Challenges for the performing arts

The show goes on for more than 600 performing arts companies in Canada, despite financial deficits, dwindling government support and competition for the public's limited entertainment dollar, according to a new study.

The article, "Facing the challenge: Performing arts in the 1990s," published in the latest issue of Focus on culture, shows that about 75 companies went out of business or became temporarily inactive every year throughout the 1990s, an indication of a cash crunch in the performing arts industry.

Even so, new companies were still forming and, in 1998/99, there were still 625 companies encompassing the four main disciplines: theatre, music, dance and opera. This was down from a record high of 682 companies in 1997/98.

The fiscal year 1998/99 was a successful year for many companies. On average, operating revenue for each company amounted to $758,615, up 21% from 1997/98. The increase halted a five-year slide in which operating revenues per company fell at an average annual pace of 3%.

Throughout the 1990s, the survival of most companies depended on continuing to attract funds from a diversity of sources. With declines in government support, earned revenue and public sources became more crucial.

Earned revenue, from ticket sales and other sources, accounted for one-half of the total operating revenues of $474.1 million in 1998/99, up from 47% in 1991/92.

Private sector donations accounted for 20% of the total in 1998/99, up from only 16%. On the other hand, government grants accounted for only 30% of total operating revenue, down from 36% in 1991/92.

The four disciplines did not all benefit equally from the increase in private sector funding. Such funding for theatre companies almost doubled throughout the 1990s, but increased only 26% for opera companies.

At the same time, opera companies relied on the private sector for 27% of their total budget, whereas theatre companies relied on it for only 17%. More than one-half (55%) of theatre revenues came from earned revenues, such as ticket sales.

Attempts to increase earnings were hampered by a decline in audience attendance. Total attendance dropped 5% from 1991/92 to 1998/99. Opera companies suffered a 9% drop in attendance, followed by music companies (-7%), theatre (-4%) and dance (-1%).

To keep costs down, many companies cut back on performances. On average, each company offered 67 performances in 1998/99, compared with 78 in 1991/92. Even so, performing arts institutions continued to face costs that rose faster than revenues.

Except for theatre, the 34 largest performing arts companies in Canada registered a deficit in 1998/99, and these companies were responsible for 99% of the reported deficit. Debt management is a huge challenge for these companies.

The article "Facing the challenge: Performing arts in the 1990s" is now available in Focus on culture, Vol. 14, no. 1 (87-004-XIE, $7/$20; 87-004-XPB, $9/$27).

For more information, or to enquire about the concepts, methods or data quality of this release, contact Marie Lavallée-Farah (613-951-1571; marie.lavallee-farah@statcan.gc.ca), Culture Statistics Program.

For more information on Focus on culture, contact Client Services (1-800-307-3382; cult.tourstats@statcan.gc.ca; fax: 613-951-9040) or Mary Cromie (613-951-6864; mary.cromie@statcan.gc.ca; fax: 613-951-2909), Culture Statistics Program.