3. Characteristics of the UK Creative Industries sector
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The distinct features of the sector that have shaped the structure and behaviour of the industry are discussed in this section. We also explore how digital technologies in particular are driving fundamental changes in business models and the value chain.
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The sector is highly fragmented in nature, characterised by a large proportion of small and micro companies. The ability to respond quickly to emerging opportunities contributes to the success and dynamism of the sector. However, in a swiftly changing environment, it can be difficult for smaller or even medium sized companies to keep up to date with technology and market developments, evaluate the impact and develop their businesses to capitalise on opportunities. Across many of the content sectors – for example computer games, music, film, TV and publishing – the route to market is dominated by a small number of large players. In addition, the sector also includes significant public service bodies such as the BBC, Channel 4 and a wide variety of publicly funded arts organisations.