Wednesday, November 12, 2008

How America Failed Theater: Theater from a Business Perspective

How America Failed Theater: A capitalist marketing perspective on theater's socioeconomic role in American life.

In case you're not convinced that it's essentially impossible to make money as a theater blogger, try this experiment. First, watch this video by online media guru Gary Vaynerchuk:




Now, take Gary V's suggestion and apply it to theater blogging. First, google "theater" and see what Google Adwords come up with. You'll likely get a lot of results on movie theaters or home theaters; perhaps the term is too general. So search for New York theater. When you do this, you'll get a lot of websites of individual theaters themselves, and maybe a few other publications. Search for "regional theater," and you'll get the same, as you probably will for any city you happen to live in. The only other results I got were for vacation and ticket services. This is probably the best option for advertising, but keep in mind the majority of the desired audience of these sites are out-of-towners whose interest in theater doesn't go all that far out of The Little Mermaid or Wicked. They're not going to be all that interested in your Brechtian analysis of some way off-off-Broadway show.

In Gary V's video, the way to make money off your blog is to call up these people and get them to advertise on your blog. Of course, most theater people are introverts, and get clamped up at the prospect of cold calling. But besides that, if you're focus is being critical and editorial, there's simply no way you can court advertisements from individual theaters and claim to have independent critical judgment. If you were going to get advertising from these sources, you'd need someone else who works on your website for strictly advertising purposes. For smaller theater publications, and especially theater blogs, that's a virtual impossibility. Even if you could get someone to do it, the amount of time you'd need to invest wouldn't be worth the minimal results you'd probably get.

From a marketing perspective, it shows the limits of niche marketing, even though theater isn't by any means the smallest niche to try to make a profit. Within the theatrical community, however, there are two main factors keeping these kind of marketing strategies from succeeding. For one, theater is based more around a sense of community. Any show produced or artist supported by a theater is seen as more of a means of adding something to the theatrical discussion. Unless you're making something like The Little Mermaid, it is not seen primarily as a revenue stream (even if profit is still in the back of your mind).

Secondly, in the case of individual theaters as possible advertisers, it is impossible to extract the product of the theater (be it talent, show, or community) from the theater that's producing it. If you're selling beer, you're almost always selling someone else's beer. From a business perspective, you have no emotional attachment to the brand of beer you're selling, even if you have a weird beer specialty market. In theater, the product your selling is inherently produced by your own personal labor and belongs to the individual laborers who produce it. Do you know anyone who buys Budweiser from Anheuser-Busch directly? Or for an off-off Broadway parallel, you can't even buy Summit Ale from the Summit Brewing Company online store.

In How Theater Failed America, Mike Daisey spoke of contemporary American theater submitting to the American capitalistic system of constant competition, fear of failure, and an artistically counterproductive need to make theater marketable to a stable audience. Tom Stoppard spoke of this just last night. Tony Adams recently talked about how theater don't focus on content anymore. Scott Walters has fought for artistic emphasis constantly. The consensus seems to be that this is a recent, troublesome development. Daisey suggested that a better title for his show would have been "How Theater Became America."

Yet, from the capitalistic perspective that these sources lament, the Gary Vaynerchuks of the world, theater is still a hopelessly unmarketable faux-commodity, one that flies in the face of long-term financial stability, and maintains a system of ethics entirely outside of that of American capitalism. From this perspective, theater still seems like something you do in spite of your desire to make a living. Whether it be theater's Marxist heritage or the nature of the artistic endeavor in general, success in theater is an entirely different mindset from success in business. The standards for good theater (artistic excellence) are wildly different from that of normal business marketing (ROI, profit).

If you're in theater, even using the term "commodity" in referring to theater will make you cringe. Yet, the fact that this cringe is nearly universal is a unique thing to theater, in terms of business and even in terms of the arts. Technologically reproducible art, be it film, music, fine art or literature, have all become dominated by a top-down big business structure to various degrees (the high art/low art distinction be damned). Theater can be top-down too, especially in New York (less so in Chicago or London). But despite the stereotypes of the Broadway producer, theater still exists on an immensely smaller business scale than just about any other form of art in the country. For all the complaining of theater's increasing commercialization and commodification, theater simply does not exist in the same financial stratosphere as any other form of art, even at its highest level. Some people who do theater are rich, but virtually no one gets rich—and I mean really rich, megamillionaire style—purely from theater itself.

As a result, theater has more of a focus on artistic excellence over profit than almost anything else in our culture. No matter what you think of the current strength of American theater, that's an enviable position for any artist to be in from an aesthetic standpoint. The downside is thatit's much harder to make a good living in theater. Of course, that's a tradeoff virtually every theater artist is willing to make.

But at the same time, most people in theater have problems with the notion of the majority theater artists having to live in poverty. As much was we like to romanticize the notion of a community of financially stable theater practicioners, without a wide-ranging income spectrum that includes the (relative) ultra-rich and ultra-poor, you simply cannot reconcile theater with the free market capitalist system that we currently live in. The Cold War proved that this liberal capitalist system is ultimately the most sustainable from a global economic perspective. By no means does that mean theater has no value in America—it may even give it more value simply precisely because it is so different. But again, what that means is that theater, at its core, has and will always run in spite of the larger socioeconomic spectrum of a capitalist society. If you go into theater, you better only want to make a sustainable living, or else you're screwed. No one should have to live in poverty. But poverty for some is virtually inevitable, and that rate will inevitably be higher a large-scale community that does not conform to the liberal democratic capitalist system. Communities like that national theater community we all strive for.


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12 Comments:

At Wed Nov 12, 12:24:00 PM EST , Blogger Tony Adams said...

I think two quick thoughts that leap to my mind are:

to take off from Gary, before it can be monetized it has to be worth talking about.

Or in his example, before talking money he has to get folks going to that site regularly. Which comes back to artistic excellence.

If the work isn't good enough, to some extent, it doesn't matter what the business model is. There will never be ROI for crap. There used to be, but that era is over for pretty much all industries.

But I think also a big flaw in a lot of thinking is that non-profit theatres are not businesses.

They are charities, and as such need a completely different mindset than business. Charitable organizations should not try function like a capitalist market.

But a lot of organizations I know get into trouble trying to be both. Buy, Sell and Market like a business, but with fundraising and accounting (and don't forget tax breaks) like a charity.

We've been trying to have it both ways for a long time now. Which only seems to exacerbate many of the problems a lot of organizations face.

my $.02

 
At Wed Nov 12, 01:38:00 PM EST , Blogger Scott Walters said...

If by "charity" Tony means "social sector," then I agree totally. What differentiates a business from an arts organization is that a business has only one bottom line: profit or loss. An organization in the social sector has multiple bottom lines -- in the arts, at least three: profit, aesthetic quality, and social impact.

The problem with Mr Vanerchuk's monetization plan for a theatre blog is that the internet is an international market, the theatre is a local market. So should the North Carolina Stage Company, which is a great theatre in my town of Asheville NC, buys ads on my site? Not if they look at my stats, which shows that most of my traffic comes from out-of-state. A NYC blogger might do better, however.

The basic argument that you are making -- that theatre is NOT a commodity -- is sound. Everyone, including (and perhaps especially) artists, tend to think of it as a commodity -- we do "productions" -- when it is actually an experience, and a localized experience at that.

I agree with Tony's evaluation: it is hard to sell an experience that is mediocre, and far too much theatre is just that.

However, I would also argue that the business model we have right now, especially its emphasis on metropolitan areas, is financially unworkable. The inability to make a living that you note may, in fact, be predicated on an inability to reconceive the way we scale our theatres and the way we conceive our audience, not mention that way we define our roles as artists.

Obama's slogan was "Change we can believe in." That first word is something theatre people need to more deeply internalize.

 
At Wed Nov 12, 01:48:00 PM EST , Blogger Tony Adams said...

Just to be clear I meant charity, not social sector. Section 501c3 of the code is pretty clear on the definition of a charitable organization.

So by definition, any 501c3 organization is a charity.

But I do think that a question that goes unasked far too often is: should this group be a charitable organization?

Along with the ability to fundraise and the tax breaks, there are more than enough challenges in the 501c3 model that shouldat least give one a pause for thought before forming a charitable org.

 
At Wed Nov 12, 02:10:00 PM EST , Blogger Ethan Stanislawski said...

I agree that the non-profit sector and the business sector often get confused, though the reasons why so much of theater is non-profit is part of my larger point about theater existing outside the capitalist sphere. The real significance is how stunning it is how un-businesslike most people view theater. The large number of non-profit theaters is a product of that viewpoint more than a cause.

 
At Wed Nov 12, 02:52:00 PM EST , Blogger Scott Walters said...

I think -- and I may be wrong -- but I think 501(c)3 means it is a non-profit organization, which allows it to accept donations while offering a tax write-off. The business sector - social sector is the broad way of dividing the world between for-profit and not-for-profit. It's a technicality, but important in that to get the 501(c)3 designation you are saying that you are contributing to society in some way.

Ethan -- I'd say that most of the established non-profit theatres are pretty much aware of the business aspects, and have learned them in order to survive. Whether independent theatre are quite as aware is certainly arguable. The corporate theatres that Mike Daisey and I have complained about, however, share many of the same characteristics of a for-profit business, including a steep hierarchical organizational structure and the habit of underpaying their workers.

 
At Fri Nov 14, 11:53:00 AM EST , Blogger MK Piatkowski said...

The real significance is how stunning it is how un-businesslike most people view theater. The large number of non-profit theaters is a product of that viewpoint more than a cause.
I'd disagree with that. When I first started producing theatre, I chose a for-profit model. However, it became painfully apparent to me that to do the type of work I wanted to do, a not-for-profit structure gave me more access to funds than a profit model did. It's the question of scale.

Having said that, I also don't believe that poverty is inevitable. That same scale can provide for a decent living, provided the work is good, which I think is what Scott is trying to say. We may not be able to call up advertisers as Gary V suggests, but we can build word-of-mouth, which is the true currency in the theatre world. And that's the real reason to blog, in my opinion.

 
At Fri Nov 14, 04:22:00 PM EST , Blogger Rex Winsome said...

Another beautiful post. "you simply cannot reconcile theater with the free market capitalist system that we currently live in."

Absolutely, and statist alternatives (501(c)3) are an even worse match in the long run. This is the reason that experiential "products" like theatre and live music have the potential to create and expand a new economic mode of production, neither capitalist, nor statist. isn't that exciting?

The only thing about it is, everytime we start talking about this kind of thing and i start getting excited, there's a chorus of people saying (to paraphrase half a dozen of you "you'll make it in the mixed (statist and capitalist) economy, if the quality is there."

Well, I don't wanna make it in the mixed economy, i wanna make it in the new economy, and the pioneers i've gotta follow are the musicians that created the new economy. Which means, punk rock, and before that, rock n roll, both of which we're initially despised for lack of "quality". You people confuse "quality" with "polish" and when you do, you overlook punk rock theatre, and Peter Brook's "rough theatre" even though it's very possible that this is the theatre of the future. Or, more importantly, the future of theatre.

 
At Fri Nov 14, 05:03:00 PM EST , Blogger Ethan Stanislawski said...

mk,
My larger point was that theater people are generally allergic to number crunching let alone capitalism; the only way they can relate to modern economics is through a David Mamet play :). But I do agree that WoM is probably better for theater; of course, I'd like to think that my purpose as a critic is to be more than just a marketer.

Rex,
I appreciate the sentiment, and the introduction of punk rock to the table, but i think you confuse the economy of theater with the economy in general. it will take a much larger shift of society to create a new model of an economy than something as little as theater or the arts can accomplish. Whether or not artists can create a new economic model for themselves is another story, but I don't think they can exist as a minority in a country with a vastly different economy and still succeed when their revenue is still essentially dependent on lawyers, doctors, and bankers who see their shows.

 
At Sat Nov 15, 12:33:00 PM EST , Blogger Rex Winsome said...

Ethan, you raise good points, but it doesn't need to be that way. The right kind of theatre can thrive on incredibly light capitalization, look at punk rock bands. Not Greenday, real punk bands. and "punk" doesn't mean a genre of music, it means a lifestyle.

Here, i've got an experiment similar to the one in the video you posted, but without the obnoxious handmotions. Go to myspace, search for a musician or a band you like, someone slightly, or vaguely "indie". [the white stripes] Okay, now look at their "friends" list, choose one you've never heard of, someone that looks like a band, or a record label, not an individual. [the greenhornes] now do it again [mush records] and again [lymbyc system] by now you're likely into the realm of a tiny indie label or artist. Very possibly someone doing experimental unmarketable work.

Now look around on their page, i bet they're playing a bunch of shows. I bet they've got one or two albums out, other merch, all kinds of ways for their fans to support them. Do this a couple more times, look at the venues these people are playing. Look at the bands they're playing with, the cities they're playing in. You'll realize how massive and diverse the anti-capitalist music community is.

Artists ARE finding ways of sustaining themselves on the experiential economy, without heavy capitalization or government support. I can't think of a more likely way to see a "much larger shift of society to create a new model of an economy" getting started than this.

 
At Sat Nov 15, 12:37:00 PM EST , Blogger Scott Walters said...

"i bet they're playing a bunch of shows. I bet they've got one or two albums out, other merch, all kinds of ways for their fans to support them. Do this a couple more times, look at the venues these people are playing. Look at the bands they're playing with, the cities they're playing in. You'll realize how massive and diverse the anti-capitalist music community is."

Merchandise? Albums? Concerts selling tickets? And this is "anti-capitalist" in what way, exactly? What this actually is is small business. And that's great -- I wish theatre people would start thinking in terms of small business. But it isn't anti-capitalist, unless I'm missing something in the definition of capitalist.

 
At Mon Nov 17, 06:28:00 PM EST , Blogger Rex Winsome said...

Yes, scott, you are missing something in the definition of "capitalist" you are missing the capitalists.

The artists are often receiving the full product of their labor directly from the consumer. When they aren't it's because of transaction fees through the internet. Which is a charge for a service, not the appropriation of surplus value that defines capitalism.

 
At Mon Nov 17, 07:34:00 PM EST , Blogger Scott Walters said...

OK, Rex, NOW I understand more clearly. Seriously. The issue is not the sale of goods, but rather who owns the means of production. You know, sometimes I think I am a total idiot.

 

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