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Championing a Sound Investment

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Championing a Sound Investment A Sound Investment The mixed economy model of UK orchestras Foreword 1 2 The first part of this briefing looks at It has never been more important for If they don’t sustain the quality of their British orchestras are world-leaders. Attracting the best how the mixed economy model works orchestras to demonstrate that they output, then they won’t be invited in detail: really do deliver and add value for the on international tours, or be offered conductors and players, pioneering new music and new sums of money that are invested in them. lucrative recording deals. And it may be • How orchestras use the public Public finances are extremely tight, the more difficult for them to attract private investment they receive to lever approaches to the live experience, developing innovative amount of money available in the private donors. Many smaller orchestras have in significantly more resources from sector is limited, and consumers are exceptionally strong relationships with other sectors. For every one pound education programmes and reaching more people in more understandably choosy about where, their funders and supporters. It is very of taxpayers money invested in British when and how they spend on cultural important for the sector as a whole that orchestras, another £2 is generated areas than ever before, their impact continues to grow. and leisure activities. this philanthropic funding continues to from other sources. find its way through to the widest range The funding model that British orchestras Underpinning their success is a mixed economy model that • How orchestras work with private of orchestras and does not become have developed is flexible enough to givers – individuals, charitable trusts concentrated amongst the bigger players. help them withstand the pressures that utilises a combination of public and private investment, and businesses – using their donations this environment is creating. Importantly, So the balance of the model is crucial to and gifts in kind to innovate, reach out it does not leave them over reliant on its success, as is the interdependence of alongside income that orchestras earn themselves, to new audiences and showcase world investment returns – which has created each of the funding streams. Put simply, class musicians and performances. to drive their work. problems for some US orchestras; nor the investments made from each of the • How orchestras are earning income does it leave them as heavily dependent sources are together worth more than the for themselves from ticket sales, on the state as orchestras in continental sum of their parts. commissions, CD and downloads, Europe, at a time when subsidy is likely A Sound Investment is packed with international touring and other to be constrained. examples of how orchestras combine commercial partnerships all to ensure But it is a delicate ecology: too deep the various sources of funding to deliver the widest possible audience gets the a cut in any of the streams – and in their work. chance to experience music at its best. particular in public funding - will impact on an orchestra’s ability to earn income. 3 4 The briefing also describes how orchestras working in local schools, to help children from the sale of a CD, download or are innovating to earn income for better learn and understand music; or concert ticket. themselves. Orchestras are touring more, in community projects, supporting work We hope that A Sound Investment shows showcasing British excellence overseas. from health to community care. how the breadth of activity in which Public 35% Not only does this open up opportunities Local authorities make these investments orchestras are engaged is effectively for new investment from other countries, because they know what orchestras geared at keeping them sustainable. it extends their reach to new markets, deliver above and beyond the excellence And we hope that those who have made ensures they have regular income of their performances. And because sound investments in British orchestras Private 14% throughout the whole year and not so often orchestras have strong roots over the years can see very clearly both just their British concert season, and within these local communities, so their the value that those investments have gives the opportunity to their musicians importance – socially, culturally and generated, and, crucially, how each to showcase their talents in new to the local and regional economy – one in turn has led to further income environments. is recognised. generation. We have an orchestral Earned 51% sector renowned across the world for its And of course, orchestras are making So the second part of A Sound musical excellence. We hope it can also more and more of their music available Investment looks at three different parts be recognised for the effectiveness of its online, via CDs, through broadcasting of the UK – Birmingham, the North West, funding model. and on films and other collaborative and the nations of Scotland and Wales – projects. All of this activity exposes the to see how orchestras have adapted to orchestras to new audiences, as well as the particular funding needs and priorities Mark Pemberton bringing in income to supplement the within those areas. Director, Association of British Orchestras core public investment from which many of them pay their essential overheads. No-one within the orchestral sector believes they have any divine right to Much of this public investment is generated funding. They are committed to earning Percentages of income generated by British locally – given by local authorities in every penny whether it is invested by orchestras 2008/9 (source: ABO key facts return for specific benefits that they know public or private sources, or comes survey, 2009) in the concert hall Croydon © Benjamin Ealovega: London Mozart Players rehearsing orchestras can deliver. Whether this is 1. Public Investment 5 6 Public investment for orchestras comes investment means that long-term A recent survey into the impact of from a number of sources, including Arts relationships between audiences and Welsh National Opera (WNO) on Councils and local authorities. Orchestras performers can be built, allowing greater the Welsh economy reveals the also draw in public investment from other space for shared experimentation. company contributes £22.5 million Part 1. Public, Private and sources such as government departments A sustained public funding base makes to the country – five times its current and the Big Lottery Fund – often explicitly it possible for orchestras to plan ahead annual revenue funding of £4.5 to further their charitable objectives, and build long-lasting partnerships million from Arts Council of Wales Earned Income and as part of third sector relationships within the communities they serve and with other parts of public sector service other partners – rather than just one-off delivery. The projects highlighted below engagements. And crucially, it provides demonstrate just some of the innovative an essential platform for orchestras to education, learning, engagement and lever other funding; whether through their For every £1 of community work orchestras are doing own entrepreneurial activities or private every day which is made possible by support. public investment, public investment. This part of the briefing illustrates how orchestras leverage Public subsidy also allows orchestras to orchestras make the most effective use of provide high quality music to communities the different sources of public investment, another £2 from across the country – from city centres to showing the cultural, educational, social other sources rural villages – and often in areas otherwise and economic benefits that this can bring. unserved by top quality music provision. Investment from public sources enables orchestras to be creative and adventurous in the programming which they bring to these communities, supporting them to bring world-class musicians, soloists and conductors to the UK. Sustained Orchestra of the Age Enlightenment: Audience at a Night Shift concert Orchestra 1.1 Funding from Arts Councils 7 8 In 2008/09, British Extending reach to the regions Creative Scotland ‘For many of our young adults, The Royal Philharmonic Orchestra’s Creative Scotland (formerly the Scottish communications and social orchestras played to (RPO) annual funding from Arts Council Arts Council) provides funding for the interactions are significant barriers over 3.4m people at England is an essential source of Scottish Ensemble’s ‘Quicksilver’ to learning, but these barriers were support for the orchestra’s concerts project. This project specifically targeted overcome by the friendships that over 3,100 concerts outside London - delivering first- families with children in Glasgow and the developed and the experiences they in the UK class performances in venues and to wider community – offering alternative shared. communities that often don’t have the performance times to complement current Our very special partnership with experience or financial means to present music provision in City Halls. Orchestra of the Swan has been a full concert season by a professional crucial to the success of this Working with Youth Music symphony orchestra. During the 2009- community opera project.’ ‘Space Odyssey’, an opera commissioned 2010 season, the RPO played 77 concerts Niki Jones, Deputy Headteacher for Welcombe Hills Special Schools and in over 44 venues outside the capital, at Welcombe Hills school from Ripon and Hull in the north to Exeter funded in a unique partnership between and Glastonbury in the south-west and Arts Council England, Youth Music and Lowestoft and Ipswich in the east. Welcombe Hills School, ran from October Other London-based orchestras such 2009 – April 2010. Led by the Orchestra as the Philharmonia Orchestra and of the Swan, the project consisted London Philharmonic Orchestra (LPO) of workshops, rehearsals and vocal enjoy thriving residencies outside the sessions with three Stratford schools, capital, also supported by Arts Council with 80 children participating in the final England. The LPO’s relationship with performance to an audience of over Brighton Dome and Congress Theatre in 600 people.
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