Christian Handke, Paul Stepan and Ruth Towse
Cultural economics is concerned with the supply, demand and markets for creative goods and services. As suppliers of information goods and services, the arts, heritage organizations and cultural industries are greatly involved in the changes accompanying the diffusion of ever-new Internet-based services and digitization. Much Internet traffic consists of reproducible cultural works, such as music recordings and movies. Moreover, the Internet has had an impact on cultural services that require ‘live’ participation. Accordingly, this chapter addresses changes in the production, consumption and distribution of the output of the cultural sector due to the Internet.