Episode 4: The High-flying Oil Industry fears "Demand Destruction." Should the Arts?

06/08/22 • 18 min

ArtsJournal's The UnderTow - with Doug McLennan

Oil prices are at a record high. And profits are rolling in. But there's an intriguing phenomenon in the oil industry called "demand destruction." It means when prices get too high for too long, consumers invest in alternatives and don't return. The arts have faced their own version of demand destruction when COVID shut down live performances. Is there anything to be learned from how the oil industry approaches what sounds like an existential threat?

Support the show

Support the show

Previous Episode

Episode 3: If Subscriptions are the New Go-To Business Model, Why are they Failing the Arts?

Many of the world’s largest companies have opted out of traditional retail transactions in favor of subscription models. Whether it’s software, newspapers, movies, TV, or even food, fashion or cars, subscription schemes are becoming a go-to model. And headlines the past few weeks have been full of stories about what’s happening to subscriber-driven companies – Netflix most of all.
So perhaps a slightly awkward question: – given that traditional arts institutions have depended on the subscription ticket model for decades, why are arts subscriptions now in steep decline just as the rest of the world has latched on to them as their ticket forward? Is it the subscription model that’s not working or is it the way the arts do subscriptions? We’ll look into what’s going on with Netflix – perhaps the world’s largest subscription model - and talk about the trends and where they’re pointing.

Support the show

Next Episode

Episode 5: The World's Largest Arts Festival Announces a Reinvention. What Does This Say about the Post-Lockdown World?

The Edinburgh Fringe Festival is the world's largest arts festivals, with over 3 million visitors each August. Last week it announced a series of major reforms to the ways it does business and treats employees and artists. It pledged to work towards lessening its environmental impact, and instituted new rules to "manage the scale" of the festival over the coming years.
It's both a recognition that "bigger" had made Edinburgh a "lesser" experience, and it also says something about where the festival thinks we are after two years of disruption of COVID. How has COVID changed what people want when they decide to put down their screens and go out? We'll explore what Edinburgh thinks it is.

Support the show