New funding initiatives among recommendations for ensuring future of performing arts sector
Melanie May | 23 January 2025 | News
New funding initiatives including a match fund are among recommendations for ensuring the long-term resilience and sustainability of the performing arts sector, set out in a new research report from the National Theatre.
The report, Scene Change: Optimising business model innovation in the performing arts, looks at at performing arts business models: how they operate, the value they deliver, and the challenges they face; and examines how new approaches could help organisations create greater economic and social value.
A nine-month research project, commissioned by the National Theatre and delivered in partnership with the Intelligence Agency and Erskine Analysis, the work included data analysis, surveys, bilateral meetings, and interviews with more than 140 organisations of all sizes across the country. It was overseen by an external research advisory group, comprised of leaders and experts from industry, policy, research and funding organisations, and chaired by Sir Damon Buffini, Chair of the National Theatre board.
Advertisement
92% of respondents to the study said undertaking business model innovation is important to their organisation’s future, and the study identified five prevailing business models in the sector that the report says offer ‘unique strengths and opportunities for transformation through tailored interventions’.
Recommendations for match & innovation funds
The report includes a series of measures that the sector can implement alongside advocating for other interventions and funding initiatives with recommendations for the sector, its partners, and policymakers. Among them is for partners of the sector to create a ‘once-in-a-generation’ match fund to drive long-term sustainability and decarbonisation in the arts through capital investment. Recommendations for policymakers include introducing an Arts Business Model Innovation Fund to provide seed funds to pilot new ideas and approaches.
Recommendations for the sector itself include boosting technological capacity by creating the sector’s first ‘Technology Roadmap’, and unlocking new opportunities for cost saving and revenue generation through a series of sector-authored playbooks.
Sir Damon Buffini said:
“The National Theatre, like many other publicly funded performing arts organisations, has a complex business model and over the last decade, we have developed and grown our programme and income streams to better achieve our mission, to increase impact for audiences and communities around the UK, and to take advantage of new technologies.
“Given economic headwinds and a challenging fiscal outlook over the coming years, it is more important than ever that policy makers and arts leaders fully understand the effective and sustainable business models available for performing arts organisations and their potential. We commissioned this research to help shape policy that supports performing arts organisations to deliver efficiently and that directs funding where it has the greatest impact.
“By investing in a deeper examination of these models, our aim with this sector-leading research is to foster a more sustainable and equitable ecosystem that supports both innovation and accessibility. We hope that our recommendations help people working in the industry, funders, and policy makers to strengthen the sector and drive real change, together.”
Andrea Sullivan, International Executive, Head of Social and Environment Group at Bank of America, commented:
“We welcome this research from the National Theatre, which provides important insights into how business model innovation can strengthen the performing arts sector. The mutually supportive relationship between public arts organisations and corporate partners is essential to fostering a resilient and thriving creative ecosystem. This study’s systemic approach to innovation and its recommendations for collaboration across sectors will help us work together to ensure the long-term sustainability and continued impact of the arts, benefiting both the cultural and economic fabric of society.”
New research strategy
Scene Change is the first research piece commissioned under the National Theatre’s new research strategy. Each year, the National Theatre plans to undertake an agenda-setting piece of research to support, through evidence-based arguments, the development of industry, economic and policy needs of the performing arts sector.
The National Theatre and research team will be running sessions for arts organisations to discuss the recommendations of the research and how they can help futureproof the sector.
About Melanie May
Melanie May is a journalist and copywriter specialising in writing both for and about the charity and marketing services sectors since 2001. She can be reached via thepurplepim.com.