Subscription ticket sales for symphony orchestras: Are flexible subscription tickets sustainable?. (4th July 2017)

• Record Type: Journal Article
• Authors: Pompe, Jeffrey; Tamburri, Lawrence; Munn, Johnathan
• Is Part Of: Managerial and decision economics. Volume 39:Number 1(2018)
• Page Start: 71
• Page End: 78
• Publication Date: 2017-07-04
• Subjects: Managerial economics -- Periodicals; Decision making -- Periodicals; Management -- Periodicals; 658.15
• DOI: 10.1002/mde.2869
• Languages: English
• ISSNs: 0143-6570

Abstract

Abstract : We examine the fixed subscription ticket market for U.S. symphony orchestras, which is a crucial element of their business model and has experienced declining sales in recent years. We find that subscription ticket buyers are more sensitive to price changes than total ticket buyers. Hiring a new music director may increase subscription ticket sales, and economic downturns will decrease ticket sales. We find that increasing flexible subscriptions contributes to a decline in total subscription tickets and single ticket sales, in general. In addition, with increasing advertising costs per attendee and falling revenue from fixed subscriptions, symphony orchestra management should consider ticket prices, which have risen significantly in recent years, more strategically.