WEBVTT

00:00:00.160 --> 00:00:04.480
I have the very strong hope,
and we certainly see it this week here in

00:00:04.480 --> 00:00:07.480
Cannes,
that creativity will come back big time.

00:00:08.920 --> 00:00:11.040
We're joined by Nicole from BCG.

00:00:11.040 --> 00:00:12.640
Welcome. Nicole,

00:00:12.680 --> 00:00:16.760
the UK punches above its weight globally
when it comes to cultural matters,

00:00:16.760 --> 00:00:19.160
you know,
culturally but also economically.

00:00:19.720 --> 00:00:22.320
What's behind that outsized influence?

00:00:23.160 --> 00:00:29.640
Yeah, the UK is very strong in culture,
in marketing, fashion, all these topics.

00:00:30.040 --> 00:00:35.840
And BCG has recently published a new
report into the growth of the particular

00:00:35.840 --> 00:00:36.520
industry.

00:00:37.040 --> 00:00:41.000
So the last comprehensive numbers are
actually from 2023.

00:00:41.640 --> 00:00:47.160
And it's interesting to see that even
after Brexit,

00:00:47.160 --> 00:00:51.360
the UK still produces a net plus surplus
in that field.

00:00:51.440 --> 00:00:55.800
That's way above any other country,
in Europe in particular,

00:00:55.800 --> 00:00:57.960
still behind the US and China.

00:00:58.320 --> 00:01:03.960
And I think behind that is a very strong
foundation of technology and culture in

00:01:03.960 --> 00:01:04.760
that space.

00:01:05.080 --> 00:01:11.040
If you look into music,
even if you look into the big streamers,

00:01:11.040 --> 00:01:18.680
75% of all streams Spotify has announced
in 2022 are being listened to outside the

00:01:18.680 --> 00:01:18.960
UK.

00:01:19.160 --> 00:01:21.280
So it shows that fundamental strength.

00:01:21.280 --> 00:01:26.640
And let's not forget about all of our
Oscar winners, actors in the UK alike.

00:01:26.760 --> 00:01:28.040
It's quite a roll call.

00:01:29.000 --> 00:01:34.000
The report that you mentioned from BCG
did highlight how changes in the patterns

00:01:34.000 --> 00:01:37.360
of how people view content, you know,
whether it's AI,

00:01:37.360 --> 00:01:40.600
could actually threaten the UK's
dominance in that,

00:01:40.600 --> 00:01:42.400
could threaten its influence.

00:01:42.880 --> 00:01:45.880
What should the UK,
and other countries for that matter,

00:01:45.880 --> 00:01:47.600
be doing in order to stay ahead?

00:01:48.440 --> 00:01:49.680
It's a very good question.

00:01:49.680 --> 00:01:55.520
And what we've seen over the last decade
is certainly investors in the space being

00:01:55.520 --> 00:01:56.720
more risk averse.

00:01:56.920 --> 00:02:01.760
So we see more of the same.
Same films being produced as sequels,

00:02:01.760 --> 00:02:04.280
same type of music being produced.

00:02:04.840 --> 00:02:09.960
So I think the threat is really from the
lack of investment in early stages of

00:02:09.960 --> 00:02:10.760
that funnel.

00:02:11.600 --> 00:02:17.040
And the UK has always strongly invested
in there and has the combination of tech

00:02:17.040 --> 00:02:18.480
and creativity alike.

00:02:19.040 --> 00:02:22.440
And if you think about AI,
for the first time,

00:02:22.440 --> 00:02:27.360
completely new creators,
artists without all this proper education,

00:02:27.360 --> 00:02:29.040
can get into the space.

00:02:29.280 --> 00:02:33.240
So I think combining both new investment
in the space,

00:02:33.240 --> 00:02:38.640
the accessibility via AI and GenAI can
actually create new creativity and

00:02:38.640 --> 00:02:43.040
possibly something we have been lacking
over the last years.

00:02:43.880 --> 00:02:46.560
And Nicole,
the music industry is one place where we

00:02:46.560 --> 00:02:49.560
normally sort of see creative trends as
they're emerging.

00:02:49.560 --> 00:02:51.840
You know,
it's where we see how people are changing

00:02:51.840 --> 00:02:55.400
the way they express themselves or how
technology is being used in storytelling.

00:02:55.960 --> 00:02:59.320
What are you seeing now in the music
industry that sort of gives you a hint

00:02:59.320 --> 00:03:01.680
for where the wider creative industries
are heading?

00:03:02.760 --> 00:03:08.280
I think there's a divide between the
creatives and what creative individuals

00:03:08.280 --> 00:03:12.080
do at home,
even in their bedrooms in music with new

00:03:12.080 --> 00:03:17.640
technology and then the big area of
streaming and what we all see and hear on

00:03:17.640 --> 00:03:19.040
a day-to-day basis.

00:03:19.560 --> 00:03:21.440
Looking into streaming is interesting

00:03:21.440 --> 00:03:26.920
in music. If you look back 2016,
we had 56% of music streamed,

00:03:26.920 --> 00:03:29.840
music which is so-called catalog.

00:03:30.040 --> 00:03:35.400
So existing music,
if we move forward into '22,

00:03:35.400 --> 00:03:37.440
the number is 76%.

00:03:37.440 --> 00:03:43.320
That means we are seeing more and more of
music, existing music, being replayed,

00:03:43.320 --> 00:03:46.600
restreamed.
And there is an advantage in the

00:03:46.600 --> 00:03:50.760
disadvantage in the sweat certainly for
the UK industry.

00:03:50.760 --> 00:03:56.720
Catalog or existing music can be sold by
companies worldwide and can be bought by

00:03:56.720 --> 00:03:57.120
them.

00:03:57.120 --> 00:04:02.720
So some of these very rich materials will
move outside of the UK, and in doing that,

00:04:02.720 --> 00:04:05.640
yes,
we will see the trade surplus go down.

00:04:05.960 --> 00:04:09.840
On the other hand,
I think new trends we also see with these

00:04:09.840 --> 00:04:13.640
new technologies come up,
and I have the very strong hope,

00:04:13.640 --> 00:04:16.840
and we certainly see it this week here in
Cannes,

00:04:16.840 --> 00:04:19.400
that creativity will come back big time.

00:04:20.120 --> 00:04:24.200
What are you most excited about for the
future of the creative industries?

00:04:25.000 --> 00:04:27.320
Well,
we have obviously seen a lot of tech

00:04:27.320 --> 00:04:29.000
players coming into the space.

00:04:29.240 --> 00:04:33.120
We see lots of tech at Cannes this year,
last year.

00:04:33.120 --> 00:04:37.800
But we've also seen that before in around
2000. It went away.

00:04:37.800 --> 00:04:39.280
It became an enabler.

00:04:39.560 --> 00:04:40.880
And I think there we are.

00:04:41.080 --> 00:04:45.600
We see a lot of tech,
we see platforms as enablers for the big

00:04:45.600 --> 00:04:47.200
new creativity coming.

00:04:47.400 --> 00:04:50.400
And I'm super excited to see it on the
horizon.

00:04:51.000 --> 00:04:53.160
Well, Nicole,
thanks so much for coming and telling us

00:04:53.160 --> 00:04:53.680
all about it.

00:04:53.680 --> 00:04:54.720
It's been really exciting.

00:04:54.720 --> 00:04:55.240
Thank you.

00:04:55.960 --> 00:04:56.320
Thank you.