Britt's 2008 Season Ends with Artistic and Popular Success; Likely to Have an Operating Deficit
Posted Oct 02, 2008 at 09:08 AM in General
Open letter from Britt Festivals Executive Director Rick Hood
With The Black Crowes performance on September 7, we closed another exciting Britt Festivals season. The 2008 season included 43 performances, and our total attendance was approximately 69,000, which was about 17% higher than in 2007. Last year, we heard your requests for a strong lineup in 2008, and we delivered with concerts like Bonnie Raitt, Crosby Stills & Nash, the Britt Orchestra with Midori, Mark Knopfler, Billy Idol, Return to Forever, Wynton Marsalis and much more.
While we celebrate those successes, we also must acknowledge that Britt is operating in the midst of a rapidly-changing industry. Artists are relying on tours for a larger part of their income, due in part to the way electronic music downloads have affected traditional record sales. As a result, artist fees have skyrocketed. In 2008, our artist fees were about 33% higher than in 2007, making the total amount we paid in artist fees the highest in our history.
The confluence of industry changes, high artist fees, and the current economic climate has affected our ability to cover operating expenses in 2007 and 2008. At this point, we’re projecting that our 2008 year-end deficit will come to about 11% of our budgeted revenues.
While this is serious news, we are fortunate in that Britt remains a well-capitalized organization, thanks to a history of frugal fiscal management. We have financial reserves and a growing endowment in place.
As a non-profit organization, ticket sales only cover about 65% of our operating costs. The balance comes from memberships, corporate sponsorships and other contributed income.
We are at a crucial point in Britt’s history, and we are reviewing every aspect of our business to ensure that we remain an integral part of the landscape in southern Oregon. We are conducting surveys, and are developing new ways of looking at membership, programming, audience development and institutional giving. We encourage you to talk to us as well--post comments here on our web site, participate in surveys and let us know how we can continue to serve you. Your feedback is important as we plan for the 2009 season.
Thanks for all you do to make Britt one of the best things about southern Oregon. We look forward to providing you another great lineup of concerts and educational programs in 2009.
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Comments:
Thanks for the timely update. I feel that a prudent approach for finances at Britt would be decreasing a number of the concerts, esp. the “borderline” type groups that really appeal to only a small audience instead of trying to have too many concerts each season appealing to all audiences. Additionally, what percent of the overhead for each concert is spent on the preliminary groups? They are rarely a popular attraction and seem to be a waste of money. They certainly must not help in ticket sales because generally a member does not know very far in advance who is performing-it is usually TBA. Shakespeare seems to have increased attendance with ‘discount” type tickets released the week of some plays that aren’t filled to capacity. This may be something to consider for local patrons that are members of the Britt Society. Ticket prices are many times much more reasonable than for the same concerts at other venues. Perhaps a revision of ticket prices to reflect more the costs of the concert would be in order.(65% seems low )
Thanks for reading my opinions.
Gary Klouda In response to the previous comments, I do have to stick up for Britt’s current practices and say that I think eliminating “borderline†type performances is the wrong direction to take things, as would be eliminating opening acts. Part of what makes Britt unique and special are the performances by lesser known or non-blockbuster acts. That has always been a part of Britt’s history and I think it would be a detriment to the long-term mission of the organization to whittle its programming down to only those shows that will sell the most tickets. All arts organizations struggle with the balance between shows that sell well and shows that exhibit a high level of artistic integrity. Unfortunately, it’s not often enough that acts meet both of those criteria. As a non-profit organization committed to bringing the best of the performing arts to the Rogue Valley I think that Britt has done an exceptional job of striking that balance. Furthermore, the highest artist fees and production costs are often associated with the largest shows, so programming that focuses primarily on blockbusters will not necessarily have a positive effect on the bottom line.
In terms of opening acts, while they are not often the primary draw for patrons, openers provide a critical role for most arts organizations in that they create a natural break in the evening when ticket buyers visit concessions and merchandise booths – important sources of income for any concert venue. Additionally, it is a value-added benefit to patrons, creating a longer evening at relatively little cost to the venue.
I think the idea of discount programs and subscription services are always a good option to consider, although tricky to implement and I’m not sure that they would provide substantive benefits to Britt’s income.
I do believe that Britt’s assessment of the shortfall in income is in line with nonprofit arts organizations across the country, all of which have been hit with extreme increases in artist fees to cover higher touring costs. Any arts organization that generates at least 60% of its operating costs from earned income is healthy and normal. Raising ticket prices to reflect the true cost of producing shows would contradict the mission of the organization and, equally damaging, would likely result in declining ticket sales and consequently declines in earned income.
Thanks,
Rachel Kramer
Former Britt Employee, currently with Wolf Trap Foundation for the Performing Arts Thanks for your thoughtful comments, Gary and Rachel. Because Britt is a “mission-basedâ€:http://www.brittfest.org/missionandgoals non-profit organization, our programming is not exclusively based on what will bring in the most revenue. We are committed to providing a wide range of performances to serve a variety of audiences.
Oregon Shakespeare Festival and Britt are both cultural gems in our region. However, the art forms we offer, along with the length of our seasons and frequency of performances, present different opportunities and challenges when it comes to serving the community.
In terms of our overall revenue, as a performing arts non-profit organization, Britt relies on both ticket revenue and contributed income to cover operating costs. If we relied solely on ticket sales, those ticket prices would be much higher than they are currently. We are continually evaluating our business to see what mix of contributed and ticket income is the most sustainable for Britt and our patrons.
Sara King Cole, Britt Festivals We thoroughly enjoy an evening at Britt. Therefore, we are very pleased to mail you a check in support of your organization. All you need is much more financial support—beyond memberships—from those who’ve enjoy all that Britt has to offer. If we want this gem to thrive in our community, let’s dig deep in our pockets and support it even more.
Bob and Daphne Many thanks, Bob and Daphne, for your insights and support!
Rick Hood, Executive Director Login to your Club Britt account to leave a comment
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