This economic note measures the economic situation of the market field of culture in the third quarter of 2023 as reflected by the evolution of turnover indices in value and volume by cultural sector, from VAT declarations made by companies to the Directorate-General for Public Finance.
In the third quarter of 2023, revenue in the value of the market cultural sectors increased by 615 million euros over one year, up 3% compared to the third quarter of 2022, compared to -1% in volume, that is to say excluding the effect produced by the evolution of prices.
The situation differs from sector to sector. In the third quarter of 2023, the turnover of the projection of cinematographic films thus exceeds by 37% its level of a year ago, that of the commercial live show by 11%. At the same time, the revenues of the video game contract by 15%, following three consecutive quarters of decline.
In the third quarter of 2023, the turnover in volume of the market field of culture contracted slightly by 1%, after nine consecutive quarters of increase.
Analysis by market cultural sector in Q3 2023:
In the third quarter of 2023, the cinema projection activity measured in revenue was up compared to the third quarter of 2022 (+37%), but the increase was lower compared to the third quarter of 2019 (+9%). Adjusted for inflation, the increase in activity in the third quarter of 2023 is also clear with a 30% increase compared to the same period of 2022. Compared to 2019, business volume was up 8% in the third quarter of 2023 and was stable over the first nine months of the year (-1%).
In the third quarter of 2023, advertising agency revenues decreased by 3% compared to their value in the third quarter of 2022 (-92 million euros). This
This is accompanied by a slight increase in the selling prices of the services offered by advertising agencies. The decline in business volume is slightly stronger compared to the third quarter of 2019 before the crisis (-7%), but small over the first three quarters (-2%).
In the third quarter of 2023, press revenues were stable over one year (-12 million euros). Once the effect of price changes is removed, the volume of press activity contracted by 3% year-on-year and 14% compared to the third quarter of 2019 before the crisis. The press, along with radio, is one of the two cultural sectors whose cumulative turnover in volume over the first nine months of 2023 is significantly lower than in 2019 (-16% in volume).
In the third quarter of 2023, audiovisual and cinema activity (excluding video games, film and radio projection) was up 5% compared to the same period in 2022. This quarter’s activity was driven primarily by audiovisual production (+7% compared to the same period in 2022). Television channel activity was also up (+5%), as was video activity (+5%).
Measured in volume, audiovisual and cinema activity is down slightly by 1% compared to the third quarter of 2022. But activity in volume is up compared to the pre-crisis measured by the third quarter of 2019 (+ 6%).
In the third quarter of 2023, revenue in value of the radio sector was 3% lower than its value in the third quarter of 2022 (-8 million euros). Radio is, along with the press, one of the two cultural sectors whose cumulative turnover in volume over the first nine months of 2023 is significantly lower than in 2019 (-6% in volume).
In the third quarter of 2023, book sales increased slightly by 2% year-on-year (+ 47 million euros) for a stable volume of activity (- 1%).
In the third quarter of 2023, revenues in the recorded music sector rose slightly compared to the third quarter of 2022 (+ 3%). In particular, sound recording and music publishing activities increased slightly (+ 2%).
In terms of volume, revenue in the recorded music sector was stable in the third quarter, after two quarters of increase. Compared to the pre-crisis situation measured in the third quarter of 2019, the volume of activity in this sector is significantly up (+ 16%).
Activity measured by video game revenue in value terms was down 15% in the third quarter of 2023 compared to the third quarter of 2022. This is the fourth consecutive quarter of decline.
In terms of volume, the trend is also downwards: - 12% compared to the third quarter 2022, which itself was at a historically high level. This third quarter of 2023 is well above the pre-crisis level measured by the third quarter of 2019 (+ 34%).
In the third quarter of 2023, revenue in value of the live entertainment market exceeded by 11% its value taken in the same quarter of 2022 (+ 170 million euros).
After an annual turnover for 2022 12% higher than 2019, it is also the third consecutive time that the sector’s quarterly revenues exceed their corresponding value by one year earlier (+34% in Q1 2023 and +20% in Q2 2023).
In the third quarter of 2023, visual arts revenues exceeded their value in the third quarter of 2022 by 4%, with a volume of activity also growing by 4%. This volume of activity is significantly higher than that of the pre-crisis period measured in the third quarter of 2019 (+ 35 %).
In the third quarter of 2023, revenue in architectural activities grew by 3% year-on-year (+ 54 million euros) while the sector’s business volume remained stable.
In the third quarter of 2023, wealth management activity was 5% above its level a year earlier.
Adjusted for inflation, wealth management activity is up 3% compared to the third quarter of 2022. Compared to the pre-crisis situation measured in the third quarter of 2019, the volume of activity in this sector is up quite significantly (+ 10%).
TO REMEMBER:
In the third quarter of 2023, a gain of 615 million euros over one year, an increase of 3% in value and a slight decline of - 1% in volume:
- Activity levels measured in value of the projection of cinematographic films (+ 37%) and live performance (+ 11%) significantly increased in the third quarter of 2023 compared to the same quarter of 2022.
- Video games (-15%) and radio (-3%) reported a decline in revenues over one year, as in the previous two quarters. In the third quarter of 2023, advertising also lost 3% of its revenue over a year.
In the third quarter of 2023, sales in value of all market cultural sectors exceeded by 13% its value taken in the same quarter of 2019 before the health crisis and by 5% in volume.
Ludovic Bourlès, Yann Nicolas
Short Term Market Note Collection, 2024#1, 26 pp., January 2024
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