The challenges and opportunities that the evolution of the social network markets brings about to the modern creative industries

Creative industries and social network markets

In order to discuss the challenges and opportunities modern creative industries are facing, let’s first look at the nature and relationship of these industries and social network markets.

According to Hartley, creative industries are among the drivers of demographic, economic and political change. They start from the individual talent of the creative artist and the individual desire and aspiration of the audience. These are the raw materials for innovation, change and emergent culture, scaled up to form new industries and coordinated into global markets based on social networks. /4/

Potts, Cunningham, Hartley and Ormerod propose a new definition of the creative industries in terms of social network markets. The extant definition of the creative industries is based on an industrial classification that proceeds in terms of the creative nature of inputs and the intellectual property nature of outputs. They propose a new market-based definition in terms of the extent to which both demand and supply operate in complex social networks.

The creative industries rely, to a greater extent than other socio-economic activity, on word of mouth, taste, cultures, and popularity, such that individual choices are dominated by information feedback over social networks rather than innate preferences and price signals. Other people’s preferences have commodity status over a social network because novelty by definition carries uncertainty and other people’s choices, therefore, carry information. The creative industries are, to coin a phrase, about the ‘creation of industries’ through social network market dynamics and institutional emergence rather than about creativity in industries, which may often be routine and functionally asocial. /10/

The social network markets sector is composed of systems that build and maintain social networks (e.g., advertising, architecture, media, ICT software, etc.) and also (by definition) systems that create value on these social networks though content (e.g., film, TV, music, fashion, design, etc.). This distinction is certainly not clean; for example, media companies often both create networks and supply content.

Social network markets are an important and rapidly growing part of the world economy. Even though social network marketing is still in its infancy, it holds a potential success for businesses if it is carefully integrated in the marketing mix.

When we talk about social network marketing, it’s important to understand that it’s been around for a while. „There may be some new twists or applications, but it isn’t much different than the days of people meeting in the town square or at the general store, or more recently at a chamber function or conference,” says Scholle. /11/ However, the new technologies make it easier to identify and connect with a wider audience than was available earlier in the social media timeline.

For hundreds of years, expressing yourself and displaying your passion and talents was confined to writing, drawing or painting on a piece of paper and begging a publisher or someone of influence to tell the world, publish or display your work. It took time, money and often access to powerful social and business networks. Television, radio and modern mass media made it easier to be discovered. Yet, in reality it still required money and other people’s networks. Social media and social networks as we know them today have turned this traditional model of influence, attention and self expression on its head. „Social media has touched something in human consciousness that goes beyond just online conversations. It has provided a global connectedness that is culture and nation changing. It has given us as individuals control over our lives and how we express ourselves,“ explains Jeff Bullas. /2/

Facebook dominates the world social media market currently with 61.2% market share. /12/

Opportunities in social network markets

In a Web 2.0 world, we can use social media as a method of shameless self-promotion. Social media have made it easier than ever to catapult from obscurity to prominence. „In recent years, the Web has blossomed into a more egalitarian version of American Idol, where nobodies compete for attention alongside somebodies,“ says Steven Leckart. /6/

The Internet and digital media give us a huge opportunity to get our work out there for the world to see – and buy. Instead of kowtowing to gatekeepers, creative people all over the world can make a direct connection with their audience, grow their fan base and reap the rewards. The democratization of media that is social media, allows everyone to express themselves globally in full colour and rich multimedia.

Used in the right way, social media is a great resource for designers, enabling them to find inspiration, get advice from peers and boost their profile. Today, a teenager posting webcam videos to YouTube can get a movie deal (such as Lucas Cruikshank in „Fred: The Movie“). Bloggers creating Internet memes are being offered book deals. No longer do writers need to beg a book publisher for access. They can now self-publish and place their book in the Amazon or Apple book store.

Thanks to the wonders of social media, nowadays talent scouts are more likely to find the next big thing online than at the mall. While Myspace was once the place to be discovered, video-sharing uber-site YouTube has since taken over as the wannabe pop star’s place to post. As many of you will know, Justin Bieber’s pre-pubescent warblings were spotted by a talent scout Scooter Braun who arranged for Bieber to meet with Usher. The rest is now history – Bieber has become one of the most influential musician of today. Following his footsteps, PSY’s YouTube video Gangnam Style went viral and the K-pop singer was offered a record deal with Scooter Braun.

Social media can also turn already talented and awesome but lesser known artists into overnight sensations. Professional musicians also use YouTube, Myspace, SoundCloud, Facebook and other social networks as a free publisher of promotional material. Music Kickup, for example, is a cloud based record label for artists – a community platform for musicians and music industry, to create, collaborate, and support their art. It allows to commercially publish any and everything they create, while retaining all rights. /9/

Similarly, Stage 32 is a global network for creative people from Hollywood and London to Singapore and Sydney that allows connecting with film, television and theatre creatives down the street or half a world away. /13/

Challenges in social network markets

While the quest to enter and succeed in a creative career may seem daunting, we live in an age where if you are doing something right and putting yourself out there, you will get noticed. “But many creatives are failing to grasp the opportunity – either by shying away from ‘selling’ or wasting their time on ineffective marketing tactics and social media chit-chat,” knows Mark McGuinness, a coach for creative professionals since 1996. /8/ The real challenge now is not having access to the media because social media has provided the tools and means to take control, but breaking through the conversations and clutter of billions of personal publishers in an increasingly online world.

Some people would have us believe that the Internet is killing creativity. They argue that by making it easier than ever to discover, copy and modify other people’s ideas, the online ‘mash-up culture’ removes the pressure to innovate. While copyright is an issue, this statement is a bit exaggerated. Creativity researchers have spent half a century analyzing the conditions under which great art, literature and scientific insights flourish. Perhaps their most useful conclusion is that creative feats rarely happen in a vacuum. The romantic notion of the lone genius is largely a myth; those we remember for their originality usually owe as much to their social circles as to their own ability. /7/

A bigger problem is probably how we manage the time we spend on social networks. Using social-media tools like Twitter, Facebook and blogs has become almost a necessity for musicians, authors and creative professionals of all kinds, as a way of both promoting their work and connecting with their fans. But can doing all this get in the way of the creative spark that makes them artists in the first place? Singer John Mayer raised a warning flag, telling students at the Berklee College of Music to avoid social media and concentrate on the music. Fellow musician David Usher, however, says that while he agrees Twitter and other social networks can become addictive and distracting, young artists still need to do it. The bottom line is that while managing the use of these networks may be difficult, it is becoming a skill that we all need to master. /5/

A bestselling author J. T. Ellison cerebrates on an essay she read. It was one writer’s honest, true assessment of her burgeoning Twitter addiction. She openly admitted compromising her family time so she could spend hours a night talking to strangers on Twitter. Her online world became more important that her real one. Ellison says it’s easy to happen. Especially when you’re a new writer and networking is so vital to your future success. „A little encouragement – that tweet that gets retweeted, the blog entry that starts people talking, that link you sent that helps someone else – it’s heady stuff. A classic, undeniable ego stroke, and for a lot of us, that’s just plain intoxicating,“ confesses Ellison. /3/

Another challenge when it comes to blogging is how to go from blogger to published book author. Apparently, eighty-one percent of the US population says they want to write a book. Not surprisingly, only about two percent ever actually do it. Most bloggers, on the other hand, write a ton of books – probably three or four books per year on average, but most of them don’t ever realize they’ve done so. Later they realize they’re sitting on a ton of content that could be turned into a book. Nina Amir explains how to blog a book. She suggests planning out the content for a book, then writing the book in post-sized bits every day and publishing the posts (the book) on the blog. “When you blog a book, you produce both a manuscript and a fan base that avidly reads your blog and may eventually also purchase the final product – your printed or digital book,” Amir says. /1/

In the music industry, the rapid development of the prosumer market has also had some unexpected consequences in music. Although technological advancements have, in effect, handed over the music-making process to virtually anyone, it has not only diluted the creative musical process, but blurred the line between consumer-musician and professional musician. It is great that more consumers are able to actively participate in the world of music-making; however, this should not come at the price of losing standards of quality.

Conclusion

Where there are opportunities, there are challenges.

For professional creatives, the social networks are necessary to get noticed, to spread their work and ideas, as well as collect feedback. The social network markets in today’s sense are an opportunity and a great resource available for everybody, as well as a challenge at the same time. The time spent on social networking must be managed, just like every other distraction in our lives. The bottom line is that while managing the use of these networks may be difficult, it is becoming a skill that we all need to master, whether we are creative people or professionals in some other field.

Internet is not an enemy of creativity. The online mash-up culture will no doubt generate vast quantities of derivative drivel. As most cultures do. But great ideas float – and in the age of the Internet, they float faster than ever. Creativity has never had it so good.

References

1. Amir, N. 5 Ways to Go From Blogger to Published Book Author. Available at: http://www.socialmediaexaminer.com/blog-to-book-author/. Retrieved January 19, 2013.
2. Bullas, J. 44 Reasons Why You Should Use Social Media for Your Personal and Business Brand. Available at: http://www.jeffbullas.com/2012/11/21/44-reasons-why-you-should-use-social-media-for-your-personal-and-business-brand/. Retrieved January 19, 2013.
3. Ellison, J. T. How Social Networking Kills the Creative Spirit. Available at: http://www.jtellison.com/how-social-networking-kills-th/. Retrieved January 19, 2013.
4. Hartley, J. The evolution of the creative industries – creative clusters, creative citizens and social network markets. Available at: http://eprints.qut.edu.au/12647/1/12647.pdf. Retrieved January 19, 2013.
5. Ingram, M. Does using social media interfere with creativity? Available at: http://gigaom.com/2011/07/19/does-using-social-media-interfere-with-creativity/. Retrieved January 19, 2013.
6. Leckart, S. Finding Fame, and Sometimes Fortune, in Social Media. Available at: http://www.nytimes.com/2012/09/27/technology/personaltech/internet-stars-find-an-audience-in-social-media-tool-kit.html?pagewanted=all&_r=0. Retrieved January 19, 2013.
7. Let the creative juices flow through social networks. Available at: http://www.newscientist.com/article/mg21428662.600-let-the-creative-juices-flow-through-social-networks.html. Retrieved January 19, 2013.
8. McGuinness, M. Online Marketing for Creative People. http://www.wishfulthinking.co.uk/creative-marketing/. Retrieved January 19, 2013.
9. Music Kickup. Available at: http://en.wikipedia.org/wiki/Music_Kickup. Retrieved January 19, 2013.
10. Potts, J., Cunningham, S., Hartley, J. & Ormerod, P. Social network markets: a new definition of the creative industries. Available at: http://www.paulormerod.com/wp-content/uploads/2012/06/social-network-markets.pdf. Retrieved January 19, 2013.
11. Scholle, K. Social Media Timeline: Social Marketing Has Been Around Forever! Available at: http://website-roi-guy.com/214/social-media-timeline-social-marketing-has-been-around-forever/. Retrieved January 19, 2013.
12. Social media market. Available at: http://stats.areppim.com/stats/stats_socmediaxtime.htm. Retrieved January 19, 2013.
13. Stage 32. Available at: http://www.stage32.com/welcome/. Retrieved January 19, 2013.