The past is not the best way to predict the future; especially when the context is highly dynamic, change is rapid, consumer behaviours, values and beliefs have shifted and commonly held internal beliefs (like the one about price elasticity) no longer apply (if they ever did: like the one about price elasticity).
I see the live performing arts in general at a crossroads in these changing circumstances: Which parts of the sector will adapt, which ones will become obsolete, which ones will grow, which ones shrink? What will success for the performing arts look like in the near- and mid-term? I hear about the dominant concerns being “audience development” and stability of direct government funding. As a strategist and marketer I think the dominant focus on these two concerns has not been producing the requisite breakthroughs in most cases.
In essence, I plan to think out loud about the value innovation that the performing arts sector in Canada could undertake to reap awesome rewards through creating uncontested – and valuable – market spaces. There are already examples of Blue Ocean creators in the performing arts: most notable may be billion dollar empires Cirque du Soleil and Apple. Yes, that Apple: Music has already been revolutionized by digital music distribution and most of that is revenue that goes to Apple. That may well speak to the power of owning the de facto ‘operating system.’
A Blue Ocean is a strategic construct reverse engineered by W. Chan Kim and Renée Mauborgne. It’s a strategy frame to make your present-day competition irrelevant, often by redefining what business you are in and the attendant changes that follow that understanding. Those don’t have to be thought of as global – they can be local or apply to a sector for that matter.
To play with these ideas relating to the performing arts, I’ll draw on my experiences and perspectives from the arenas of research, strategy and marketing. This no doubt will be a non-linear exploration; it will simply evolve as it goes … I hope it will become a conversation.
(first posted November 2011)
Many of these thoughts originated here during 2010 and 2011. They are as interesting to me today as they were then.