Arts in an Age of Technology

Seek Investors–Just Be Careful Who You Tell

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I have often wrote about the limitations of the 501 (c) (3) non profit status for arts organizations and how there is a need for alternatives. One of the obvious alternatives is to forget about non-profit status and incorporate as a for profit venture in pursuit of your ambitions. If you are just starting out, you and your partners may not have a lot of funding to realize your dreams and decide to seek people to invest in your new company.

According to entertainment lawyer, Gordon Firemark, you want to be very careful about using the Internet to find investors. He sees ads in Internet forums and chat rooms where people are seeking investors for independent films and stage performances. Seeking investors is subject to many securities laws the costs to comply with, Firemark says, are pretty expensive for those trying to produce on a shoestring. There are exemptions that will reduce these burdens, but unfortunately they don’t allow advertising for investors.

Exemptions from Registration: Advertising not permitted.

Although there are several exemptions from registration available, those that are most commonly available to producers of entertainment arise under SEC Regulation D. Unfortunately, these exemptions are intended for private, limited offerings, rather than offers made to the general public. As such, the regulations prohibit the use of advertising in the offer and sale of the securities.

Internet postings seeking investors ARE advertisements.

Lawyers are in agreement that any communication put on the internet for the purpose of raising money via sales of securities WILL be considered an advertisement, and thus, renders the Regulation D exemptions inapplicable. Therefore, by posting in an internet forum, chat room or social networking site, producers often make things much harder for themselves.

One way he suggests to avoid this restriction is by seeking investors who will actively participate in the project. This entails its own set of problems. First, because you will have the investors scrutinizing every choice you make. Second, because the investors share in the liabilities of the project–the very thing that provides them incentive to keep a close eye on things.

There are some other options he suggests could also be available. But of course, he suggests anyone considering any of the aforementioned consult a lawyer before pursuing them.

When Your Agent Truly Works For You

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This weekend, Drew McManus and I had a brief email exchange about the Chicago Tribune piece he discusses on Adaptistration today. My organization and most of my presenting partners don’t contract for orchestra related services. Chamber music groups are about it. However, we deal with many of the same agents. I mentioned in an email to Drew that we hadn’t really seen a reduction in fees this year. However, if the reduction in programming I have seen among my partners is echoed across the country, I thought perhaps we would see low fees in the following season. I also suggested that maybe the agents would boost the fees of the marquee artists to offset the loss of revenue from others and the A-list artists would only appear in the places that could bear the higher costs but suffer no significant loss of income.

I hoped that there might be a silver lining and the economic downturn might provide opportunities where the quality emerging artist finds success doing what they have always done–work their butts off providing a consistently great product for little money, make a reputation for said effort and gain employment at venues which may not have considered them a year or two ago.

Drew responded such a thing may not come to pass under the auspices of agents. He noted that a lot of the emerging and mid-level people had been increasingly marginalized by their agencies over the years in favor of names that sold themselves. (I am greatly paraphrasing.)

I wonder if agents really can hold all the cards anymore now that technology enables artists to to make direct appeals and handle inquiries online. I am not sure about the situation with classical music but from what I have heard, fewer presenters are attending the booking conferences in favor of researching prospective performances online. This from an agent whose artists seem pretty happy.

How long though before presenters move from following up with an agent after a visit to the agency website to corresponding with the artist directly? There have already been a couple events where I have worked so extensively with the artist, I wondered why I had spoken to the agent at all. It seemed all the agent did was assure the artist they weren’t being cheated.

That might be the type of model that emerges. If an artist is touring, it is difficult to field questions and make decisions about future dates. Some centralized source that manages information will likely be important. But it doesn’t necessarily have to be a formal agency anymore. It could be a cooperative effort by artists where employees located across the country work from home to respond to inquires. Artists would still be represented by an agent(s), but in this case, the artists retain much more power in choosing which people will represent them.

If the promotional information all resides on the artists’ websites, all that is needed is a well designed central web presence to differentiate the members from others of their genre in a web search and help move it to the top of the search. Obviously, there shouldn’t be too many artists listed on the central site lest the visitor get overwhelmed by the choices.

Actually, heck with one site. If the cooperative is smart, they have a lot of specialty sites to appeal to different niches. The one for bars and clubs positions the members with one type of image. The one for colleges gives another. If there are 40-50 groups in a cooperative maybe an individual group appears with 15 others on one site that appeals to colleges, with a slightly different mix on one for small venues, on another for clubs and another for folk festivals.

Personal contact with presenters and other probable buyers is likely to always retain some importance. So perhaps the cooperative arranges for one or more of their telecommuters living near a city with a high frequency of tours to attend their performances as each group passes through so their agent can speak intelligently at conferences.

Depending on the design of the cooperatives, there could still be a lot of inequities in the representation. The groups which bring more money to the cooperative either directly or by the frequency of their performances might demand more prominent placement on websites or aggressive pushes at conferences. The larger groups may insist on agents in places their tours frequent more often leaving the others more weakly represented. They may run into a Catch-22–the small groups insist their agents book them in Raleigh so the agent can see them. Unfortunately, because the agent hasn’t seen them, she can’t speak with enough conviction to get the group a booking in Raleigh. (The solution being, if the closest the group gets to the agent is Atlanta, buy a plane ticket to Atlanta.) Over time, a group might move from one cooperative to another that better represents their philosophies.

Maybe these sort of arrangements won’t emerge but I feel pretty confident in saying that the continued development and use of technology is going to change the agent-artist dynamic over the next few years. I wouldn’t be surprised at all if the next five years brought a significant shift with agents either playing a much diminished role or being valuable for entirely different reasons than they are now.

Arts and Science Make The Whole Person

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I love it when themes come together for me. Apropos to yesterday’s entry about the place of arts in the classroom, I saw that the TED site released a talk by Mae Jemison where she discusses how being analytical and creative are not mutually exclusive. In college, her studies left her about equally likely to become a doctor as a dancer. She says her mother essentially made the decision for her. While she ended up going into space, she brought an Alvin Ailey poster along for the ride on the space shuttle.

One of her observations is when she turns the common assumptions that one is either creative or analytic around. She notes that people will often joke about not being able to grasp math and science or lack creative and artistic abilities. She suggests that given the choice of jobs where you either had to be uncreative or illogical, people would seek out jobs that allowed them to do both. Granted, for many jobs these are de facto status of employees and people willingly place themselves in that situation but they still have the freedom to encounter complementary experiences.

I think her point is that people sell themselves short in relation to their analytic and creative abilities in a way that becomes self-reinforcing and gradually colors our self perception.

If arts people are truly invested in promoting arts and creativity as necessary to become a whole person, I believe that cause is best served by also promoting the idea that analytic capabilities are important and contribute toward the whole person goal as well.

Analysis and creativity can’t be divorced from one another. I think I have mentioned before that the lectures that occur in our tech theatre classes sound a lot like my high school physics class. The backstage of a theatre is one big practical physics lab. And without an analytic mind, I would have never figured out why our ticket office reports weren’t quite resolving themselves for a show last month.

Arts (Not In) Education

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Dewey21C guest blogger Jane Remer makes a provocative statement I have always wondered/suspected.

The Arts Just Don’t Fit in Most of Our Schools

The arts community – arts educators, arts organizations, artists who work with schools, other friends of the arts–has tried and failed for years to make the case for the arts in every student’s life and learning environment. Claims abound for the arts as important intellectual and experiential domains as well as exceedingly effective instrumental bridges to other usually non-arts ends. These claims are rarely backed up by solid empirical research and when they are, the evidence is overwhelmingly correlational, not causal. These claims are almost never made by school people, K-20 and beyond, and only occasionally uttered by policy makers, whether top down legislators or bottom up teachers, leaders and district superintendents.

Because the concept is so depressing, one may attempt to discredit her by wondering if she truly has a basis for making this claim. If you read her bio at the bottom of the entry, you see that her background makes it very difficult to dismiss her. She has both practical and theoretical experience attempting to cultivate arts programs in some of the toughest educational environments around. One of her previous entries as guest blogger asked, “What Can We Do to Make the Arts Count As Education?” In that entry, she lays out some of the reasons the arts aren’t gaining traction in those schools which it is present.

Other than suggesting local action, Ms. Remer feels she doesn’t have any real strategies for getting the arts into schools.

Over this past weekend I tried working from the premise the arts would find no place in our schools. What were alternative outlets that could be developed? Schools would appear to be best medium for disseminating instruction and exposure but if that option is out, what is left? There are after school programs and summer camps. Unless the arts community can develop a compelling argument for parents about why their children should be allowed to participate, it is likely the groups currently being served in this way will continue to be the only ones.

We can look to the example of early educators in the United States who patiently approached people to convince them to let their children attend school. That might work but, don’t forget that the real progress in enrollment came when education became compulsory by force of law, and sometimes, at the end of a gun barrel. Tirelessly approaching people is one thing, but I am not sure the arts world is ready to lobby for martial enforcement quite yet.

Technology would appear to be the medium possessing the greatest potential for replacing schools as the method of arts education. I confess though that I suffer from a lack of imagination in this respect. I am currently only imagining progress in terms of the tools that already exist – People learning to paint or play bass from online sources. Perhaps they got the brushes, easels and instrument from a local arts organization seeking to make materials more available.

That’s all well and good except there is also the problem of a disconnect of what happens between the situation today and the one in my imagination to make young people excited and interested in the arts that they claim the free art tools and instruments and go home to practice? In essence, what makes 250,000 Venezuelan kids commit to El Sistema, and how do we get that to happen here? Smarter minds than mine have asked that very question.