My inbox is not a pleasant place: meetings, phone calls, spam, more meetings. But a few days ago I got a delightful invitation to a talk by Daniele Lamarre, President and CEO of Cirque du Soleil, moderated by Adi Ignatius, Editor in Chief of the Harvard Business Review, hosted by the Canadian Consulate. The event pedigree itself was attention-getting, but theatre is feeling a lot of love, and competition from Cirque—they are collaborating in Los Angeles with our member, Center Theatre Group, on the launch of a new show about the movies called “Iris” at the Kodak this summer, and they have taken Radio City from the Tony’s! So how could I resist? Not to mention, my good friend from Advertising Week, Matt Scheckner, had given them my name. Thank you, Matt!
So I was eager to hear more from our friends up north who have created a $1 billion plus live entertainment business in just one generation.
Mr. Lamarre is an accomplished media mogul, with experience in advertising, network television and public relations. “My job is to keep Guy Laliberte”—the company’s founder—“from getting bored,” he humbly explains. This off the cuff comment underlines the central focus of the company: entertainment. Not marketing, not real estate, not staffing, not a board, not the sort of things 90% of arts managers talk about at least 90% of the time. More on this later.
Yet I encourage all of us to explore Cirque as a business: it tours in 300 cities annually; it partners with the world’s leading brands; it creates shows that open live, in place, with no out-of-town try-outs, and an amazing, but not perfect, success rate. They are experiencing the same demographic challenges as theatres: an aging audience and more competition for people’s time. How do they address these challenges: “Grandparents are taking their grandchildren, so we hope they in turn bring their children,” says Mr. Lamarre. “As for people’s time, our events have to be amazing.” Cirque gets an 85% recommend rate from its audiences. What is ours in nonprofit theatre? Do we even know?
The reason they don’t talk about all these business-y topics is that they have them down pat. And they move on to the real risk: massive investments in shows that take three years to devise and build, each with capitalizations in the tens of millions of dollars. They draw on databases of 5,000 artists that are tracked as possible collaborators/contributors. Their creators are left alone as much as possible to build shows. They have concluded business deals with the three hottest musical estates in the world: Elvis Presley, The Beatles, and Michael Jackson. What would Flo Ziegfield, or Cameron MacKintosh say? It is the artistic risk, Mr. Lamarre said over and over, that draws them into the game and keeps Mr. Laliberte involved in the business. Not the daily till, and certainly not the reviews.
There are growing stories across the arts spectrum of struggling business models at every scale, from the Philadelphia Orchestra to Intiman Theatre to the American Folk Art Museum and of course New York City Opera. I don’t think there’s an arts manager in the country who can honestly say his or her organization could not wind up on that list with two or three bad breaks in the next 18 months. The turn-around conversations always focus on the things Cirque grandly says it doesn’t think about: business, marketing, staff, real estate. They almost never focus on what keeps Cirque people awake at night: the show itself.
Cirque is a private company owned by one of the world’s great visionaries of our time. Replicating this model is of course impractical. But I think the saga of this great dynamo tells us that we in the institutional arts world may be looking too closely at the safety net, and not enough at the trapeze.
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