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A strategic market analysis prepared for Underwood Symphony Orchestra
Prepared by
Ruth Hartt
www.cultureforhire.com
Copyright © Culture for Hire LLC, 2024. All rights reserved.
This report and its content are protected by copyright law. Unauthorized reproduction, distribution, or use of any part of this report without prior written permission from Culture for Hire is strictly prohibited.
The information contained in this report is for the sole use of Underwood Symphony Orchestra and is not to be shared with or distributed to any third party.
This market analysis has been prepared for informational purposes only. While every effort has been made to ensure the accuracy of the data and analysis presented, Culture for Hire makes no warranties, express or implied, regarding the completeness or reliability of the information. Culture for Hire shall not be held responsible for any decisions made based on the content of this report.
Introduction..................................................................... page 4
Your Market Position....................................................... page 7
7 New Market Opportunities........................................... page 10
A. Wellness
B. Social Connection
C. Stress Management
D. Alternatives to AI
E. The Digital Detox
F. The Antidote to Online Dating
G. Support for Parents
Findings in Brief............................................................... page 16
Methodology.................................................................... page 17
3 Case Studies................................................................ page 18
Next Steps: The G-O-L-D Framework............................. page 25
Conclusion....................................................................... page 28
New Audiences: The Key to Sustainability
Understanding your current market dynamics, future market potential, and new market opportunities is essential for driving growth and ensuring sustainability at Underwood Symphony Orchestra.
Your AUDIENCE UNLOCKED report provides a comprehensive evaluation of the existing market position for Underwood Symphony Orchestra, alongside future projections based on sector-wide trends.
Additionally, it offers an in-depth analysis of potential growth opportunities across seven promising market segments that arts organizations have traditionally ignored, with actionable insights to help Underwood Symphony Orchestra embrace a more sustainable strategy for audience development.
Because despite our best efforts, the arts sector has been fighting a losing battle with the internet, social media, and streaming, seeing a steady decline in attendance since the 1980s.
According to the National Endowment for the Arts, classical music audiences have declined 65% since 1982, and opera audiences down a staggering 77%. Most disciplines aren't far behind:
These trends highlight the the urgency of reaching new audiences to ensure sustainability. Adopting customer-centric methods can reverse this trajectory, re-engaging lost audiences and reaching highly profitable new market segments.
From Products to Outcomes: The Key to Customer Centricity
This diversified approach draws on an innovation framework from the business world that illuminates what drives consumers: People don’t buy products; they buy outcomes.
By shifting from product-centric to outcome-centric strategies—focusing on the results their customers seek—countless organizations across industries have tapped into new market segments and significantly grown engagement and revenue. Arts organizations can do the same.
Take a look in Figure B at how many Americans are prioritizing outcomes like wellness, social connection, and stress relief. These figures reveal the strong demand for experiences that address these needs, offering organizations the chance to connect with new audiences through customer-centric strategies.
Here's the good news: The arts offer powerful solutions to these needs—we just need to frame our offerings around the outcomes people are seeking.
How impactful is this outcome-focused approach in practice? According to a recent Deloitte report1, companies that prioritize customer-centric strategies are 60% more profitable than those that don’t.
This imperative is underscored by the Institute for Corporate Productivity, which has closely studied high-performance organizations—those that consistently outperform their peers in key areas like revenue, profitability, and customer satisfaction. Their study2 confirms that a primary driver of success is a deeply embedded customer-centric culture.
Arts organizations have traditionally centered the product and the artist in their strategy. But as the sector faces steep declines, adopting these customer-centric methods can provide a significant advantage with a simple pivot: Keep the product—but start highlighting the outcomes it provides.
Here’s the bottom line: Aligning your strategies with your target audience’s needs and desires drives substantial financial rewards. Let’s explore how Underwood Symphony Orchestra can harness these insights to secure its future success, grow audience engagement, and increase revenue.
The following analysis draws on data from the National Endowment for the Arts' Survey for Public Participation in the Arts, as well as negative substitution data from IMPACTS Experience.
Your Share of the Market
Based on the NEA's 2022 Survey for Public Participation in the Arts, the estimated market size for the classical music experience in Greater New York City is 161,000 people (that's 4.60% of your 3,500,000 population.) With 12,000 annual attendees, Underwood Symphony Orchestra has captured 7.45% of this market.
Your region's population | Participation rate for classical music | Market size for classical music in Greater New York City | Your total annual attendees | Your market share |
3,500,000 | 4.60% | 161,000 | 12,000 | 7.45% |
You're operating in a high-density market with numerous competitors. This suggests that there may be limited potential to grow your market share in the traditional sense—by appealing to the consumers in Greater New York City who are already interested in the classical music experience.
Market density in Greater New York City | Number of competitors | Your market share | Growth potential |
high-density | 7-9+ | 7.45% | limited |
Negative Substitution: Forecasting the Tipping Point for Your Sector
While it may be tempting to focus on capturing more of the existing classical music market, it’s crucial to recognize that industry trends indicate a shift in audience preferences and behaviors that could undermine traditional strategies.
The truth is, your sector has long been losing patrons faster than they can be replaced. Research at IMPACTS Experience shows negative substitution3 across all disciplines, underscoring the urgent need to cultivate new audiences who are vital for sustainability.
For performance-based organizations across the U.S., the current negative substitution rate stands at 0.904. That’s a 9.60% annual reduction. At this rate, the sector is projected to lose 50% of its patron base in approximately 7 years. (See Figures B and C.)
Negative subsitution rate for performance-based sector | Annual reduction rate for performance-based sector | 50% patron base loss forecast for performance-based sector |
0.904 | 9.60% | 7 years from now |
While this projection seems dire, it offers Underwood Symphony Orchestra a powerful opportunity to innovate, adapt, and emerge stronger than ever.
A New Approach
Like most arts organizations, you are likely restricting your reach to Insiders with traditional, product-centric marketing. Meaning, you're primarily targeting individuals who already have a strong interest in the classical music experience, rather than expanding your outreach to new audiences who may not yet realize the relevance your organization can offer.
This represents a missed opportunity to capitalize on new revenue streams and engage broader audiences. Showcasing the tangible outcomes that the classical music experience offers widens your market, revealing an entirely different set of competitors and a totally new segment of consumers to pursue.
The following analysis draws on research from McKinsey, the American Psychiatric Association, Pew Research, the American Psychological Association, and YouGov.
While this report highlights significant audience growth opportunities, realizing these outcomes will depend on your organization’s ability to implement customer-centric strategies, alongside factors like market conditions and audience engagement. These projections should be seen as part of a larger strategic initiative, not as guarantees.
|
Wellne ss mar ket in Great er New York City | Potential new patron s seeking wellness o utcomes (1% mark et share ) | Your a verage ticke t pric e | Potenti al new revenue |
2,870 ,000 | 28, 700 | $4 0 | 861, 000 |
Social co nnection market in Greater New York City | Potential new patron s seeking social con nection ou tcomes (1% mark et share ) | Your a verage ticke t pric e | Potenti al new revenue |
1,050 ,000 | 10, 500 | $4 0 | $315 ,000 |
Stress r eduction market in Great er New Y ork City | Potential new patr ons seeki ng stress reductio n outcome s (1% mark et share ) | Your aver age ticke t price | Potenti al new revenue |
840, 000 | 8,4 00 | $4 0 | $336 ,000 |
Alterna tives t o AI ma rket in Greate r New Y ork Cit y | Potential new patron s seeking alternativ es to AI (1% mark et share ) | Your aver age ticke t price | Potenti al new revenue |
1,820 ,000 | 18, 200 | $4 0 | $728 ,000 |
Digita l deto x mark et in Greate r New York C ity | Potentia l new pa trons se eking di gital de tox (1% mark et share ) | Your averag e ticket pr ice | Potenti al new revenue |
1,085 ,000 | 10,8 50 | $4 0 | $434 ,000 |
Alternat ive to o nline da ting mar ket in G reater N ew York City | Potential new patron s seeking dating alt ernatives (1% mark et share ) | Your averag e ticket pr ice | Potenti al new revenue |
1,750 ,000 | 17, 500 | $4 0 | $700 ,000 |
Parent a nd famil y suppor t market in Grea ter New York Cit y | Potentia l new pa trons se eking fa mily-fri endly ac tivities (1% mark et share ) | Your averag e ticket pr ice | Potenti al new revenue |
1,015 ,000 | 10,1 50 | $4 0 | $406 ,000 |
Market share | 7.4 5% |
Market densi ty | high- densi ty |
Growth potential in the tra ditional, product-centric c lassical music market* | lim ite d |
Annual rate of decline in the performance-base d sector~ | 9. 60% |
Forecasted tipping point (50% loss of patron bas e) in the performance-ba sed sector | 7 years from now |
Market Opp ortunities + |
|
|
Well ness | 28, 700 | $861 ,000 |
Social C onnectio n | 10, 500 | $315 ,000 |
Stress Ma nagement | 8,4 00 | $336 ,000 |
Alterna tives t o AI | 18, 200 | $728 ,000 |
Digita l Deto x | 10, 850 | $434 ,000 |
Antidote to Online Dat ing | 17, 500 | $700 ,000 |
Parent Support | 10, 150 | $406 ,000 |
AUDIENCE UNLOCKED is grounded in a rigorous data-driven approach. To estimate the market size in your region, discipline-specific participation rates derived from the National Endowment for the Arts were multiplied by the total population in the region you serve, yielding a clear picture of your potential audience.
To determine the current market share, the proportion of the total market represented by annual attendance figures was calculated. For each new market opportunity (such as wellness, social connection, and stress management), data from highly reputable sources—including McKinsey, Pew Research, and other industry benchmarks—was leveraged to estimate total market size.
The 1% market capture rate was employed as a conservative projection, offering a cautious yet realistic estimate of the audience you could potentially engage. This figure was calculated by taking 1% of the total market size for each new opportunity.
Finally, potential additional revenue was estimated by multiplying your average ticket price by the 1% market capture.
Key Assumptions
I assumed a stable market environment and consistent audience behavior over the coming year, with no significant disruptions such as economic downturns or major shifts in consumer preferences.
The average ticket price of $30 reflects a baseline benchmark, with the understanding that organizations may adjust based on their own ticketing strategies.
Limitations
This analysis is based on currently available data and trends, and while I have taken steps to ensure the accuracy of these projections, actual outcomes may vary based on regional differences, changing market conditions, or shifts in audience preferences.
In the following section, we’ll explore case studies from organizations that have applied these principles to real-world challenges, demonstrating how aligning with audience needs and delivering meaningful experiences can lead to significant growth and sustainability.
Background
Ballet Austin, founded in 1956, is renowned for its mission of providing innovation and excellence in performance and education. In 2007, they moved into a new home with eight studios, doubling their original space, which required the exploration of new revenue streams to sustain operations.
The Challenge
The expanded facilities left Ballet Austin with off-hours during which their studios were underutilized, and they needed to find a way to generate revenue to offset the costs of the additional space.
The Solution
Ballet Austin experimented with offering adult dance classes during off-hours, which quickly sold out. Based on this success, they expanded their class offerings to include ballet, barre, tap, hip-hop, and Pilates. Currently, they host 60 adult dance and fitness classes per week, attracting over 12,000 adults annually. Recognizing a community need for well-being, they further developed initiatives like Pink Pilates for breast cancer survivors, monthly food drives, and B-Well, an online well-being toolkit. This focus on well-being prompted a mission update to include fostering health and well-being through dance.
The Results
This strategic pivot created a virtuous circle, combining both social and economic value. By aligning their offerings with the well-being needs of their community, Ballet Austin achieved the highest revenue and attendance in their 65-year history. Their emphasis on health and well-being has become central to their identity, solidifying their role as both a cultural and wellness resource.
Source: “Be Well”, a keynote address given by Tessitura Network’s Andrew Recinos. Watch here.
From Insight to Action
The G-O-L-D framework is my step-by-step guide to help arts organizations align strategies with audience needs, driving sustainable growth and a customer-centric transformation. These strategic actions guide audience-centered decisions for growth in a changing arts landscape.
|
Unity,
It’s natural to feel some concern in this rapidly changing landscape, but there’s also great potential to seize new opportunities. Your awareness of these shifts puts you in a strong position to make informed decisions and guide your organization toward stability.
Your market analysis highlights the significant opportunities that exist for expanding Underwood Symphony Orchestra's audience base by shifting to outcome-focused, customer-centric strategies. Each of these areas represents a unique opportunity to align your offerings with the outcomes that people value most in their lives.
This is your chance to rewrite the narrative of what Underwood Symphony Orchestra can be. Use this report as inspiration to start getting to know your target audiences better, and start positioning your classical music offerings as a powerful solution in their lives.
I salute your dedication to the arts and your openness to exploring a bold new approach to audience building. Let's unlock Underwood Symphony Orchestra's full potential and ensure its lasting success!
Warm regards,
Ruth Hartt
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