„Run it like a business": How cultural institutions can combine economic thinking and cultural values

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Few topics have stirred up the cultural landscape in recent months as much as the announced budget cuts in cities such as Berlin, where around 130 million euros are to be saved in the cultural sector in 2025 alone.1 The protest is loud, the uncertainty great - how can cultural institutions remain economically stable without jeopardizing their artistic identity and cultural mission?

In the face of financial challenges, cultural institutions must find new ways to increase their profitability. There is often a perceived contradiction between artistic identity and economic strategy - but this need not exist. The cultural mission remains unchanged, but it can be better communicated, more widely accessible and more sustainably financed using business methods. In “Run it Like a Business”, Aubrey Bergauer shows that economic thinking is not only a necessity, but also an opportunity for cultural institutions.

Those who strategically develop their creative offerings, actively involve their audience and make use of digital opportunities can tap into new sources of income - and thus remain viable in the long term. An orientation towards the needs of the audience should be taken into account in all offers - this is often not about changing the product, because that is usually not the problem. Rather, it is about target group-oriented marketing communication and low thresholds. Examples show this: Economic thinking and the preservation of cultural values need not be a contradiction in terms.

1

Strengthening the core offering - creativity as strategic capital

Cultural institutions can use their creative strengths as a strategic advantage and find innovative ways to make their content accessible to a wide audience.

Example: Royal Shakespeare Company (Stratford-upon-Avon, UK)2
The Royal Shakespeare Company (RSC) has been using digital innovations to expand its audience for years. In February 2025, the RSC made all of its recorded Shakespeare plays available via the streaming service Marquee TV, including productions such as Richard II (2013) and Macbeth (2018) - a model that can tap into new audiences and generate additional revenue.

2

Expansion of the extended range - community integration as a success factor

Close ties to the community can help cultural institutions to reach new target groups and strengthen their financial base.

Example: El Museo del Barrio (New York, USA)3
El Museo del Barrio, founded in 1969 in East Harlem, New York, began as a center for art and education for the Puerto Rican diaspora. In November 2024, the museum presented its second triennial entitled Flow States, which featured works by artists from different regions. This exhibition emphasized the diverse and complex identities of the Latino community and promoted dialogue about cultural exchange. Such initiatives can increase local anchoring and boost attendance and donations.

3

Marketing and visitor optimization - digital transformation as a growth driver

The digital transformation offers cultural institutions immense opportunities to increase their reach and find new sources of funding.

Example: The Cleveland Orchestra (USA)4
The Cleveland Orchestra introduced the TCO Rewards program, a free loyalty program that allows participants to earn points for various activities such as attending concerts, watching videos or reading articles. These points can be exchanged for benefits such as tickets, merchandise, VIP experiences and exclusive content. An approach that can increase audience loyalty, engagement and sales in equal measure.

 

In addition to the aspects outlined above, alternative financing models, such as targeted cooperation with companies or fundraising, also play a decisive role in the economic stability of cultural institutions. The cost side is also an important lever: efficient processes, adapted organizational structures and shared resources can help to work more economically without jeopardizing artistic quality.
Successful cultural institutions rely on a balanced mix of funding sources, audience success and digital transformation. Participatory programs, strategic partnerships and innovative formats strengthen the bond with the audience and enable new sources of income by increasing the attractiveness of the offerings.
Those who combine economic thinking with cultural values remain viable and socially relevant in the long term. Would you like to make your institution fit for the future? actori will be happy to support you with your individual project (team@actori.de)

 

Sources
1) https://www.rbb24.de/politik/beitrag/2025/02/chialo-einsparung-kultur.html
2) https://www.britishtheatreguide.info/news/rsc-streams-all-shakespeare-s-16756
3) https://www.elmuseo.org/exhibition/flow-states-la-trienal-2024/
4) https://www.clevelandorchestra.com/engage/rewards/_

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A contribution from Michaela Herrmann, consultant.