The classical music cost disease

A paper from William Baumol and William Bowen “On the performing arts: the anatomy of their economic problems” (1965) showed that while productivity improvements have been made in many other fields there cannot be productivity advances in the performing arts (a string quartet still requires the same number of performers today as it did centuries ago). Baumol and Bowen show that since the performing arts could not realize greater efficiencies, their cost rose over the centuries in comparison to other things.

But today the paper seems to be incomplete in that Baumol and Bowen did not expect performing arts output gains outside of live music. Today it is no longer only the process (playing the music live) that the audience pays for. Productivity has come from other developments such as the sale of recorded performances, performing for larger paying audiences and even quality improvements in instrument components. Additionally it may take musicians less time to learn new music by using technology including computerized note recognition and the ability to hear different recorded versions of a piece at a whim. There may be even more room to improve the learning process.

That being said, classical music today is a money-losing endeavor reliant upon donors and sponsors in addition to ticket sales. What had been the popular music of a century or more ago was the favorite musical type of only 30% of the American public back when Lincoln Center was built in the 1960s and the current favorite music of only 3% of the public today. I believe that some of this problem is related to the fact that classical performers today have found limited success in creating new powerful works and in evolving the performance experience itself. Some steps in that direction have been taken by performances such as those put on by Sympho.

Otherwise, the music exists as if in a museum but with pieces that are preserved not necessarily being the best ones available and the method of their current display influenced by the practicalities of the past.

This is one example of the type of problem we work on at Inticiti.