(MTI, 2005) The modern art market in the UK equals to 26% of the world market, and 50% of the European markets. Modern art includes the works dating since the middle of the 2oth century until the present time. It is notable, that with the changes of the surrounding in which we live, with changing quality and inner style of art, it is also becoming more marketing and some critics even state that modern artists work depending on the marketing conjuncture and the needs and demand at the market; moreover, with the development of media the popularity of selling art through Internet and online auctions acquires new meaning and can soon become the principal means of selling modern art all over the world.
The demand for modern art, as well as the prices and revenues tend to go along with the economic cycles; moreover, through the periods of economic recession art appears to be one of the most vulnerable areas and is seriously damaged by financial losses and low demand. As it has been said, the main aim of the work is to conclude, whether the modern art in the market is an attractive object of investment; this is why it should be noted that art was always viewed as the means of investing finances, its profitability is much similar to that of the stock market. (Moore, 2004)
Since much art and antiques are viewed as an investment, the art market index correlates approximately with that of the stock market; however, a healthy stock market and higher interest rates also attract capital away from alternative investments. This is because stocks and cash savings produce dividends and returns that are more attractive, when the stock market is buoyant and interest rates high, than the capital exchange value of art and antiques.' (Moore, 2004)
It is notable, that recent years have become a landmark in the demand for modern British art - it was constantly growing. The works of art produced through the period of 1920 to 1980 (the period which is supposed to be contemporary) are selling well, and all styles of modern art from conservative realism to post-war abstraction are equally demanded. In order to understand the reason for the positive changes in the UK modern art market and to discuss the principal distribution channels about it, it is worth looking into the depth of the modern art market in the country. International art movements were traditionally much more popular than modern British art, making it come back to the background of the European art market and thus losing its popularity. 'The British have always been peculiarly apologetic about their hometown talents, preferring instead to extort the virtues of their European and American counterparts.' (Woolmer, 2004) Only the recent ten years have become the note of the shift towards the attitudes in the British modern art and the Cork street is now becoming the principal distribution channel, earning serious profits on promoting British art, though only now the British masterpieces start to catch up with the European works of the same level in financial estimates. British art has always been noted to be 'underpriced' and only now the prices for the works of British modern art start to reach the level of their quality. For example, the gentle oil of Sennen Cove by Laura Knight was the real stir at