Spanish Broadcasting Corporation’s Choir and Symphonic OrchestraSantos M. RuesgaBoard of Directors Member

Presentation for the 2nd FIM International Orchestra Conference, Amsterdam, march 7-9, 2011

PANEL 1.  Public funding / private funding in the current economic environment

Public funding / private funding in the current economic environment

Spanish Broadcasting Corporation’s Choir and Symphonic Orchestra

ExperienceINDEX

1. Some comments on Spanish Broadcasting Corporation’s Choir and Symphonic Orchestra and their economical and institutional context

2. Answering main questions3. Final Remarks

Spanish Broadcasting Corporation’s Choir and Symphonic Orchestra Santos M. Ruesga

European Broadcasting Public Companies Incomes

Sources(2009)

EU-27

Spanish Broadcasting Corporation’s Choir and Symphonic Orchestra Santos M. Ruesga

1. Some comments on Spanish Broadcasting Corporation’s Choir and Symphonic Orchestra and their economical and institutional context

Spanish Broadcasting Corporation’s Choir and

Symphonic Orchestra organizational chart

1. Some comments on Spanish Broadcasting Corporation’s Choir and Symphonic Orchestra and their economical and institutional context

Spanish Broadcasting Corporation’s Choir and Symphonic Orchestra Santos M. Ruesga

Spanish Broadcasting Corporation’s Choir and

Symphonic Orchestra relative weight (2010)

1. Some comments on Spanish Broadcasting Corporation’s Choir and Symphonic Orchestra and their economical and institutional context

Spanish Broadcasting Corporation’s Choir and Symphonic Orchestra Santos M. Ruesga

CRTVE

RevenuesEmployees

Orchesta and chorus

6400 1135 M€

185 15,2M€

% Orchesta and chorus/CRTVE

2,89 2,16

In several countries with a symphonic tradition, some orchestras – sometimes well-established – are threatened with budgetary cuts, downsizing or closure. The reasoning behind these decisions may vary, but it seems that the financial crisis is currently being used as an additional argument to reduce the public contribution to Culture and the Arts.At the same time, some other orchestras may see their size increase as well as their international touring activities.Based on our own experience, I am going to talk about some questions like:- to what extent our institution has been impacted by the current economic environment- how we deal with the financial pressure (if any) of your sponsors, either public or private- whether such pressure also extends to artistic issues like the repertoire to be performed- how we manage to keep your orchestra working when resources are declining.

Spanish Broadcasting Corporation’s Choir and Symphonic Orchestra Santos M. Ruesga

2. Answering main questions

General hypothesis

Orchestra has maintained its public funding in a crisis environment(Annual percentage increase in numbers)

2009: New

law passed

forbidding

commercials

in public

national TV

2009: New

law passed

forbidding

commercials

in public

national TV

1.To what extent your institution has been impacted by the current economic environment

2. Answering main questions

Spanish Broadcasting Corporation’s Choir and Symphonic Orchestra Santos M. Ruesga

Funds are guaranteed in specific numbers within the public firm budget by the State General Law. It has increased in line with inflation in previous years, with the exception of 2009, when advertisement in state public TV was legally forbidden. That increased the amount of funds directly allocated for the Orchestra.

Public grants is the main financial source(Public and private funding, in percentage)

Spanish Broadcasting Corporation’s Choir and Symphonic Orchestra. Santos M. Ruesga

Public funds are the vast majority of the funding : either directly allocated or by services bought by the company. Private funding account for less of 5% of total budget.

2. Answering main questions

Spanish Broadcasting Corporation’s Choir and Symphonic Orchestra Santos M. Ruesga

Public grants is main financial source(Public and private funding, in percentage)

Ticket selling has not suffered the effect of the crisis(Ticket selling by form)

Ticket selling suffered a limited setback in 2009 that can be partly atribuited to the crisis, but has recovered since then.

Spanish Broadcasting Corporation’s Choir and Symphonic Orchestra. Santos M. Ruesga

Expenditure structure is severely biased (as expected in a labour-intensive industry) to labour costs(In percentage of total costs)

Spanish Broadcasting Corporation’s Choir and Symphonic Orchestra. Santos M. Ruesga

Artistic issues don’t change basically in crisis times

3. Whether such pressure also extends to artistic issues like the repertoire to be performed

2. Answering main questions

Artistic activities remain at same level

Spanish Broadcasting Corporation’s Choir and Symphonic Orchestra Santos M. Ruesga

But management of portfolio have been fairly cautious, not developing performances involving extensions of permanent staff, hiring new artist or renting art special instruments.

• It’s not our case. Financial resources are enough to mantain, at least, artistic activties at same level from 2006 to 2010.

• However, current crisis is calling into question one of the most important investment projects, concerning the construction of a new permanent Orchestra and Chorus (auditorium)headquarter, within the biggest studio of the CRTVE, maintaining own audiovisual services capacity and adapting it to digital multimedia production and multiplatform distribution.

4. How you manage to keep your orchestra working when resources are declining?

2. Answering main questions

Spanish Broadcasting Corporation’s Choir and Symphonic Orchestra Santos M. Ruesga

3. Final Remarks

Spanish Broadcasting Corporation’s Choir and Symphonic Orchestra Santos M. Ruesga

Spanish Broadcasting Corporation’s Choir and Symphonic Orchestra internal dynamics is highly dependent on the strategy that company develops

However, both have a relative autonomy of the budget, because revenues are assigned directly to the General State Budget.

Budget allocation for both has not been reduced during the crisis.

As a result of that, they have had not financial troubles during present economical crisis period.

Spanish Broadcasting Corporation’s Choir and Symphonic Orchestra Santos M. Ruesga

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