Performing Arts Survey

2004

Public support for Canada's performing arts remained strong in 2004, both at the box office and in the form of grants, subsidies and donations from various government and private sector sources.

Overall, revenue from live performances accounted for almost one-half (49%) of total revenues for for-profit and not-for-profit performing arts companies in 2004. This proportion was unchanged from 2001.

Grants, subsidies and donations from various government and private sector sources made up 27% of total revenue, down slightly from 28% three years earlier.

In total, revenues generated by both sectors surpassed an estimated $1.2 billion in 2004, up 4.2% over 2003 and 25.5% higher than in 2001. For-profit companies generated just over one-half of the total.

Theatre, the predominant industry, accounted for 28% of total revenue, followed by music groups (everything from orchestras to rock groups), which accounted for 25%. The remaining 47% was split among musical theatre including opera, dance, and a miscellaneous category that includes circuses and ice skating shows.

The nation's performing arts industries reported before-tax profits of $49.2 million in 2004, more than double the level of $21.0 million three years earlier. Their profit margin of 4.1% in 2004 was up from 2.2% in 2001.

Unless otherwise indicated, the survey data presented in the rest of this release are based on establishments whose combined revenues account for approximately 95% of the industry's total revenues. This survey portion represents just under 1,000 for-profit and almost 500 not-for-profit performing arts companies.

The relative importance of revenue sources differed greatly between the for-profit and not-for-profit sectors.

For for-profit companies, virtually all operating revenues came from earned revenues. Of every $100 in revenues, $57 came from ticket sales and $40 from sources such as merchandise sales, royalties, and rentals. But only $2 came from government funding, and only $1 from private sector donations.

In contrast, earned revenue was much lower for not-for-profit companies. Of every $100 in revenue, ticket sales generated $42 and merchandising, royalties and rentals another $8. But governments provided $29, while the private sector donated the remaining $21.

By far the greatest expenditure by for-profit and not-for-profit performing arts companies is on personnel. In 2004, payments made to performing and creative artists and all other personnel accounted for 48% of operating expenses. Nevertheless, volunteers were also key players contributing to the on-going strength of the not-for-profit performing arts in Canada. Almost 41% of the work force of those companies surveyed were volunteers.

The top 20 companies accounted for nearly half of all revenue

In 2004, the 20 top performing arts companies (both for-profit and not-for-profit) reported revenues of $554.1 million, which accounted for 46% of total revenue for the industry.

These companies reported a profit margin of 1.6%. Their ticket sales amounted to $262.9 million, or 47% of their total revenue.

Other earned revenue such as merchandise sales accounted for 38% of total revenue, while public and private sector funding accounted for 6% and 8%, respectively.

These companies had 7,724 paid personnel in 2004, and their salary, wages and benefits costs accounted for 46% of their total expenses.

Not-for-profit sector posts deficit

This sector, which cover around 500 establishments reported revenues estimated at $575.6 million, up 6.4% from 2003. Proceeds from performances, which accounted for 42% of this revenue, increased at virtually the same pace.

These companies produced 43,730 performances at home and abroad in 2004, attracting an estimated 14.2 million spectators.

But while revenue increased 6.4%, expenditures for these companies rose even more, resulting in a before-tax profit margin of negative 1.2%. All disciplines registered deficits in 2004. This loss reversed a small surplus the year before, but was still lower than the deficit of $7.5 million in 2001.

Public, private subsidies growing for not-for-profit companies

Proportionally, grants, subsidies and donations from governments and the private sector combined accounted for 49% of operating revenues for not-for-profit companies in 2004.

In total, these grants, subsidies and donations increased 5.5% over 2003. Contributions from the government sector increased 7.2%, more than twice the rate of growth of 3.2% in donations from the private sector.

Provincial governments were the biggest backers of not-for-profit companies in 2004. They accounted for $75 million in revenue, or 46% of total public sector support.

The relative shares of provincial and federal funding varied from province to province. Provincial funding was highest in Quebec, where 26% of total operating revenue came from provincial government sources, twice the national average of 13%.

On the other hand, companies from British Columbia obtained only 7% of their operating revenue from provincial sources.

Theatre largest industry in not-for-profit sector

Theatres comprise the largest segment of the not-for-profit sector, attracting over half of the total attendance. They generated revenues of $277.9 million, up 6.3% over 2003. This was 48% of the total revenues of the surveyed not-for-profit companies.

Contributing to this growth was a 4.6% increase in revenues from live performances, as their number rose 3.1%. Over three-quarters of all performances were performed at "home," with the others on tour, or at other venues.

Not-for-profit music, the second largest segment, consists primarily of orchestras, but also includes other musical groups such as chamber and choral.

These companies generated revenue of $134.7 million, down 1.7% from 2003. Even though expenses also fell 2.2%, the companies in total reported a deficit of $1.8 million in 2004.

This was significantly lower than a loss of $2.5 million in 2003 and $4.7 million in 2001. Hence, profit margins improved from a deficit of 3.8% in 2001 to a deficit of 1.3% in 2004.

Provinces: Ontario largest player

The majority (42%) of not-for-profit performing arts revenue was generated in Ontario, followed by Quebec at 27%.

Surveyed establishments in Ontario derived the largest share of their revenue from live performances and other earnings (55.8%) and relied less on revenue from private and public sector funding (44%) than did establishments in other provinces. Of all the provinces, Ontario attracted the largest audience share, with 36% of the nearly 14.2 million spectators at live performances in 2004.

These establishments also registered the highest number of performances, almost 13,400, as well as the most operating revenues. Even so, Ontario companies recorded the largest operating deficit, estimated at $6.9 million, for a profit margin of negative 2.9%. Ontario contributed the most to the national deficit of $5.7 million.

Conversely, Alberta boasted the highest profit margin of almost 2.3%. Performance revenue and other earnings generated almost 49% of the operating revenue of the performing arts companies in that province. Public and private sector support contributed the remaining 51% of total operating revenue.

For-profit sector: Profit margin improves

Total revenue in 2004 for the surveyed establishments in the for-profit sector amounted to $552.3 million, up 2.0% from the year before. Ticket sales from performances accounted for over half of these revenues.

These for-profit companies generated before-tax profits of $44.6 million in 2004 for a profit margin of 8.1%, up from 6.5% in 2003 and 4.9% in 2001.

Nearly half (48%) of their performance revenue came from touring, followed by single ticket sales at home (34%).

While theatre represented the largest component of the not-for-profit sector (as measured by revenue), it was the smallest industry of the for-profit sector at 5% of total revenues. Multi-disciplinary and other performing arts groups including circuses, variety shows, ice skating shows, and magic shows represented the largest industry group in the for-profit sector. This latter group generated 42% of the total revenues of the for-profit sector.

Definitions, data sources and methods: survey number 3108.

Selected details from the 2004 Survey of Service Industries: Performing Arts are now available in the publication Performing Arts: Data Tables (87F0003XIE, free) from the Our Products and Services page of our website. These tables include breakdowns of data by province and industry. Researchers can request special tabulations on a cost-recovery basis.

For general information, contact Client Services (toll-free 1-800-307-3382; culture@statcan.gc.ca). For more information about the survey, or to enquire about the concepts, methods or data quality of this release, contact Marie Lavallée-Farah (613-951-1571; marie.lavallee-farah@statcan.gc.ca) or Joan Farnworth (613-951-6303; fax: 613-951-6696; joan.farnworth@statcan.gc.ca), Service Industries Division.