The Media Industry: an Engine of Growth. Sector Analysis 2014 IHK KÖLN. WIR UNTERNEHMEN.

Transcription

1 The Media Industry: an Engine of Growth Sector Analysis 2014 IHK KÖLN. WIR UNTERNEHMEN.

2 The media industry within the region of Cologne Chamber of Commerce and Industry The media industry within the region of Cologne Chamber of Commerce and Industry A special analysis The media industry is one of the strongest sectors of the economy especially within the Cologne Chamber of Industry and Commerce region. This media and communications centre has significant spill-over effects on the whole of North Rhine-Westphalia and Germany. Whether film, television, radio, publishing, ICT or PR: in all areas of the media industry, players can be found in Cologne that are leading companies of their kind in Germany and sometimes even globally. Numerous major corporations, SMEs and smaller creative names contribute towards Cologne's excellent reputation as a media centre with their innovative products. Topquality TV shows, advertising campaigns, radio news, cinema films, computer and smartphone apps are produced in the city. Thanks to its high level of internationality and creative atmosphere, the economic region of Cologne is an attractive business location, an excellent trade fair and conference venue for the media industry, a centre of science and research, and a vibrant city with a high quality of life. It is city where economic power and life quality complement each other, a place that attracts creative talent and people who think outside the box. Media businesses rely on creative individuals who have unconventional ideas, discover tomorrow's trends well in advance and thereby set the course for the future of the media world. The media city of Cologne enjoys an excellent reputation both nationally and internationally. This is due to its unparalleled diversity. Nowhere else do new developments find such a broad interdisciplinary platform, nowhere else is the sector so open and receptive to new challenges, nowhere else is the media business as creative and multi-facetted as in Cologne. Results at a glance: Around 42,000 employees work in the media industry in the Cologne CCI region, and in 2012 they generated an annual turnover of 8.2 billion. This means that every third euro of turnover in the media industry in the state of North Rhine-Westphalia is earned in the Cologne CCI region. The media industry is a key driver of the cultural and creative industry in Cologne's CCI region. Almost 80% of employees in the cultural and creative industry within Cologne's CCI region and almost 90% of turnover come from businesses in the media industry. The Cologne CCI region is a top location for the media industry and has significant spill-over effects beyond the region. 27% of all employees working in the media industry in North Rhine- Westphalia fall under the Cologne CCI region. Some six percent of all media industry employees in Germany work in the Cologne CCI region. Almost five percent of all employees in the Cologne CCI region work in the media industry. This is almost twice as many as in the whole of NRW and Germany. The media industry is developing far more dynamically within the CCI region than in North Rhine- Westphalia and Germany. The media industry is dominated by the sub-sectors digital economy & and the broadcasting industry: half of employees in the regional media industry are employed in these fields alone. 2 Cologne Chamber of Commerce and Industry Sector Analysis 2014

3 The media industry within the region of Cologne Chamber of Commerce and Industry Background and methodology In summer 2014, Cologne Chamber of Commerce and Industry published the first site analysis of the cultural and creative industry, paying particular attention to the media industry. The study analyses key structural data and thus the significance of the sector for the economic region of Cologne. The detailed results for the media industry are presented in summarised form in this report. North Rhine-Westphalia is regarded as a leading media and communications centre in Germany. NRW reinforces its leading position in the field of media with a wide range of film production companies, television and radio broadcasters, studios and producers, newspaper and book publishers, app developers, etc. To position and consolidate this leading role, Medien Cluster NRW supports, advises and strengthens local businesses. Based upon the lead market strategy of NRW, this reports examines the media industry in Cologne's CCI region and presents its impact on the state of NRW. The definition of the media industry is based upon the Medien Cluster NRW classification and the definition of the cultural and creative industry. Illustration 1: Media industry according to the classification of economic sectors Sub-markets in the media industry Film industry Broadcasting industry Print & publishing houses Advertising market & communication Source: Prognos AG.. Economic sector classification (2008) Self-employed stage, film, radio and TV artists and other performing artists Production services of motion picture, video and television programmes Post-processing and other film technology Film rental and distribution (or video rentals) Cinemas Retailers of pre-recorded audio and video media Video rental Self-employed journalists, press photographers 60.1 Radio broadcasters 60.2 Television broadcasters Publishing of mailing lists and directories Publishing of newspapers Publishing of magazines Other publishers (excluding software) Retail sale of magazines, newspapers, stationery and office supplies Publishing of pre-recorded audio media Music publishing activities Retail sale of books Advertising agencies Sale and communication of advertising time and space Graphics and communication design Publishing of computer Other software publishing services 62.Programming activities 63.Web portals Cologne Chamber of Commerce and Industry Sector Analysis

4 The media industry within the region of Cologne Chamber of Commerce and Industry The media industry within the Cologne Chamber of Industry and Commerce region The media industry is one of the strongest sectors of the economy in the Cologne Chamber of Industry and Commerce region. As a result of progressive media convergence, the sector is also exceptionally dynamic in terms of innovative activities and is actually developing far more dynamically within the CCI region than in North Rhine-Westphalia and Germany. The Cologne CCI region is a leading media location with aboveaverage spill-over effects on the whole of North Rhine-Westphalia and Germany. Results at a glance: Today, there are approx. 7,200 self-employed persons and businesses with a total of 35,300 employees who are subject to social insurance contributions in the media industry in the CCI region. These generate an annual turnover of over 8.2 billion. With a turnover per employee of around 194,000, the media industry in the Cologne CCI region is above the average for North Rhine-Westphalia (cf. around 181,000) and Germany (cf. around 151,000). With almost five percent of employees working in the media industry in Cologne's CCI region, there are almost twice as many employees in the media industry as in NRW and Germany. The key media industry activities take place in the city of Cologne. The turnover there is several times higher than in the surrounding region, and there are almost twice as many employees. Illustration 2: The Cologne CCI region is a leading media location with above-average spill-over effects on the whole of North Rhine-Westphalia and Germany CCI Cologne North Rhine-Westphalia Germany Media industry In absolute terms In absolute terms In absolute terms Turnover in billion % % % Turnover per company in 1,000 1,151 1, Turnover per employee in 1, Added value in billion % % % Employees (Core human resources = (1) + (2)) 42, % 163, % 779, % Number of self-employed persons and companies (1) 7, % 27, % 133, % Employees subject to social insurance contributions (2) 35, % 135, % 645, % Source: Prognos AG (2014) on the basis of the employment statistics of the Federal Employment Agency and the turnover tax statistics of the Information und Technik Nord Rhein-Westfalen (NRW), statistics division. BMWi (2014): Monitoring zu ausgewählten wirtschaftlichen Eckdaten der Kultur- und Kreativwirtschaft 2012, p.8. Note: The absolute and relative proportions refer to the media industry but exclude double counts of specific business departments (double digits according to the classification of economic sectors 2008) in the appropriate sub-markets. 4 Cologne Chamber of Commerce and Industry Sector Analysis 2014

5 Development (2009 = Index 100) The media industry within the region of Cologne Chamber of Commerce and Industry Illustration 3: The city of Cologne as a key driving force within Cologne's CCI region CCI Cologne City of Cologne Cologne region Media industry In absolute terms lute terms In abso- In absolute terms Turnover in billion % % % Turnover per company in 1,000 1,151 1, Turnover per employee in 1, Employees (Core human resources = (1) + (2)) 42, % 35, % 6, % Number of self-employed persons and companies (1) 7, % 5, % 1, % Employees subject to social insurance contributions (2) 35, % 30, % 4, % Source: Prognos AG (2014) on the basis of the employment statistics of the Federal Employment Agency and the turnover tax statistics of the Information und Technik Nord Rhein-Westfalen (NRW), statistics division. Note: The absolute and relative proportions refer to the media industry but exclude double counts of specific business departments (double digits according to the classification of economic sectors 2008) in the appropriate sub-markets. Illustration 4: Sales in the media industry within the Cologne Chamber of Industry and Commerce region are increasing faster than the number of employees Turnover 105 Employees Employees subject to social insurance contributions 100 Self-employed persons and companies Added value 95 Source: Prognos AG (2014) on the basis of the turnover tax statistics of the Information und Technik Nord Rhein-Westfalen (NRW), statistics division. Cologne Chamber of Commerce and Industry Sector Analysis

6 Development in percent The media industry within the region of Cologne Chamber of Commerce and Industry Illustration 5: Distribution of employees and turnover in the media industry Employees in the media industry: Almost half of employees in Cologne's CCI region work in the digital economy and and broadcasting sector alone. Distribution of employees in the media Distribution industry in of the employees Cologne CCI in region, the 2012 media industry in the Cologne CCI region, 2012 Distribution of turnover The broadcasting business makes a significant contribution towards turnover volume, closely followed by the advertising market and the print and publishing sector. Distribution of sales in the media Distribution industry in the of turnover Cologne CCI in region, the 2012 media industry in the Cologne CCI region, 2012 Digital economy and ; 22% Film industry; 20% Digital economy and ; 10% Film industry; 11% Advertising market; 26% Advertising market; 19% Print and publishing; 15% Broadcasting industry; 24% Print and publishing; 23% Broadcasting industry; 29% Source: Prognos AG (2014) on the basis of the employment statistics of the Federal Employment Agency and the turnover tax statistics of the Information und Technik Nord Rhein-Westfalen (NRW), statistics division. Illustration 6: The media industry is developing far more dynamically within the Cologne CCI region than in the rest of North Rhine-Westphalia and Germany. 20% 15% 11,3% 14,0% 10% 5% 7,1% 7,9% 3,4% 5,1% 6,8% 5,7% 0% -5% -1,1% -10% -15% -20% -15,4% Cologne CCI City of Cologne Cologne region NRW Germany Turnover Employees Source: Prognos AG (2014) on the basis of the turnover tax statistics of the Information und Technik Nord Rhein-Westfalen (NRW), statistics division. 6 Cologne Chamber of Commerce and Industry Sector Analysis 2014

7 The media industry within the region of Cologne Chamber of Commerce and Industry Figures, data and facts on the media industry in the Cologne CCI region Employees Film industry 7,585 7,541 7,881 8,338 Broadcasting industry 10,019 9,880 10,181 10,266 Print & publishing 6,201 6,028 6,008 6,331 Advertising market 7,596 7,568 7,866 8,075 10,928 11,052 11,747 12,367 Media industry 39,629 39,294 40,833 42,452 Employees subject to social insurance contributions Film industry 6,087 6,032 6,312 6,769 Broadcasting industry 8,484 8,358 8,589 8,669 Print & publishing 5,375 5,200 5,215 5,561 Advertising market 5,683 5,599 5,894 6,017 9,900 10,020 10,629 11,206 Media industry 32,829 32,434 33,789 35,297 Self-employed persons Film industry 1,498 1,509 1,569 1,569 Broadcasting industry 1,535 1,522 1,592 1,597 Print & publishing Advertising market 1,913 1,969 1,972 2,058 1,028 1,032 1,118 1,161 Media industry 6,800 6,860 7,044 7,155 Turnover in 1,000 Film industry 816, , , ,897 Broadcasting industry 2,292,975 2,272,201 2,318,263 2,397,630 Print & publishing 1,544,226 1,792,351 1,981,939 1,913,555 Advertising market 2,128,576 2,120,716 2,202,662 2,126, , , , ,392 Media industry 7,399,495 7,695,187 8,150, Cologne Chamber of Commerce and Industry Sector Analysis

8 Media Industry Support Team Do you have a question? Do you need more information? Our Media Industry Support Team will be glad to offer you advice. Dr. Ulrich S. Soénius Tel ulrich.soenius@koeln.ihk.de Dr. Simon R. Hennchen Tel simon.hennchen@koeln.ihk.de Responsible: Dr. Ulrich S. Soénius Edited by: Dr. Simon R. Hennchen Methodology, calculations and diagrams: Prognos AG Design concept: Cover photo: Mihajlo Maricic/Fotolia.com Print: asmuth druck + crossmedia gmbh & co. kg Published by: Industrie- und Handelskammer zu Köln Unter Sachsenhausen Köln