Suggestions for American Non-Profit Theater Organizations

I just finished reading the Times article, A Crises in America’s Theaters Leaves Prestigious Stages Dark, written by Michael Paulson. Paulson conducted interviews with 72 regional well-known small and mid-sized theaters located outside of New York City. In summary, Paulson found that many of these nonprofit theater organizations are either closing, laying off staff, and/or planning to scale back on the number of planned productions and performances. Shared reasons include but are not limited to “Costs are up, the government assistance that kept many theaters afloat at the height of the pandemic has mostly been spent, and audiences are smaller than they were before the pandemic, a byproduct of shifting lifestyles (less commuting, more streaming), some concern about the downtown neighborhoods in which many large nonprofit theaters are situated (worries about public safety), and broken habits (many former patrons, particularly older people, have not returned)” (Paulson, 2023). In addition, some of the fields largest non-profit arts organizations with annual budgets of 2 million or more are carrying out substantial lay-offs and planning massive budget cuts. As Paulson, reports, “This month New York’s prestigious Public Theater?cut 19 percent?of its jobs; just before that the powerhouse Brooklyn Academy of Music?cut 13 percent?and the sprawling Center Theater Group of Los Angeles?cut 10 percent. The Dallas Theater Center has cut its full-time staff nearly in half, to 38 from 70, since last fall.”

A friend of mine (and notable Executive Director of a prominent non-profit theater company) has been on social media for several days now asking colleagues what we can do to save American non-profit theater. I’d like to share some suggestions and I’m going to use a metaphor to help me do it. Hereafter, when I refer to “a storm”, I refer to a certain environmental condition that has the potential to negatively affect all organizations and businesses in the storm’s path.

I think it’s important to recognize that not all non-profit theater companies experience the negative effects of a storm in the same way, if at all. Storms come and go, but some organizations and business remain largely unaffected by the strong winds, mass flooding and hail damage. Why? Some business and organizations are (re)built to withstand specific environmental conditions. Therefore, it would be helpful to conduct research on non-profit theater companies that have thrived in the midst of certain storms. Others need to check the weather report and plan accordingly. Doing so could help inform defensive strategies. However, even without that data at hand, I offer three suggestions:

First, non-profit theater companies need to pivot and (re)align their mission to address the emergent need(s) of those in the storm’s path. Far too many non-profit theater Board members have historically been incredibly resistant to changing their mission to address the emergent needs of the communities they claim to serve. Instead, many Board members want to uphold and pursue the original mission no matter what is going on outside of the four walls. 50 years ago, most of the community may have cared about Shakespeare enough to make sure that everyone was exposed to his works. But 50 years later, community demographics and shared values has greatly changed in this country. Many may no longer believe that the same mission is worthy of their time, attention and financial support. In such cases, it makes sense to re-evaluate the mission of the non-profit theater if you want the mission to be relevant to the lives of the communities you intend to serve. Is there a need for the mission as currently described? Is the non-profit mission the Board’s mission, or a shared mission with the Board and most of the local community members?

Second, non-profit theater companies need to stop appealing for contributed income when there is a storm approaching (e.g., pandemics, recessions, stock market crashes, social and civil unrest, etc.) As more and more non-profit theater companies do this, the need for contributed revenue compounds in the U.S. non-profit theater industry and increases donor fatigue and donor resistance, many of whom are experiencing economic losses themselves caused by the storm. Instead of appealing for contributed revenue in a storm, I suggest non-profit theaters produce new products, experiences and/or services that are in-demand at a subsidized cost. Consider that during the COVID pandemic, remote working platforms (like ZOOM) greatly increased revenue because most organizations and businesses needed a way to both communicate and work virtually. DIY, garden and home improvement services, tele-health services, cleaning product sales, fitness equipment providers, and entertainment streaming services all experienced an earned revenue boom during the COVID pandemic. The shared commonality here is that all of these businesses provided products, goods and services that were both needed and grew in-demand. In the same way, non-profit theaters need to start working on products, experiences and services that people are going to need while going through certain forecasted storms. In order to continue providing those products, experiences and services during those storms, non-profit theater companies also need to charge for those services at a subsidized cost. Through subsidy, cost barriers will be reduced, product accessibility increases, and business competition will be reduced from for-profit providers of similar or related products, experiences and/or services.

?

For example, if there is a hunger crisis or food shortage (i.e., a type of storm) on the way in your local community, pivot and produce plays that will in some way help to feed members of that community. To be clear, in this scenario, it is not enough to make audiences aware of the problem (e.g., produce a play that increases awareness of the hunger crisis or food shortage). In the minds and hearts of the target consumer, supporting the non-profit theater’s mission must be considered as a practical solution to the problem that community members are experiencing. One strategy may be to stage a show where the problem is going to occur, or is located (e.g., in an area known to be a food desert). Then, sell fresh food and canned goods at a subsidized price before the show, while the show is taking place, and after the show ends. If your show becomes known as the most accessible location to get fresh food at a cheap price, then you have succeeded. You might partner with a grocery store or another non-profit to do this, or ask local community members to cook or grow fresh food and sell it at the event. Applied theater models can help non-profit theaters (big and small in staff and budget size) do this. There are a lot of other examples for consideration. Like seriously… just Google “Applied Theater”.

Thirdly, some non-profit profit theater companies need to recognize that the subscription model is not dead. It just changed and you don’t recognize it. If you want evidence, consider the New York Times, which added over 7.6 million digital subscribers at a time when the entire print newspaper industry was tanking. Or consider reading the book Traffic, in which author Ben Smith (BuzzFeed’s former Editor-in-Chief, Former Media Columnist for The New York Times) helps us to understand the attention economy in a way never before. The general subscription model is a re-occurring revenue model in which customers pay a weekly, monthly or yearly fee in exchange for a product or service. Historically, non-profit theater companies have treated subscriptions as a pre-season revenue strategy, rather than as a way to deliver content to their target audiences quicker, faster and more efficiently than ever. The new digital subscription model does just that. It offers people a consistent steady stream of new and interesting digital content in exchange for a weekly, monthly or yearly fee. Most people today subscribe by way of smartphone apps, and these apps can be configured to deliver digital content, track subscriber activity, connect other subscribers to each other, and block out unwanted marketing and communications. Also, with the integration of AI (i.e., artificial intelligence) tools like Chat GPT into arts marketing practice, content creation and distribution can be automated in a way like never before. The subscription model is not dead. It has evolved. Non-profit theater companies need to evolve as well by adopting the digital subscription model in order to hold audience members’ attention, which should arguably be the goal of a subscription. ?