The Crucible for the Arts (and no, not the play you read in High School)

In the McKinsey & Company article, five crucibles of innovation are discussed that will shape the way in which the world will function in the coming decade. However, as these crucibles change the landscape of the markets, some industries are having a difficult time adjusting to the new realities of the economy. One specifically, is the arts.

The non-profit arts sector is dealing with rising costs for survival, as most of the sources of life-blood begin to unfortunately, die off-literally. The market is shifting towards more people who demand a greater say in what the cost of their artistic consumption is across the global grid-whether its through a $0.99 download, to free video streaming, to online gallery viewings. Technological innovations have opened the door to incredible alterations in consumer behavior, and have allowed widespread access to artistic works around the world. This has understandably changed the way in which people view artistic commodities. For someone not used to frequenting the symphony, it is hard to sell them on why they should pay $90 for a ticket in Row Q when they could pull up the same piece of music by an orchestra from half way around the world for free on their phone. While this proliferation of art is wonderful, it desperately requires innovation within the industry in order to make it sustainable. Some arts orgs have had to indulge in massive price swings just to keep people coming in the door. But how many free/discounted tickets can you give out while your government grants are drying up and expect to have enough money at the end of the night to keep the lights on? Sometimes it simply costs more money to produce the art that is obtained for free around the globe. An unfortunate reality, without a clear solution.

The arts also suffer from a productivity paradox. While other industries in the economy are benefiting from productivity improvements, such as the telecom and financial services sectors, the arts do not have that flexibility. An orchestra is not an orchestra if there are only 7 people in it. You cannot put on a production of A Midsummer Night’s Dream with 3 actors. You cannot outsource a dance troupe to another country to save on costs. No matter how you slice it, the ability to streamline production and jobs for the changing economy and still maintain a certain quality or experience, is just not possible in some areas of the arts. Is it an element to the sector that is impervious to productivity innovation? If organizations within the non-profit arts sector are unable to innovate certain areas, will they, like their donors, die off too?