Fiddling in a Vortex: Have American Orchestras Squandered Their Supremacy on the American Cultural Scene?

Pompe, Jeffrey; Tamburri, Lawrence

doi:10.1080/10632921.2016.1150930

Cited by 6 publications

(2 citation statements)

References 5 publications

(4 reference statements)

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“…Relating finance and attendance, Pompe and Tamburri (2016) discuss symphony orchestras and the internal and external issues related to fiscal distress, noting an increase in budget deficits and accompanying decrease in attendance. McCarthy (2001) and Brooks (2000) discuss that fiscal success strategies for arts organizations vary according to size and are related to programming choices.…”

Section: Arts Finance Literaturementioning

confidence: 99%

Capital structure determinants for arts nonprofits

Charles

Sloan

Butler

2021

Nonprofit Mgmnt & Ldrshp

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Nonprofit leaders use various strategies when making financial decisions and balancing current mission fulfillment with long-term financial stability is a delicate act for nonprofit organizations. From a financial management perspective, nonprofit managers and executives looking to sustain a healthy organization must successfully manage the tension between pursuing the mission and preserving organizational and financial viability. This study explores potential factors that influence nonprofit arts organizations' decisions to issue financial debt and determine whether these organizations balance financial obligations by exercising pecking order or static trade-off decisions. We use the DataArts database and investigate whether donorrestricted endowments have an impact on financial debt of arts nonprofit organizations. Model estimates show that organizations with a donor-restricted endowment are less likely to issue debt and have lower debt ratios on average. This study finds support for both pecking order theory and static trade-off theory, which indicates that there is no one-dominant capital structure theory to explain the capital structure of arts nonprofits.

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Section: Arts Finance Literaturementioning

confidence: 99%

Capital structure determinants for arts nonprofits

Charles

Sloan

Butler

2021

Nonprofit Mgmnt & Ldrshp

View full text Add to dashboard Cite

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“…Equally, we live in a changing world with divisive rhetoric and an all-out assault on the arts. Symphony orchestra payment scales remain fluid as ensembles must find ways to attract new audiences and address budget issues (Pompe and Tamburri 2016), and politicians look for ways to cut funding to arts organizations both nationally and at the state level forcing alternative fundraising strategies (Gallagher 2020).…”

Section: The (Creative) Gig Economymentioning

confidence: 99%

Leadership in the Creative Industries: Addressing an Uncertain Future

Walzer¹

2020

MEIEA Journal

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In recent years, the rise of the gig economy has brought a host of freelance opportunities for people working in creative arts professions, including music, entertainment, and media. Freelance professionals generate piecemeal income from several vocations. The freelance market's competitive nature requires recent graduates to cultivate a host of skills beyond their creative specializations. Equally concerning is the precarious state of the arts and entertainment sectors amid global health and financial collapse. In such uncertainty, the timing is right to consider how educators best prepare students to succeed in the coming years. This article argues for a shift in pedagogical mindset from an entirely skill-based model to a more holistic approach drawing on leadership across four areas: creativity, sustainability, vision, and community. The article puts forward a new theory, Creative Industry Leadership, to encourage a cooperative and holistic teaching and learning framework in the creative industries.

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Subscription ticket sales for symphony orchestras: Are flexible subscription tickets sustainable?

2017

Self Cite

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JEL Classification: Z11We examine the fixed subscription ticket market for U.S. symphony orchestras, which is a crucial element of their business model and has experienced declining sales in recent years. We find that subscription ticket buyers are more sensitive to price changes than total ticket buyers. Hiring a new music director may increase subscription ticket sales, and economic downturns will decrease ticket sales. We find that increasing flexible subscriptions contributes to a decline in total subscription tickets and single ticket sales, in general. In addition, with increasing advertising costs per attendee and falling revenue from fixed subscriptions, symphony orchestra management should consider ticket prices, which have risen significantly in recent years, more strategically. | INTRODUCTIONSymphony orchestras (SOs) in Philadelphia, Pittsburgh, Minnesota, and Atlanta, among many other cities, have experienced serious financial challenges in recent years. The bankruptcies, labor disputes, and deficits that are afflicting U.S. SOs are indicators of the numerous problems that plague the industry. In his examination of SO finances, Flanagan (2012, p. 171) notes that "Symphonic music has probably never been performed better then today, yet orchestras at all levels of achievement confront ongoing levels of economic distress."A major concern contributing to this gloomy outlook is declining fixed subscription ticket sales; with a fixed subscription, attendees purchase a season's subscription to the symphony. The SO business model has been based on such subscription ticket sales for over a century, but especially after Daniel Newman's (1977) arts marketing book Subscribe Now! (e.g., p. 15). Not only have subscription tickets been the major portion of performance revenues, but they are also vital for the success of the organization for other reasons. First, fixed subscription tickets encourage patrons to attend concerts regardless of the weather, program, or soloists, whereas single ticket buyers, who can be capricious, may choose to not attend a performance for any of those or other reasons. Johnson and Garbarino (2001), in a survey of a repertory theater company, found that subscribers were more satisfied with familiar rather than famous performers and were more accepting of diverse repertoire.Second, subscribers are much more likely to be consistent donors and provide legacy gifts. Johnson and Garbarino (2001) reported that, "Subscribers have higher levels of satisfaction, trust and commitment, and have more positive intentions of supporting and donating to the organization." In 2014, for example, previous or current subscribers contributed 88% of SO's private donations (Desai, 2015, p. 14).Third, subscribers who are regular attendees become better educated about performances, guest artists, and repertoire. In addition, such attendees are likely to purchase additional individual single tickets for friends and family. Finally, it is much more expensive to sell single tickets. Drawing audience members for a ...

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Fiddling in a Vortex: Have American Orchestras Squandered Their Supremacy on the American Cultural Scene?

Cited by 6 publications

References 5 publications

Capital structure determinants for arts nonprofits

Capital structure determinants for arts nonprofits

Leadership in the Creative Industries: Addressing an Uncertain Future

Subscription ticket sales for symphony orchestras: Are flexible subscription tickets sustainable?

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