# New funding initiatives among recommendations for ensuring future of performing arts sector

- Link: https://fundraising.co.uk/2025/01/23/new-funding-initiatives-among-recommendations-for-ensuring-future-of-performing-arts-sector/
- Published: 2025-01-23T08:45:00+00:00
- Author: Melanie May

**New funding initiatives including a match fund are among recommendations for ensuring
the long-term resilience and sustainability of the performing arts sector, set out
in a new research report from the National Theatre.**

The report, _[Scene Change: Optimising business model innovation in the performing arts](https://www.nationaltheatre.org.uk/about-us/research/business-models-2025/)_,
looks at at performing arts business models: how they operate, the value they deliver,
and the challenges they face; and examines how new approaches could help organisations
create greater economic and social value.  

A nine-month research project, commissioned by the National Theatre and delivered
in partnership with the Intelligence Agency and Erskine Analysis, the work included
data analysis, surveys, bilateral meetings, and interviews with more than 140 organisations
of all sizes across the country. It was overseen by an external research advisory
group, comprised of leaders and experts from industry, policy, research and funding
organisations, and chaired by Sir Damon Buffini, Chair of the National Theatre board.

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92% of respondents to the study said undertaking business model innovation is important
to their organisation’s future, and the study identified five prevailing business
models in the sector that the report says offer ‘unique strengths and opportunities
for transformation through tailored interventions’.

#### Recommendations for match & innovation funds

The report includes a series of measures that the sector can implement alongside
advocating for other interventions and funding initiatives with recommendations 
for the sector, its partners, and policymakers. Among them is for partners of the
sector to create a ‘once-in-a-generation’ match fund to drive long-term sustainability
and decarbonisation in the arts through capital investment. Recommendations for 
policymakers include introducing an Arts Business Model Innovation Fund to provide
seed funds to pilot new ideas and approaches.

Recommendations for the sector itself include boosting technological capacity by
creating the sector’s first ‘Technology Roadmap’, and unlocking new opportunities
for cost saving and revenue generation through a series of sector-authored playbooks.

Sir Damon Buffini said:

> “The National Theatre, like many other publicly funded performing arts organisations,
> has a complex business model and over the last decade, we have developed and grown
> our programme and income streams to better achieve our mission, to increase impact
> for audiences and communities around the UK, and to take advantage of new technologies.
>  
> “Given economic headwinds and a challenging fiscal outlook over the coming years,
> it is more important than ever that policy makers and arts leaders fully understand
> the effective and sustainable business models available for performing arts organisations
> and their potential. We commissioned this research to help shape policy that supports
> performing arts organisations to deliver efficiently and that directs funding 
> where it has the greatest impact.
>  
> “By investing in a deeper examination of these models, our aim with this sector-
> leading research is to foster a more sustainable and equitable ecosystem that 
> supports both innovation and accessibility. We hope that our recommendations help
> people working in the industry, funders, and policy makers to strengthen the sector
> and drive real change, together.”

Andrea Sullivan, International Executive, Head of Social and Environment Group at
Bank of America, commented:

> “We welcome this research from the National Theatre, which provides important 
> insights into how business model innovation can strengthen the performing arts
> sector. The mutually supportive relationship between public arts organisations
> and corporate partners is essential to fostering a resilient and thriving creative
> ecosystem. This study’s systemic approach to innovation and its recommendations
> for collaboration across sectors will help us work together to ensure the long-
> term sustainability and continued impact of the arts, benefiting both the cultural
> and economic fabric of society.”

#### New research strategy

_Scene Change_ is the first research piece commissioned under the National Theatre’s
new research strategy. Each year, the National Theatre plans to undertake an agenda-
setting piece of research to support, through evidence-based arguments, the development
of industry, economic and policy needs of the performing arts sector.

The National Theatre and research team will be running sessions for arts organisations
to discuss the recommendations of the research and how they can help futureproof
the sector.