There is a weighting that greatly prefers Fine Art over Services (at 20x) for the Art need, which I think may prevent this in practice from being an issue, but presumably there is some price difference at which pops will still prefer Services to fulfill that need.
I think the ultimate problem here is that there is no difference in "efficiency" at how different goods meet a pop need. The way pop needs work is, they are defined by an amount of money pops of a certain wealth will spend at base prices on goods that fulfill that need (actual spending is of course modified by market prices). Pops of Wealth 30, for example (the first level of wealth with the Art need), will spend a base of £21 (per 10,000 people) of their weekly income on Art-fulfilling goods. If market prices for both Fine Art and Services are at +0% (as unlikely as that it is), they will always spend £21, regardless of whether it is on Fine Art on Services. Services are the "fallback" good for many needs (e.g. Communication and Free Movement), but because Services are just as efficient at meeting these needs (moreso if Services are cheap, which is of course almost always the case!) it is actually preferable for SOL not to produce their alternative goods (e.g. Telephones and Automobiles) if possible (though usually you want Telephones for the bureaucracy boost).
If Services had an "efficiency penalty" for these needs that meant pops had to spend, for example, 1.5x of Services to meet an equivalent of Fine Art (or the other goods mentioned above), then these goods would function as expected (though in the case of Art Academies, the additional Services would would probably still not be useful unless the general Services need from Wealth is increased or the glut of Services from advanced Urban Center production methods is decreased).
I think making it so that services aren't so overabundant should solve this issue.
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