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Classical Music Economics: Is There a Solution?

Posted: 02/22/11 01:53 PM ET

American Orchestras: The Sound of Trouble

The Detroit Symphony, which has just emerged from a 34-day musician's strike, is in such economic straits that it may have to disband. --Time Magazine, June 13, 1969

Detroit Symphony Cancels Season as Musicians Strike

The management of the debt-burdened Detroit Symphony Orchestra canceled the rest of its season on Saturday, after executives and the players failed to resolve a strike that has lasted four and a half months.
-- The New York Times, Feb. 19, 2011

Time magazine's piece over forty years ago described the entire classical music industry as being in mortal peril, and not just in Detroit. Indeed, the death of classical music is a perennial topic, yet somehow orchestras have persevered. Should we be any more worried today than we were in 1969?

Is the Detroit Symphony's dire situation a one-off phenomenon, or is it part of a larger problem affecting classical music organizations throughout the United States? Clearly, there are extenuating circumstances in Detroit. This once-proud centerpiece for American manufacturing has been in a four-decade economic tailspin. One measure of the decline: its population has fallen from 1.5 million in 1960 (No. 5 in the U.S.) to 900,000 now (No. 11).

Unfortunately, Detroit is not alone as far as its orchestra's turmoil is concerned. There are myriad other indications that classical music is in deep trouble financially. Recent press articles have cited financial issues with a host of other orchestras. Most American orchestras are operating at a deficit -- and that's after philanthropic contributions. Indeed, income earned from ticket sales usually accounts for less than half the operating budget of a musical performing arts organization. Even selling out the house doesn't solve the problem. Those orchestras lucky enough to have endowments have been eating into them to meet operating expenses. And, unlike European arts organizations, which are heavily subsidized, American groups get essentially zero financial support from federal or local governments.

There are at least two exceptions to this bleak outlook. The Los Angeles Philharmonic and the Boston Symphony have the luxury of owning cash cows that enhance the orchestras' financial situations. In L.A., it's the very profitable Hollywood Bowl, and in Boston it's the highly successful Tanglewood Summer Festival. But outside of those two orchestras, it's difficult financial sledding for the other majors, and worse for the smaller organizations.

So how will all this play out?

Well, there is one scenario that could be a harbinger. It's not a pretty scenario, but it's one that has allowed a once-proud but financially strapped orchestra to survive.

In the early 1990s, after six decades of performing, the New Orleans Symphony ran out of money, donors and time. It went bankrupt. In its ashes, the Symphony's musicians got together and created the Louisiana Philharmonic, the nation's first musician-owned and -operated orchestra. The musicians run the organization, control the board, hire and fire, raise money, and pay themselves. And therein lies the rub. In order to survive as an orchestra, they pay themselves astonishingly little - an average of $23,000 per year. A little over $10 per hour. Pretty frightening, no?

By contrast, the Detroit Symphony members earned a minimum of $104,000 last year. (That's a number somewhat below the salaries earned by members of the other major orchestras.) They rejected an offer in the low $80,000s. Here's the issue management faced, as reported by the Detroit Free Press this weekend: "The DSO has lost $19 million since 2008, remains in default on the terms of its $54 million in real-estate debt and is rapidly depleting its endowment to cover the red ink."

There's no easy answer. The musicians want not just a living wage, but one also reflecting their talent, years of training, and status as being among the elite musicians in the country. Management wants a solution that reflects the exigencies of a virtually bankrupt organization. As the Detroit meltdown illustrates, there's a wide gulf that separates the two positions.

Now I believe that talented classical musicians are absolutely deserving of earning far more than most of them are getting around the country, but they've run into an economic model that just isn't able to properly compensate them anymore. And it's not getting any better. Youth isn't exactly flocking to classical music as tastes are dumbing down. Schools aren't helping by cutting arts budgets. Philanthropy is the only solution, and there are signs it's stretched pretty far. New young philanthropists have to be developed to replace the aging ones, but it's not clear that classical music is attracting new wealth. It's not a pretty picture.

By the way, we attended a concert Saturday night in New Orleans of the Louisiana Philharmonic, and it was terrific. The orchestra sounded wonderful, conductor Carlos Miguel Prieto was electric, and the house was packed. There were encores, standing ovations, and even an audience member who mamboed spontaneously (this is New Orleans, after all) as the orchestra played a selection of Leonard Bernstein's dances. There was a world premiere of Terence Blanchard's "Concerto for Roger Dickerson." And a spectacular performance of Philip Glass's "Violin Concerto No. 2" played by Robert McDuffie, for whom Glass wrote the piece.

The LPO model is one solution. They produce a fine product, one that an audience appreciates and relates to. But it's a draconian solution that requires that the musicians provide the subsidy. Somehow, that doesn't seem fair.

Solving the economic problem of classical music is not easy. If it were, someone would have figured it out already. Perhaps fresh thinking is required.

Any thoughts?

 
 
 
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10:32 AM on 02/23/2011
The brutal truth is that we have been conditioned as a society to respond viscerally to the basest appeals to our senses and emotions, in order for the providers of these stimuli to reap the largest profits. Thus, Detroit has no problems affording professional football, baseball, basketball, and hockey teams with many multi-million dollar saklaries being paid, and rap concerts with even higher paid stars. And the 'fans' are basicaly passive observers (like the national electorate, for the most part), who spend two hours getting their adreniline highs from from the basest of stimuli. The DSO would require people to spend a couple of hours with different stimuli, and the newer generations do not have the patience or conditioning to appreciate the values associated with high-quality music.

America is in a race to the bottom along many fronts, all for the benefit of a few bottom-feeders, and the collapse of the DSO is just the latest symptom.
12:26 PM on 02/25/2011
It is not necessarily true the younger generations don't have the patience to appreciate great music. It's more that the music industry and the media are appealing to our basest emotions for the all mighty dollar. I witnessed just the opposite of your argument the other night in Houston Tx. A 10 yr old girl gave the most amazing and otherworldly performance I have seen in my life. The crowd in attendance both young and old were godsmacked and rewarded every song this little girl sang with a standing ovation. Here is a video link to just one of her songs
http://www.youtube.com/watch?v=gXBnWYtB1zs

I paid particular attention to the reactions of the young people in attendance just because the performer was so young herself and I can tell you they paid attention and they appreciated her talent. I know one small child can't change the music scene but this little girl is the youngest EVER to have a platinum album , the youngest EVER to debut in the top 10 on the billboard charts so maybe there's hope after all for people who appreciate music other than the typical radio fare we get from the recording industry.
10:19 AM on 02/23/2011
Ben, the situation in Detroit ultimately did not break down over wages, it broke down over the changes the management wanted to impose that would have weakened workplace rules, job security, in short, it would have weakened the union. Sound familiar? Like the tactics that a certain Governor in a nearby state is trying? I believe that the musicians have made the calculation that they would rather strike, and face the possibility that the ensemble could fold. They could then start a new one based on the model in Louisiana, without the burden of a management that really does not have the best interests of the musicians or the ensemble at heart. If the management is successful at busting the union, they will surly do the same at other ensembles. Believe me, orchestra managements across the country are watching this closely, as is the musicians union. The stakes are much higher than this one ensemble, and the musicians and the management know it.
07:33 AM on 02/23/2011
'The musicians want not just a living wage, but one also reflecting their talent, years of training' etc. - Don't we all? Professional dancers have to train from the age of 8, have careers likely to end at the age of 40, and the vast majority work for peanuts. How about journalists? Miners, oil rig workers and the like should be paid huge sums for the risks they take. Unfortunately, that's not the way the world works. And all musicians study at a conservatoire knowing they're entering a high-risk, overcrowded profession where they're lucky to get any kind of stable work at all. Expecting a $100,000 salary as a basic right is just not on. Sorry
08:51 AM on 02/23/2011
The majority of musicians work for peanuts too. Top journalists make large salaries, others do not. If we were to go by your standards, David Brooks, or Eugene Robinson should make the same salary as a reporter for a local paper. I'm sure they make way more than a miner,or that local reporter, but certainly do not have the risks in their jobs that the miners have. The average oil rig worker makes way more than most classical musicians. I don't begrudge that oil rig worker that salary, they earn every penny of it. Why shouldn't a musician in a top ensemble make a top salary? It seems that the standards that are accepted regarding salary for other professions, is thrown out the window when it comes to musicians. Do you have any idea of the amount of practice that is required to not only to secure a job, but to maintain the level that is expected? I am a professional musician. I can assure you that I do work for peanuts. I am expected to perform at a level that requires me to practice a minimum of three hours a day, outside of the rehearsals that the ensemble has. Every day. I do not play in a top orchestra, but a lower tier one. I do not make a lot of money at it. I must work just as hard to maintain my position as a player in the New York Philharmonic. And, I do it without complaint.
10:06 AM on 02/23/2011
Three hours a day? Minimum, if you please! Heavens above, a musician's life is not a happy one is it? OMG! How can you even survive such a workload, day in, day out? 'It seems that the standards that are accepted regarding salary for other profession­s, is thrown out the window when it comes to musicians.' Yes indeed - what a vast difference between the top tier and the lower tier. I'd love for you and your colleagues to be paid the same as the New York Phil, I really would, but like I said, that's not the way the world works. And that's before we get started on the ridiculous sky-high fees for conductors and soloists...
10:40 PM on 02/22/2011
The Louisiana Philharmonic model is essentially the same one that UK orchestras like the London Philharmonic Orchestra (also abbreviated LPO), the London Symphony Orchestra, and the Philharmonia Orchestra have had for decades, where the players own the show, but also have to manage it. They still have to try to raise funds from the high and mighty, personal and corporate, of course, and budget cuts in the UK are another potential blow there also.

The root of the whole problem, of course, is the relative lack of appreciation for classical music among the newer generations. In turn, this is because classical music requires time to listen, patience to listen, and concentration to listen, all qualities highly frowned on in our short-attention span "I want it now" world.
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10:15 PM on 02/22/2011
The LPO model may not seem fair, but it is keeping a group of talented musicians working at what they love. As a working musician, who counts every penny I might add, $23,000 doesn't seem bad at all and it is money they can count on. Yes, we spend our lives perfecting our craft and learning and doing and learning some more, and no, we aren't paid even half of what this process, etc. is worth, but most classical musicians know that going in. That being said, I think that orchestras need to take creative measures like the LPO in order to sustain classical music for an upcoming generation and for those who currently love and appreciate it. This means that pay may have to be cut in some cases and that is just how it is. The other factor at this point would be that we are looking at the small funding that the feds provide possibly going away (in my state, state funding is going away) and education about the arts needs to be a priority. The many jobs that an arts group provides needs to be emphasized, etc. Just some thoughts and thanks for the article. (I think) I hate hearing about these things, but know we need to work together to solve the problem.