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#TBT

#TBT: The New Model for Live Entertainment, Which Strongly Resembles an Old Model

Happy #TBT. To celebrate, we’re sharing an excerpt from an oldie-but-goodie post from Jim. The New Model for Live Entertainment, Which Strongly Resembles an Old Model The new business model that will work in the 21st century for arts and live entertainment organizations is the one in which more money comes in than goes out. It doesn’t have to be much more; it just needs to be enough. Why is this so important? Because if your organization has the strength of mission,...

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P&L

Go Big or Go Home? Fixing a Broken Business Model

When people inside an organization either can’t or won’t confront the reality of their business model, bad things tend to happen. Symphonies and orchestras are having an increasingly hard time balancing their P&Ls. Here are two unfortunate but typical recent stories detailing these challengs, about the Green Bay Symphony Orchestra and the Delaware Symphony Orchestra. It’s because people don’t care about those genres anymore, while costs just keep going up, right? And with little to no government involvement and a donor base...

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Advertising

What’s Better Than Winning the Tony for Best Musical?

A profitable hit! The New York Times' Patrick Healy writes about following Broadway producer Joey Parnes of A Gentleman's Guide to Love & Murder to his first meeting with his ad agency, SpotCo, after winning the Tony for Best Musical. Sometimes winning a Tony boosts sales (Avenue Q) and sometimes it doesn't (or it does during the following summer and then stops, like in the case of Memphis)? Time will tell how A Gentleman's Guide to Love & Murder will...

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P&L

High Overhead Can Warp any Organization

What nearly killed General Motors was not so much the core business of producing decent cars and selling them profitably. They did that OK. (Not great, but OK.) What nearly killed them was that in addition to all that, they had legacy and overhead that dwarfed the rest of the operation. At one point, nearly one million people were due a pension from General Motors at a time when they employed more like 100,000. I remember someone calling them "a...

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P&L

The Importance of Reaping Revenue From the ‘Other’ Category

In contrast to the gloomier news in other spots in the symphonic world, the Chicago Symphony Orchestra has reported increases in revenue from both tickets and donations and a much, much smaller operating deficit. In fact, this year's ticket sales record of just over $22 million surpassed last year's sales, which were also a record. Very interestingly, to me, about $10 mm in revenue came from what I'd call the "Other" category, which included "tour fees, merchandise sales, space rentals,...

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