tailieunhanh - The Economic Environment of American Symphony Orchestras

In spring 2009, a group of ARL directors came together to discuss a common set of challenges and opportunities facing university libraries and identify some shared strategies for responding to them. A number of circumstances were converging that appeared to offer some potential relief from critical space pressures in the library and the increasingly burdensome operations associated with managing a large local inventory of low-use print collections. The seemingly imminent resolution of the Google Book Search settlement was an important motivating factor: academic libraries were confronting the prospect, at once daunting and liberating, of licensed access to a massive aggregation. | REPORT TO ANDREW W. MELLON FOUNDATION The Economic Environment of American Symphony Orchestras Robert J. Flanagan Graduate School of Business Stanford University Stanford CA 94305 flanagan robert@gsb. March 2008 Robert J. Flanagan Table of Contents Acknowledgements iv Executive Summary v I. Historical Perspective on Symphony Economics 3 II. Symphony Orchestra Finances 5 Exhibit 1. Model of orchestra revenues and expenses 7 III. Overview of Recent Developments 8 Graph 1. Attendance per concert 11 Graph 2. Performance income gap 13 Graph 3. Symphony expenses and the producer prices 14 Graph 4. Private contributions 16 Graph 5. Government support 17 Graph 6. Distribution of symphony revenues 1987 and 2000 18 Graph 7. Distribution of total expenses 1987 and 2000 20 Graph 8. Overall financial balance 21 IV. Trends and Cycles in Orchestra Finances 23 V. Concert Attendance 31 Exhibit 2. Public participation in the arts 34 Exhibit 3. Consumption of broadcasts and recordings of performing arts 49 VI. Artistic costs 51 Graph 9. Musicians salaries and consumer prices 53 VII. Private and public support for symphony orchestras 55 VIII. Endowment 66 Exhibit 4. Returns and Draws on Endowment 68 Exhibit 5. Endowment Required to Offset Performance Income Gap 70 IX. Conclusions 71 References 78 ii Appendix A. The sample of symphony orchestras 80 Table A1. Sample orchestras and data availability 81 Appendix B. Data from other performing arts 84 Appendix C. Cycle and trend analyses of symphony finances 85 Table C1. Effects of Cycle and Trend on Symphony Orchestra Finances 88 Appendix D. Statistical analyses of concert attendance and external support 89 Table D1. Regression analysis of regular season concert attendance 91 Table D2. Regression analysis of pops concert attendance 92 Table D3 Regression analysis of external support 96 Table D4 Regression analysis of competition from opera companies 97 .