Satellite account for culture and media 2018

This satellite account for culture and media is the second satellite account commissioned by the Ministry of Education, Culture and Science. The first edition covered the year 2015, before the periodic revision of the national accounts. This edition presents the satellite between 2015, after the periodic revision of the national accounts, and 2018. Now that results are available for two years, we can make observations about the economic development of culture and media during this period. The definitions, terms, sources and methods used here are broadly the same as in the first edition.

The share of culture and media in GDP and employment remains stable

The share of culture and media in the gross domestic product (GDP) of the Netherlands in 2018 was 3.4 percent, which is practically the same as the share in 2015: 3.5 percent. In absolute terms, the contribution of culture and media to GDP increased from EUR 23.9 billion to 26.5 billion.
As employment increased from 300,000 labour years in 2015 to 330,000 in 2018, the share of culture and media in total employment remained stable at 4.3 percent.

Of the main macroeconomic figures, areas which increased more than those for the total economy included domestic production, imports and exports and intermediate consumption of culture and media. This is reflected in an increase in the share of culture and media in these macro totals; for example, the share of culture and media in domestic production increased from 3.6 percent in 2015 to 3.9 percent in 2018. However, as the consumption of culture and media lagged slightly behind total consumption, the share of culture and media in total consumption decreased from 3.2 percent in 2015 to 3.1 percent in 2018.

Culture and media slightly smaller after revision

The national accounts are periodically revised, with revisions introducing new sources and methods, and sometimes new national and international definitions, to ensure that they are up to date and use good data. This can lead to differences between the estimates of a range of figures for 2015 before and after revision. The first culture and media satellite account was based on the pre-revision national accounts for 2015. To make sure 2018 is still comparable to 2015, the 2015 satellite account for culture and media has been re-compiled using the post-revision national accounts for 2015. On balance, the share of culture and media in 2015 after revision is slightly smaller than before revision. Whereas the pre-revision share of culture and media in GDP was 3.7 percent, after revision it was shown to be 3.5 percent. The share of total employment in terms of labour years in 2015 also decreased slightly, from 4.5 percent before revision to 4.3 percent after revision.

Advertising is the largest domain

The total supply of culture and media increased from EUR 67.9 billion in 2015 to EUR 85.0 billion in 2018. Within the total supply of cultural and media products, the domains of Advertising (32 percent) and Media (21 percent) were the largest in 2018. Within household consumption, the Media domain was the largest in 2018 with a 41 percent share, followed by the Performing arts domain (15 percent). The share of the various domains therefore differs according to the macroeconomic variable.
For example, in terms of the share of the various domains in the beta indicator of value added, which has been calculated in this satellite for the first time according to domain and subdomain, Advertising remains the largest domain at 29 percent. However, the domains of Architecture and design (11 percent), Performing arts (9 percent), Literature (9 percent), Heritage (3 percent) and Education (8 percent) are gaining in importance in relation to their share of the total supply of cultural and media products. This is partly because the supply of these domains relies more on domestic production, and therefore contributes more to the Dutch economy. These domains also have high value added due to factors such as the greater labour intensity of their economic activities. The importance of the Media and Audiovisual domains in terms of value added and employment is smaller compared with their share in the total supply. This is because these domains involve more imports and re-exports, and also because the incoming and outgoing financial flows in terms of licences and royalties are offset to some extent, with only the value added remaining. The value added for each domain therefore provides an informative indication of how the importance of the various domains is evolving, for example in relation to their share in the total supply of culture and media.

Art is the third most important branch of industry

Within the culture and media sector, the largest branches of industry in 2018 were Advertising and market research (13 percent), Publishing activities (11 percent), Arts (10 percent), Trade and transport (10 percent) and Education (10 percent). Although Trade and transport is not a cultural or media product in itself, it is an indispensable link in bringing together supply and demand in relation to cultural and media products. Trade and transport margins in the domain of Visual arts (including Jewellery), for example, are high.

Literature lagging behind while Architecture and design is growing

As mentioned above, the absolute value of culture and media’s contribution to GDP increased from EUR 23.9 billion in 2015 to EUR 26.5 billion in 2018. Within culture and media, however, there are differences between the domains. For example, the goods and services within the domain of Literature experienced less development in almost all areas than 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 in culture and media therefore decreased from 10 percent in 2015 to 9 percent in 2018.

The domains of Architecture and design and Audiovisual developed by more than the average in relation to total cultural and media products. The contribution of Architecture and design to value added in culture and media increased from 9 percent in 2015 to 11 percent in 2018. This result can largely be attributed to the Architecture 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.

Government increases spending on culture and media

The share of culture and media in total spending increased in every layer of government between 2015 and 2018, resulting in an increase in spending on culture and media that was greater than that of government spending as a whole.

The share of culture and media in total government spending increased from 1.3 percent in 2015 to 1.5 percent in 2018. In 2018, this share ranged from 1 percent for the central government to 19 percent for local non-profit institutions (NPIs), which are the local museums, libraries and regional broadcasters that are treated as government organisations.

The focus of spending on culture is more at the local level, while spending on broadcasting and publishing (media) is concentrated more at the central government level.

In 2019, the Ministry of Education, Culture and Science commissioned Statistics Netherlands (CBS) to compile the first-ever satellite account for culture and media.¹⁾  A satellite account is an economic description of a specific phenomenon linked to and distilled from the national accounts. The national accounts provide the quantitative description of the Dutch economy as a whole. A satellite account makes it possible to determine the share of culture and media in the main macroeconomic figures, such as GDP, imports and exports and consumer spending.
In addition, within the culture and media sector itself, a level of detail has been applied to reveal which goods, services and industries within the sector are of greater or lesser economic importance. The goods and services that are counted as culture and media are also categorised into domains, such as Literature, Performing arts and Heritage, facilitating a comparison of the economic size of the various domains. This division into domains is more in line with common practice in the field than the standard divisions of goods, services and branches of industry used in the national accounts. The classification of goods, services and branches of industry used in this publication is set out in Appendices 1 and 2.

What is culture and media?

When compiling a satellite account for culture and media, we must first establish what counts as culture and media. This satellite account defines culture and media in terms of goods and services, according to the Classification of Products by Activity (CPA).²⁾ In the first instance this relates to the primary cultural and media products, roughly in line with the definitions provided by the EU (ESSnet-Culture) and UNESCO. At the core of this definition are the attributes of creation, artistic creation, cultural expression and the management and conservation of heritage. CBS has formulated a set of additional guidelines that identify the extent to which the satellite account should include supporting goods and services further along the cultural and media production and distribution chain. There is less similarity between the approaches of the EU and UNESCO on this point. The guidelines formulated by CBS are worded as follows:

Cultural and media products include not only all primary cultural and media products themselves (based on the values of ‘creation’ and ‘cultural expression’), but also those goods and services which would not exist without these primary cultural and media products.

Some examples of primary cultural and media products are museum and library services, books, architectural services, advertisements, radio and television programmes, theatre productions, online games and photography. Examples of supporting cultural and media products include musical instruments, cameras, radios and television sets and machines for binding and printing books. That being the case, in this satellite account, culture and media include not only traditional culture (museums, libraries, performing arts, etc.) but also the media (radio, TV, newspapers and periodicals, etc.) and large sections of the creative industry (architecture, design, advertising, etc.).

Finally, some goods and services have been included which are not really cultural or media products in themselves but which are inextricably linked to culture and media, such as shops and cafés in museums and investments in museum buildings.
Appendix 1 gives a detailed account of which goods and services are counted as culture and media, including the complete list of these goods and services and the domain and subdomain to which they belong.

Changes from the first edition

In addition to the revised figures for the 2015 national accounts (see the box in Chapter 2), this satellite account for culture and media is slightly different from the first edition. The classification now distinguishes between three branches of industry that are relevant to culture and media: 1) Film and TV production; sound recording; 2) Programming and broadcasting activities; and 3) Design, photography and translation. The first edition combined the first two branches, but they are now identified separately in line with the national accounts. In the first edition, the third branch was still included with other branches of industry, but because of its relevance to culture and media it is now recorded separately.

A domain of Media has also been created, consisting of the subdomains Newspapers and periodicals and Radio and TV. These subdomains already existed, but now they are grouped differently: Newspapers and periodicals have been transferred from Literature to Media, and Radio and TV have been moved from Audiovisual to Media. The underlying classification of which cultural and media products belong to which domain and subdomain remains the same.

Apart from the revision of the national accounts, which, in addition to methodological adjustments, often involves updating earlier estimates of the supply and use of the various goods and services, the sources, definitions and working methods used in this satellite account are similar to those of the first edition.

Reading guide

Chapter 2 describes how culture and media contribute to key macroeconomic figures relating to the Dutch economy.
Chapter 3 explores the culture and media sector itself in greater depth, creating a picture of the most important cultural and media products and the relevant branches of industry. This chapter also describes the main economic figures and characteristics for each domain and subdomain.
Chapter 4 deals with government spending on culture and media, and in Chapter 5 the results of the present satellite account for culture and media are compared with similar work in other countries.

More detailed explanations of what counts as culture and media and how a satellite account is created can be found in Appendix 1 and Appendix 2 respectively.

The detailed tables containing virtually all the underlying figures on which this report is based are also attached.

How do culture and media contribute to key macroeconomic figures regarding the Dutch economy? Table 2.1 shows this contribution for 2015 and 2018, as well as for 2015 before the revision. The national accounts are periodically revised, with revisions introducing new sources and methods, and sometimes new national and international definitions, to ensure that they are up to date and use good data. This can lead to differences between the estimates of a range of figures for 2015 before and after revision. The first culture and media satellite account was based on the pre-revision national accounts for 2015. To make sure 2018 is still comparable to 2015, the 2015 satellite account for culture and media has been re-compiled using the post-revision national accounts for 2015.
The box in this chapter concerns the main consequences of the 2015 revision of the national accounts, especially from the perspective of culture and media.

3.4 percent of GDP

The share of culture and media in Dutch GDP in 2018 was 3.4 percent; the share in 2015 was 3.5 percent. In 2018, this contribution to GDP was associated with employment at 330,000 labour years, or 4.3 percent of total employment in the Netherlands (this percentage was the same in 2015). To put that into perspective: in the 2015 satellite account for sports, the share of sports in GDP was estimated at 1 percent (CBS, 2019), while the share of tourism in 2018 came to 4.4 percent (CBS, StatLine).
The fact that the share of culture and media in employment is higher than in GDP implies that labour productivity in the culture and media sector is somewhat lower than in the economy as a whole. The value added per labour year in the culture and media sector came to EUR 73,000 in 2018, compared with EUR 92,000 for the economy as a whole. In itself, this is not surprising, as industries such as manufacturing are much more capital intensive than the culture and media sector (see Table 5 in the table set).

140,000 self-employed persons

Expressed in labour years, employment in the culture and media sector increased from 300,000 to 330,000. In both 2015 and 2018, this constituted 4.3 percent of total employment. Self-employed persons (other employed persons) make up approximately one-third of employment in the culture and media sector: twice as high as for the economy as a whole. In 2018, the share of the culture and media sector in the labour volume of self-employed persons was 8.3 percent, as opposed to a share of 3.5 percent in the labour volume of employees. The proportion of self-employed persons in 2018 ranged from more than half in Design, photography and translation (69 percent) and Art (67 percent) to under 10 percent in the Publishing activities (6 percent). For these details, see Tables 1a and 1b in the table set.

31 percent imports

The total supply (basic prices) of culture and media was valued at EUR 85.0 billion in 2018. This total supply consists of goods and services produced in the Netherlands plus imports. In 2018, 31 percent of this culture and media supply was generated by imports, slightly more than for the economy as a whole (27 percent). The main imported cultural and media products in 2018 were advertising services, licences and royalties and audiovisual equipment. The share of culture and media in total imports was 4.7 percent in 2018 (3.9 percent in 2015).
Meaning that almost 70 percent of the supply of culture and media was generated by domestic production. Again, the main product groups are advertising services and licences and royalties, followed by publishing services. The share of culture and media in total domestic production was 3.9 percent in 2018 (3.6 percent in 2015).

Half is intermediate consumption

In 2018, half (51 percent) of culture and media was used as input for the production of other goods and services (intermediate consumption). As the same figure for the economy as a whole was considerably lower (38 percent), the share of culture and media in the total intermediate consumption of the Dutch economy is high, at 5.4 percent (4.7 percent in 2015). The main goods and services within intermediate consumption are advertising services, licences and royalties and publishing services.
The ‘traditional’ art and culture sector also involves an economic division of labour which results in cultural productions being partly categorised as intermediate consumption. A writer, musician or programme maker produces little or nothing directly for the consumer; rather, they produce material for a publisher or producer who will ultimately take the economic risk in actually bringing the cultural expression to the audience.

EUR 1,500 per household

Household consumption of culture and media in 2018 amounted to EUR 12.3 billion, accounting for 3.6 percent of total household consumption (3.8 percent in 2015). This translates to over EUR 1,500 per household. The main goods and services within household consumption were publishing services, telecommunication services and audiovisual equipment.
Culture and media accounted for 2.2 percent of government consumption in 2018, the same percentage as in 2015. Subsidised cultural education made up almost half this government consumption. Subsidised education is largely financed from collective funds and consumed by the government ‘on behalf of’ households. In reality, of course, the recipients of this education are ordinary people.

Investments and stockholding

The share of culture and media in investments was 2.0 percent in 2018 (1.7 percent in 2015). In part, culture and media investments are cultural and media products that are counted as investments, such as audiovisual equipment, printing and book-binding machines and architectural services. ‘Own account’ investments also contributed to this total; this category includes original artworks which are considered to be capital goods and which, in the form of licences and royalties, generate income for the artists concerned. Investments in buildings (including cultural buildings) and similar investments made by the industries of Art and Libraries, museums and nature conservation as well as Public administration are also counted as culture and media investments. Buildings are not generally designated as cultural or media products, but investments in buildings in the culture and media sector are considered to be made largely in the service of culture and media, and are therefore categorised as culture and media sector investments.

The share of culture and media in stock changes was 7.6 percent in 2018 (13.6 percent in 2015). This is partly due to the fact that this item also includes purchases of museum pieces, which range from paintings to dinosaur bones. These goods are not considered to be investments, because they are primarily seen not as a production tool but rather as an object or art object that retains its value over multiple years.

27 percent exports

The share of culture and media in total exports was 3.5 percent in 2018 (3.1 percent in 2015). In 2018, 27 percent of all cultural and media products were exported, compared with 30 percent of all products in the economy as a whole. Three-quarters (74 percent) of all cultural and media products exported came from domestic production. The same figure for the economy as a whole was 63 percent. In comparison with the economy as a whole, exports of cultural and media products rely a little more on exports from domestic production and less on re-exports.
The most important item under exports from domestic production was the yield from licences and royalties. In principle, these serve as remuneration for the use of cultural expressions produced in the Netherlands (a book, music, film or television programme format, etc.). However, licences and royalties are also ‘imported’ by foreign companies based in the Netherlands, which purchase (import) these rights from their parent company and then sell (export) them to foreign customers. This does not include cultural expressions produced in the Netherlands. These money flows arise from the fact that such companies do not have to pay withholding tax on their licences and royalties in the Netherlands.³⁾ Productions by Dutch artists or artistic companies overseas also count as exports.
Almost three-quarters (72 percent) of the re-exports of culture and media in 2018 were accounted for by audiovisual equipment. Re-exports are goods which, although they are exported by companies in the Netherlands, were not produced in the Netherlands. The main branch of industry that gains financially from this practice is the trade and transport sector.

Taxes and subsidies on products

Taxes and subsidies on products are taxes and subsidies that are levied or granted per unit produced. Examples include excise duties on gasoline and alcohol, but the most important example is Value Added Tax (VAT). The government artificially raises the price at which the producer may offer products by levying taxes on products. On the other hand, product-related subsidies are also available and are intended to reduce the sales price. However, because taxes on products are much higher than product subsidies in the Dutch economy as a whole, on balance this has the effect of raising prices.
In 2018, the balance of taxes and subsidies on cultural and media products amounted to EUR 2.5 billion or 3.1 percent of the balance of the economy as a whole (3.4 percent in 2015). This amount consists almost entirely of VAT. When product-related subsidies are transferred to non-product-related subsidies, almost nothing remains of the product-related subsidies (see also the box discussing the revision of the national accounts).
Incidentally, subsidies on products are not the only subsidies the government awards to the culture and media sector. The sum the government extends to the culture and media sector in the form of non-product-related subsidies and income transfers is many times greater (see Chapter 4).

Development of culture and media

As two years of the satellite account for culture and media are now available, it is now possible to discuss the nominal development of the various macroeconomic figures. The nominal value of practically all macroeconomic figures increased between 2015 and 2018. The nominal development of the different figures for culture and media is therefore compared with the nominal development of the same figures for the economy as a whole. For culture and media, the following figures have increased more than the total economy: domestic production, imports, intermediate consumption and exports. Compared with 2015, the consumption of cultural and media products in 2018 came out slightly below total consumption.
All these factors resulted in a slight reduction in the share of culture and media in GDP, from 3.5 percent in 2015 to 3.4 percent in 2018. Although in absolute numbers employment increased in the culture and media sector, its share in total employment remained the same at 4.3 percent.

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.

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.

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.

3.4 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.

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.

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.

3.4.4 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’.

3.4.5 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.

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.

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.

3.4.8 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.

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.

3.4.10 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).

3.5 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.

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.