supply of culture and media at purchase prices – and thus also the total use at purchase prices – consisted of goods and services that are not cultural or media products (9 percent in 2015).4) Trade and transport margins are the most striking example of this, followed by product-related taxes minus subsidies.

3.1.1 Supply of culture and media1) (mln euros)
Total dome-
stic pro-
duction (basic prices)
ImportsTotal supply (basic prices)Taxes and sub-
sidies on pro-
ducts
Trade and trans-
port margins
Total supply (purchase prices)
Cultural
and media
products
201543,84019,64063,4802,2003,10068,770
201853,91026,22080,1302,4303,35085,900
Ancillary
revenues
of cultural
institutions
20156900690700770
20187500750800830
Culture-
related
investments
2015170101801010200
2018290303303020370
Trade and
transport
margins
20153,11003,1100-3,1100
20183,36003,3600-3,3600
Consumption
by residents
outside the
Netherlands
2015470470470
2018470470470
Total culture
and media
201547,81020,11067,9202,280070,200
201858,32026,72085,0402,540087,580
1) For culture and media, amounts in this table have been rounded to the nearest ten million euros. As a result, underlying figures do not always add up to the total.

The increase in the supply of cultural and media products was largely due to the two most significant product groups: licences and royalties and advertising services. These were already the primary product groups in culture and media, and they also saw the largest increase in value (see Tables 1a and 1b).

3.2 Culture and media – by branch of industry

The culture and media sector’s total value added (basic prices) in 2018 was EUR 23.9 billion (EUR 21.6 billion in 2015). Which branches of industry contributed most to this value added in the culture and media sector?

Advertising agencies form the largest branch of industry

In 2018, Advertising and market research made the greatest contribution to the culture and media sector’s value added at 13 percent, followed by Publishing activities (11 percent) and Art (10 percent). The share of the Trade and transport was also 10 percent: a substantial share for an industry whose activities do not naturally place it at the heart of the culture and media sector. However, as mentioned earlier, trade and transport form an indispensable link between the providers of cultural and media products and their users.

3.2.1 Culture and media sector by branch of industry
Branche2015 (% of value added
of the culture and media sector)
2018 (% of value added
of the culture and media sector)
Advertising and market research12.413
Publishing activities11.711.1
Art10.39.7
Trade and transportation10.210.2
Education9.99.7
Printing and reproduction of recorded media 5.64.8
Design, photography and translation5.56.2
Film and TV production, sound recording5.35.8
Other information and communication4.85.5
Libraries, museums and nature conservation4.64.2
Programming and broadcasting activities4.54.1
Architectural and engineering activities4.14.9
Other professional activities32.7
Public administration2.72.7
Sports and recreational activities1.21.2
Other branches of industry4.24.1

3.2.2 Culture and media by branch of industry
Branch of Industry2015 (% of value added
for the relevant branch
of industry)
2018 (% of value added
for the relevant branch
of industry)
Programming and broadcasting activities98.898
Libraries, museums and nature conservation98.598.4
Film and TV production, sound recording98.499.3
Art98.198
Publishing activities91.193.3
Printing and reproduction of recorded media 83.984.7
Advertising and market research83.383.4
Design, photography and translation5353.4
Architectural and engineering activities10.311.8
Sports and recreational activities6.96.9
Education6.96.9
Other information and communication4.34.5
Trade and transportation1.91.9
Other professional activities1.71.7
Public administration1.31.3
Other branches of industry0.30.3

Four industries are almost entirely culture and media-based

As well as discussing the importance of a branch of industry to the culture and media sector (Figure 3.2.1), it is also worth asking the question in reverse: how important are culture and media to a given branch of industry (Figure 3.2.2)? There are four industries whose value added is almost entirely the result of cultural and media activities. Two of these industries belong to what used to be known as ‘traditional’ culture, namely Art (performing arts, writers, painters, sculptors, composers, etc.) and Libraries, museums and nature conservation. The two other industries that rely almost entirely on the production of cultural and media products are Programming and broadcasting activities and Film and TV production; sound recording. Despite these four industries’ ‘dedication’ to culture and media, with the exception of Arts their share in the culture and media sector was only modal, indicating that being very active in culture and media does not necessarily go hand in hand with being a significant player in the culture and media sector. Conversely, whereas trade and transport were important to the culture and media sector (10 percent), culture and media were only marginally important to the Trade and transport industry as a whole (2 percent).
It is important to note that the interpretation of the importance of different industries is influenced by the industry classification chosen, and that the picture for 2015 and 2018 is stable.

3.3 Culture and media – by domain

How did the various domains within culture and media develop in 2018 compared to 2015? Tables 2a and 2b form the basis for the information presented in this section.
Figure 3.3.1 shows the supply of cultural and media products by domain for 2015 and 2018. Domains whose share in the supply of cultural and media products has increased have thus seen an above-average increase, while domains whose share has decreased have increased less rapidly than the total supply of cultural and media products. Again, expressed in nominal values, the supply of practically all domains has increased.

Advertising is the largest domain

Advertising remained the largest domain within culture and media, with a share of 32 percent. The two domains in which the supply increased the most are Media and Audiovisual, with their share increasing by 3 percentage points from 2015 to 2018. The increase in the supply of what might be called ‘traditional’ art and culture was slower than in the domains mentioned above. The share of Literature (-2 percentage points), Performing arts (-1 percentage point), Visual arts (-1 percentage point) and Heritage (-1 percentage point) decreased by 1 or more percentage points.

Households spend most on media

Another interesting macroeconomic figure to disaggregate by domain is household consumption (incl. NPIs), primarily because very different domains dominate in this area: households spend little or no money on things like advertising or architecture and design, for instance. Secondly, this facilitates a much more stable interpretation than a figure such as the total supply of cultural and media products. Households spend the most money on goods and services in the domain of Media (newspapers, periodicals, radio and television), and ‘traditional’ art and culture is reflected in household consumption far more than in the total supply. Performing arts (‘a night out’) made up 15 percent of household spending, and spending on goods and services within the domains of Literature (books), Visual arts (photography, jewellery) and Heritage (museums) were also shown to be much more important in household consumption than in the total supply of cultural and media products.
Tables 2a and 2b show which domains are more or less represented in the other macroeconomic figures. For example, advertising makes up roughly half the intermediate consumption of cultural and media products. In terms of exports, in addition to Advertising, the domains of Media and Audiovisual also emerge as important. The significance of these two domains is partly a result of the aforementioned import and export of licences and royalties from foreign companies that have a branch in the Netherlands.

3.3.1 Supply of cultural and media products by domain1)
Domain2015 (% of the total)2018 (% of the total)
Advertising32.131.8
Media18.321.0
Audiovisual14.517.0
Literature8.66.9
Performing arts7.16.2
Architecture and design6.56.1
Visual arts5.14.3
Education3.43.0
Heritage2.72.2
Interdisciplinary and other1.71.5
1)Supply of cultural and media products (basic prices). Excluding ancillary revenues of cultural institutions, culture-related investments, trade and transport margins, consumption by residents outside the Netherlands and taxes on products minus subsidies on products.

3.3.2 Household consumption of cultural and media products (incl. NPIs) by domain1)
Domain2015 (% of the total)2018 (% of the total)
Media40.940.9
Performing arts1515.2
Audiovisual12.913
Literature9.49.2
Visual arts8.79.6
Heritage6.65.9
Education3.43.4
Interdisciplinary and other2.72.7
Advertising0.20.2
Architecture and design0.10.1
1)Household consumption (incl. NPIs) of cultural and media products (purchase prices).
Excluding ancillary revenues of cultural institutions, culture-related investments and consumption
by Dutch residents outside the Netherlands.

3.4 Culture and media – by subdomain

This section uses a fixed template – a fact sheet – to briefly describe the most important characteristics of each of the subdomains in 2018. The elements covered are: a list of the most important goods and services in the relevant subdomain; the share in the total of culture and media; a characterisation of the market; and the nominal development compared to 2015.

3.4.1 Visual arts

Visual Arts consists of the subdomains Photography and Other visual arts.

Photography subdomain
Main goods and services
Photochemical products, photography and development itself, equipment, licences and royalties.

Total supply and use (purchase prices)
EUR 3.0 billion.

Share in the total supply and use (purchase prices) of cultural and media products
3 percent.

Supply from domestic production
EUR 1.5 billion, or 59 percent of the total supply (basic prices).

Main use
Intermediate consumption and exports.

Nominal development of supply and use compared to 2015
+EUR 190 million or +7 percent.

Market characterisation
Most of the supply comes from domestic production and thus contributes to employment in the culture and media sector. The total supply is mainly purchased by other companies (intermediate consumption) or exported. Re-exports represent a substantial proportion of exports, in particular the re-export of photochemical products. ‘Re-exports’ refers to goods that are imported, but are then immediately re-exported without significant processing. The main sector that gains financially from this practice is the trade and transport sector. Household consumption is only a limited factor in the market.

3.4.1.1 Supply and use in the Visual arts domain1) (mln euros)
20152018
Photo-graphyOther visual artsPhoto-graphyOther visual arts
Total domestic production
(basic prices)
1,8101,4303801,9101,510400
Imports1,4309904401,5101,040460
Total supply (basic prices)3,2402,4308103,4202,560860
Taxes and subsidies on products23080150270100180
Trade and transport margins730290440870340530
Total supply (purchase prices)4,2002,8001,4004,5603,0001,570
Intermediate consumption1,5601,470901,6601,59070
Consumption by households
(incl, NPIs)
9301607801,070170910
Consumption by government000000
Gross fixed capital formation5005040040
Stock changes2)40-1050401030
Exports of domestic production9506103401,040650390
Re-exports67057090700580120
Total use (purchase prices)4,2002,8001,4004,5603,0001,570
1) For culture and media, amounts in this table have been rounded to the nearest ten million euros or the nearest ten thousand in numbers. As a result, underlying figures do not always add up to the total.
2) Includes the balance of the purchase and sale of valuables.

Other visual arts subdomain
Main goods and services
Jewellery, licences and royalties, original work by visual artists (painters, graphic designers, sculptors).

Total supply and use (purchase prices)
EUR 1.6 billion.

Share in the total supply and use (purchase prices) of cultural and media products
2 percent.

Supply from domestic production
EUR 0.4 billion, or 47 percent of the total supply (basic prices).

Main use
Household consumption and exports.

Nominal development of supply and use compared to 2015
+EUR 170 million or +12 percent.

Market characterisation
This subdomain is dominated by the Jewellery product group. Supply is shared more or less equally between domestic production and imports. The trade and transport margins in this area are substantial. The total supply is mainly purchased by households. Some of the domestic production in this subdomain is covered by investment, such as original work by visual artists who generate income from their work in the form of licences and royalties. Another part of the supply falls under the Stock changes item, including the balance of the purchase and sale of valuables, primarily jewellery.

3.4.2 Literature

The domain of Literature consists of the Books and Other Literature subdomains.

Books subdomain
Main goods and services
Books, textbooks, library services, original work by authors and licences and royalties.

Total supply and use (purchase prices)
EUR 3.3 billion.

Share in the total supply and use (purchase prices) of cultural and media products
4 percent.

Supply from domestic production
EUR 2.2 billion, or 78 percent of the total supply (basic prices).

Main use
Intermediate consumption, household consumption and exports.

Nominal development of supply and use compared to 2015
-EUR 80 million or -2 percent.

Market characterisation
Three-quarters of the supply comes from domestic production and thus contributes to employment in the culture and media sector. Books are the largest product group in both domestic production and imports. The trade and transport margins in this area are substantial. The majority of the total supply, for example some textbooks, is purchased by other companies (intermediate consumption). The second group of users are households, with household consumption consisting almost entirely of books. Exports are also largely made up of books, as well as licences and royalties to publish the work of Dutch authors abroad. Government consumption consists of library services. Finally, investments relate to original work by writers and academic research within the field of literature; some of the textbooks are also included in investments. This shows that the sale of goods and services within the domain of Literature is quite diverse and not dominated by only one or two categories. The supply and use within the Books subdomain did not increase between 2015 and 2018.

3.4.2.1 Supply and use in the Literature domain1) (mln euros)
20152018
BooksOther litera-
ture
BooksOther litera-
ture
Total domestic production
(basic prices)
4,1702,2901,8704,1002,1901,910
Imports1,3006007001,400600800
Total supply (basic prices)5,4702,8902,5705,5002,7902,710
Taxes and subsidies on products2007013021070130
Trade and transport margins9403905401,000420580
Total supply (purchase prices)6,6003,3603,2406,7003,2903,420
Intermediate consumption2,9001,1101,7902,8301,0801,760
Consumption by households
(incl, NPIs)
1,0106603501,030680340
Consumption by government40040004104100
Gross fixed capital formation600490110570460110
Stock changes2)010-1020200
Exports of domestic production1,1605106401,270490780
Re-exports530180350580160420
Total use (purchase prices)6,6003,3603,2406,7003,2903,420
1) For culture and media, amounts in this table have been rounded to the nearest ten million euros or the nearest ten thousand in numbers. As a result, underlying figures do not always add up to the total.
2) Includes the balance of the purchase and sale of valuables.

Other Literature subdomain
Main goods and services
Printing machines, printing, typesetting, binding and reproduction, other printed material (reference books, calendars, pictures, etc.)

Total supply and use (purchase prices)
EUR 3.4 billion.

Share in the total supply and use (purchase prices) of cultural and media products
4 percent.

Supply from domestic production
EUR 1.9 billion, or 70 percent of the total supply (basic prices).

Main use
Intermediate consumption and exports.

Nominal development of supply and use compared to 2015
+EUR 180 million or +5 percent.

Market characterisation
Most of the supply consists of domestic production and thus contributes to employment in the culture and media sector. More than half the total supply is purchased by other companies (intermediate consumption). Foreign countries (exports) are the second-most important sales market, with a substantial share of re-exports, with households being the third-largest market in this domain.

3.4.3 Heritage

The Heritage domain has no subdomains.

Main goods and services
Museum services, artefacts and museum pieces.

Total supply and use (purchase prices)
EUR 1.8 billion.

Share in the total supply and use (purchase prices) of cultural and media products
2 percent.

Supply from domestic production
EUR 1.5 billion, or 83 percent of the total supply (basic prices).

Main use
Consumption.

Nominal development of supply and use compared to 2015
+EUR 60 million or +3 percent.

Market characterisation
This mainly concerns the domestic production of museum services that are consumed by households and the government. Government consumption of museum services results from the fact that households do not always have to pay the full cost price for museum visits. The remainder of the cost is ‘contributed’ from collective resources and is consumed by the government on behalf of households. This is comparable to subsidised education. Stock changes relate to the purchase and sale of museum pieces and artefacts. Exports include the consumption of museum services by non-residents.

3.4.3.1 Supply and use in the Heritage domain1) (mln euro)
20152018
HeritageHeritage
Total domestic production (basic prices)1,4401,480
Imports300300
Total supply (basic prices)1,7301,780
Taxes and subsidies on products4040
Trade and transport margins8090
Total supply (purchase prices)1,8501,910
Intermediate consumption200210
Consumption by households (incl. NPIs)710660
Consumption by government410460
Gross fixed capital formation00
Stock changes2)260210
Exports of domestic production230320
Re-exports4060
Total use (purchase prices)1,8501,910
1) For culture and media, amounts in this table have been rounded to the nearest ten million euros or the nearest ten thousand in numbers. As a result, underlying figures do not always add up to the total.
2) Includes the balance of the purchase and sale of valuables.

3.4.4 Performing arts

The Performing arts domain has no subdomains.

Main goods and services
Performing arts (performances, operation of venues, etc.), equipment, musical instruments.

Total supply and use (purchase prices)
EUR 5.4 billion.

Share in the total supply and use (purchase prices) of cultural and media products
6 percent.

Supply from domestic production
EUR 3.9 billion, or 77 percent of the total supply (basic prices).

Main use
Intermediate consumption and consumption by households.

Nominal development of supply and use compared to 2015
+EUR 540 million or +11 percent.

Market characterisation
This subdomain is dominated by the performing arts themselves. In addition to performers, this category also includes the producers of the productions and the operators of the theatres where these productions are ultimately staged. The majority of the supply is purchased by other companies (intermediate consumption), followed by household consumption. Exports of domestic production include overseas performances by performing artists based in the Netherlands. Re-exports consist primarily of equipment and musical instruments that were imported but are not actually used in the Netherlands and are destined for the ‘hinterland’.

3.4.4.1 Supply and use in the Performing arts domain1) (mln euros)
20152018
Performing artsPerforming arts
Total domestic production (basic prices)3,5603,870
Imports9201,130
Total supply (basic prices)4,4805,000
Taxes and subsidies on products200220
Trade and transport margins180190
Total supply (purchase prices)4,8605,410
Intermediate consumption1,9002,130
Consumption by households (incl, NPIs)1,6101,700
Consumption by government10070
Gross fixed capital formation1010
Stock changes2)010
Exports of domestic production820930
Re-exports420560
Total use (purchase prices)4,8605,410
1) For culture and media, amounts in this table have been rounded to the nearest ten million euros or the nearest ten thousand in numbers. As a result, underlying figures do not always add up to the total.
2) Includes the balance of the purchase and sale of valuables.

3.4.5 Audiovisual

The Audiovisual domain consists of the Film and video and Other audiovisual subdomains.

Film and video
Main goods and services
Licences and royalties, production of films, TV programmes, etc., cinema services.

Total supply and use (purchase prices)
EUR 7.7 billion.

Share in the total supply and use (purchase prices) of cultural and media products
9 percent.

Supply from domestic production
EUR 4.5 billion, or 59 percent of the total supply (basic prices).

Main use
Intermediate consumption, exports and consumption by households.

Nominal development of supply and use compared to 2015
+EUR 4.6 billion or +150 percent.

Market characterisation
This subdomain is dominated by licences and royalties. In principle, licences and royalties are a payment for the right to exploit certain cultural expressions. However, this by no means only concerns cultural expressions produced in the Netherlands. It often involves licences and royalties from Dutch-based divisions of large foreign media companies that have transferred the ownership rights of numerous film and TV productions to the Netherlands for tax reasons, and from there grant others the rights to put on these productions. These are therefore money flows that do not always correspond to real production and are not accompanied by a proportionate contribution to factors such as employment. These financial flows noticeably ‘inflate’ imports and exports and intermediate consumption. The flows are significant and volatile, and they more than doubled between 2015 and 2018. However, because the same companies both buy and sell licences and royalties, the value added and employment give a more realistic picture of the contribution these companies make to the Dutch economy (see Section 3.5). Household consumption consists predominantly of cinema services.

3.4.5.1 Supply and use in the Audiovisual domain1) (mln euros)
20152018
Film and videoOther audio-visualFilm and videoOther audio-visual
Total domestic production
(basic prices)
3,9701,5902,3807,2404,4602,780
Imports5,2101,3703,8406,4203,1403,280
Total supply (basic prices)9,1902,9706,22013,6607,6006,060
Taxes and subsidies on products3307025035080270
Trade and transport margins7305068065040620
Total supply (purchase prices)10,2403,0907,15014,6707,7106,960
Intermediate consumption2,3301,4308905,1503,9201,240
Consumption by households
(incl, NPIs)
1,3803701,0101,4603601,100
Consumption by government10010000
Gross fixed capital formation5402051059010580
Stock changes2)30020401030
Exports of domestic production2,7701,1601,6104,9703,3501,610
Re-exports3,1901003,0902,460702,400
Total use (purchase prices)10,2403,0907,15014,6707,7106,960
1) For culture and media, amounts in this table have been rounded to the nearest ten million euros or the nearest ten thousand in numbers. As a result, underlying figures do not always add up to the total.
2) Includes the balance of the purchase and sale of valuables.

Other audiovisual
Main goods and services
Equipment (including film cameras), licences and royalties, computer games.

Supply from domestic production
EUR 2.8 billion, or 46 percent of the total supply (basic prices).

Total supply and use (purchase prices)
EUR 7 billion.

Share in the total supply and use (purchase prices) of cultural and media products
8 percent.

Supply from domestic production
EUR 2.8 billion, or 46 percent of the total supply (basic prices).

Main use
Exports, intermediate consumption and household consumption.

Nominal development of supply and use compared to 2015
-EUR 200 million or -3 percent.

Market characterisation
As imports account for more than half of the supply, this subdomain makes only a limited contribution to employment in the domestic culture and media sector. The majority of the total supply is exported, predominantly as re-exports consisting largely of equipment. These re-exports therefore depend on cultural and media expressions abroad, rather than in the Netherlands. Exports from domestic production include online content and licences and royalties for computer games and music. Intermediate consumption consists mainly of equipment and licences and royalties for the use of music. Household consumption consists largely of equipment and both physical and online computer games.

3.4.6 Media

The domain of Media consists of the subdomains Newspapers and periodicals and Radio and TV.

Newspapers and periodicals
Main goods and services
Newspapers, trade magazines, other periodicals, the printing of these newspapers and periodicals, press agency services.

Total supply and use (purchase prices)
EUR 3.3 billion.

Share in the total supply and use (purchase prices) of cultural and media products
4 percent.

Supply from domestic production
EUR 3 billion, or 95 percent of the total supply (basic prices).

Main use
Intermediate consumption and consumption by households.

Nominal development of supply and use compared to 2015
-EUR 20 million or -1 percent.

Market characterisation
This is a domain with few inputs and outputs: both supply and use take place in the domestic market. Most goods and services are sold to other companies (intermediate consumption), for example the printing of newspapers and periodicals. However, some trade magazines are also bought by companies, and this is counted as intermediate consumption. The remaining supply – primarily newspapers and general periodicals, both in printed form and online – is mainly consumed by households. There was no increase in the supply and use within this domain between 2015 and 2018.

3.4.6.1 Supply and use in the Media domain1) (mln euros)
20152018
News-
papers and perio-
dicals
Radio, TVNews-
papers and perio-
dicals
Radio, TV
Total domestic production
(basic prices)
8,0302,9805,05011,4202,9908,430
Imports3,5602003,3705,4401705,270
Total supply (basic prices)11,5903,1808,41016,8603,16013,700
Taxes and subsidies on
products
620110500650120530
Trade and transport margins3806032047050420
Total supply (purchase prices)12,5903,3509,23017,9803,33014,640
Intermediate consumption3,9601,7402,2206,4801,7704,710
Consumption by households
(incl, NPIs)
4,3901,3902,9904,5901,3803,210
Consumption by government37003703400340
Gross fixed capital formation21002101800180
Stock changes2)1001010-1010
Exports of domestic
production
2,1202101,9204,7201904,530
Re-exports1,530101,5201,67001,670
Total use (purchase prices)12,5903,3509,23017,9803,33014,640
1) For culture and media, amounts in this table have been rounded to the nearest ten million euros or the nearest ten thousand in numbers. As a result, underlying figures do not always add up to the total.
2) Includes the balance of the purchase and sale of valuables.

Radio and TV
Main goods and services
Licences and royalties, equipment (including TVs), telecommunications services, public and commercial radio and television services.

Total supply and use (purchase prices)
EUR 14.6 billion.

Share in the total supply and use (purchase prices) of cultural and media products
17 percent.

Supply from domestic production
EUR 8.4 billion, or 62 percent of the total supply (basic prices).

Main use
Intermediate consumption, exports and consumption by households.

Nominal development of supply and use compared to 2015
+EUR 5.4 billion or +59 percent.

Market characterisation
As in the Film and video subdomain, this subdomain is dominated by licences and royalties, especially through the import and export of licences and royalties from subsidiaries of large international media companies based in the Netherlands. As the import of licences and royalties certainly does not always refer to paying for the right to exploit a cultural expression that was produced abroad in the Netherlands, it follows that nowhere near all exports involve the receipt of a fee for the overseas exploitation of a cultural expression produced in the Netherlands. These are partly tax-induced money flows within large international media companies. As mentioned above, these are large amounts that can fluctuate hugely from year to year. The increase in supply and use within the Radio and TV subdomain is almost entirely caused (or overshadowed) by the increase in licences and royalties. Household consumption consists of telecommunication services (transmitting the radio and TV programmes), equipment and radio and television services. Exports from domestic production consist largely of the aforementioned licences and royalties, which are therefore only partly related to cultural expressions actually produced in the Netherlands. Re-exports almost exclusively concern equipment.

3.4.7 Advertising

The Advertising domain has no subdomains.

Main goods and services
Advertising services for print media, radio, TV and online.

Total supply and use (purchase prices)
EUR 25.9 billion.

Share in the total supply and use (purchase prices) of cultural and media products
30 percent.

Supply from domestic production
EUR 15.9 billion, or 63 percent of the total supply (basic prices).

Main use
Intermediate consumption and exports.

Nominal development of supply and use compared to 2015
+EUR 0.5 billion or +25 percent.

Market characterisation
Almost two-thirds of the advertising services on offer are domestic productions. Advertising services are mainly provided to companies (intermediate consumption) and exported. The supply and use of advertising services increased by 25 percent from 2015 to 2018. On the supply side, imports increased by more than domestic production. In terms of use, intermediate consumption increased by more than exports.

3.4.7.1 Supply and use in the Advertising domain1) (mln euros)
20152018
AdvertisingAdvertising
Total domestic production (basic prices)14,09015,930
Imports6,2809,510
Total supply (basic prices)20,37025,440
Taxes and subsidies on products320350
Trade and transport margins8080
Total supply (purchase prices)20,77025,870
Intermediate consumption17,65022,320
Consumption by households (incl, NPIs)2020
Consumption by government00
Gross fixed capital formation00
Stock changes200
Exports of domestic production3,0603,480
Re-exports3050
Total use (purchase prices)20,77025,870
1) For culture and media, amounts in this table have been rounded to the nearest ten million euros or the nearest ten thousand in numbers. As a result, underlying figures do not always add up to the total.
2) Includes the balance of the purchase and sale of valuables.

3.4.8 Architecture and design

The domain of Architecture and design consists of the Architecture subdomain and the Design subdomain.

Architecture
Main goods and services
Architectural services (building plans and drawings for residential and non-residential buildings, restoration of historical buildings, etc.)

Total supply and use (purchase prices)
EUR 2.5 billion.

Share in the total supply and use (purchase prices) of cultural and media products
3 percent.

Supply from domestic production
EUR 2.2 billion, or 99 percent of the total supply (basic prices).

Main use
Investments and intermediate consumption.

Nominal development of supply and use compared to 2015
+EUR 0.7 billion or +36 percent.

Market characterisation
The supply consists almost entirely of domestic production. Architectural services are mainly provided to other companies which will actually build the structures designed, with a large part of these services being seen as an investment. A limited proportion of the architectural services are exported, and architectural services for private individuals form an even smaller proportion. The supply and use of architectural services increased by 36 percent between 2015 and 2018.

3.4.8.1 Supply and use in the Architecture and design domain1) (mln euros)
20152018
Archi-
tec-
ture
DesignArchi-
tec-
ture
Design
Total domestic production
(basic prices)
3,5201,5801,9304,4002,2202,180
Imports6107054050030470
Total supply (basic prices)4,1301,6502,4804,9002,2602,650
Taxes and subsidies on
products
2001604028021070
Trade and transport margins000000
Total supply (purchase prices)4,3301,8102,5205,1802,4702,720
Intermediate consumption2,9807102,2703,4309102,520
Consumption by households
(incl, NPIs)
1010010100
Consumption by government000000
Gross fixed capital formation1,0301,000301,4301,41010
Stock changes2)000000
Exports of domestic
production
30080220310140180
Re-exports000000
Total use (purchase prices)4,3301,8102,5205,1802,4702,720
1) For culture and media, amounts in this table have been rounded to the nearest ten million euros or the nearest ten thousand in numbers. As a result, underlying figures do not always add up to the total.
2) Includes the balance of the purchase and sale of valuables.

Design
Main goods and services
Design services (industrial, graphic, interior, fashion, etc.), licences and royalties.

Total supply and use (purchase prices)
EUR 2.7 billion.

Share in the total supply and use (purchase prices) of cultural and media products
3 percent.

Supply from domestic production
EUR 2.2 billion, or 82 percent of the total supply (basic prices).

Main use
Intermediate consumption.

Nominal development of supply and use compared to 2015
+EUR 200 million or +8 percent.

Market characterisation
The supply consists largely of domestic production, and most sales also take place on the domestic market. Almost all the design services are purchased by other companies that put the designs into production and ultimately deliver them. A significant proportion of both imports and exports consists of licences and royalties to use these designs.

3.4.9 Education

Main goods and services
Subsidised and private cultural education.

Total supply and use (purchase prices)
EUR 2.4 billion.

Share in the total supply and use (purchase prices) of cultural and media products
3 percent.

Supply from domestic production
EUR 2.4 billion, or 100 percent of the total supply (basic prices).

Main use
Consumption by government and households.

Nominal development of supply and use compared to 2015
+EUR 190 million or +8 percent.

Market characterisation
Cultural education consists entirely of domestic production. Subsidised education is financed from collective resources and consumed by the government ‘on behalf of’ households, while private cultural education is consumed directly by households.

3.4.9.1 Supply and use in the Education domain1) (mln euros)
20152018
EducationEducation
Total domestic production (basic prices)2,1802,360
Imports00
Total supply (basic prices)2,1802,360
Taxes and subsidies on products2020
Trade and transport margins00
Total supply (purchase prices)2,2002,390
Intermediate consumption00
Consumption by households (incl, NPIs)360380
Consumption by government1,8301,990
Gross fixed capital formation00
Stock changes2)00
Exports of domestic production1010
Re-exports00
Total use (purchase prices)2,2002,390
1) For culture and media, amounts in this table have been rounded to the nearest ten million euros or the nearest ten thousand in numbers. As a result, underlying figures do not always add up to the total.
2) Includes the balance of the purchase and sale of valuables.

3.4.10 Interdisciplinary and Other

Main goods and services
These goods and services cannot easily be assigned to a particular domain. Examples include: public services in the field of culture, especially public administration; information on and booking of cultural events; and support services for artists (management, etc.).

Total supply and use (purchase prices)
EUR 2.2 billion.

Share in the total supply and use (purchase prices) of cultural and media products
1 percent.

Supply from domestic production
EUR 1.2 billion, or 99 percent of the total supply (basic prices).

Main use
Consumption by government and households.

Nominal development of supply and use compared to 2015
+EUR 110 million or +10 percent.

Market characterisation
Practically all the supply is generated by domestic production. Its use consists largely of government consumption (public services in the field of culture that the government consumes on behalf of households), household consumption (information and bookings) and some intermediate consumption (including management of artists).

3.4.10.1 Supply and use in the Interdisciplinary and other domain1) (mln euros)
20152018
Interdisciplinary
and other
Interdisciplinary
and other
Total domestic production (basic prices)1,0801,180
Imports2020
Total supply (basic prices)1,1001,200
Taxes and subsidies on products3040
Trade and transport margins00
Total supply (purchase prices)1,1301,240
Intermediate consumption8090
Consumption by households (incl, NPIs)290310
Consumption by government730820
Gross fixed capital formation1010
Stock changes2)00
Exports of domestic production1010
Re-exports00
Total use (purchase prices)1,1301,240
1) For culture and media, amounts in this table have been rounded to the nearest ten million euros or the nearest ten thousand in numbers. As a result, underlying figures do not always add up to the total.
2) Includes the balance of the purchase and sale of valuables.

3.5 Value added and employment by subdomain: a beta product

In principle, the contribution of the various economic activities to value added and employment in the economy as a whole is calculated in the national accounts at the level of companies and institutions and detailed according to the branches of industry in which these companies and institutions operate. Companies and institutions have a given output (production), which requires a given input (intermediate consumption). The difference between output and input is referred to as the ‘value added’ and is the remuneration for the companies and institutions’ primary means of production: labour and capital. For this reason, the national accounts do not normally calculate value added and employment associated with the production of certain goods and services, for example cultural and media products.

This satellite account for culture and media divides products into subdomains made up of the various cultural and media products that belong to each of those subdomains. However, the production of the products belonging to a subdomain almost never takes place in a single branch of industry, instead being spread over several industries. Conversely, there is no industry that only produces products belonging to one subdomain. In principle, therefore, no figures are available for value added and employment for the production of, say, the products belonging to the Books subdomain.

For this satellite account for culture and media, however, value added and employment have been calculated for the various subdomains; as mentioned earlier, this is in contrast to the regular national accounts, where value added and employment are only calculated by branch of industry. These calculations have been made on the basis of the assumption below, and should be considered a ‘beta indicator’: an indicator which, although it gives a rough indication of value added and employment per subdomain, is not among the economic variables used as standard in the regular national accounts.

The assumption used in calculating the added value by subdomain is that the ratio of output to input of the relevant cultural and media products is equal to the ratio of output to input of the branch of industry within which these cultural and media products are produced.

It is generally the case, in accordance with the Standard Industrial Classification (SIC), that the majority of goods and services are produced in the branch of industry which is considered to produce those goods and services. Conversely, a large proportion of the production of a given industry consists of goods and services which, according to the SIC, are also considered to be produced within that industry.
Example: the vast majority of the products that belong to the Advertising domain are produced in the Advertising and market research industry. These products are also subject to the input-output ratio of the Advertising and market research industry. The vast majority of the total production within Advertising and market research consists of products belonging to the Advertising domain. The input-output ratios of the Advertising and market research industry are thus largely determined by the production of goods and services belonging to the domain of Advertising.

Nevertheless, it is still advisable to regard the results for the variables of value added and employment by domain and subdomain as rough indications of the direction in which the economic importance of a domain is changing, rather than of its absolute size.

Audiovisual and Media domains are declining in importance

Having said that, Figure 3.5.1 shows that the importance of the different domains in value added differs from an earlier measure: the total supply of cultural and media products (see Figure 3.3.1). This is, first, because the total supply also includes imports, meaning that domains with high levels of imports decrease in importance if those imports are excluded. In addition, the relationship between input and output differs between domains, therefore also affecting the final value added.

For example, in 2018 the importance of the Audiovisual domain in value added, and thereby also in the Dutch economy, is significantly smaller than its share in the total supply and use of cultural and media products. This has come about in part because there are a lot of imports and re-exports in this domain, as well as because this domain involves significant flows of money in the area of licences and royalties that do not always relate to cultural expressions produced in the Netherlands. These financial flows are primarily concentrated in intermediate consumption and domestic production. However, when calculating value added, only the balance of these flows remains.
The sharp decline in the importance of the Audiovisual and Media domains automatically produced an increase in the importance of the other domains. The shares of both Architecture and design and Education increased, partly because they have few imports and partly because these are activities with a relatively high value added. All in all, Advertising is the biggest domain in this area, too.
The approach to the various domains from the perspective of value added therefore yields a somewhat different picture from that of factors such as the share in total supply or use. It is important to emphasise again that this is a rough indication; the direction of change is more robust than the absolute size of the calculated value added.

3.5.1 Value added and supply by domain,20181)
DomainTotal supply of cultural and media products (basic prices) (% of the total)Gross value added (basic prices) (% of the total)
Advertising31.828.5
Media2116.5
Architecture and design6.110.6
Performing arts6.29
Literature6.98.8
Education38.4
Audiovisual177.9
Visual arts4.33.8
Heritage2.23.4
Interdisciplinary and other1.53.1
1) Excluding ancillary revenues of cultural institutions, culture-related investments, trade and transport margins and consumption by residents outside the Netherlands.

3.5.2 Value added and employed persons (labour years) by domain, 20181)
DomainEmployed persons (labour years) (% of the total)Gross value added (basic prices) (% of the total)
Advertising28.728.5
Media10.516.5
Architecture and design12.310.6
Performing arts11.79
Literature8.68.8
Education7.98.4
Audiovisual6.67.9
Visual arts53.8
Heritage6.33.4
Interdisciplinary and other2.43.1
1)Excluding ancillary revenues of cultural institutions, culture-related investments and trade and transport margins.

Figure 3.5.2 offsets the share of value added against employment for the various domains. Differences between the share of value added and employment can be roughly attributed to differences in labour productivity and remuneration of labour as a production factor. Labour productivity in the Media domain is above average, partly because this is a somewhat more capital-intensive sector; consider telecom companies, for example. This means that high value added can be achieved with somewhat fewer employees. In the domains of Performing arts, Visual arts and Heritage, the share in employment is higher than the share in value added. This arises from a somewhat lower labour productivity, which may be linked to a lower remuneration of the production factor of labour. Here, too, Advertising remains the largest domain.

The detailed results for the beta indicators of value added and employment by domain and subdomain are presented in Table 3.

3.6 Developments by domain and subdomain

Chart 3.6.1 summarises the developments of the main macroeconomic figures from 2015 to 2018 by domain and subdomain. The development of the relevant variable for total cultural and media products is used as the reference development. If a variable lags behind by more than 10 percent for a particular domain or subdomain, the corresponding field is shaded red. If a variable is ahead by more than 10 percent, the corresponding field is shaded green. If the development of the variable for a given domain or subdomain deviates by less than 10 percent from the development of that variable for total cultural and media products, the corresponding field is shaded grey.

Example: Total domestic production of cultural and media products increased by 23 percent between 2015 and 2018. The domestic production of goods and services in the domain of Performing arts increased by 9 percent over the same period. As this development lags behind the development of the total of cultural and media products by more than 10 percent (threshold: 23 - 0.1x 23 = 20.7), the field is shaded red.

This development is therefore relative to the reference development. In the example, the domestic production of Performing arts did increase, but that increase was smaller than that of the domestic production of total cultural and media products.

Literature domain is falling behind

The goods and services within the domain of Literature experienced less development in almost all areas than did cultural and media products as a whole. The only category within Literature that had an above-average increase was re-exports. However, this largely concerns printing machines and books that are not produced in the Netherlands, from which the only industry to benefit financially is Trade and transport. Literature’s contribution to value added and employment in culture and media therefore saw a relative decline.

Audiovisual and Architecture and design domains see above-average increase

The domains of Architecture and design and Audiovisual developed by more than the average in relation to total cultural and media products. The relative contribution of Architecture and design to value added in culture and media also increased. This can largely be attributed to the Architecture subdomain, although both value added and employment also saw an above-average increase in the Design subdomain.
The growth of the Audiovisual domain is primarily due to the increase in tax-induced money flows associated with the import and export of licences and royalties. These money flows are by no means always related to cultural expressions produced in the Netherlands; they often involve the import and export of licences and royalties from branches of foreign media companies based in the Netherlands. The relative increase in the Audiovisual domain can largely be attributed to the Film and video subdomain.
There is also a division within the domain of Media. Within the Radio and TV subdomain, a large number of variables increased by more than the average, resulting in a similarly above-average increase in employment. The other subdomain within Media, Newspapers and periodicals, increased more slowly across the board, which led to a similarly slow increase in value added and employment.

Figuur 3.6.1 engels

4) Consumption by residents abroad is included here under cultural and media products because it is also an estimate of the consumption of cultural and media products, although not by product group.