For symphony orchestras to take advantage of the unique changes taking place today, however, they must:
- Recognize the institutional benefits of using technology to exploit content
- Make doing so a core part of their institutional mission
- Allocating resources to cover the costs of creating and distributing content
- Take the initiative to make it happen (rather than being reactive to the initiatives of others)
They must also “do it the right way,” taking as much care in the use of technology to exploit content as they do in the presentation of their art. The key steps include:
- Setting clear institutional objectives that are ambitious, but realistically achievable for that symphony orchestra (i.e., being clear whether we want to sell more tickets, reach a larger audience, promote the institution, generate earned income from monetizing the content, and/or stimulate contributions)
- Determining which strategies and activities will accomplish those objectives (e.g., if the goal is selling more tickets in our local venue, distributing content internationally is of limited direct benefit; and if the goal is generating income, then offering free podcasting of saleable content is unwise)
- Making a commitment to incorporate the key activities into the operating (and possibly capital) budget as “core” priorities, even if subsidy is required. (Why do some arts executives, who do not think twice about the wisdom of subsidizing educational activities, commit to electronic media activities only when all the costs are covered and there is net incremental revenue?)
- Implementing each priority activity to maximize the institutional objectives:
- There is usually correlation between the economic return to the institution and the amount of financial responsibility it assumes in making the activity happen, especially in the complex areas of distribution. In general, arts groups should try to maximize the number of “retail” outlets from which consumers can obtain their content, but minimize the number of “middlemen” needed to distribute the content to the retailers.
- An additional critical decision is whether to develop the capacity internally to record and edit the material or contract for those services from outside experts. This requires deciding whether to buy, lease or rent equipment, as well as how to employ the personnel needed to operate it. Overall, an institution must decide which responsibilities to assume on its own and which to outsource, with outsourcing the best option for those functions that are of less strategic or economic value, less frequently needed. and/or not an institutional core competency.
Generally, it is unlikely that there will be significant net income from the licensing of digital content for third-party distribution. There may be an opportunity, however, for orchestras to generate “ticket revenue” from the digital distribution of their performances directly to their audiences, some of whom may be reluctant to return to the concert hall, even after a vaccine is widely available.
Regardless of the financial potential, even modest net revenue from digital distribution could reduce pressure to raise ticket prices, increase contributions and reduce expenses. The indirect branding and marketing benefits of the strategic use of technology can also be significant, in a world that increasingly defines fame and success in terms of media presence. Most importantly, technology may now represent an efficient mechanism for bringing the performing arts to busy “cocooning” audiences, some of whom are opting for cheaper, recorded options in the comfort of their own home, rather than venturing out for a live performance after a long day of work. Symphony orchestras that are finding it more difficult to prove to consumers that it is worth planning ahead to see something at a particular place and time, when they can listen to music on a streaming smartphone or turn on a HD television at their leisure, may fulfill their missions more effectively by including the technological version of their art form as a complementary option to the live performance.
