Turning digital into earned income – is it possible?

Perhaps unsurprisingly, in 2020, my inbox has been engulfed with invites to digital cultural experiences. From major institutions broadcasting productions; local museums hosting virtual talks with curators; and ballet companies creating work in their homes, there has been a plethora of opportunity for me to have a cultural experience from my living room, kitchen or even in the bath.

For organisations, this aspect of the covid-19 response has presented new opportunities for audience development – 2.5 million people streamed one Man two governors presented by the national theatre in April 2020 in a week (equating to full houses at 2,500 shows and generating £50,000 in donations). however, for many organisations, as a long-term business model it is unsustainable.

The very serious conundrum that we need to face up to in the coming months, is that whilst digital streaming has proven popular, it still rarely translates to the equivalent box office returns. organisations like the national theatre that have been delivering NT Live since 2009, have the infrastructure in place to produce this type of work. But even at this scale, founders of Broadway HD, a us-based theatre on demand company estimated that filming a Broadway Musical with similar technology and including distribution rights would cost between $2–$4 million dollars.

Similarly, at a local level, digital content such as talks and workshops have been great opportunities to test pay what you decide and donation models, but they generally haven’t been financially self sustaining unless underwritten by a grant or similar.

For funders and organisations alike, we therefore face a conundrum. how do we justify investing in digital at high cost, when the likely returns are minimal and when audiences still expect digital content should be free or minimal cost?

Digital adaptation on its own doesn’t tend to translate into profit and it might not need to

Pivoting activity to be delivered in a different way was a very immediate response for a number of organisations in the sector, and as time has gone on, things have got better and better. the Albany, an arts centre in South East London, turned its weekly older people’s programme into a radio show; and Marketplace, the creative people and places programme for fenland and West Suffolk delivered a range of different activities for remote rural communities online. these were hugely effective, low cost ways to connect with audiences but by the nature of those audiences, it can’t necessarily be monetised. in this sort of work, those organisations were meeting their public benefit agendas by engaging with communities in the best and only ways that they could and in these examples digital is a means to an end.

And of course, the other area we need to wrestle with, is that many of us are at near saturation point for online content. We are having to spend much of our time communicating through Zoom, so sitting at our desks consuming culture in this way too, is for many, proving a step too far. and of course, the other area we need to wrestle with, is that many of us are at near saturation point for online content. We are having to spend much of our time communicating through Zoom, so sitting at our desks consuming culture in this way too, is for many, proving a step too far.

There is a wider risk of organisations taking on a solely digital delivery role

The Greek art historian professor M Scaltsa recently authored a paper suggesting that digital programmes for culture focus 90% on digitisation itself and only 10% on the essence of what is being digitally conveyed (Scaltsa 2020). he went on to say that restricting the perception of culture to its digital reproductions, would lead to the reduction of a whole range of different components that make up the world of live art.

Of course, this is true, there is no replacing the feeling of experiencing something live in the virtual world. Whether it is the buzz of lights down at a performance, or the smell of a heritage collection, we are conditioned as humans to thrive on physical interaction. the last year has highlighted the value of exactly these experiences when other liberties are removed.

It seems therefore, that digital culture alone is unlikely to cut it. We’re more likely to see organisations experiencing success if they can seamlessly morph live and digital Whilst digital streaming has proven popular, it still rarely translates to the equivalent box office returns experiences and where they can build audience demand for content that they will also be happy to pay for.

Audience development can translate into income, but it’s a long-term game

The Getty Museum challenge, where the museum asked visitors to recreate famous artworks using objects found at home was replicated by a number of smaller organisations and again built profile and digital capital. As opposed to trying to grow earned income through this activity, it highlighted culture as a potential source of humour for new audiences and this enabled a growth of new donors on the back of digital outreach.

These activities, whilst highly popular, are unlikely to translate into income in the short-term, but they have demonstrated the relevance of these organisations at a time when profile is essential. The reach into international audiences that at the moment cannot travel freely and easily, makes these venues front of mind once travel does begin to open up again.

What now?

Digital delivery will inevitably become a part of the ongoing approach of organisations beyond the pandemic. effective monetisation of this requires thinking through, and a solid approach might be for boards and staff teams to consider balancing what can be achieved through both face to face and digital interaction. Some of this can be planned for now, despite not knowing exactly when things will return to normal.

Questions that arts organisations might ask themselves include:

01 What is our best mix of live and digital activity?

02 What has worked and what have you learnt from operating differently during this time – how does this inform your future plans? is there other technology you need to deliver this work more effectively and can you fundraise for this?

03 is the activity you are delivering intended to generate income, or does it serve a different purpose?

04 do you fully understand the cost of your digital activity? What do you need to earn to break-even and what is the profit margin you are aiming for and over what time period?

05 if your digital activity is generating an increase in revenue, how will you sustain this beyond having to deliver work this way?

06 how are the needs of your virtual audiences different to your in-person audiences and how can you manage these simultaneously?

Covid-19 has seismically influenced the way the arts, culture and heritage sectors think about presenting work, and to whom. in 2021 i’m looking forward to connecting with the organisations i’m passionate about both from my bathtub, and a dusty auditorium, with the organisation profiting through both routes.