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Claims that consumers of cultural experiences are unwilling to pay for digital services may be unfounded: some people are willing to pay for high-quality digital experiences, according to a new economic analysis of innovation in arts and cultural organisations. The study, ‘Culture of Innovation’, was undertaken by economists Hasan Bakhshi and David Throsby, and published this month by NESTA (the National Endowment for Science, Technology and the Arts). Detailed analysis of the National Theatre (NT) and the Tate has led to the conclusion that digital technologies are bringing new audiences to the arts, creating new sources of cultural and economic value, and in some cases taking the artform itself in novel directions. The research shows that the public value digital innovations in a variety of ways: the NT has not only broadened and diversified audience reach, but also deepened the audience experience. By doing so it draws more people to traditional theatre. The authors urge public arts funders to “actively seek out opportunities to support, and publicise the findings of, experiments which address questions of interest to the wider sector” and to set up a new research-led innovation fund for this purpose.

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