• A federal judge recently ruled that Pandora must continue to pay ASCAP, which represents song writers and publishers, a 1.85% composition royalty. It was a (not entirely clean) victory for Pandora, which was arguing against a rise to 3%. The Future of Music Coalition has a good primer on the issue. (Note that the royalty paid to record companies for sound recordings is much higher – above 50%, in some cases – and it is this larger royalty that Pandora cited last week in increasing the cost of their premium service.)
• FMC similarly offers a concise but thorough summary of the Congressional testimony debating the “notice and takedown” copyright enforcement system for hosting sites like YouTube.
• Amtrak’s writers’ residency is getting some amusing pushback from conservatives that points to some deeper issues regarding its role as a national service.
• Advocacy for publicly-funded arts agencies has a new platform: Stand for the Arts, an online initiative funded by Ovation TV, champions the National Endowment for the Arts, California Arts Council, and Americans for the Arts’s Arts Action Fund.
• Is that the pitter-patter of li’l artist feet in the distance? A female musician predicts Obamacare will prompt a “creative professionals baby boom,” and offers ideas for how the music community can better support it.

MUSICAL CHAIRS

• Vice President of Paul G. Allen Family Foundation Susan Coliton resigned last week after 15 years with the foundation.
• Judi Jennings, executive director of Kentucky Foundation for Women, is set to retire June 30, also after 15 years of service. Barry Hessenius has an exit interview with Judy.
• The Bay Area’s Kenneth Rainin Foundation announced the promotions of Shelley Trott and Katie Fahey to Director of Arts Strategy and Ventures and Associate Program Officer for the Arts, respectively.
• The beleaguered Minnesota Orchestra faces continued challenges following the end of a 16-month player lockout: President and CEO Michael Henson announced he is stepping down, prompting the resignation of eight board members and speculation regarding the possible return of the orchestra’s former music director Osmo Vanska.

ALL ABOUT THE BENJAMINS

• The Ford Foundation now has an artist on its board of trustees: Lourdes Lopez, artistic director of the Miami City Ballet and strong arts education proponent.
• More family foundations – nearly a quarter – are choosing to spend down their assets during the donor’s lifetime.

IN THE FIELD

• In a decision that has perplexed many, the San Diego Opera announced that this season will be its last after nearly fifty years of performances. Subsequent to the announcement, the organization gave itself a two-week reprieve in a last-ditch attempt to raise money.
• Big Brother is watching the opera: Lincoln Center, Alvin Ailey, the Public Theater, and five other NYC arts stalwarts have joined Audience 360, a new alliance that will share ticketing and customer information across the group. As many as forty institutions are expected to join when Audience 360, one of more than twenty such big-data organizations across the country, is launched in June. The information is expected to be useful for government advocacy in addition to marketing.
• The BBC has hired National Theatre director Nicholas Hytner and Royal Court artistic director Vicky Featherstone as part of a new push to infuse arts programming across the media organization “like never before.” The new initiatives will include filming live arts events and a miniseries following young orchestra musicians, among others.
• Netflix’s CEO has come out in favor of a strong form of net neutrality after a deal with Comcast cleared up customers’ performance issues. Meanwhile, Apple and Comcast are exploring a TV streaming partnership with sterling connectivity, which would fulfill Apple’s hopes of playing in the TV space.
• The full story of how the reclusive Cornelius Gurlitt wound up with a 1,280-piece trove of Nazi-looted art – which he is now returning to the original owners.
• Bookstores in Manhattan may be a dying breed; bookstores in Brooklyn are thriving.
• Have a great idea for a creative placemaking project but no time to get off the ground? Take advantage of National Arts Strategies’ Creative Community Fellows Program, which includes a week-long retreat with fellow cultural “entrepreneurs,” a distance learning track, and an opportunity to pitch to funders and/or create crowdfunding campaigns. Applications are due May 7.

BIG IDEAS

• As Netflix-style aggregation of content spreads from music and movies to books, magazines, and newspapers, “almost all the value in media has come from bundling.” Consumers like it because it offers centralized curation and lower transaction costs than hunting-and-gathering individual items; providers like it because it can give them more data. (Whether it’s good for creators, of course, depends in large part on how the proceeds are split with the provider.) But don’t get too excited – it turns out that existing legal agreements may prevent Netflix itself – or anyone else – from offering anything approaching a comprehensive slate of films before 2020.
• Meanwhile, total revenue for recorded music has fallen each year of the millennium; at $8 billion a year, it is now less than half of its (inflation-adjusted) 1999 peak. Venture capitalist David Pakman argues that the only way to reverse this trend is to lower the price of streaming services to $3-4 per month, bringing the annual cost closer to more consumers’ historical willingness to pay.
• The Wu-Tang Clan’s new double album will be released in an edition of one, which will tour museums before being sold for millions of dollars.

RESEARCH CORNER

• To what degree do family and peer groups influence our perceptions of the label “artist”? Researchers parsing data from the Strategic National Arts Alumni Project found a sizable chunk of people creating artistic works do not self-identify as professional artists. Those with artists in their families, or those who attended arts-focused schools, were more likely to use the label. Can’t help but wonder about the degree to which socioeconomic status plays a role in this…
• …since a new analysis of Bureau of Labor Statistics data paints a portrait of the artist as a model of downward mobility. Creative types tend to grow up in relatively affluent households and to make less money than their parents, to a much greater extent than those in other careers. Let’s hope some things are more important than money, since art schools are the most expensive in the country after taking financial aid packages into account.
• The Arts Education Partnership’s database of statewide arts education policies has been updated and renamed as ArtScan. It includes a state-to-state comparison feature as well as information about past efforts to survey the status of arts education in each state.
• The Hewlett and Irvine Foundations have released an external assessment of their Next Generation Arts Leadership program, which they have renewed for another three years, to inspire other regions facing a potential arts leadership deficit. (The full report and executive summary are online.)
• The National Alliance for Media Arts and Culture is out with a nationwide survey of media arts organizations – the “first-ever, comprehensive data set documenting the media arts field.” With nearly a quarter of respondents self-identifying as local cable TV operators, television still reigns as the primary focus of these organizations’ work.
• Two weeks ago we noted the ever-rising cost of sales in the international and antique art markets as a possible sign of an emerging “winner take all” economy. Others think it’s an insidious sign of something more akin to insider trading.
• March Madness = time to reflect on whether economic impact arguments for the arts really make any sense.

ART AND THE GOVERNMENT

• The International Federation of Arts Councils and Culture Agencies concluded its sixth World Summit on Arts and Culture in Chile earlier this month. Nearly 400 arts leaders and policymakers from 67 countries gathered to address shared challenges facing the arts world.  The summit coincided with the launch of IFACCA’s report detailing arts advocacy campaigns and best practices.
• The NEA’s Director of Design, Jason Schupbach, talks about the agency’s next steps in creative placemaking “in the spirit of openness and oversharing,” and telegraphs a gradual shift in Our Town’s focus from local case studies to national initiatives.
• New Jersey is the first state in the country to include data on student enrollment in the visual and performing arts in its annual report on school performance. Slightly less than half of Garden State high school students are enrolled in a course in one of the four art forms.
• The New York Times provides a glimpse into the capricious process used by the New York City Department of Cultural Affairs to review and approve applications from prospective residents seeking to live in lofts legally reserved for artists.
• A proposed noise ordinance in New Orleans drew a musical protest outside of city hall when musicians gathered to ensure their political voices, and their music, are not only heard, but heard at a proper volume.

MUSICAL CHAIRS

• Joan Finkelstein, formerly Director of 92^nd Street Y Harness Dance Center, is the new Director of the Harkness Foundation for Dance, replacing Theodore S. Bartwink.

ALL ABOUT THE BENJAMINS

• More good news for Gibney Dance: Director Gina Gibney’s dreams of turning their new space previously occupied by Dance New Amersterdam into a resource for emerging artists are $3 million closer to becoming a reality thanks to a  gift from the Agnes Varis Trust to make repairs to the facilities.
• Can an accounting change by SoundExchange impact the ability of middle-class performers and indie labels to create more music? The Future of Music Coalition thinks so.  A frequently disbursed stream of income that pays performers on a monthly, rather than quarterly, basis can help free up musicians to concentrate on their work rather than wonder how they’ll pay next month’s bills.
• Internet radio service Pandora pays nearly half its revenue to performing artists and labels, while only 4.3 percent goes to songwriters and publishers. Think that’s unfair? So does the American Society of Composers, Authors and Publishers (ASCAP) which represents the latter. But it was Pandora that brought suit to lower the royalty rate paid to ASCAP members. At the heart of the issue is whether music publishers can remove their catalogs from digital transmissions, while still using professional recording organizations like ASCAP to represent their work on issues such as collecting money from terrestrial AM/FM radio stations.
• Meanwhile, back in the world of terrestrial radio, this is what happens when you leave cultural taste-making to the whims of the commercial marketplace. More than ever before, radio stations are playing the same damn songs over and over. The article is interesting throughout, including such tidbits as the fact that the top 10 songs last year were played twice as much as the top 10 songs a decade ago, the fact that this trend is an example of data-driven decision-making on the part of radio stations, and this quote:
  

  In the new intensely scrutinized world of radio, said Mr. Darden, “taking risks is not rewarded, so we have to be more careful than ever before.”

IN THE FIELD

• Ever admire the shelves of beautiful art books as you exit through the gift shop? Turns out they rarely turn a profit, so commercial publishers often avoid them. Enter the Artist Book Foundation, a new nonprofit dedicated to filling the gap.
• Norwegian readers are in for a treat: 135,000 titles, still protected by copyright, are going online for free in Norway thanks to an agreement arranged between the National Library of Norway and Kopinor, an umbrella organization of major authors and publishers.
• Sometimes, when you want a concerto, you really want a concerto: during the Minnesota Orchestra’s lock-out attendance at smaller community orchestras jumped noticeably. We won’t know the long-term effects until well after concerts at Orchestra Hall resume on February 7.
• Just as the musicians of the Minnesota Orchestra prepare to head back to the stage, the entire board of Minnesota Dance Theater abruptly resigned last week, with no explanation yet as to the reason.
• Confused about the difference between a “cultural cluster and a “cultural district”? Learn more in a podcast highlighting work in Cincinnati led by ArtsWave and the Kennedy Heights Arts Center.
• In a victory for Venn diagrams, Americans for the Arts and 12 other national arts and education organizations have endorsed “A Shared Endeavor: Arts Education for America’s Students,” which defines shared delivery of arts education and identifies advocacy priorities generalist teachers, art specialists and teaching artists can support together.
• Arts administrators take note: Americans for the Arts has announced its spring webinar series, which includes sessions on the NEA, rural and small communities, and assessing social impact.

BIG IDEAS

• American artists are taking note of an international movement to ensure a “basic income” for all as a way of ending poverty. In a model proposed by Swiss artist Benno Schmidt, every citizen would receive a modest monthly check, regardless of need or merit.
• Is a permanent facility an asset or a prison to the modern arts organization? Diane Ragsdale shares four steps to scrutinize and reframe organizational core beliefs, and applies them to commonly-held assumptions regarding building-based arts organizations.
• Founder and CEO of The Teaching Company Thomas Rollins, whose nerd-tastic “great lectures on world history” got an affectionate nod in Createquity’s article on MOOCs and arts education, wades into the MOOC debate himself and finds the idea that they can transform higher education to be “utter nonsense.”

RESEARCH CORNER

• What does the cultural data landscape look like? Get a bird’s eye view from the report New Data for the Cultural Landscape: Towards a Better Informed Stronger Future just published by the Cultural Data Project. Barry Hessenius pulls out key highlights and probes the persistent challenge of educating leaders in our field to make strategic decisions using data.
• AFTA’s Randy Cohen digs deep into the Bureau of Economic Analysis’s recent report on the contributions of the arts to GDP. Turns out, it omits a lot of architecture, design and creative writing at the college level, and many arts grantmakers. Fortunately, the BEA is open to suggestions for improving its strong first cut. Follow the link to contribute your thoughts.
• The University of Chicago’s Cultural Policy Center is out with the second issue of The Digest, which summarizes academic research on the cultural sector from the around the world, which is often inaccessible to a broad audience. The issue examines “creative cities in theory and practice.”
• A new Pew report finds that, although the typical American read five books last year, nearly a quarter of us read none at all. In related news, libraries continue to draw patrons in innovative ways, such as installing 3D printers, shifting collections from the academic to the popular, and offering hog-butchering seminars.
• Big Data may be a boon for marketers, but when does segmentation cross over the line into discrimination? A research fellow at MIT argues that this is the central ethical dilemma of today’s data analysts.

• A Federal court has overturned the FCC’s “net neutrality” regulations, which have required internet service providers to treat all content equally. Legal details here; implications for artists and ways to get involved here. Meanwhile, AT&T has announced a plan to exempt selected content from wireless data caps; artists are expressing concern.
• How many foundations does it take to keep Detroit’s art in Detroit? Nine and counting: the ad-hoc alliance of funders has pledged to give $330m to reduce the city’s unfunded pension liability if the city’s creditors will agree to allow the Detroit Institute of Art to become a separate non-profit with its collection intact. In a nod to its origins, the Ford Foundation is the largest single contributor. It’s unclear whether this will fly with the creditors, so additional donors are being sought. (This could be part of an alarming trend: the Annenberg Foundation recently had to spend more than $500k to return sacred Hopi artifacts home.)
• Thinking of applying for nonprofit status? You may need to brace yourself for a longer wait time than usual. The recent federal budget agreement gives the IRS $526 million less than last year and mandates the agency spend more time reporting to Congress.

MUSICAL CHAIRS

• With Bill de Blasio having taken office, speculation builds around the next NYC Commissioner for Cultural Affairs, with names such as actress Cynthia Nixon, former Alliance for the Arts head Randy Bourscheidt, and Tom Finklepearl being floated as potential candidates to run what may be the nation’s largest arts funder. Meanwhile, Michael Kaiser praises outgoing Commissioner Kate Levin – and says we need her at the NEA.
• Karen Hanan, Executive Director of Arts Northwest, is transitioning to lead the Washington State Arts Commission effective March 1.

ALL ABOUT THE BENJAMINS

• How are arts organizations handling ongoing, recession-related budget pressure? Some are experimenting with curtain times, guerilla art, and other innovations; others are embracing an organizational cultural of abundance. Still others ask, “what budget pressure?”
• On the heels of the NEA’s decision to support collective impact projects for arts education, Ken Thompson of the Bill and Melinda Gates Foundation observes that despite the flurry of interest from funders, they display an overall “lack of certainty about what collective impact is” and for the most part remain focused on the programmatic rather than systems level. One source of the problem? For all of funders’ efforts to get grantees to collaborate, they aren’t doing much of it themselves.

IN THE FIELD

• After winning hearts and minds across the nation with its making-it-big-in-Idaho story, come this July, the Trey McIntyre Project will disband as a dance company, focusing instead on “other enterprises involving dance, film production, and photography.” Despite TMP’s throwing in the towel, Sydney Skybetter sees a triumph and not a failure.
• In other dance news, choreographer Gina Gibney’s company will take over the former home of Dance New Amsterdam in downtown Manhattan, preserving the space as a hub for dancers from commercial and non-profit companies at a time when space is scarce.
• After a three year lockout (and, as we reported a few weeks ago, an attempt to form their own nonprofit), musicians from the Minnesota Orchestra will return to their orchestra hall next month thanks to a contract settlement that cuts their pay and benefits by roughly 15 percent.
• A painting by Glenn Brown replicating the cover of Isaac Asimov’s sci-fi novel “The Stars Like Dust” has sold for almost $6 million, causing many techies to suddenly find themselves in the unfamiliar position of advocating for copyright enforcement.
• Nonprofit theater makes way for film and television: Atlanta’s Woodruff Art Center has sold its three-stage 14th Street Playhouse to the Savannah College of Art and Design, which will use the space to house TV and film degree programs. Woodruff, in turn, donated $1.9 million of sale proceeds to the Community Foundation of Greater Atlanta to establish a new grant fund to support local performing arts organizations.

BIG IDEAS

• We nearly missed this end-of-year roundup of “10 trends and 10 predictions” for the nonprofit sector from NonProfit Quarterly. You’ll recognize several of the items, like the emerging national security state and general government incompetence, from our list of the top 10 arts policy stories, but NPQ adds several others to the table (including an emerging progressive agenda at the local government level) and gives arts organizations a special shout-out – for their “struggl[ing]…business models.” Woohoo.
• Over at Barry’s Blog, social media guru and recent Arts Dinner-Vention participant Devon Smith delves into the potential roles of user experience designers, Google glass, and 3D printers in arts organizations, and offers some insights on the need for think tanks (including ours) in the arts.

RESEARCH CORNER

• The National Endowment for the Arts has posted a batch of working papers and reports resulting from the inaugural year of its Research: Art Works program. There’s a range of goodies to dig into, including a study of the racial and ethnic composition of arts boards, and another look at the arts as a driver of economic growth.
• The Brooklyn Commune Project is out with a new report “on the state of the performing arts from the perspective of artists.” Researched and written by volunteers, it includes an impressive and cogent summary of the economic challenges performing artists face, and thoughtful recommendations for the sector. At 50+ pages it’s not a short read, but a worthwhile one. (More from Andy Horwitz here.)
  
• Another report from the UK examines how artists can support the development of socially responsible, sustainable economies, and identifies three “vital practices” that allow them to do so: 1) critical reflection around how artists maintain their livelihoods, 2) opportunities for artists to “pool their risk” when embarking on new endeavors, and 3) opportunities for artists to access unused spaces in urban environments.
• Amid increased calls for states to track student access to arts education comes this welcome reminder that determining access is more complicated than counting which schools offer which courses.
• In the latest distant-reading study, analysts have crunched “various linguistic characteristics” of a slew of old books against their commercial and critical success, then applied the resulting algorithms to contemporary writers to find that Dan Brown, William Faulkner, and Philip Roth aren’t very successful. Points for counter-intuitive results, at least.

• Twitter, Facebook, and now the Minnesota Orchestra: everyone’s going public these days. State legislators announced a bill last week to save the troubled ensemble and gauge public support for its continuation by making it “a community-owned entity in which any individual or group could buy stock.”

MUSICAL CHAIRS

• Robert Vagt, the President of the Heinz Endowments, has announced his resignation, not long after two staff members were fired amidst controversy over Heinz’s support for the Center for Sustainable Shale Development. Vagt himself had faced criticism for his connections to the energy industry.
• Expanding his reach outside of the arts field, Americans for the Arts President & CEO Bob Lynch has been elected to Independent Sector’s Board of Directors.

IN THE FIELD

• Here’s an arts organization that talks about “combining resources” and sounds like it really means it: the Las Vegas Shakespeare Company is rebranding and revamping its building as the “Cultural Corridor Theater Center,” sharing its costume and scene shops with other companies and bringing in commercial tenants to boot.
• Fractured Atlas has launched Artful.ly, a cloud-based platform that helps artists and arts organizations sell tickets, take donations, and track their fans.
• Hoping to replicate the success of the Met Opera, London’s Royal Opera House is simulcasting a portion of its 2013-14 season in movie theaters across the United States.
• A new “due diligence” company has been founded to serve potential investors in art. The good news is you can hire The Art Compliance Company to verify the provenance of that Pollock you’ve been eyeing. The bad news is you may need to.
• DePauw University is making big changes to its music school with the help of a $15 million contribution used to establish the 21st Century Musician Initiative (21CM). DePauw hopes the new program will “better meet the needs of students entering a rapidly changing music industry.”
• Brooklyn-based community art center and co-working space 3rd Ward unexpectedly shuttered its doors last week, leaving artists and members without access to studios and supplies. Hyperallergic details its rise and fall of the financially troubled center and the sometimes “uneasy alliance between businessmen and the ‘creative communities’ they cultivate.”

ALL ABOUT THE BENJAMINS

• Chalk one up for data-driven grantmaking: after the First Peoples Fund issued a study showing that training in entrepreneurship and financial management makes a real difference to the economic self-sufficiency of Native artists (a category that includes nearly a third of Native people), the Northwest Area Foundation announced it will give $1m over three years to support a pilot of just this kind of intervention.
• Consultant Marc Vogl argues that more of the millions of philanthropic dollars donated by the tech industry in the Bay Area could make it to the arts with a slight change in tack from arts organizations.
• High demand and low supply have driven housing costs in San Francisco to extremes and sparked migration to places like Oakland. Both cities made the list of top ArtPlaces in 2013.

BIG IDEAS

• As the vaguely Soviet-sounding National Innovation Summit for Arts & Culture gets underway in Denver (attend virtually here), the arts blogosphere is abuzz with meditations on the “i” word. Howlround hosts a three-part series on the importance of organizational innovation; Isaac Butler one-ups them with what he claims will be a four-part series questioning that importance; and Culturebot has a six-part series problematizing the “innovation agenda.”
• Two thoughtful reflections on what could be lost as our cultural landscape is transformed by technology and commerce: Nancy Levinson on print vs digital and the fate of “serious” publishing, and Ben Davis on Big vs Small contemporary (visual) art and the fate of little galleries.
• The bookworms at Fractured Atlas are back with a review of Mission in a Bottle: The Honest Guide to Doing Business Differently – And Succeeding, by Honest Tea co-founders Seth Goldman and Barry Nalebuff (the latter of whom happened to be Ian’s entrepreneurship professor in business school).

RESEARCH CORNER

• The Community Foundation for Greater New Haven has published a data-driven overview of the state of the nonprofit sector in the area, compiling information from the Nonprofit Finance Fund’s State of the Sector report; the Foundation’s own giveGreater database; IRS data; and survey results.
• Major players like JSTOR and the University of California system are starting to offer low-cost or even free access to academic articles and research.
• Charity Navigator released findings from an in-depth study of CEO salaries at 3,929 mid- to large-sized charities around the U.S. On average, a CEO earns about $125,000 annually and Charity Navigator cautions donors to “be skeptical of charities that pay salaries hovering near or above one million dollars.”
• If you feel like studies on the “creative economy” have been all the rage, you’re right. At least 27 reports on the topic were released between 2003 and 2012, and The National Creativity Network went ahead and analyzed them. Seems like we’re all defining the creative economy/industries in slightly different ways, and while “a case for a national data-based definition of the creative economy can begin to be constructed,” we’re more interested in focusing on our own specific regions.
• Researchers examining an 1814 change in British copyright law have determined that extending copyright protections caused payments to authors to nearly double.
• This nifty study on novelty in film from the Rensselaer Polytechnic Institute in New York suggests that creativity in film peaked in the 1960s, following the demise of the “Big Five” studio system.
• WolfBrown has published a summary of its four-year evaluation of a New World Symphony initiative to develop new concert formats appealing to younger, inexperienced, and more diverse classical audiences.
• Media Impact Funders has released a new report exploring the in-house media efforts of cultural organizations and the funding that supports it. The report, Molto + Media; Digital Culture Funding, profiles nine organizations including Fractured Atlas and Sundance Institute and summarizes funding trends.
• The Future of Music Coalition scours the NEA’s new Survey of Public Participation in the Arts (which we covered in the last edition of Around the Horn) and finds that music has avoided the declines in participation seen in other genres, with nearly a third of all adults attending a musical performance last year.
• Speaking of FMC, a new survey suggests that artists are uninsured at twice the national average and, when they do have insurance, as six times as likely as others to pay for it themselves. All the more reason to get the exchanges working…
• A chorale a day keeps the gerontologist away? Building on previous studies on the benefits to older people of singing in choirs – among other quality-of-life indicators, “choir membership can also reduce snoring, ease emphysema, [and] soothe irritable bowel syndrome” – the NIH is funding a five-year clinical trial in San Francisco.