arts

What Arts Organizations Can Learn From Sports: The NBA

What Arts Organizations Can Learn From Sports: The NBA

This week, AMT Lab has been investigating what lessons arts organizations can learn from sports as they seek to provide engaging digital experiences for audiences. The National Basketball Association (NBA) is the most prestigious and well-known basketball league in the world, making it imperative that they continue to engage their fans during the pandemic while securing revenue from broadcasts. They found solutions that would permit fans, specifically younger generations, to continue to interact with each other during the games—something that arts organizations could apply to their virtual performances.

What Arts Organizations Can Learn From Sports: La Liga

What Arts Organizations Can Learn From Sports: La Liga

As arts organizations look to provide digital experiences to engage audiences, there are lessons to be learned from sports leagues that have restarted seasons and successfully broadcast them to international audiences amidst the Covid-19 pandemic. One example is La Liga. The Spanish league most commonly known as La Liga is one of Europe’s top five soccer leagues. The 2019-2020 season kicked off on August 16, 2019 and was set to go until May 2020, but as the world—and Spain specifically—saw the rapid growth of Covid-19, the league was temporarily suspended. With the campaign entitled #BackToWin, it was the second major European league to resume, with no fans in the stadium and strict safety guidelines. To make the matches a marketable product from an entertainment standpoint, broadcasters experimented with AR “fans” and artificial crowd noise. A spike in La Liga’s international viewership reflects not only the fans’ desire for the return of live sports, but also the value of the product La Liga and its broadcasters were able to create. As sports—and the arts—look for ways to perform virtually, La Liga offers an example for how to do so successfully.

What Arts Organizations Can Learn From Sports in the New Normal

What Arts Organizations Can Learn From Sports in the New Normal

So why sports? Although the general perception of the sports industry focuses on teams and their players, the sports industry encompasses a vast number of stakeholders that affect the state of the industry. The industry is made up of a complex web of live sporting events, food stands, media rights, and brand sponsorships. Most importantly, as with the arts, fans and audiences play a key role when it comes to analyzing the state of the industry. Unlike the situation for arts audiences, the global sports market is growing and expected to continue to grow due to esports, an increase in the number of internet accessible devices and the advent of 5G. What opportunities could this offer arts organizations looking for digital innovations to reach audiences?

How Do You Compare in Digital Fundraising?

How Do You Compare in Digital Fundraising?

AMT Lab is researching emerging digital fundraising tools so that arts organizations can, hopefully, take a bigger part of the 14% increase in online giving. With $380 billion dollars of giving in the USA in 2017 and more people than ever giving online, the future of fundraising is changing before us.  And don't be fooled -- the majority of the online donors were older than 49 years old.  To understand how the arts can maximize current and emerging fundraising opportunities, a benchmark of what is happening in the field today is underway.

Expanding the Dialogue with the CultureCode Initiative

While the intersection of technology and the arts has always presented a series of exciting opportunities for us here at Technology in the Arts, the reality is many cultural and arts organizations find technology challenging. It can seem especially prohibitive to small organizations and individual artists who may lack expertise. The Arts Council England and Codeworks have developed an interesting forum to increase the dialogue between arts organizations and the developers of this intimidating technology, the CultureCode Initiative.

No definition fits the CultureCode Initiative better than the one straight out of their digital press release,

“The CultureCode Initiative is a series of free events designed to open up new opportunities for highly skilled developers, designers and assorted geeks to work collaboratively with cultural organisations and artists.”

Here’s why I find the idea of the CultureCode Initiative so fascinating: technology often overwhelms people and appears antithetical to cultural organizations that feel that new technology can make them obsolete. The CultureCode Initiative seeks to completely debunk that myth, as Tyneside Cinema Chief Executive Mark Dobson explains, “You don’t need to have any previous experience of digital to attend this event”.

The CultureCode Initiative’s website even states “you don’t need an IT department” to partake and learn from their events, and some are guaranteed to be "jargon-free". The advent of web 2.0 and the current culture of sharing absolutely everything via the internet has democratized information. The CultureCode Initiative, to me, is increasing accessibility and informing arts and cultural organizations know that it is possible and it is easy for them to join this discussion.

Most importantly, perhaps, the discussion is not meant to be in one direction. While most similar opportunities are aimed at instructing arts organizations in utilizing technology, the CultureCode Initiative encourages two-way dialogues, with events showing developers how they can take a new look at cultural organizations and how cultural organizations can reconsider their “digital assets”.

If you’d like to join the discussion live, their first events start early next week (Tuesday, February 21st ) and CultureCode ends with a huge twenty-four hour Hack towards the end of March.

If you don’t happen to live in the North East of England (where these events take place) you can join the discussion digitally by tweeting @Culture_Code.

Any of our readers going? Be sure to let us know your perceptions of the events – you can bet Tech in the Arts will be watching to see what cool solutions come out of the CultureCode Hack.

Building online community: sketchcrawl.com

Seven years ago Enrico Casarosa, an artist working for Pixar went on a pubcrawl. He writes that the spirit of community inspired him to create a community for visual artists that he called Sketchcrawl. The first Sketchcrawl happened in 2004 in over 20 locations in six countires. Since then, there have been 33 Sketchcrawls and the event has grown to almost a hundred locations in over 20 counties and now has a website sketchcrawl.com.  The community now has over 3000 members and is still growing.  At first, only Enrico was moderating, but Sketchcrawl has since grown to have numerous other worldwide administrators organizing participation and the community has strong leadership in both Asia and Europe as well as in North America.

A Sketchcrawl is a day predetermined thoughout the world, where artists young and old, professional and amateur pledge to sketch for anywhere from 20 minutes to 8 hours.  The results of the event day are posted online for the whole worldwide community to see.  There are  some true gems in these online galleries. Participants speak of both the reward and difficulty of committing to draw for an entire day.  They recount the lucidity that comes from a full day of observation and moving from subject to subject.  They also comment on the difficulty of focusing their attention for so long. Side by side, these artists are creating a community through a shared experience and their love of art. Alongside their peers the collection of images lead us through a sense of movement throughout the day and objects and people that once were ignored as mundane become visible and interesting.

This community, built through a mutual love of the arts, is a strong sign of the growth of the arts online and should give the arts community at large hope for the future in the face of declines elsewhere.  The next Sketchcrawl is on January 21, 2012.  It is easy to sign up and there are also multiple social network sites for the community at large and for individual city groups.

Leveraging the Virtual and the Real

The art world is experiencing a virtual boom. A boom that began with the advent of the street view technology used by Google, which has now forayed into the world of art. Within the last two years, the Google Art Project has photographed, digitized, scaled, and organized some of the most famous artworks in renowned galleries and museums such as the Tate, the Uffizi Gallery, and the Palace of Versailles. Moreover, this digitization of famous artworks is not any mere reproduction; rather it is a reproduction of the grandest or perhaps the smallest of scales: gigapixel images.

Photograph by Amantini Stefano/4Corners Images

This technology has revolutionized the way we interact with art even though it can in no way be deemed an equal alternative to the real experience. The digitization of museums and galleries has captured their tangible and physical aspects, but not their essence. A visit to the Palace of Versailles will never compare to visiting a website. So the question begs to be asked whether this virtual experience guides, develops, and enhances our real experience. Does the virtual help the real? And what can arts organizations gain from this insight?

Detail from Sandro Botticelli’s Birth of Venus (from the Uffizi Gallery, Florence)

A visitor recently set off an alarm, a really loud alarm, in a museum in Basel when she got too close to an artwork. This encounter illustrates how a public viewing experience within the confines of a gallery or a museum can act as a barrier. More often than not, we are afraid to get too close to painting, even though we want to (with the exception of the aforementioned visitor, of course). We also feel the need to constantly move from one painting to the next until we reach a point of complete and utter visual saturation, perhaps even visual exhaustion.

In the virtual confines of the Google Art Project, we can get eerily yet brilliantly close to our favorite artworks on our very own laptops. We can see details that could not have been physically possible under any circumstances in a museum setting. We can also pause for as long we please and we can leave and return as we please. On a whole, a virtual art world as powerful as that of the Google Art Project enriches and builds upon our real experiences.

 

Detail from Louise Elisabeth Vigée-Lebrun’s Marie-Antoinette de Lorraine-Habsbourg, Queen of France, and her children (from the Palace of Versailles)

Yet, however exquisite and detailed the world of the Google Art Project may be, unlike the masterpieces it virtually showcases, it cannot boast of having attained perfection. An article in the Daily Beast highlights the fact that while the Google Art Project has enabled us to view artworks in a manner that is unprecedented, it is not clear whether we are seeing better.

In the same vein of thought, the author of a blog post in Freize argues that by bringing us closer to works of a bygone era, such as Caspar David Friedrich’s The Monk by the Sea, the Google Art Project has ignored the dynamism of the art world, where the concept of a masterpiece and the artist genius are constantly evolving. The post also mentions how Google is guilty of not explaining to us why certain artworks were, and still continue to be, worthy of the title of a masterpiece.

 

The Monk by the Sea, Caspar David Friedrich (from the Alte Nationalgalerie, Berlin)

For arts organizations looking to create a virtual experience, let’s analyze the advantages and the disadvantages. A virtual experience can create a longing and desire for a real, physical experience. The aforementioned article in the Daily Beast provides an interesting insight from the Director of MoMA about virtual outreach: the virtual presence and proliferation of art works housed at the MoMA actually compelled the true lovers of art to seek out the real. Consequently, the MoMA has had a twofold increase in attendance over the last ten years.

Another big advantage is increased accessibility to audiences around the world. But accessibility alone is not adequate and arts organizations should be wary of becoming just another collection of images on the World Wide Web. The aim is to educate people and generate interest, not pander to their aesthetic appetites. A virtual experience that is no different from a collection of images limits the potential of technology as a vehicle for education, discussion, thought, and reflection.  Thus, arts organizations should look further than the potential of the online world as a visual cache because only then will they truly be able to leverage the virtual and the real.

Tech tools for your arts job search

amelia-gradAfter two years writing for Technology in the Arts, I am leaving the Center for Arts Management and Technology. The unfortunate part about being a graduate student is that you will have to leave a place you love after a certain number of years, and my number is up! Special thanks to David and the rest of the CAMT staff for making the last two years amazing, educational, and memorable. I am very excited about my new position with the data-driven arts and entertainment consulting firm TRG Arts. I have been hired as the Strategic Communications Specialist, which means I will serve as a writer and editor for the firm’s consulting projects, Data Lab research and analytics projects, and a contributor to TRG’s knowledge center online.

Before I leave Technology in the Arts, I wanted to share some of the secrets I learned during the last few months of looking for arts jobs, mainly at non-profit organizations. Because nonprofits usually begin their fiscal year in July, new positions at these organizations are often posted in the summer. That means now is the prime time for you to find your new dream job in the arts.

Here are my favorite tech tools to help you find that job:

Changedetection.com

Arts jobs often need to be filled quickly, which also means the time you have to apply is limited. We’ve all had the experience of finding a great—no, perfect—job and finding out that the “apply by” date has passed or being informed after you’ve submitted your resume that the company had already extended an offer to someone.

Changedetection.com comes in handy when you know that there is a company (or companies) you’d love to work for. Obviously you aren’t going to check in on the employment page of their website every day. Better that you just be notified when they post a job, right? Well, through the magic of technology, you can find out when that employment page changes. Changedetection checks the page every day, week or month (you specify which) and sends you an email when there has been a change.

changedetection

If there is a specific geographic location you know you’d like to work in, changedetection can help too. For example, I was looking for jobs in Portland at the beginning of my search. I looked on the arts council website and there wasn’t a job board, but I wasn’t going to let a silly little thing like that stop me! What the arts council site DID have was a listing of all the arts orgs in Portland. I put a changedetection on the employment page of each organization I was interested in and got on with my search.

The downside of tracking all these pages is that you might have to sort through some jobs that aren’t for you. For example, I looked mainly at full-time marketing jobs, but I was notified for ANY job at those companies, including development and box office jobs, and in some cases, internships. However, you can take this as an opportunity to build networks. If you see a great job in finance, maybe you have a friend who looking who also happens to be a finance whiz. Forward the job to her and not only have you strengthened your friendship, but also she may want to return the favor if she comes across a job that fits you.

I would recommend setting these up relatively early in your job search and keep adding as you find companies that are of interest to you. This way, you will also see which jobs come up and how frequently as well as important information like salary ranges and organizational structure information. (For example, will you be working for someone who is a new hire herself/himself? Is there a new Executive Director at the org?)

changedetection2

The interface for monitoring a page on ChangeDetection.com

LinkedIn

LinkedIn has attempted to tout itself as a job-finding service. However, at the early-career/emerging leader level, I find that is less helpful for finding jobs and more helpful for simply networking. There’s not that many headhunters out there for arts jobs, except in the executive level and maybe for IT people.

Anyway, how many times have we heard that the arts world is a small world? I use LinkedIn to see if there’s anyone I know who may know someone at the company I am applying to. If your relationship is good with that person, ask them to put in a good word for you.

Sometimes LinkedIn groups will have job postings; I haven’t found this to be true for most of the arts admin/management groups though. Please comment below if you know of a good group for this.

PrintGuideStar

For non-profit organizations, it’s essential to check out the company on GuideStar. GuideStar is a free service that gathers and publicizes information about nonprofit organizations. Much of the information is geared toward donors and foundations, but there is a lot of useful information on it for the job seeker.

Once you register (free), you have access to almost any arts organization’s 990 tax forms, which means you can see what the organization’s budget size is and how they are doing financially. Note that for many organizations, the most recent year might be 2008 or 2009, so the information could be slightly dated or influenced by the recession—which is still important to know. The 990 serves not only as a way to see if the org has a record of keeping a balanced budget, but also as a historical snapshot of the organization, in terms of grants received, senior staff turnover, and capital campaigns and similar projects, among other things.

GuideStar is also extremely helpful to estimate salaries, especially if you are applying to a director-level position. The IRS requires non-profits to list the salaries of their five highest-paid employees. This is pretty valuable information, as the size of most non-profit arts organizations means that you aren’t likely to find very accurate information on that exact job at that exact organization.

Arts Jobs Sites

One of my friends posted a status update recently “wondering if CareerBuilder is really a builder”. I replied that all it had “built” for me was piles of emails in my spam folder. Personally, I’ve had a lot more luck overall with industry-specific sites, some of which can be used in conjunction with changedetection, as discussed above. (Bonus: The industry-specific sites manage to present you with jobs without asking if you want information from University of Phoenix every other time you go to look at a job. Just saying.)  Here are my favorites:

General:

By discipline:

State and local arts councils may have a good job posting site, depending on where you’re looking to find a job. For example:

Lastly, if you have an interest in development or program management, heads up! There are a few sites/ email alerts that I’ve found especially useful:

Philanthropy News Digest (A service of Foundationcenter.org)

PND has created a job alert system that will email you a daily summary of recent jobs in your area of interest. I cast my net wide by checking a lot of states and position types (communications, development, program management, etc) when I signed up for the alerts. I now get about 15 job postings a day. The fields of the organizations are quite diverse too. A recent email contained jobs from Napa Valley Opera House, University of Chicago, the Rainforest Alliance, and Vera Institute of Justice.

Chronicle of Philanthropy

Chronicle of Philanthropy posts mostly development jobs, which, like PND, you can sort by location, position type, and the field of the organization (education, health, museum, etc).

DotOrgJobs

It’s also worth mentioning that DotOrgJobs is good for fundraising jobs and other nonprofit jobs; however, I have not seen a lot of arts-specific jobs from them. You can subscribe via email or RSS feed.

On organizing email alerts:

You might be saying to yourself, “That’s a lot of email alerts to deal with.” I use gmail and have set a rule to have these emails automatically labeled “job search” and archived so that they don’t clutter up my inbox. Then I set an alert on Google Calendar reminding me to go through them once a week, so that I actually read them! This can also easily be done with Outlook.

Do you know of any other good sources for arts jobs? If so, please post them below!  Happy hunting!

The Art of Social Media Analytics, Part 3

Summer is the “off-season” for many of us in the arts world. Why not take this time to refresh your social media strategy? This is part 3 of our 3-part series on social media analytics tools. Check out Part 1 and Part 2.

blue_dataThe last part of our series concerns making management decisions based on data. Once you have the data, what do you do with it? As we come up with more sophisticated methods to track social media sentiment and reach, it becomes possible to track more accurately how people are responding to social media. This is especially important because social media can be a valuable part of your market research. It is like a 24-hour focus group, answering many of the questions you may have about your audience as well as the questions you didn’t think to ask.

As mentioned in Part 2, there are a variety of questions that you may have about your audience and a variety of tools that track different measures of success. Some tools are narrowly focused on one measure, while others give you a conglomeration of these measures. Some examples of the measurements of success include:

  • Sentiment: Are social media users referring to my organization positively, negatively, or neutrally?
  • Conversions: How many and which fans are buying online (or offline)?
  • Spikes in activity or “buzz”: How are social media users responding online to campaigns?
  • Impact: How many people is the message reaching and how much influence does the organization have? How many people are sharing posts?

When thinking about measurement tools and management decisions, the first question is often, when is it worth it to pay for analytic tools? As technology evolves to be able to track more specific and more valuable information, more paid analytics tools have come on to the market.  There are two basic instances where it’s worth it:

1) when you have a large customer base

2) when you need enterprise-level social media analytics

Firstly, if you have a large customer base or a large social media base (no hard and fast rule, but larger than 100,000) and you are literally having trouble monitoring comments on your brand, you need a tool that takes more of a summary view. Secondly, most paid tools are enterprise-level tools--tools that more than one person can manage or assign tasks to others and have other special features. If you feel you need this type of functionality, then paying for an analytics may be worth it.

Besides those two factors, a company should also consider the elusive “Holy Grail of Social Media,” return on investment, or ROI. Many organizations have found a “chicken and the egg” scenario of needing time and resources to show results (often, revenue), but needing results to convince upper management to spare the time and resources to devote to social media. This situation can be difficult; you might try proposing a pilot program or experiment with a cheap or free tool before proposing a larger investment.

One institution that has made a practice of using data to make decisions in social media (as well as investing in technology—check out their web and new media strategy) is the Smithsonian, under the guidance of tech guru Nancy Proctor. As one employee put it “why would you change anything without metrics and feedback?”

Once a company has the analytics tools in place it’s easy to observe your numbers of fans, interactions, and gauge the quality of those interactions. What’s more difficult is translating your observations into actionable decisions.

A simple example is that of David Horgan’s, eMarketing Specialist for Smithsonian Folkways Recordings. David had experimented with linking ads to their Facebook page and their homepage. “We found that the ads that direct people to our Facebook page (rather than to our homepage) were about 3x more effective on a cost per click basis.” Management Decision: Direct more ads to the Facebook page than the homepage.

Another example is the blogathon on the Smithsonian Collections Blog that Rachael Cristine Woody worked on for American Archives Month. According to Rachel:

Until that time we had almost solely focused on collections content.  In October we shifted to also cover our profession and offer a more behind-the-scenes look at what we do/deal with, every day.  These posts became the most popular posts we’ve published so far, numbering in the thousands for direct hits, and to this day still receive at least 100 hits a week.  It was at that time that I think the blog truly found its most invested and engaged audience, and it helped to call attention to us that we should be covering more on our profession.  Management Decision: In addition to giving the collections exposure, engage and influence the professional community by providing transparency, advice, and support.

The National Museum of American History combined traditional survey techniques with data from analytics tools (Google Analytics and WebTrends data, click metrics from HootSuite, etc.), comparing the results of four closely-related surveys on each of four major communication channels (their blog, email newsletter, Facebook page, and Twitter feed). Although more complex, the results allowed Dana Allen-Greil to make decisions regarding how the Smithsonian communicated with patrons:

At the National Museum of American History, we’ve long had a hunch that our Twitter feed should focus on conversational and educational content, rather than marketing in-person events. If our followers aren’t local, do they really want to hear about events they can’t come too? Click metrics from HootSuite plus data from a survey of our Twitter followers gave us solid footing to make the case against Twitter as a platform for driving foot traffic to the museum.  Less than 25% of responders reported planning a visit to the museum after seeing a message from us—this is compared with over 55% of email subscribers who said they did.  Even more to the point, less than 10% of Twitter followers reported attending an event compared with over 30% of our email readers.  We discovered a similar trend with our Facebook fans and have altered our content strategy accordingly. Management Decision: Use Email (not Twitter) to Promote Synchronous, Location-Specific Events.

More info on Dana's Twitter content strategy can be found here.

So there you have it. As much as social media can seem nebulous, there are specific things to measure, to think about and analyze, and then to make decisions that you can feel confident about. When you develop your social media strategy for your next season, mix things up a bit with some new questions about your audience, new tools, and a new perspective on the art of social media analytics.

Special Thanks to the following people for their contributions to this series: Michael Edson, Brian Hinrichs, Maggie Johnson, Katryn Geane, Kristin Garbarino, Devon Smith, Lindsay O’Leary, and Crystal Wallis.

The Dynamic Box Office

Modern Box Office Airlines have been doing it for years. Ticketmaster (in its latest incarnation) recently jumped on the bandwagon.

Dynamic or variable ticket pricing is the strategy of altering ticket prices based on different variables.  (As noted in the comments below, "Variable pricing is setting BASE prices according to differences in performances' time of day, day of week, etc as in paragraph 2 (a midweek evening may be less expensive than a Sunday matinee, for instance). Dynamic pricing, on the other hand, changes prices after the initial on-sale in response to changes in demand over the sales cycle."  I use the term "dynamic pricing" in this article to discuss changes made to prices once the tickets have already gone on sale, altering FROM the base price.  Thank you for pointing this out, Kara!) These can include everything from the number of seats already sold at the time of purchase, the proximity of the show date, alternative entertainment options on the show date, anticipated weather, and any number of factors that the host deems as having an impact on ticket prices. It is perhaps a more realistic and “fair” way to price tickets, allowing the cost of tickets to reflect the actual supply and demand of the market. This should result in minimized dead-weight loss, which benefits but the consumer and the supplier. For performing arts organizations, grappling with decreasing advance-ticket sales and discounting options that gouge profit margins, dynamic pricing might be “just the ticket.”

Unlike regular discounting or promotional pricing, the dynamic ticket model would enable organizations to price each production—and even each performance--strategically and, perhaps, more realistically. Instead of offering incentive discounts, both the organization and the audience would be able to gauge expectations for a show based on the ticket prices. Declining ticket sales and decreased subscription renewals lead marketers to worry and wonder about the most effective way to promote ticket sales. A common “solution” is discounting, which leads to a host of other problems. Ron wrote this piece for Group of Minds outlining what the major drawbacks to discounting. Rather than reiterate what he has already presented so well, I will simply say that I agree with his concerns about this eagerness to discount in order to get butts in seats.  Considering these issues may make dynamic pricing a more attractive option for some.

A great example of the potential for dynamic ticketing is its recent use outside of the airline industry-- the newest Ticketmaster/LiveNation partnership is exploring the efficacy of dynamic pricing for sporting events. Last year, an article in Sports Business Journal did a great job outlining the way that dynamic pricing works at the San Francisco Giants’ AT&T Park.

There are a couple of key sentences in this article that I wish to address as they pertain to the performing arts industry:

  • “Advanced software analyzes market conditions and determines a pricing recommendation that team executives can either accept, deny outright or tweak.” That’s the kicker: advanced software. I know that the biggest question is always: how can my organization do this? Non-profit performing arts organizations already face challenges being short on staff; the responsibility and complication of daily ticket price changes could be a full-time job in and of itself.

Analyzing the results of the 2011 Ticketing Software Satisfaction Survey, most respondents indicate that box office systems are either custom-built, cobbled together, or some of the solid, inexpensive options available to organizations. I went through and sent inquiries to the organizations listed in Amelia’s overview of the ticketing software survey results, as well as some others that respondents are using.

Unfortunately, at this time, nobody seems to have an easy-to-use “dynamic!” function in their software that makes it easy for an organization to alter prices without sending an actual staff member in to change them by hand each day. But the conversation is building in volume, and a few companies expressed that they can either design such a component for their clients, are looking into offering dynamic pricing in the future, or would like to know more about the demand for this function before they pursue including it in their products. (Just before posting this, I received the following from ProVenue: “We have no dynamic pricing customers in the UK as yet, however we do in the US. Please click on (this link) for details. We are looking to release in the UK sometime in the new year.” (I learned that ProVenue is part of the company that provides this model to the Giants. How accessible this component is for budgets that may be more modest than those of the Giants, however, is a question that I have yet to get a response to.)

  • “(S)hould a game get rained out, standard refund and exchange policies would apply. But if a fan pays a premium price to see a particular player, such as a starting pitcher, and that player doesn’t play, there is no refund.” This quotation makes me smile, because in the performing arts, understudies are just part of the game. It does beg the question, however: what if someone paid a price bump because of a certain headliner, and that artist’s understudy performs that night? Does the ticketholder get a refund of the difference? We are all familiar with understudies and what that can mean.
  • Perhaps the most universally applicable part of this article is the section “What’s the payoff?” As it outlines, “Dynamic pricing structures can provide significant cost savings for fans over original list prices for lower-demand games, and for teams, provide another means to help fill seats, generate additional concession revenue and potentially upsell that fan into a larger, future purchase. And for higher-demand games, dynamic pricing provides teams a revenue maximization tool to capitalize better on that heightened fan interest.” So actually, dynamic pricing could give us in the performing arts a real understanding of how our work is valued. We make a lot of guesses, some educated, some not, to try and figure out what the “best” price is for the work that we produce. Could dynamic pricing remove some of the mystery, and help us maximize both the number of tickets sold and the revenue generated?

Some may balk at the idea, as Diane Ragsdale does in this article on dynamic pricing in the non-profit sector. She quips, “Let’s call a spade a spade. Dynamic pricing is a method for maximizing profits….Suddenly increasing ticket prices in response to high demand, and selling ‘premium’ seats priced as high as people are willing to pay, strike me as questionable practices in a nonprofit organization.” What will it take for people to stop associating “non-profit” with “NO profit”? She likens dynamic pricing in the non-profit performing arts sector to soup kitchens charging for certain perks. What an unfortunate and offensive comparison. Non-profit arts organizations are businesses, regardless of their tax status or their primary sources of funding, and selling tickets is a fundamental component of what they do. Certainly, there are organizations whose missions might preclude them from dynamically pricing their tickets (e.g. “free art for all”), but there are others for which dynamic pricing could help generate more revenue (not a bad thing) and bring in more audience. As Lori Kleinerman of the Goodman Theatre remarks in her compelling talk on the Goodman’s use of variable and dynamic pricing, “We are aware of our civic responsibilities as a not-for-profit institution, so it’s important that we are accessible while still optimizing our income.”

There are many ways to apply dynamic pricing within the performing arts sector, and with more use some things may become evident.  It is possible that it is a practice best suited for venues that do not scale their houses, or best applied to the “nose-bleed” sections, or only effective for the blockbuster shows. Of course, the key word there is “possible.” As we lament the decline of ticket sales, the loss of revenue when we discount with programs like Groupon and LivingSocial, and the oh-so-onerous epidemic of last-minute-ticket-buyers, why not consider dynamic pricing as an alternative model for revenue generation?  After all, we may be “non-profits,” but that doesn’t mean that we aren’t subject to the supply and demand curves that drive for-profit business economics.