More Impact Of The Economy Conversation

Yesterday, the Association of Performing Arts Presenters had a follow up to the conference call on the economy I listened in on in December. Given that there weren’t enough phone lines to accommodate all those who wanted to attend, this time they employed a webinar format so people could attend online. You either listen directly or download the web session.

The call is about 90 minutes long and many on the panel mention strategies and opportunities people can take. What caught my ear and interest were the approach to programming described by Marilyn Santarelli, Executive Director of the F. M. Kirby Center for the Performing Arts. She talks about how she is re-negotiating payments to artists per Numa Saisselin’s suggestions in “Arts Presenting Is Dead.”

As Saisselin suggests, she goes to the artists and talks about their sales to date, their marketing efforts and are honest about their break even point. They asked that the artist share in the risk and lower their price. They proposed that after reaching the break even point, they would start to restore to the artist “dollar for dollar from the first dollar whatever discount you gave to us.” She found the artists that bought in to this option worked harder to help promote the show with more interviews, b-roll, etc. The alternative, she told them, was canceling the show.

It sounded as if they had only done this starting last December. I am curious to know if this inhibits her planning for her upcoming season as artists and agents worry that what they initially negotiate may not be final. Likewise, would they be more open to booking with someone who has a workable alternative to cancellation if things go poorly.

She also talked about their ticket sales strategy. Her organization is discounting early in the season and offering discounts to a wider variety of people including subscribers and sponsors. I am not sure, but it sounded as if they were expanding the groups of people who are eligible for discounts. As the season goes on, the prices will go up. She hopes if they message this approach correctly, people will buy early realizing they are getting a bargain. No mention of whether they were loosening their exchange policy for people who committed early. The Kirby Center has only implemented this on a few show so far and did so because 60% of their sales were happening in the last few weeks. I suspect that this approach will vary in success from community to community and some will still rather wait and see than to buy now and that the higher price closer to the date may prove a disincentive to those with many options.

These are just some of the strategies and opportunities being employed that are mentioned in the webinar. If you are eager for a little guidance, give it a listen.

Looking For Shows In All The Close Places

Last Friday I went to First Friday downtown. My main motivation was that my assistant theatre manager and his wife were performing at an outdoor stage. The theme was Asian performance so there were performances of gamelan, kulintang music, Balinese, Cambodian and Thai dance and a couple of fusion pieces.

While I came to support a friend, I was soon evaluating performances for suitability in upcoming seasons. We have been told to expect that we are all but guaranteed to lose $20,000 from a regular source so I need to identify generally inexpensive quality performances. Ultimately, I didn’t think any I saw that night were quite right and a couple, pretty awful. Before I made this determination I started to ponder how I might structure future seasons.

I started to wonder if it might be possible to follow Numa Saisselin’s example and announce a shorter season in my brochure next Fall with the intent of adding two or three performances as the opportunity presents itself. There are always a few shows that do well and a few shows that attract a third of what the best shows do. My expenses are generally the same for all of them so if I can reduce my costs a little, I will be doing better. What contributes either directly or indirectly to my costs is distance people have to travel so I can realize some significant savings if I can control those expenses. Since people are making their attendance decisions extremely close to the performance dates, I don’t think I would lose anything by having some events absent from the season brochure.

I often have a general idea of which shows will have a lower appeal but pay the price knowing that the work is worth seeing and if I don’t bring them, then no one else will. The smaller audience appreciates the opportunity no less than the larger one. Unfortunately, that idealism may have to be indulged slightly less often in favor of discerning whether there are local/regional performers who have the quality but haven’t had the opportunity to be seen.

Outside of my uncertainty about such groups existing, one concern I have is that if I don’t set my schedule early, I will have to really control what dates I rent out. We have a fairly strong facility rental program and can have most of the year rented out almost immediately after releasing the dates we don’t intend to use.

I would most certainly make more money renting instead of presenting on those same dates but I don’t want to reduce our offerings even in these financially tenuous times. I believe we would lose momentum with our community. While precious few seem to have any loyalty to us, I suspect their numbers are greater than we imagine. There is also the issue of slipping out of the collective consciousness if there are fewer mentions of us in the media.

So for the next few months I am going to be doing a lot of pondering, talking and consulting with people on our direction. There is no option before me that I want to fully commit to –fully a rental house, fully produce local performers–but the fiscal realities before me are likely to mean exploring these options to some degree.

Overhaul The Arts And Install New Standards

Couple weeks back I mentioned I wanted to explore the idea of greater standards and training for administrators and board members Numa Saisselin floated in his “Arts Presenting Is Dead” piece. As one might imagine, from the number of times I have cited it, I was pleased to see Saisselin cite the Conversations With The Field study Neill Roan did for APAP which noted learning was not valued in the arts presenting field.

Saisselin feels that service organizations like APAP need to be more aggressive about identifying and contacting new entrants to the field and providing them with the basic information they will need even if the new presenter is not a member of their organization.

Just as the model of a modern presenting organization is shifting towards earned income, and on the fundraising side, earned income tactics, the model of a service organization should be shifting away from the all-access or no-access membership model, and towards an aggressive recruiting model that incorporates at least some free exchange of information.

While I agree that any organization/company/corporation is better served by actively engaging its constituencies, given the ease with which small groups can enter the field and operate on a limited basis, I am not sure how easy it might be find and identify these entities. I suppose they could start by looking through the records of where artists have recently performed in trade magazines and websites like Pollstar.

He likewise suggests that individuals avail themselves of free sources of information – “For example, Musical America, Celebrity Access and Billboard Magazine all publish free weekly newsletters by email. Countless fundraising, accounting and management firms publish their own newsletters, which often include lengthy and useful papers and articles.”

He bemoans the dearth of arts management training programs in higher education but seems to acknowledge that many working professionals don’t have the time to return to school for training. Saisselin suggests a certification system similar to one developed by the International Association of Assembly Managers (IAAM). I took a look at their website and it seems to be a pretty rigorous set of requirements to obtain various certifications.

Arts service agencies might do well to consider developing something similar. They have the example of the IAAM program to use as a type of template given the overlap in a number of areas. They also have the benefit of being able to consult with the existing arts management programs about the training they provide. In turn they can suggest what college students should be taught if they want to be employed. While the colleges may not be able to host classes for the busy arts professionals, they might prove good regional testing sites on weekends.

The observation Saisselin made that most interested me because I hadn’t encountered it before was in regard to board training. He makes some common observations about how poorly board members understand and are educated as to their duties. Then he relates an anecdote about a time when he and a friend were considering leaving their jobs. The friend worked for a radio station and had a fairly constructive conversation with a supervisor who understood the desire to move on and discussed the pros and cons of doing so.

Saisselin’s board was hurt that he was considering moving on and while he stayed, the dynamics between the board and himself were strained.

“….the component that is pertinent to this discussion is this: my friend’s boss was straightforward in the way he dealt with this scenario, because he worked in the same field she did, and he understood first hand why she was thinking about making a move. My board, on the other hand, with no career experience of their own in the field, responded the only way that they could: emotionally.

There is a critical weakness at the executive level of the nonprofit arts field: board members join a company at the very top of the organizational chart, but more often than not they have little or no experience in the field themselves as working professionals. Experienced board members may have vast knowledge about being a board member, but there is no way for them to personally understand the issues that professional staff members must be concerned about on a daily basis, or when thinking about their own lives and career. A board member’s personal commitment may run deep, and a paid staff member’s personal commitment may run just as deep, but the motivations of each for being involved in an organization in the first place, and for sustaining that involvement, are very different.”

Now my perception is that appointments to for profit boards aren’t necessarily made with people in the same field. Though there may be more uniformity in the way boards of widget manufacturers and banks operate than one of them and a non-profit board. The whole practice of placing inexperienced people at the top of an organizational structure may actually be flawed regardless of industry.

An emotional reaction may not be something that non profit organizations can escape. A year ago I talked about how the high emotional satisfaction people experience working in the arts may inhibit their desire to improve themselves. Boards involved with non profits may be so invested in the organization’s cause, it might be difficult to favor a rational reaction over an emotional one.

Frankly, I think other employees are likely to feel betrayed by a fellow who is letting the cause down or, given the generally poor pay and working conditions, escaping. Board members are probably more likely to be uniformly hurt than seasoned colleagues but I don’t think all bosses will be as supportive as Saisselin’s friend’s.

Saisselin extends his idea of insuring quality to the industry as a whole citing the example of the regional accrediting bodies which set the standards for institutions of higher learning. I get a little nervous at this suggestion. I am all for increasing the quality of arts organizations. I don’t know if formal accreditation is the way to go. Such a process is incredibly time consuming and diverts a lot of resources. For colleges, loss of accreditation means, among other things, loss of access to funding sources. I would be afraid that arts organizations that do good work would lose out on grants and foundation support because they didn’t have the wherewithal to complete an accreditation process. One of the biggest complaints people have about charities is the high percentage of their donation that goes toward administrative overhead. Accreditation process has to be incredibly well thought out to avoid this situation.

All this being said, Saisselin mentions that the granting process constitutes a de facto peer review system but that it is a binary result. You are either funded or not.

Beyond funding an application, or not, and in some cases providing applicants with a written summary of the panel’s comments, there are no “next steps” to assist organizations that don’t measure up, and the field at large desperately needs to take those next steps to strengthen the field at large.

There is no avoiding the fact that meeting greater standards requires increased effort above what is already being done. And there is no guarantee that meeting those standards will lead to greater organizational success. It is painfully clear to many in the entertainment industry that high quality product doesn’t necessarily draw a larger audience.

If there is an industry wide push for higher standards it is certain there will be instances of greater efficiencies, more effective leadership, constructive partnerships and more united advocacy efforts. But none of it is guaranteed to happen to you the individual or to your organization. In fact, the obscene inefficiency of your company may be revealed in the course of this movement putting you out of a job.

So what is your motivation as a belabored arts professional to join an effort that provides no surety of things improving for you? Well, that is about the same promise you had when you made the decision to devote your life to the equally abstract concept of artistic excellence.

Living The Fantasy..Sort Of

One of the reasons I enjoy my job is because I get to live my fantasies. One of my favorite involves standing in front of the ticket office having ticket holder praise my acumen in contracting high quality performers while those who did not purchase in advance wail in lament at seeing the sold out sign in the ticket office window.

Of course, being a fantasy, it doesn’t live up to reality. In my fantasy, the show has been sold out for weeks or showing clear signs of doing so for some time. The most recent reality is that ticket sales were steady, but few for months. At week out we we barely had 150 tickets sold. Then things started picking up 3 days before and exploded the last two days before the performance.

The people who showed up having not bought tickets had spent 6 months telling me how excited they were this performer was coming. They worked two buildings over, had a poster for the event right next to their office doors and received two emails exhorting them to purchase tickets.

It is hard to be savor being pleased with oneself when you are stifling the instinct to smack people upside their heads.

Granted, it is inevitable that a popular show will require dealing with a few disappointed souls who did not act quickly enough. My real reaction was more to roll my eyes in exasperation than to enact the V-8 forehead smack.

My real concern is that with people making decisions so close performance dates it is becoming harder to discern between a show destined to sell out and a flop before the actual performance date. In the context of the proposal of my last entry to allow presenters to cancel when ticket sales look dismal, I might have canceled had I been engaging in that practice. The article I wrote on came into my hands in a timely manner. It not only got me thinking, but it connected with a situation I was experiencing.

Numa Saisselin’s proposal to allow presenters to cancel includes proving diligence in promoting the show. In this case, I can pretty clearly trace the surge in sales to media coverage for which I did not pay. I probably need not have bought any advertising space at all. One story on the local NPR station I knew would probably happen because the interviewer asked for a contact name. The second, a feature story in the newspaper, was totally a surprise to me. The writer, who usually asks me for contact information didn’t in this case so I had no idea the story would run.

I feel confident in saying I wouldn’t have needed to advertise in this instance because I believe a lot of people knew and valued the performer. The stories were merely a kick in the butt to get them to start buying. For the rest of my performances, it can be difficult to make effective decisions. I am fairly certain advertising and electronic reminders during the week of the performance is effective for one portion of my demographic and that periodic exposure of the information over a longer period of time is effective for another segment even though both groups are buying their tickets at the last moment.

Other than the brochure and email, we aren’t quite sure what is most effective. When we ask people where they heard about the performance, many times people can’t decide through what form of media they heard it much less what station or newspaper. (It can be quite interesting to learn we are advertising on radio or television when we haven’t.)

In any case, I could have shown an investment in promoting the show through various media and promotional campaigns and asked for a cancellation based on awful ticket sales–and geez I would have been wrong. Yet there have been a few times when I would have been oh so right to cancel based on identical circumstances. Hopefully most people don’t operate in a market in which such nebulous conditions exist, but I suspect a great many do or will in the course of a few years.

And I begin to think the agents already know this and have been monitoring the situation for years. The last couple places I have worked, agents periodically call to get ticket sales counts even though the artist is guaranteed a set amount rather than a percentage of the gate. I can’t recall any agent or management company directing promotional resources to our market if tickets weren’t selling well. Yet at times the agents could be pretty relentless about getting the attendance numbers.

Saisselin’s mention of the unofficial procedure for cancellations made me think that perhaps agents may have assembled quite an in-house database of artists’ average sales X days out in cities with Y demographics. They may have a fairly accurate idea of when a cancellation request might be in the offing or perhaps when it might be prudent to either drop an artist from their roster or work with the artist to improve elements of their performance.

In spite of my sold out performance fantasies, the trend seems to be toward committing to attendance later and later in the process. If agents are in fact compiling information for decision making purposes, they may find the predictive power of their stats to be increasingly less dependable any distance out from a performance as reality confounds their expectations. (Or maybe they have really good statistical models.)

It Might Not Be Entirely Dead Yet

The president of my consortium went to a Western Arts Federation meeting and returned with some materials for the membership to read. One of the more provocative pieces was written by Numa C. Saisselin, Executive Director at the Count Basie Theatre entitled “Arts Presenting Is Dead.” (Full disclosure, I once interviewed with Numa for a job at the Count Basie.) Unfortunately, the document isn’t online. I would have to make some inquiries to get permission to store it on my blog.

Numa’s basic premise about presenting being dead is that the practice of offering “serious work” like “theatre, dance, classical music, and maybe the occasional folk singer” and being successful focused on doing only that is no longer viable. What has eroded this situation are elements of which we are all generally aware: The low barriers to entry of the presenting field means there are more people doing it in the general vicinity; competition comes not only from other performing arts organizations, but sporting events, television, computers; costs are going up but earned income, drop in corporate support and other economic factors make it difficult for presenters to break even; organizations aren’t doing new things to attract new audiences; “every market is different, but by and large we all compete for the same programs” and “every market is different, but by and large we all employ the same generic marketing strategies.”

Saisselin does a good job tracing the direction things have been headed and giving concrete examples of how his organization has faced each of these essential areas. The way he has found success is to become more nimble in his programming focusing less on establishing a concrete season for people to subscribe to and more on taking advantage of opportunities that present themselves in the short term and then communicating these new developments with his mailing lists. While they take the long view on some things, he likens his approach to that of a concert promoter rather than the traditional definition of a presenter.

He notes this approach may not work, and should not work, for everyone given that every market is different. He also acknowledges that his organization has to ask granting entities to have faith in them since they don’t have a concrete idea about what they may do with the money at the time of application.

One of the benefits of his approach is that it allows him to take advantage of opportunities where an agent is offering an artist at a lower price in order to keep them busy between performances. Saisselin feels that presenters need to move even beyond this and educate themselves more about artistic fees rather than blindly accepting what is asked. There are databases of artists performances all over the country that can allow you to compare yourself to similar communities to get an idea of what attendance was like and what ticket price was charged.

Now I know none of this sounds terribly provocative. I included most of this narration so you could get a general idea where Saisselin was coming from. What I am told has quite a few people up in arms and calling him irresponsible for suggesting is that presenters be able to cancel a performer 30 days out.

If the artist can cancel a date on 30 days notice to take a more important gig on a TV show, a feature film, or in a Broadway production; or a more lucrative gig in Atlantic City, Las Vegas, Reno or Tahoe; or in some cases for any reason, then the presenter should have the option of canceling on 30 days notice if ticket sales do not warrant proceeding. If the artist has the option of canceling to enhance their overall career or make more money, then the presenter should have the option of canceling if it’s going to lose money, or at least if it’s going to lose a lot of money.

From the artist’s and management’s perspective, not allowing presenters a cancellation option protects the artist from bad presenters. In other words, if the presenter does not do their job, the artist should not suffer, and that makes sense. But if the presenter does do its job, and tickets still do not sell, artists, agents and managers should accept at least a measure of responsibility. If we’re really all in this together, we should share the pain as well as the rewards.

He notes there is already an unofficial process one can follow to achieve this that generally ends up with the presenter paying 50% of the artist fee as a cancellation penalty. He suggests making it a formal part of contracts. While the presenter will still realize a loss, it won’t be a debilitating one

The presenter would be required to jump through some hoops to make such a request. When booking an artist, the presenter would have to submit a marketing plan, and satisfy management that the plan is reasonable, and has worked in the past. When making a cancellation request, the presenter would have to document that they had followed through on the marketing plan, without achieving the desired results…

…Artists would not be forced to play for half empty (or less) houses to collect their check, but in the event of a cancellation would still be fairly compensated for reserving the performance date. Agents and managers would be saved from having their artist develop a reputation as a box office loser, and would have the opportunity to revisit and revise their own strategies, perhaps getting their artist into smaller rooms, and building or rebuilding their artist’s career in another way. Presenters would be saved from throwing good money after bad when they already know a show is not selling.

He goes on to make some good points about improving standards for arts managers and boards of directors which I hope to address in later entries. For now I just wanted to float this idea. I am not quite sure how I feel about it. Assuming the practice moved in this direction either through active efforts of presenters or by default as tough economic times make the unspoken procedures into the standard, is it a direction we want to head?

It is easy to get angry at ever increasing fees and being left in the lurch by artists and talk about leveling the field in the abstract. There can be some unwanted repercussions though. I have been to the booking conferences and there the dynamic is one where the presenters have all the power. Artists and agents complain that presenters won’t acknowledge them or meet their eyes as they pass. I suppose if more people moved to act as promoters as Saisselin has, then fewer arrangements will be made at conferences and more will be made as a result of emails and YouTube videos. Not to imply artist cancellations for a better gig is revenge for the conference snub, but maybe it will be good if that uncomfortable vibe was removed from the equation.

My concern is that the money factor becomes a larger issue and emerging artists get further marginalized if 30 day cancellations become standard. Is an agent or manager really going to invest time in cultivating someone who is yielding them a percentage of 50% fee or are they going to go with the known quantity that dependably fills seats?

Certainly, the internet allows people to promote themselves fairly well so they don’t have to rely on an agent. For those like me who already get a constant stream of artist availability emails, more virtually unknowns adding themselves to the mix only makes things more difficult. As evil as agents may be made out to be, the good ones develop relationships with you that enable them to provide appropriate advice to presenters. Saisselin mentions his appreciation for an agent that invested years in a relationship with him before he actually booked an artist.

One road to success I can see is if the economy gets so bad that presenters turn their attention to seeking out low cost regional and local performers. Sasselin mentions how the record single went out of vogue only to come back again thanks to the iPod. Perhaps the impresario will make a return of sorts as people with theatre facilities turn their attention to cultivating the careers of regional artists as agents drop them.

Sasselin’s proposal is certainly something to consider in some form or another in order to relieve the pressure on presenters. I don’t think it can be applied in as straightforward a manner as he suggests.

**One thing that did occur to me as I was writing is that it would be great for the small touring artist if someone would create a piece of online software that integrated communications, scheduling and maps. That way a person could email, IM, etc about a gig, have the mapping feature tell them if it is actually reasonable to drive/fly that distance in the time allotted between gigs and then place it in a schedule they can access while on the road. Heck, if it could suggest flights, car rental places and hotels, that would be great too. (Except I imagine the top suggestions would be positioned there by paid advertising and may not be the most affordable for our struggling artist.)**