3.1. Digital Economy and Sustainable Development in the Cultural Industry
The transformation and use of digital technology have become the most fundamental cause of economic and social transformation [
20]. The high permeability and high participation characteristics of digital technology can generate technology diffusion effects in multiple enterprises. All links have been penetrated, the type and proportion of factor input into the production process have gradually changed, the breadth and depth of information exchange between regions has increased, the cross-regional integration of capital and factors has been promoted, the traditional market constraints have been broken, and resource mismatch and market distortion have been reduced [
21]. The digital transformation of industry can connect the originally scattered equipment, enterprises, markets, etc., not only to realize the linked development in R&D, production, supply chains, and market within the enterprise, but also to enhance the innovation performance of enterprises, change their innovation methods and types of innovation, and expand the overall performance of industry by strengthening the connection and interoperability between different enterprises and between enterprises and markets [
22]. The empowering effect of digitization on economic growth is becoming increasingly evident, and this has brought about changes in various aspects such as production factors, industrial patterns, and development models.
Cultural industries, as a special cultural phenomenon and an economic tool, influence people’s grasp of the essence of culture, and different countries have different understandings of cultural industries from different perspectives. However, China’s cultural sector is still not widely accepted from the standpoint of the industrial division of labor, and the high-innovation and high-value aspects of the industrial chain still mainly lie in developed countries. Moving from large-scale to high value is the inevitable path of sustainable development in cultural digitalization. The digitization of the cultural industry is a unique cultural phenomenon of a digital society that emerged with the development of digital technology and the internet, and brand-new production methods, lifestyles, and ways of thinking have been created for human beings via modern information technology [
23]. The digital economy has the potential to support the sustainable development of the cultural sector through the provision of digital technologies and inclusive finance.
First off, new technologies like “5G + 8K”, artificial intelligence, and virtual reality are developing quickly thanks to the active development of the next generation of network information technology. Digital technology has demonstrated strong vigor and vitality, emerging as a significant driving force for resolving the structural conflict between talent skills and enterprise needs in the labor market and enabling high-quality economic development. Digital technology has a transformative and upgrading impact on the cultural industry that goes beyond simple technology superposition and upgrading to include a deep integration across a number of linkages including design, operation, marketing, and consumption. The explosive growth of cultural digital products and the lifting of spatial and temporal constraints on traditional cultural trading services are only one aspect of how digital technology affects the transformation and upgrading of the cultural industry. Another example is the effective matching of consumers and products created by the various channels created by digital technology and internet architecture. Digital production techniques, sales channels, and feedback systems enable the provision of a varied and precise product supply. In order to enhance the cultural industry value chain, digital technology is used in conjunction with the provision of traditional cultural products and services. With the further development of digital transformation, enterprises can achieve fine management throughout the product life cycle, eliminate inefficient production capacity, lower production costs, and increase production efficiency. For industries, close internal resource integration, resource network advantages, improved dynamic response capabilities, and a better ability to adapt to the constantly changing cultural consumption needs can be achieved through digital technology.
Secondly, unlike ordinary consumer goods, the market demand for cultural products is highly variable and closely related to consumers’ spending power. As a result, the expected revenue of cultural companies is subject to greater uncertainty. For example, it is often more difficult to forecast movie ticket sales and bestselling book releases than ordinary physical goods. In addition, cultural products often have positive externalities and product features can be easily replicated, which can also increase the volatility of cultural enterprises’ revenues; therefore, this can lead to greater investment risks for financial institutions. In the digital economy, digital technology can replace most manual activities, integrate online and offline resources scientifically and efficiently, broaden the source of information collection, collect the flow data of relevant cultural enterprises in real-time, dynamically track and analyze investment risks, and make corresponding adjustments in a timely manner, thus enhancing the risk pricing ability and risk control ability and reducing the cost of financing services for the cultural industry [
24].
In conclusion, the digital economy has significantly decreased the degree of information asymmetry between investment and financing, lowered the financing costs of cultural enterprises, provided financial support for their R&D investment and transformation of achievements, and effectively promoted sustainable development in cultural industries through the use of contemporary digital tools, like big data and cloud computing [
25]. The following hypothesis is put out in light of the analyses just mentioned:
Hypothesis 1. The digital economy significantly and favorably affects sustainable development in the cultural sector.
3.2. The Moderating Effect of Government Support
The government-led governance paradigm, which is unusual compared to Western nations, is essential to China’s cultural industry’s sustainable development. The cultural sector is a developing one with its own distinct laws of development. The institutional structure is not yet flawless, and the general development of China’s cultural industry is still in its early phases. Therefore, through institutional development and policy assistance, the government offers the necessary direction and support, fostering an environment favorable to that industry’s sustainability [
26].
First, the government can study the trends that are expected to shape the development of the cultural sector, adopt pertinent policies to support those predictions, effectively advocate for the sector’s sustainable growth, release relevant development reports and strategic plans in a timely manner, and clarify development trends and priorities [
27]. Second, government assistance can serve to foster the fusion of cultural components with the real economy, increase the economic added value of associated businesses, and create a chain of industrial processes that starts with the “development of cultural resources and ends with the transformation of cultural components” [
28]. This will increase the availability of effective high-quality cultural content, widen the channels of dissemination, and promote the value of good traditional Chinese culture today. Again, the construction of a good culture industry ecology cannot be achieved without government input and policy support [
29]. The government has created a relaxed business environment for sustainable development in cultural industries through its ability to optimize the structural layout of cultural industries and improve the infrastructure, laws, and regulations needed for their sustainable development. This boosts the momentum of broad invention and creativity in the cultural sector, alters the sector’s initial development trend, and creates new industries, improving the sector’s overall strength and competitiveness of development [
30]. Therefore, the likelihood that the digital economy will encourage sustainable development in the cultural industry increases with the level of government support for the sector. The following theory is put out in light of the analyses just mentioned:
Hypothesis 2. The process of the digital economy affecting sustainable development in the cultural industries is moderated by government support.