Financial Headwinds in the Performing Arts: Evidence from United States Opera, 2005-2022

Abstract

Artists, especially those in performing arts, have faced increasing financial precarity. However, less is known about the financial health of the institutions supporting them. Using data from Opera America covering 2005 to 2022, this paper examines trends among larger and smaller opera houses. Findings indicate that real operating income, while fluctuating with economic cycles, has generally declined since 2005. Both private donations and box office revenues have fallen, partially offset by public support in 2020–2021, yet administrative expenses have nearly doubled. These trends appear to be influenced by declining net migration into areas with higher arts amenities, reducing local addressable markets. This financial strain has perpetuated a cycle that heightens financial precarity for artists, ultimately weakening arts amenities at the community level. Addressing these challenges requires cultural institutions, particularly in opera, to diversify funding sources and boost private donations. Drawing on causal inference techniques from economics and social sciences can help quantify and communicate their broader impact, strengthening their case for support.

Keywords: Budget, Culture, Finance, Opera, Performing Arts