From Live-to-Digital Understanding the Impact of Digital Developments in Theatre on Audiences, Production and Distribution October 2016 by AEA Consulting for Arts Council England, UK Theatre and Society of London Theatre FROM LIVE-TO-DIGITAL aeaconsulting.com 2 Understanding the Impact of Digital Developments in Theatre on Audiences, Production and Distribution Arts Council England (ACE) champions, develops and Report invests in artistic and cultural experiences that enrich people’s lives. The organisation supports activities Commissioners across the arts, museums and libraries – from theatre and Funders to digital art, reading to dance, music to literature, and crafts to collections. Between 2015 and 2018, ACE plans to invest £1.1 billion of public money from government and an estimated £700 million from the National Lottery to help create art and culture experiences for everyone, everywhere. UK Theatre is the UK’s leading theatre and performing arts membership organisation. The organisation promotes excellence, professional development, and campaign to improve resilience and increase audiences across the sector. UK Theatre supports organisations and individuals in the performing arts at any stage of their career, through a range of training, events and other professional services. Whether it’s through sharing knowledge, bringing you together with the right people or providing practical advice, UK Theatre supports you and your work Society of London Theatre (SOLT) is an organisation that works with and on behalf of its Members to champion theatre and the performing arts. SOLT delivers a range of services both to assist members and to promote theatregoing to the widest possible audience. FROM LIVE-TO-DIGITAL aeaconsulting.com 3 Understanding the Impact of Digital Developments in Theatre on Audiences, Production and Distribution The study team for this report comprised Brent Karpf Reidy, Senior Consultant; About the Becky Schutt, Senior Associate; Deborah Abramson, Associate; and Antoni Durski, Research Analyst of AEA Consulting. Elizabeth Ellis, Managing Principal, Authors and Laura Casale, Director of Knowledge Management of AEA served as editors. David Throsby, Distinguished Professor of Economics at Macquarie University in Sydney, acted as Senior Advisor to the research team. AEA Consulting is one of the world’s leading cultural consulting firms. Since 1991, we have helped hundreds of cultural organizations, governments, foundations, businesses, and individuals around the world realize the contribution that culture can make to communities. AEA has successfully completed more than 800 projects in 33 countries. Our work combines a deep knowledge of trends in culture and adjacent sectors with robust research and analysis. We thrive on new challenges and approach problem solving with curiosity, creativity, and integrity. The project was guided throughout by a Steering Committee whose members included: ■ Jonathon Blackburn, Senior Officer, Policy and Research, Arts Council England ■ Cassie Chadderton, Head of UK Theatre and Membership (and represent- ing Society of London Theatre) ■ Michelle Dickson, Director for Touring, Arts Council England ■ Paul Glinkowski, Senior Manager, Creative Media, Arts Council England ■ Andrew Mowlah, Director, Policy & Research, Arts Council England (and Project Director). ACKNOWLEDGEMENTS The authors are grateful to the Steering Committee and to the wide range of people who participated in this study for their time, candour and insights. The primary research conducted for this project would not have been possible with the generous support and assistance from a coalition of industry partners, listed on the following page. Dozens of theatre professionals and audience members shared their views with us through interviews and focus groups and hundreds took part in comprehensive online surveys. It is the commissioners’ and authors’ hope that the study helps to move the Live-to-Digital conversation forward, giving arts organisations of all sizes better understanding of ways to leverage new technologies – if they are so inclined. FROM LIVE-TO-DIGITAL aeaconsulting.com 4 Understanding the Impact of Digital Developments in Theatre on Audiences, Production and Distribution INDUSTRY PARTNERS Aran Dramatica Northumberland Theatre Company Babbling Vagabonds Nunu Theatre Barn Cinema Orion Cinema Belarus Free Theatre PCM creative Belgrade Theatre Pegasus Theatre Bike Shed Theatre Pentabus Theatre Bishops Castle Platform 4 Brewery Arts Proteus Theatre Calestrad (music band) Puppet Craft CDET Rambert Central Bedfordshire Council Riverside Studios Concert Theatre Royal Shakespeare Company Create London Saffron Screen Defnet Media Scott Cinemas Digital Theatre Sheffield Theatres Eastern Angles Sight for Surrey Eclipse Theatre Stag Community Arts Centre English Touring Theatre Stage Text Event Cinema Association (including its members) Strode College Falkirk Community Trust Surrey County Council Fiery Angel Talking Birds Firestation Centre for Arts and Culture Tara Arts Forum Cinema The Regal Cinema Full House The Stables Gecko Theatre The Yard Theatre Grassington Festival Theatre Royal, Newcastle Haver Hill Arts Centre Theatre Royal, Winchester Hoipolloi Theatrical Niche Include Arts Time Won’t Wait ITC Arts Tyneside Cinema Jam Jar Cinema Vincent Dance Theatre Live Theatre, Newcastle Vocal Eyes Miracle Theatre Vortex Jazz Miss Nightingale Wales Millennium Centre National Theatre Wem Town Hall Northern Ballet Wotton Cinema Northern Stage Young Vic Theatre FROM LIVE-TO-DIGITAL aeaconsulting.com 5 Understanding the Impact of Digital Developments in Theatre on Audiences, Production and Distribution The liveness of theatre, music and dance is an inalienable element of human Foreword life. For centuries these performing arts have been experienced by people in the same space and at the same time as the creative process happens, and the desire by audiences for this sort of immediate connection with artists in the act of performance continues unchanged. But more than a century ago technology intervened. The invention of revolutionary methods for sound reproduction led to continually evolving means of capturing and redistrib- uting music, to the point where we have become accustomed to listening to music through channels far removed from the original performance. Yet even here, there remains a demand by music-lovers to hear music of all types in the actual presence of the musicians – an experience that can never be replaced, no matter how perfect the reproduced sound might be. For theatre, opera and dance the impact of technology has been much more recent. Although capturing live performance on film or for television has been around for many years, it is barely a decade since the first moves were made by the National Theatre in the UK and Metropolitan Opera in the US and towards digital transmission of live performances to locations a long way from the theatre. Since those early days the amount of Live-to-Digital activity across the performing arts has expanded enormously in volume and range. The ra- pidity of this growth has raised some serious questions: In what ways are arts organisations, distributors, funding agencies and consumers reacting to these developments? How are audiences responding to the availability of new chan- nels for consuming traditional products? How do these trends impact upon the need to protect the artistic and cultural integrity of live performance? Is expanded consumption of digital product being achieved at the expense of live attendance at traditional performing arts venues? What is driving the digital market: is it growth in supply, or is it that the availability of new media for the distribution and reception of product is stimulating a latent demand? A great deal of anecdotal evidence on various aspects of these questions has accumulated in recent times. But, while frequently interesting, the impression it creates may be misleading, and is no substitute for systematic and objective research. So the purpose of this study has been to replace anecdote with hard data. The study is based primarily on theatre in England. Nevertheless, the report contains information and draws conclusions relevant across art-form boundaries, and national jurisdictions. The project applies carefully controlled research methods to derive a wide range of objective and replicable data that provide an extensive overview of the main components of the supply chain for Live-to-Digital product. The conclusions derived from the findings of the research point to both opportunities and challenges in the theatre sector and beyond as the digital environment continues to evolve. FROM LIVE-TO-DIGITAL aeaconsulting.com 6 Understanding the Impact of Digital Developments in Theatre on Audiences, Production and Distribution In a report such as this, the use of words such as ‘industry’, ‘product’, ‘demand’, ‘consumers’ and so on derived from economics, commerce, marketing and management – fields far removed from the arts – is sometimes seen as a sell- out of the pure creative process to the insidious forces of the marketplace. An important strength of this report is that although it uses these terms – and indeed provides an extremely useful glossary to help us find our way through the new terminology – it respects the fundamental and unchanging nature of the performing arts as an expression of human culture. The data gathered and the conclusions drawn in the report will be of great assistance to performing companies as they seek