Oil prices are at a record high. And profits are rolling in. But there's an intriguing phenomenon in the oil industry called "demand destruction." It means when prices get too high for too long, consumers invest in alternatives and don't return. The arts have faced their own version of demand destruction when COVID shut down live performances. Is there anything to be learned from how the oil … [Read more...]
Business Models and a $9 Billion Idea
NOTE: This is the first of five posts with my thinking on addressing long-term problems in the arts. My overview framing of the five can be found here. My case for the once-in-a-lifetime opportunity the pandemic shutdown offers to reinvent is here. I don't have any easy answers or magic fixes. This is an attempt to organize my observations (from my vantage point) and try to provoke fresh … [Read more...]
Five Things to Fix in the Arts
In the financial crash of ten years ago, the S&P 500 lost almost 60 percent of its value. Millions of people lost their houses and jobs. Entire industries – banking, cars, airlines, housing -- were on the verge of collapse. And yet, if you had wealth, you probably did fine. More than fine actually. For some the crash was a huge opportunity. The auto and banking industries got bailouts, and … [Read more...]
Is The Institutionalization Of Our Arts A Dead End?
In his essay looking back on Lincoln Center on its 50th birthday, Joe Horowitz suggests that the cultural citadel built optimistically to be a launching pad for the American performing arts, might have turned out instead to be a box canyon. Perhaps the buildings are to blame: the Met theatre is too big and unwieldy, and Philharmonic Hall and the State Theatre, despite renovations, haven't … [Read more...]
Are Orchestras A Ticket Or An Art? Maybe We’re Thinking About The (Made Up) Model Wrong
As recently as 1990, American symphony orchestras accounted for an average of 60 percent of their budgets in earned income. This meant, at the time, that if you weren't selling enough tickets (and other services) to make 60 percent, then you weren't considered healthy. A report in 1991 - The Financial Condition of Symphony Orchestras - conducted by The Wolf Organization, said that attendance at … [Read more...]
What Happens When Critical Opinion Separates From The Audience?
Three stories this week get to the heart of the question. First, the BBC polled critics worldwide and asked them what were the best 100 movies made so far in the 21st Century. Look at the list and you see something striking - the top 10 films collectively took in $213 million, or, as Barry Hertz observed in The Globe & Mail, about $50 million less than Suicide Squad made in two and a half … [Read more...]
The Mass Market Ain’t What It Used To Be (And What That Means For The Arts)
What does it mean to "engage with an audience"? It's a fundamental question for anyone who makes anything. Whether it's a political party trying to win votes, Coke trying to sell drinks, an entrepreneur trying to sell an idea, or a theatre trying to sell tickets. Whole industries thrive on trying to define, quantify and strategize engagement and building audience. It breaks down into three … [Read more...]
Culture-crashing – Is The Internet Killing Our Creative Class?
Scott Timberg, an arts journalist and author of the CultureCrash blog on ArtsJournal, has a new book out called... Culture Crash. It's Scott's attempt to look at how the digital revolution has impacted artists. The tagline of the book - "The Killing of the Creative Class" - gives you an idea of what he thinks has happened. His premise is that artists are having a more and more difficult time … [Read more...]
British Orchestras – Bigger Audiences For Less Money
British orchestras report an increase in attendees - a 16 percent increase no less - over an earlier three-year period: A survey by the Association of British Orchestras (ABO) has found attendances at concerts and performances between 2012 and 2013 were up 16 per cent on those three years earlier. More than 4.5 million people a year now see orchestras play live in the UK. But earned income is … [Read more...]
Are you a Channel or are you a Library?
TV used to be an appointment medium. It's Thursday night at 8 and you're in front of the set watching or else you missed your favorite show. Then VCR's, DVD's and DVR's progressively pecked away at the appointment schedule. Many of us now wait till a show has aired and then watch a saved copy at our leisure. On-demand TV and mobile subscriptions from channels like HBO and services like Hulu … [Read more...]
Do you want to be my cable company or my TV provider?
I pay my cable provider to supply me with TV. Since I don't want to watch on my cable provider's schedule I pay for Tivo. Since my cable provider doesn't have all the movies I want to watch, I buy DVDs. I also have a Netflix subscription. Since I travel a lot I use Hulu. My cable provider isn't cheap. My cable provider thinks the value it delivers is access to its pipe. But I don't care about … [Read more...]
Sharing, The New Default
Build something in the physical world and the minute it's used it starts to decay - scuffs, dents, chips. Drive a car off the new car lot and it immediately loses ten percent of its value. Use something a lot and eventually it wears out. Art is different. A work of art gets more powerful when more people use it. Music that gives voice to people grows in meaning. A play that doesn't get discussed … [Read more...]
How many True Fans do you have?
How do you make a living as an artist? In the old mass-culture model you needed a distribution and marketing engine that could fire up on your behalf to reach as many people as possible. Sell a million albums and if your take after the record company, agents and managers get their share is a buck or two, you're doing pretty well. In the new economy, how many fans do you need to make a living? If … [Read more...]