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Definition
Information and Cultural Industries
(NAICS 51)

The industries on this site are classified according to the North American Industry Classification System (NAICS) of 2002. Statistics Canada maintains this standard classification which has superseded the 1980 Standard Industrial Classification (SIC) previously used.

This section outlines NAICS Canada 2002 with respect to the Information and Cultural Industries sector. It defines the activities specifically excluded, as well as its position in the NAICS hierarchy.

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Definition of the Sector

This sector comprises establishments primarily engaged in creating and disseminating (except by wholesale and retail methods) information and cultural products, such as written works, musical works or recorded performances, recorded dramatic performances, software and information databases, or providing the means to disseminate them. Establishments that provide access to equipment and expertise to process information are also included.

The unique characteristics of information and cultural products, and of the processes involved in their production and distribution, distinguish this sector from the goods-producing and services-producing sectors. In particular,

• the value of these products lies in their information, educational, cultural or entertainment content, not in the format in which they are distributed. Most of these products are protected from unlawful reproduction by copyright laws. Only those possessing the rights to these works are authorized to reproduce, alter, improve and distribute them. Acquiring and using these rights often involves significant costs.
• the intangible nature of the content of information and cultural products allows for their distribution in various forms. For example, a movie can be shown at a movie theatre, on a television broadcast, through video on demand, or rented at a local video store; a sound recording can be aired on radio, embedded in multi-media products or sold at a record store; software can be bought at retail outlets or downloaded from an electronic bulletin board; a newspaper can be purchased at a newsstand or received on-line. In addition, improvements in information technology are revolutionizing the distribution of these products. The inclusion in this sector of telecommunications carriers and Internet access providers reflects the increasingly important role these establishments play in making these products accessible to the public.

The main components of this sector are the publishing industries (except exclusively on Internet), including software publishing, the motion picture and sound recording industries, the broadcasting industries (except exclusively on Internet), the internet publishing and broadcasting industries, the telecommunications industries, the internet service providers, web search portals, data processing industries, and the other information services industries.

There are establishments engaged in culture-related activities that are classified in other sectors of NAICS. The most important are listed below.

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Exclusions

Establishments primarily engaged in the following activities are excluded:

• duplicating information or cultural products in print form, or in the form of optical or magnetic media (NAICS 31-33, Manufacturing)
• wholesaling information and cultural products such as newspapers, books, software, videocasettes and sound recordings (NAICS 41, Wholesale Trade)
• retailing information and cultural products such as newspapers, books, software and sound recordings (NAICS 44-45, Retail Trade)
• design activities (NAICS 54, Professional, Scientific and Technical Services)
• performing in artistic productions, and in creating artistic and cultural works or productions as independent individuals (NAICS 71, Arts, Entertainment and Recreation)
• preserving and exhibiting objects, sites, and natural wonders of historical, cultural and/or educational value (NAICS 71, Arts, Entertainment and Recreation)
• producing live presentations that involve the performances of actors and actresses, singers, dancers, musical groups and artists, and other performing artists (NAICS 71, Arts, Entertainment and Recreation)

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Position in NAICS Hierarchy