Business Model Innovation and the First Steps of Digitalization in the Case of Symphony Orchestras

Abstract

The study highlights the importance of orchestras being able to respond to the changing needs of consumers and adapt to changes in the world. Such a change is, for example, the current coronavirus epidemic, which poses especially great difficulties for organizations of the cultural sector that deal with performing arts, as concerts and performances – providing the basis of their operation – have become impossible. In order to gain “immunity” to the virus, business model innovation and exploiting opportunities offered by digitalization are essential. Furthermore, similar cases can occur at any time for which orchestras have to be prepared. As a result, orchestras (and in a broader sense all kinds of organizations) need to fundamentally rethink their business models. After conducting secondary research and interviews with 10 symphony orchestra managers and 10 symphony orchestra musicians, I have identified some novel aspirations, attempts and projects selected from international and Hungarian symphonic orchestral life to provide excellent examples of how the business model can be redefined and how the expectations of the 21st-century audience can be met. These examples show that there are orchestras which have understood that responding to the changing demands of consumers and utilizing the opportunities given by technology is essential, although it is still a question of how many more “coronavirus waves” are needed to make it clear for all orchestras that fundamental changes are necessary to preserve a market-leading position or become a market leader.

Opera participants’ perceptions of brand resonance

“…COVID‐19 has crystallized longer‐term trends of decreased arts funding and attendance (Kemp, 2015) however it has also catalysed new opportunities, such as the move to online content delivery (Bell, 2021). The cultural sector has adapted to lockdown with many organizations modifying existing materials and creating new digitized content (Szedmák, 2021). The Australian Ballet created At Home with Ballet TV digital season, which enabled streaming of free full‐length performances (Australian Ballet, 2020).…”