Precepta Studies‎ > ‎

The mutation of the performing arts industry

posted Aug 14, 2014, 8:35 AM by Julien Pillot

BUSINESS MODELS ARE ABOUT TO BE OVERTHROWED

Formerly, the performing arts ecosystem remained relatively sheltered from changes in consumer behaviour and arbitrations in time of crisis. Recent years have, nevertheless, make a radical change in the industry background : gradual reduction of public subsidies, increase in price which are now reaching their limits, technology boom, etc. Drivers of change are multiple, concern all levels of the sector (production, diffusion, performance hall management, ticketing, digital service providers, etc.) and are definitely about to overthrow dominant business models.


THE DIGITALIZATION PROCESS OPENS UP NEW MARKET OPPORTUNITIES

Businesses are not facing a mere evolution of dominant models, but a true revolution. In such a context, understanding the stakes flowing from digitalization to wisely select efficient market strategies is now an essential survival condition for a growing number of operators. First, the digitalization process gradually blurs lines between live, recorded and virtual performances. Second, the digital revolution opens up a myriad of opportunities : implementation of true 360° cross-channel strategies, community management, live streaming, improvement of customers intimacy and expectations (through data analysis), crowdfunding, online sharing services of concert videos, etc. With digitalization comes abundance of new concepts, but future success and value capitation are unquestionably linked to competition for the acquisition of scarce human and technological resources.


THE PERFORMING ARTS INDUSTRY IS WHETTING APPETITES AND LARGE MOVES HAVE BEGUN

Preserved from vertical integration strategies for a long time, the competitive landscape of the performing arts sector is deeply affected by the growing interest of new players from media and digital industries. The latter are engaged in vigorous competition in order to acquire essential assets such as concert halls or effective ticketing services. Such a sudden interest for the performing arts industry is not limited to the sole rent capture. The benefits of vertical integration notably include cross-channel strategies likely to create spillover effects on the performing arts markets in taking advantage of dominant positions in the media industries. But despite the significant ambitions of these large Groups, the final positions are far from being set since businesses are just starting to apprehend the forthcoming effects of the ongoing digital revolution. Numerous innovative digital services and concepts abound and are about to redesign the entire industry as well as the way we consume artistic performances. Far from having delivered its verdict, the digital war in the performing arts industry has only just begun.


STUDY DETAILS
Series : Precepta (PTAX)
Code : 4COM16
Paperback : 443 pages
Language : French
Publication date : June 2014
Price : € 2 400 [Commercial Link]

VIDEO TEASER

Comments