Author: Granfield, Michael

Publication Year: 1970

Media Type: Report

Summary:

This paper has sought to present the economic structure of the live arts as a quasi-service industry whose costs (particularly labor related) and cost increases are largely determined outside its industry boundaries but are nonetheless predictable. In other words, the supply for labor due to the relatively fixed productivity of its various members will consistently shift upwards as a result of alternative employment opportunities for all members of the industry. Given this behavior of the supply function, the live arts must, if internal viability is to be achieved, follow a simultaneous policy of marked differentiation and product promotion that caters to artistic demands as well as audience preferences. The alternatives to market viability are public and/or private support both of which could prove to be less rewarding financially (inadequate funds) as well as artistically (more severe constraints).

Abstract: This paper has sought to present the economic structure of the live arts as a quasi-service industry whose costs (particularly labor related) and cost increases are largely determined outside its industry boundaries but are nonetheless predictable. In other words, the supply for labor due to the relatively fixed productivity of its various members will consistently shift upwards as a result of alternative employment opportunities for all members of the industry. Given this behavior of the supply function, the live arts must, if internal viability is to be achieved, follow a simultaneous policy of marked differentiation and product promotion that caters to artistic demands as well as audience preferences. The alternatives to market viability are public and/or private support both of which could prove to be less rewarding financially (inadequate funds) as well as artistically (more severe constraints).

Arts & Intersections:

Categories: Creative Economies