Water, Water Everywhere, But Not A Drop To Drink

by:

Joe Patti

A public radio station’s report on the Oregon Shakespeare Festival’s (OSF) finances is a good illustration of how restricted endowments can imperil the health of a non-profit organization. OSF recently had to make an appeal for $2.5 million in order to keep their doors open. This despite the fact the organization has $96 million in assets.  About $32 million of that is in property and equipment which are generally illiquid assets. Of course it would be difficult to mount of festival if they sold off all the property and equipment.

The crux of the problem for OSF is that only 15% of the approximately $39 million endowment fund is unrestricted which is roughly $5.8 million.   The remainder of the assets totaled around $25 million in cash and equivalents, but their annual expenses are around $18 million. Their business model has been to make about 70-80% of revenue from ticket sales according to the article. That worked well enough until Covid hit and audiences were subsequently became less willing to attend as restrictions eased.

While being able to access more of their endowment wouldn’t completely eliminate their woes,  the combination of lower ticket revenue and an inability to access more than $5.8 million from their endowment for unrestricted use have been contributing factors

 

The Bar That Hosts Open Mic Operaoke Nights

by:

Joe Patti

Fun article I think I found on Artsjournal.com.  There is a bar in Portland, OR called Mendelssohn’s, run by a descendant of composer Felix Mendelssohn who has some opera and classical music cred having been executive director of both types of organizations.  The owner has positioned the bar as a place to demystify opera and classical music by programming a wide variety of musicians and hosting Operaoke nights.

Every other Tuesday night, musicians are given the opportunity to step into the dimly-lit bar and take over the stage, enchanting the audience with their best arias and ballads.
[…]
“We spend so much time preparing and working on this craft,” Lipton said. “You don’t often get the opportunity to play or sing or do these pieces that are lesser known. So this is kind of an avenue to do that.”

In addition to being able to perform lesser known pieces, the a Operaoke host/performer, Alex Trull noted another part of the appeal was being able to perform in a low stakes environment in contrast to the audition/training/performance context that comprises so much of the classical or operatic artist’s relationship with the music.

Fix The Tix Coalition Makes Bold Demands To End Exploitative Ticketing Practices

by:

Joe Patti

A little over a month ago, I wrote about the newly formed Fix the Tix coalition which is urging the US Congress to pass legislation to protect ticket buyers from exploitative ticket pricing/manipulation, ticketing scams, and use of bots to purchase high demand tickets.

Last week they released the details of what they are pushing Congress to enact. It is pretty much everything ticket buyers and venue operators have been praying for.

In addition to restrictions on just plain gouging, the plan calls for the end of speculative ticket selling by requiring sellers to legally have physical or virtual ownership of tickets.

● require that resellers and ticket resale platforms legally obtain each ticket and have each ticket in possession, virtually or physically, prior to placing it on sale.
● require that the ticket resale platform has written proof that a reseller possesses a ticket to sell.

Similarly, they ask that attempts to make a ticketing site masquerade as official outlet of a venue be made illegal.

● make illegal the use of deceptive URLs, search engine optimization, or advertising that improves the visibility of secondary sites over primary sales platforms and makes fans believe they are buying tickets from the venue or artist.
● require secondary ticketing resellers and platforms to clearly and conspicuously disclose:
○ a notice that it is not the primary ticket issuer and venue;
○ that a ticket may still be available from the primary ticket seller and link back to the primary ticket seller;
○ the original face value and fees of each ticket; and
○ a certification that the event ticket offered for sale is in the possession of the reseller or secondary ticketing platform.

Note, I haven’t listed everything they are asking to occur in each of these situations. Check out the full document for more info.

As you might imagine, they are also insisting on full transparency for fees up front during the purchasing experience.

In terms of privacy and safety, they are asking the secondary market sellers be required to provide venues with the contact info of ticket purchasers so they can be reached in case of emergency or rescheduling. But they also insist that secondary market buyer information be protected and not used for sales and marketing without purchaser permission.

As mentioned, Fix the Tix also want to prevent tickets from being snatched up by bots and to ensure secondary ticket sales are made at or near face value on a one on one basis rather than by corporations to individuals:

● ensure that artists, working with venues, determine how to get tickets into the hands of actual fans.
● prohibit companies that operate both primary and secondary ticketing platforms from forcing tickets sold for more than face value to only be resold on their platforms.
● encourage ticketing platforms to operate exclusive, no-fee, fan-to-fan exchanges of tickets as long as they are not exchanged on those exclusive platforms for more than the face value (or the original total cost) of the ticket.
● prohibit companies that are primary sellers and secondary resellers from offering secondary resales on the same web page or display where the primary seller also offers tickets for primary sale.

Questions of Relevance Not Limited to the US

by:

Joe Patti

German arts colleague Rainer Glaap has been feeding me interesting articles over the last couple weeks. I was going to follow up on some content he sent earlier, but he hit me up with an interesting study today that I am moving to the front of the line.  The recently released Culture Relevance Monitor shows a number of parallels between general cultural attitudes in Germany and the U.S.  (Note that the PDF document labeled as the German version is actually the English version and vice versa)

I use the term general cultural attitudes because many of us in the US would be envious to read of an large overall expression of support:

People in Germany (91 per cent) believe it is important to preserve cultural offerings in theatres for coming generations. A large majority (76 per cent) is also of the opinion that these should continue to be financed from the public purse. The offerings are part of Germany’s cultural identity (82 per cent) and education (91 per cent)

However, German cultural offerings seem to be faced with the same generational challenges as those in the US. Despite saying they enjoyed their experiences attending these activities when they were children, a significant segment of the population doesn’t feel these offerings resonate with them:

Both in the population as a whole and in the generation of young adults aged between 18 and 29, two-thirds are not at all interested or are not very interested in theatre performances, classical music concerts, or opera, ballet or dance performances. Four out of five respondents stated that they did not make use of traditional cultural offerings like these over the last twelve months.

37 per cent of respondents had never attended a classical music concert or an opera, ballet or dance performance (for theatre performances: 10 per cent). Many 18- to 29-year-olds feel that cultural offerings do not cater to them (43 per cent); they feel out of place there (39 per cent).

A summary of recommendations on another site also sounds similar to conversations on the same topic in the US.

  • get to know and address their target groups better: There is demand for cultural offerings such as those that are specially directed at children and teenagers (85 per cent), that make people laugh (83 per cent) and that are easy for everyone to understand (81 per cent). The performances should also stimulate social and political discussion (61 per cent) and be new and topical (63 per cent).
  • be more open and network: Theatre venues should see themselves as a gathering place (80 per cent) and offer amateur theatre groups/orchestras or similar ensembles opportunities to perform (74 per cent). Social and habitual barriers to access must be removed.
  • carry out marketing in social and modern ways: The pricing structure should be socially fair (89 per cent), and 18- to 29-year-olds in particular need easier access to programme information (42 per cent), for example via social media platforms.

The survey also asked what would have to change to make them attend more frequently:

40 percent of respondents indicated that theatre venues would have to have more cultural offerings that interested them …. 29 percent would have to have more leisure time, and for 28 percent of respondents, the tickets would need to be cheaper or free … 20 percent would need someone to accompany them for such visits, 14 percent would like it to be easier and cheaper to travel to theatre venues. 11 percent say that their health would have to improve, and 11 percent say that the quality of the cultural offerings would have to be better.

[…]

A quarter (28%) of respondents say they would need easier access to information about interesting offerings before they would attend theatre venues more often. 13 percent would like to see more diverse and varied offerings in terms of the topics, 6 percent want more options for childcare during the events.

I found it interesting that childcare came up so frequently among the 2505 respondents. This put me in mind of the last pre-Covid CultureTrack survey I wrote about in 2017 which reported on barriers to participation for those who frequently attended and those who didn’t.

For frequent attendees, the top barriers were inconvenience, no one to attend with, and rather do other leisure activities, in that order. For infrequent/never attendees, not for someone like me, didn’t think of it, and inconvenient were the top barriers, in that order.