We continue the analysis of Art & Finance Report 2016 published by Deloitte in collaboration with Art Tactic focusing on the great contribution that technology and new media can give to the art market in terms of the safeguarding and enhancement of the artistic heritage.
Technology could reduce friction and increase condence in the art market: in the early 2000s, auction price databases such as Artfact, Artnet, and Artprice created the first wave of art market transparency by providing click-of-a-button access to historic auction prices. Armed with past and comparable pricing data, potential buyers now had tools that allowed them to engage more effectively with the market place and address the information asymmetries that traditionally existed between buyers and sellers in the art market. But despite these efforts, the art market still remains opaque and, as discussed in the article Art&Finance 2016. Threats in the art market, many issues around lack of transparency still remain unresolved. This has increasingly put the art market and its practices in the spotlight, and often for the wrong reasons. However, there are signs that technology could be behind a second phase of increased transparency in the art market, and it is particularly interesting to see how new start-up companies are developing new solutions to support the management and authentication of artworks. MyTemplArt® is an example.
There was an increasing investment in art market start-ups in 2015: this demonstrates continued condence in the growth of the online art and technology industry and the development of a corporate art finance business. The level of investment in art industry start-ups increased from an estimated US$125 million in 2013 to an estimated US$505 million in 2015 based on 23 art market start-ups.
Investment in essential support services for the art market have grown positively in recent years. These products and services include cloud-based art collection management systems, using technology in authentication and attribution, improving logistics, and recently to track and trace artworks. These new products and services will play an important role in the evolution of the art and finance industry.
MyTemplArt® reflects these forecasts in fact, from a scientific and advanced cataloging, the cloud platform has developed and is developing a range of services to facilitate the management of the assets: from the sharing to the the management of the physical handling of artworks, from geolocation to certification of them.
It is therefore clear an increasing condence in technology and online art businesses and their role in the art market evolution: the majority of art professionals (73%) and art collectors (69%) believe that online art businesses will play an important role in the art market in the next two to three years. New innovations are also an example of how technology and innovation could contribute signicantly to the development of the art and finance industry going forward.
In conclusion, 82% of art professionals and collectors believe that the real potential for new online businesses will be in the information and education space. This highlights that both collectors and art professionals believe in increasing transparency— one of the pre-requisites for a well-functioning art and finance market.
MyTemplArt® Communication Manager
Copertina: ©SUMO. Art&Finance Report 2016, p.24.
This post is also available in: Italian