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The Impact of New Technology on Art

Chapter · September 2016

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Marios Samdanis
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 THE IMPACT OF NEW TECHNOLOGY ON ART
DR. MARIOS SAMDANIS
Sotheby’s Institute of Art, London

Please cite as:

Samdanis, M. (2016). “The impact of new technology on art”. In J. Hackforth-Jones, I. Robertson (Eds.), Art
Business Today: 20 Key Topics, London: Lund Humphries, pp. 164-172

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The rise of information and communication technologies (ICT), regarded as the third
Industrial Revolution has caused great economic, technological and socio-cultural change
today. Information technologies are omnipresent in modern life, fuelling the digital economy
while accelerating the production, distribution and consumption of goods and services. New
technologies have left no field untouched, and the arts are no exception. Information and
communication technologies have accelerated consumption in art markets, as internet
technologies facilitate global operations and new business models reinforce or complement
the established art ecosystem. Art institutions increasingly embrace new media for the
display, promotion and conservation of their collections, aiming to create a unique experience
for their visitors. Artists engage with social media as cultural branding intensifies in the
digital age, while experimenting with new media gives rise to art forms that push the
boundaries of contemporary art and museum collections.

In other industries, digital technologies have empowered entrepreneurs to create new business
models directly linking producers and consumers while by-passing gatekeepers and
intermediaries. According to Claire McAndrew, the art world has proven more reluctant to
transform based on the dynamics of e-business. This is because the construction of what
Bourdieu refers to as symbolic value –the perceived significance of a work of art in minds of
art professionals and the audience– depends largely on the physical presence of established
intermediaries in the art market. But, this condition has started to change recently as art
entrepreneurs and traditional art businesses gradually view digital technologies as an
opportunity to reach new markets and deliver more value to their clients and audience. In the
digital age, art business and technologies are fundamentally entangled. Technologies
facilitate operations and collaborations in the art world, and art businesses provide fertile
ground for the development and application of technologies. In other words, technologies,
business and culture converge in order to promote art and provide richer experiences for the
buyers and audiences.

International contemporary art, especially since 1989, prospers in a rapidly-changing, neo-

liberal, and global environment. Internet technologies have triggered instant communication
and information delivery, connecting users across the globe. This greater transformation has
an instant effect on the organisation of art production and consumption. Artistic production
and consumption are no longer tightly connected with cities. The globalisation of art markets
has altered the relationship between artists, buyers, audience and the place as the context of

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artistic production. Peripheral art markets such as Brazil, India, West and South Africa, or
South Eastern Asia have gained momentum and exposure because those markets are now
interconnected with the core art hubs of London, Paris and New York. Via the internet and
online platforms artists can expose their work worldwide and gain access to markets which
were impossible to reach before.

Within a framework in which the art world is actively seeking novelty, the role of
information and communication technologies is increasingly important in connecting the
periphery with the core. These technologies also have a direct and indirect effect on art
collectors. They provide access to collectors, to online galleries and auctions at contemporary
art hubs. Online platforms do not only connect the core to the periphery, but also the
periphery to the periphery, as collectors from emerging economies can access art from other
emerging economies. In a more subtle way new technologies have increased transparency in
terms of prices of works of art, especially auction prices, and in this way collectors can take
more informed decisions regarding art investments.

Information technologies have intensified the globalisation of art, as local galleries sell the
work of local artists abroad, or connect the work of local artists with foreign collectors.
International contemporary art nowadays transcends urban and national boundaries.
Immediacy in communications accelerates the creation of a global contemporary art market
that integrates many local art markets in the form of one, unified and interconnected field of
contemporary art which crosses national boundaries. As a result, contemporary art develops
in two tiers: as local avant-gardes at the fringes of the many art worlds, and as a global
commodity disseminated instantly across institutional and national boundaries.

In addition, information technologies have fuelled entrepreneurship in the artistic field,

empowering agents to create value in the art market through the development of online
business models. According to McAndrew, the development of the online art market ecology
has evolved in three stages. The first coincided with the early dissemination of Internet
technologies in the mid-1990s, as a few online galleries, such as art.com, emerged selling
their own online stock. During the second stage that started in mid-2000s, existing players,
such as Sotheby’s and Christie’s, the Saatchi Gallery or the Gagosian Gallery entered the
online art market. The third stage occurred after 2010, as the online art market ecology has
been enriched with the entry of intermediaries, such as Artsy, the Saatchi Online, or Etsy all
of which sell the stock of third parties. Interestingly, an increasing number of online art

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businesses target niche markets. ArtViatic, for example, facilitates collector to collector
trading. At the same time, online auction platforms, such as Artnet, Auctionata and Paddle8
gain momentum.

Online art entrepreneurs create value through digital networks that bypass intermediaries
linking producers directly to consumers, a process which is known as disintermediation.
Nowadays, online art entrepreneurs attempt to create value at different parts of the art
ecosystem. Online art businesses reduce information and transaction costs, linking supply and
demand for art efficiently. Nevertheless, they do not replace traditional art businesses, which
are still prominent in introducing new artists to the market and managing artists’ reputation in
the art world. While the high-segments of the art market are mainly served by auction houses
and art galleries with worldwide reputation, online art business has fuelled the low and
middle-segments of the art market, as almost 90% of art traded online sells for up to $50,000.

According to TEFAF Market Report 2015, 6% of online art sale are over $500,000 with only
1% of unit prices over $1M. Anonymity is the main reason behind high-end online
transactions, but the majority of blue-chip art collectors appreciate the luxurious experience
of participating at live auction. The online art business is, therefore, not expected to perform
in a similar way to online retail in general, such as Amazon or EBay both of which create
value for the customer by offering a wider selection of products at lower prices. Art
consumption, especially at the high-end segment of the market, is a luxury product and
experience which is provided by prestigious brands in the art market.

In comparison with online retailers, which compete on the basis of price, selection and
service for customers, art businesses –both online and bricks and mortar– rely on creating
value for artists through their personal relationships and professional networks. This is
because the process of value creation derives from the cultural perception of the business,
which is based on the recognition of art world professionals as connoisseurs in the art market.
As a result, established galleries, art foundations and auction houses maintain their advantage
in the online world, and capitalise based on the trust made tangible by their physical
presence. Online art businesses exploit the low and middle-segments of the market by
exposing a wider range of artists. Their competitive advantage relies on allowing users to
‘discover’ new art based on algorithms that track their past behaviour and preferences. In
other words, their business models perform based on the long-tail effect, as online art
galleries free from the constraints of a physical space expose a wider selection of emerging

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artists to critical apprehension and commercial appreciation. The Saatchi Online, for instance,
applies a free access policy to all artists (taking 50% commission on sales), and thus users
can discover a huge number of artists across the globe.

Online art galleries may reduce inequalities in the art market by democratising access of
artists to the art world. However, more recent purely online art businesses have emerged
receiving the support of powerful agents from the art and business worlds. The example of
Artsy, which is an aggregator of art market information and an online trading platform, is a
typical case of a new online venture that seeks to dominate the online art market. Cornering
the support of entrepreneurs and celebrities, Artsy managed to raise an initial capital of
$5.4M. Although information and communication technologies can decentralise the power
structure of the art world, initiatives like Artsy show that large scale investments concentrate
activities and power in single platforms.

Online art businesses have flourished because they offer the possibility of independence from
the established art market. But, the case of Artsy demonstrates that new interdependencies
arise as the worlds of art and business increasingly converge. Within the digital economy
agents from the art world seek partnerships in the business sphere. The recent collaboration
between Sotheby’s and EBay launches the beginning of a new era in which traditional firms
within the art world partner with technological companies and online platforms in order to
create new audiences. The competition within the art market is intensified as more players
from technology initiate operations within the art world (i.e. Amazon Art).

The convergence between art and commerce changes the art world which transforms in
tandem with technology and business. Independence from the conventions of the art market
leads to new interdependencies that take the form of collaborations between art, business and
technology. Often the qualities of the digital medium drive these collaborations. A recent
partnership between the crowdfunding platform Kickstarter and Art Basel aims to support
innovative art. Interestingly, in this case the crowd and not art dealers or curators, decides and
distinguishes which projects will be realised, thereby democratising artistic production.
Ultimately, new technologies enrich the art market ecosystem, providing significant support
to the margins, by exposing and supporting artists and projects that do not have access to the
art world.

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Information and communication technologies also gain momentum within art institutions,
which incorporate digital technologies to enrich audience experience in terms of on-site and
online learning. Firstly, digital technologies enhance the museum environment as providers
of information about the exhibits, which are often interactive. Apart from audio aids,
enhanced media guides, interactive labels, mobile applications and augmented reality
applications are used in the museum context, and curators nowadays need to be aware and
integrate those technologies into exhibitions. Enhanced media guides provide a tour of an
exhibition, often including a narrative developed by the curator and multimedia. Similarly,
QR codes are increasingly used in art galleries and museums, enabling users to retrieve
information about the work by scanning a graphic code similar to a barcode. For example, in
the Museum of New Art in Tasmania, Australia, wireless sensors detect the location and
movement of visitors, providing information on smart devices about nearby artworks. Mobile
applications invite visitors to use their smartphones to retrieve information, and in some cases
to co-create the work of art in augmented reality space.

The emergence and dissemination of smart devices have fuelled mobile applications which in
turn have an impact on the art world. Mobile apps enable the organisers of art fairs to assist
visitors navigate the art fair and the city, by providing live location-based information that
connects users, exhibits and events. Mobile applications are designed to discover and
experience art beyond art institutions. Street Art London is a mobile app that ushers users
through the urban space of London in order to uncover street art. Regarding online learning,
recent initiatives aim to create virtual tours of museums. Google Art Project is an example of
an interdisciplinary collaboration between the high-technology firm and museums around the
world in order to create virtual tours within their collections. Virtual tours promote museums’
collections and permit distant access, which is an additional resource, enabling art
professionals and the broader audience to experience museums around the world. In addition,
information technologies also contribute to conservational issues, while in some cases, 3D
printing helps to recreate damaged art objects.

New technologies are widely applied in art galleries, museums and art fairs aiming to create a
customised learning experience for visitors. This marks a paradigm shift, especially for art
institutions, which no longer offer a standardised service for a broader market segment, but
aim to create customised experiences which meet the needs and expectations of individual
visitors. The increased use of online resources from users generates useful personal

6
information. Marketing analytics nowadays, fuelled by the power of big data, enhance the
understanding of audience behaviour before, during and after a visit, and this information
feeds into their programming patterns, their retail activities and the ways in which they
engage with online and offline communities. Digital resources are a crucial tool in the hands
of art institutions, such as the Tate, to fulfil their socially inspired educational role. New
media, and specifically social media, have contributed to the dissemination of art. Artists like
Ai Weiwei (b.1958) increasingly use social media, such as social networks and blogs in order
to promote their activities, to interact with their fan base, and construct their identities online.
Social media are an essential component of cultural branding, as artists construct authenticity
in the form of digital narratives that increase visibility and emotional engagement with the
audience. Artists also appropriate digital technologies in artistic creativity as a tool and
medium. As a tool, digital technologies have paved the way to art forms such as
photomontage, while software is used in terms of digital design leading to new art such as
digital sculpture.

Digital technologies used as a ‘medium’ of artistic practice have a long history which derives
from the invention of computers and their appropriation in 1960s in the first exhibitions on
art and technology. Exhibitions, such as ‘Cybernetic Serendipity’ (1968, London), ‘Les
Immateriaux’ (1985, Paris), ‘Data Dynamics’ (2001, New York), ‘Incheon Digital Art
Festival’ (Incheon, 2010), and ‘Electronic Superhighway: 2016-1966’ (2016, London) are
interdisciplinary explorations at the intersection of art and technology. New technologies
have led to artistic innovations, either by incrementally changing the content of artistic
mediums or by leading to the creation of new mediums. Video art is an example in which the
invention of the video camera has led to the creation of a new art form.

As radical experiments in art and technologies, these works of art are interactive installations
that experiment with software and space, aiming to engage the audience in an interactive
experience. As the technological medium progresses, new art forms emerge. For instance,
database art, internet art, satellite art, or big data art, are some examples of art forms that
emerge as artists incorporate digital technologies within their artistic practices. The tension
between fine art and new media art is unresolved, as the latter is occasionally considered as
‘science’ instead of art, and partially as a niche of contemporary art. Ars Electronica in Linz,
La Gaîté Lyrique in Paris, Foundation for Art and Creative Technologies (FACT) in

7
Liverpool are alternative institutional structures devoted into interdisciplinary art, supporting
avant-gardes that explore the intersection of art and technology.

Convergence is not simply the creation of smart devices, but importantly it marks a process
of technological evolution based on interaction and integration between technological,
business and socio-cultural spheres. In the digital age, new business models in the art world
are powered by the qualities of new media. The competitive advantage of online galleries
relies on enabling users to discover new art which is based on the long-tail effect. Curators
also need to understand the role of new media within the museum context, envisioning new
ways to enact experience of art within and beyond art institutions.

Within this rapidly-changing environment, more cross-overs among industries and fields are
observed. Technological firms like Amazon enter into the online art dealing market; EBay
partners with Sotheby’s; Google virtualises museums; and Kickstarter collaborates with Art
Basel in order to support artistic innovations. The convergence between industries and fields
is expected to intensify producing alternative structures for value creation (independence),
while fostering more collaboration between art and technology firms (interdependence).
Although new technologies represent a liberating dynamic which would reduce inequalities
in the artistic field, new points of power concentration are expected to emerge receiving the
support of business, technological and cultural elites.

According to Jenkins, media convergence is fuelled by collective intelligence as a driver for

socio-cultural, economic and technological changes. In the artistic field collective intelligence
influences the production and consumption of art in terms of crowdfunding and
democratisation of selection; in art institutions which develop services based on visitor-
generated data; in terms of online art galleries that allow users’ behaviour and preferences to
shape trends and popularity of artists; in terms of mobile applications through which users
upload and share information about artworks, exhibitions and urban experiences and lastly, in
terms of art critics which take place as users interact erratically on social media. Reflecting
the transformation of the global economy and the growth of ultra-high net worth individuals
in emerging economies, information and communication technologies accelerate the
dissemination and consumption of art around the globe. Progressively new technologies lead
to a paradigm shift in the production and consumption of art, drawing more attention to the
periphery while giving rise to novel structures for art business which are supported by the
entanglement between art, technology and commerce.

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