ELECTRONIC MEDIA FORUM:

THE IMPACT OF MEDIA AND TECHNOLOGY ON OPERA IN THE 21st CENTURY

OPERA AmericaMarc A. Scorca, President and CEO

Patricia Kiernan Johnson, Director of Marketing and CommunicationsMichael Bronson, Electronic Media Consultant

Joe Kluger, Electronic Media Consultant

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Agenda• Electronic Media Forum Resources• Electronic Media Industry Overview:

– Definitions– Historical context– Current situation

• Recent Innovative Uses of Technology in Opera• Electronic Media Strategic Planning:

– Goals and objectives– Strategies to achieve the goals– Project implementation issues (production, business,

legal)

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Electronic Media Forum

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OPERA America Electronic Media Forum

• Objective is to provide strategic and practical advice and assistance to OPERA America Professional Company Members in the use of technology and electronic media activities to:– Bring More People to Opera– Bring More Opera to People

• Website resources: http://operaamerica.org/content/learninglab/administrative/resourceGuide.aspx

• ListServ: EMFOPERA-L@listserv2.operaamerica.org– News of Note– Interactive “community” questions

• One on one, confidential consultations:– With Michael Bronson and Joe Kluger– E-mail: ElectronicMedia@operaamerica.org

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Electronic MediaIndustry Overview

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Role in Mission

• Primary mission of most performing arts organizations:

– Presenting art “in person” via performances – To widest possible audiences in theatres and

concert halls

• Electronic media activities have also played an important, but secondary role for some arts groups (not part of core mission)

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Value of Electronic Media

• The benefits to those arts groups have included:

– Marketing (building/engaging audiences for performances)

– Expanding the audience (beyond hall to students, elderly)

– Institutional branding/promotion/pride– Stimulating contributions– Generating incremental net revenue for artists – Generating incremental net income for the institution

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Product Definitions• Electronic media activities (performing arts):

– recordings and broadcasts of – audio or audio-visual musical/theatrical content,

• Analog technology – continuous linear recorded data:– Terrestrial radio– LPs and audio cassettes– Television (broadcast and cable)– Videocassettes

• Digital technology – binary notation of recorded data:– CDs -Satellite– DVDs -Digital cable TV– Internet -Cellphones,

Smartphones

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Distribution Definitions

• “Ephemeral” (temporary customer access to content via distribution not under customer control):– Radio broadcasts– Standard TV and cable TV broadcasts– Internet streaming “webcasts”

• “Collectible” (permanent customer access to content via device under customer control):– Audio recordings– Videocassettes, DVDs– Internet downloads

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Traditional Product/Distribution Matrix

Cable TVSatellite

radioInternet

streaming

CDsDVDs

Downloads

Terrestrial radio

(Standard TV)

LPs(Audio

cassettes)(Videocassett

es)

Collectible

Digital

Analog

Ephemeral

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Blurred Product/Distribution Definitions

• Changes in technology and customer expectations:– Blurring lines between “ephemeral” and “collectible” – Creating new categories of content creation and

distribution• “On demand” (temporary customer control of

access to content via device under distributor’s control):– Podcasts– DVRs– “On-demand” Internet streaming – “On-demand” digital cable TV– Cloud storage of collectible customer owned content

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Web 2.0 Product/Distribution Definitions• “Social media” (customer control of content

creation and/or distribution):– YouTube– Facebook– Twitter– Pinterest– Tumblr

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Current Situation• At present, several changes provide a unique

opportunity for arts groups in the area of electronic media:

– Rapidly declining costs of digitization of content – Internet disintermediation, so arts groups can

exploit content without giving up distribution control to commercial entities

– Digital distribution increases productivity and may generate incremental net revenue (global market is small as a percentage of each local region, but large in aggregate terms)

– Reduction in warehouse costs = “long-tail” economic value from small numbers of products with limited individual mass market value, but large aggregate value

– Digital broadcasting enables public radio and television stations to deliver up to five channels of programming in the bandwidth currently occupied by their analog signals

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The “Long Tail” Opportunity

• The Long Tail: Why the Future of Business is Selling Less of More, Chris Anderson, Hyperion, 2006

• Theory that culture and economy are shifting away from focus on a small number of "hits" (mainstream products and markets) at the head of the demand curve and toward a huge number of niches in the tail.

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Social Media • Method of developing larger and more

engaged audiences• Objective is to develop committed

relationships with audiences and supporters• Use multiple access points, in addition to

institution website• Arts groups must empower audiences, by

soliciting and listening to feedback• Artists and arts groups must share control of

access to and distribution of creative content• Community engagement requires continual,

iterative process

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Social Media Principles

© Beth Kanter: http://beth.typepad.com/beths_blog/

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Social Media Principles

• Tapscott and Williams: “Wikinomics”• The differences between successful

businesses and failures:– The losers built websites. – The winners launched vibrant communities. – The losers built walled gardens. – The winners built public squares. – The losers innovated internally. – The winners harnessed the innovation and effort of

their users. – The losers jealously guarded their content and

software. – The winners shared them with everyone.

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Current Opportunity

• For arts groups to take advantage of the unique changes taking place today, they must:– Recognize the benefits of technology for distributing

content, – Establish clear objectives for electronic media

activities– Determine which activities will accomplish those

objectives– Identify target audiences for electronic media, to

analyze local, regional, national or global distribution potential

– Undertake cost/benefit analysis, to determine whether the result is worth the allocation of resources (time + money)

– Incorporate as “core” priority in operating budget– Take initiative (proactive vs. reactive) and– Outsource functions where appropriate

“Carpe diem” – Seize the day

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Recent Examples of Innovative

Uses of Technology in the Arts

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Recent Examples

• Live full opera simulcasts: – Baseball/football stadiums (Dallas, San Francisco,

Washington)– Outdoor mall (Philadelphia)

• Video streaming of live concerts– Covent Garden (BBC: Les Troyens)– Toledo Opera (company website)– Detroit Symphony (company website)– New York Philharmonic (7th Regiment armory on

Medici TV)– Berlin Philharmonic: Digital Concert Hall (paid)

• Television production of commissioned opera: Minnesota Opera

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Recent Examples

• Facilities with in-house robotic television systems– Kimmel Center in Philadelphia– San Francisco Opera– Covent Garden Opera– Barcelona– Berlin Philharmonic

• Promotional activities:– Flash mobs: Philadelphia– St. Paul Chamber (Short videos of musicians re: non-

musical hobbies)– Cincinnati Opera (short promotional videos)

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Strategic Planning for Electronic Media

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Electronic Media Strategic Planning

• The key steps in electronic media planning include:– Establishing clear institutional objectives – Determining which strategies and activities

will accomplish those objectives – Making a commitment to incorporate the key

activities into the operating budget as “core” priorities

– Implementing each priority activity to maximize the institutional objectives

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Electronic Media Goals

• Before undertaking any electronic media activity, each arts group must be clear about the goals and objectives of its electronic media activities:– Marketing (building/engaging audiences for

performances)– Expanding the audience (beyond hall to students,

elderly)– Institutional branding/promotion/pride– Stimulating contributions– Generating incremental net revenue for artists – Generating incremental net income for the institution

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Electronic Media – Audio Strategies• Evaluate which electronic media activities are an

effective strategy for attaining your desired goals:– Audio Ephemeral:

» Local Radio » National Radio » Satellite Radio » International Radio » Internet Streaming

– Audio Collectible: » Live CDs (archival) » Live CDs (new) » Studio CDs (new) » Downloading

– Audio On-demand: » "On-Demand" Streaming » Podcasting

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Electronic Media – Audio Visual Strategies

• Evaluate which electronic media activities are an effective strategy for attaining your desired goals:– Audio-Visual Ephemeral:

» Local TV » National TV » International TV » Internet Streaming

– Audio-Visual Collectible: » DVDs » Downloading

– Audio-Visual On-demand: » "On-Demand" Streaming (Social Media: e.g. YouTube) » Podcasting

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Target Audiences• The arts group must also determine which

audiences it desires to reach with its electronic media activities, to determine: • Where to distribute:

o Locallyo Regionallyo Nationallyo Internationally

• To whom to distribute:o Young children/familieso Students (K – 12;

college)o Young professionalso Classical concert

attendees o Classical non-

attendees

o Non-classical, non-attendees

o Institutions (hospitals, nursing homes, assisted living, etc.)

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Strategic Analysis

• Each electronic media activity should be evaluated for its ability to achieve each of those strategic objectives

• A cost/benefit analysis should also be done, to determine whether the result is worth the allocation of resources (time + money)

• Each institution should then decide what its electronic media priorities should be

• Those which are priorities should become “core activities” (i.e. built into the annual operating budget)

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Electronic Media Planning Worksheet

• See goals and strategies Excel worksheet• For each type of electronic media activity,

evaluate if:– Meets Goals and Objectives – Reaches Target Market – Benefits Justify Costs

• Then, evaluate artistic focus of program content and type against preferred strategies:– Full-length opera– Operatic excerpts– New repertoire– Traditional repertoire

• Undertake cost/benefit analysis

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Artistic Content Focus

Artistic Strength

Product Differentiation

Customer Demand

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Cost/Benefit Analysis

High Benefit/Low Net Revenue

High Benefit/High Net Revenue

Low Benefit/Low Net Revenue

Low Benefit/High Net Revenue

Only if Funded or

Core Mission

Choose Carefully

Maximize

Eliminate

Net Revenue Impact

Benefit Impact

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Opera Activities: Goals and StrategiesY=YES M=MAYBE N=NO

Y-I = INDIRECT BENEFIT

Y-D = DIRECT BENEFIT

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RADIO:

Local Radio

National Radio

Satellite Radio

Internet Radio

International Radio

AUDIO RECORDINGS:

Live CDs (archival)

Live CDs (new)

Studio CDs (new)

AUDIO INTERNET:

Internet Streaming

"On-Demand" Streaming

Podcasting

Downloading

TV:

Local TV

National TV

International TV

DVDs

AUDIO-VISUAL INTERNET:

Internet Streaming (e.g. YouTube)

"On-Demand" Streaming

Podcasting

Downloading

NOTES/CONTENT

GOALS ANDOBJECTIVES

DO WE WANT TO DO IT?

TARGET MARKET

PRODUCTTYPE

COST/BENEFIT

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Opera Activities: Goals and Strategies (HYPO)

Y=YES M=MAYBE N=NO

Y-I = INDIRECT BENEFIT

Y-D = DIRECT BENEFIT

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RADIO:

Local Radio Y-I Y-DY-D Y-I N N Y N N N L H Y Y N N E

National Radio N Y-DY-D Y-I Y N Y Y Y N M H Y N N N E

Satellite Radio N Y-DY-D Y-I Y N Y? Y? Y? Y? L H Y N N N E

Internet Radio N Y-DY-D Y-I Y N Y? Y? Y? Y? L H Y N N N E

International Radio N Y-DY-D Y-I Y N N N N Y L H Y N N N E

AUDIO RECORDINGS:

Live CDs (archival) Y N Y-D Y-I Y Y Y Y N N M H Y N N N C

Live CDs (new) Y-I Y-DY-D Y-I Y Y Y Y N N M H Y N N N C

Studio CDs (new) Y-I Y-DY-D Y-I Y Y Y Y Y Y H H Y N N N C

AUDIO INTERNET:

Internet Streaming Y-I Y-DY-D Y-I N N Y? Y? Y? Y? L M Y Y N N E

"On-Demand" Streaming N Y-DY-D Y-I N N Y? Y? Y? Y? L M Y N N N O

Podcasting N Y-DY-D Y-I N N Y? Y? Y? Y? L M Y N N N O

Downloading N Y-DY-D Y-I N N Y Y Y Y L M Y N N N C

TV:

Local TV Y Y Y Y N Y Y N N N M H Y Y N N E

National TV N N Y Y Y Y Y Y Y N H M N N N N E

International TV N N Y Y Y Y N N N Y H M N N N N E

DVDs Y Y Y Y Y Y Y Y Y Y H H Y N N N C

AUDIO-VISUAL INTERNET:

Internet Streaming (e.g. YouTube) Y-I Y-DY-D Y-I N N Y? Y? Y? Y? H L N N N N E

"On-Demand" Streaming N Y-DY-D Y-I N N Y? Y? Y? Y? H L N N N N O

Podcasting N Y-DY-D Y-I N N Y? Y? Y? Y? H L N N N N O

Downloading N Y-DY-D Y-I N N Y? Y? Y? Y? H L N N N N C

NOTES/CONTENT

GOALS ANDOBJECTIVES

DO WE WANT TO DO IT?

TARGET MARKET

PRODUCTTYPE

COST/BENEFIT

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Project Implementation Issues

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Production & Distribution

• To engage in electronic media, arts groups must plan for: – Recording of “content”– Editing of taped performances (if not “live”)– Duplication or digital encoding of master tape– Storage of physical and/or digital product– Distribution (wholesale and retail)– Marketing to consumers – Customer management

• Arts groups must also decide which functions to do on their own and which functions to outsource

• More responsibility = more risk + more financial reward

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Responsibility Analysis Options

Frequency and/or Core Competency

+-

-

+Strategic and/or Economic Value

In-House

Contract Outsource

Strategic Alliance

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Business Issues• For each do-it-yourself production/distribution

function:– Engage qualified personnel (FT vs. PT)– Obtain equipment (Buy vs. rent)

• For outsourced/partner production/distribution functions:– Choose partners– Negotiate contracts specifying terms for:

» Ownership/copyright» Functional responsibility» Authority for decisions» Financial responsibility (costs)» Revenue sharing» Dispute resolution» Other industry specific standard issues

• Obtain agreements with all rights holders (see slide X)

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Business Issues

• Develop financial pro formas for each project– Upfront fixed costs

» Personnel » Production

– Variable costs» Duplication» Distribution» Marketing

– Revenue projections– Sponsorship revenue– Breakeven analysis– Revenue sharing formulas

• Undertake cost/benefit analysis• Obtain internal approvals

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Rights Clearance Overview• Obtaining agreements with:

– Musicians– Singers (Soloists and Chorus)– Conductors– Dancers– Designers– Composers/Publishers– Stagehands– Performance Venues

• Process:– Shared goals + strategies– Collaborative decision making = – Consensus agreements

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Musicians’ Agreements• Radio

– Local CBA– CBC– NPR

• Audio Recording Agreements:– Live Recording Agreement– Sound Recording Labor Agreement– Limited Pressing Agreement

• Audio Internet Agreement• Audio Visual Agreement• Integrated Media “Agreement”• Special Local Agreements

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Conductors, Singers, Designers

• Contractual issues

• Legal/Antitrust issues 

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Composers and Publishers

• Copyright Basics– Musical Compositions– Audio Recordings

• Reproduction Rights• Distribution Rights• Performance Rights

– Analog– Digital

• Synchronization Rights

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Composers and Publishers

• Notes:– "Small Rights" are for musical compositions that are non-dramatic– Grand Rights" are for dramatic works, such as opera, ballet or musical

theater– Sync Rights apply to the synchronization of musical works with visual

images – U.S. Copyright in Sound Recordings is for post-1972 recordings – Some states have copyright in pre-1972 sound recordings – There is currently no U.S. copyright in the analog performance of a sound

recording

Analog DigitalCopyright Reproduction Distribution Performance Performance

Musical Compositions:Non-Dramatic ASCAP, BMI, ASCAP, BMI, (Small Rights) SESAC SESAC"Grand" Rights Copyright Holder/ Copyright Holder/ or Sync Rights Publisher Publisher

Statutory: Sound Sound N.A. Exchange

Recordings: Voluntary: Copyright Holder

Mechanical License: Harry Fox or Publisher

Master License:Record Company or Artist

Copyright Holder/Publisher

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Conclusions:

• The opera company’s primary mission will

(should) always continue to be:

– Presenting performances at the highest standards of artistic excellence

– To the widest possible audiences in opera houses around the world

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Conclusions:

• Some electronic media activities should become part of core activity in the future, as they present some unique opportunities to expand the audience for the Company’s performances beyond those who can experience the magic of hearing it live in the opera house.

• In addition, due to the technological changes that are occurring (and the receptivity of artists to sharing the risk), electronic media activities present an opportunity to increase the net income of the Opera Company and its artists.

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Challenges and Opportunities

• Attention span of audiences (full length vs. excerpts)

• Archival value of full performances• Use of media in education programs• Access to constantly changing new technology• Conflicting agendas of:

– Producing Opera Company– Artists, Stage Directors and Designers– Unions– Composers and Lyricists– Copyright Owners– Broadcasters and Distributors

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“Some men see things as they are and ask why. Others dream things that never were and ask why not.”

George Bernard Shaw