I like classical music, even some operas. I cried when I saw Paul Potts sing Nessum Dorma. That is why I was saddened when I read Why Classical Music is Imperiled–Sort of by Chris Farrell. Mr. Farrell cites several examples of operas, orchestras, and philharmonics who are either struggling or have failed financially. He claims:
“Classical music shares a problem afflicting all entertainment these days: fierce competition for eyes, seats, and dollars. The video-game industry has evolved in recent decades into a multibillion dollar industry far removed from its early Pac-Man days. On Sunday, Americans could choose to spend their evening at a concert, a book reading, a lecture, or watching the much-anticipated final episode of Breaking Bad (let alone Sunday Night Football.) By this light, the take-away is how healthy an historic art form is in the 21st century.”
Chris argues that classical music isn’t a dying industry, but caught up in the digital age where so many entertainment options are at our fingertips. He mentions a number of classical musicians who have ventured outside the genre.
To look at external factors for a business failure is not the cause of the failure itself. The failure is the lack of a strategic plan. Strategic plans are created with a vision that encompasses outside factors, like the changing digital industry. Instead, what business do in these situations is just change the inflight movie in a plane that is running out of gas. Sure, when businesses fail to strategize they create some “feel good” plan within their current strategy which ultimately postpones the inevitable.
The Blue Ocean Strategy by Kim and Mauborgne discuss a similar industry, the circus. The compare Cirque du Soleil and Ringling Brothers. Ringling Brothers took the traditional strategy, which was the traditional circus. Cirque, on the other hand, measured the value that they offered the public and eliminated some, while enhancing others. In creating their new strategy, and new show, Cirque emerged in an uncontested blue ocean, and left Ringing Brothers in a red ocean full of competing sharks who offered the same antiquated value to the customer. These sharks competed on price and values that the customer didn’t see relevant, like big names, animals, and three rings.
On the other hand, Cirque, designed a new show based on values that the audience appreciated, e.g., a new type of venue, themes, and music.
The ironic part is that Cirque not only took a major market share from the traditional circus, but absorb market share from other industries like; movies, plays, and yes classical live music performances. In other words, the pain that the operas and philharmonics are feeling is due in part to innovative companies like Cirque who have been successful crossed markets by realizing what the audience really wants. That is something that the classical industry must do if it is to survive.