Orchestras can be expensive enterprises, with costs quickly adding up due to the large number of musicians and support staff involved. However, the exact cost of an orchestra depends on many factors, including size, reputation, location, repertoire, and more. This article will provide an overview of the key costs involved in running and performing with an orchestra.
Musician Salaries
The single biggest expense for any orchestra is musician salaries. Professional orchestra musicians are highly trained and in demand, meaning they command high wages. According to a 2021 report by the League of American Orchestras, the average annual salary for a full-time orchestra musician in the United States was $77,692. However, this number varied widely based on the orchestra’s budget and location:
- The average salary at orchestras with budgets over $25 million was $167,109
- The average salary at orchestras with budgets between $10-25 million was $91,887
- The average salary at orchestras with budgets under $10 million was $43,458
Major orchestras in expensive cities like New York and Los Angeles pay on the higher end, while regional orchestras have lower average wages. For example, the average Los Angeles Philharmonic salary was reported at $195,000 in 2019, while the Nashville Symphony averaged $55,000.
The total wage bill also depends significantly on the size of the orchestra and whether musicians work full-time or part-time. Large, internationally renowned orchestras like the Chicago Symphony and Philadelphia Orchestra employ well over 100 musicians each. Community-based orchestras may have as few as 25-50 core members. Part-time and per-service musicians are paid per rehearsal and performance, rather than a fixed annual salary.
Conductor and Staff Salaries
In addition to musician wages, orchestras also have substantial labor costs for conductors, management, and administrative staff. According to the League of American Orchestras report, the average annual salary for Music Directors (chief conductors) was $642,157 at orchestras with budgets over $25 million. Executive directors earned an average of $396,611. Artistic administrators, community engagement directors, librarians, and other support staff are also on the payroll at most professional orchestras.
Performance and Rehearsal Expenses
Simply paying musicians would not be enough to have a functioning orchestra. There are also costs associated with actually preparing and staging performances. These include:
- Venue Rental: While some orchestras own their own concert hall, most rent performance venues and rehearsal spaces. Venue fees in cities like New York and Chicago can be $10,000-$15,000 per concert or more.
- Stage Crew: Union stagehands are hired to help set up chairs, stands, and equipment for rehearsals and concerts.
- Instrument Maintenance: Regular maintenance and tuning of instruments, especially for delicate strings.
- Music Purchasing and Rental: Sheet music must be bought or rented for each new piece performed.
- Guest Artists: Soloists and guest conductors are paid fees ranging from $5,000-$20,000+ per engagement.
- Travel: Orchestras cover travel costs for tours and residencies.
The combined costs of performance production, space rental, music acquisition, and artist fees can total $500,000 or more each year even for a regional orchestra.
Administrative Overhead
Orchestras also have considerable overhead expenses to fund day-to-day operations:
- Office and Storage Space – Most orchestras operate an administrative office and space to store equipment, archives, and music library.
- Insurance – Orchestras take out specialized insurance policies to cover potential liabilities as well as instrument coverage.
- Equipment – Computers, software, office supplies, and equipment for activities like music publishing and community engagement.
- Marketing – Advertising costs for email, social media, print, and other promotion to drive ticket sales and donations.
- Fundraising – Staff and tools to run fundraising campaigns, donor events, grant applications.
Administrative costs at even medium-sized orchestras can total several million dollars per year before factoring in musician pay or performances.
Revenue Sources
Given the high costs involved, orchestras rely on multiple sources of revenue to fund operations:
- Ticket Sales – Between 30-50% of revenues at most orchestras. Prices and attendance vary based on concert type and orchestra renown.
- Donations – Individual patron and corporate giving accounts for around 20% of revenue. Larger orchestras have substantial endowments ($500 million+ for top groups).
- Grants – Orchestras receive support from government arts councils and private foundations. Especially important for regional groups.
- Media and Syndication – Orchestras earn royalties from recordings, broadcasts, and distributions.
- Education and Community Programs – Outreach initiatives generate modest revenue from program fees.
- Concessions, Parking, Facility Rentals – Ancillary earned revenues from food sales, parking, corporate event rentals.
Despite varied revenue streams, most orchestras spend more than they take in. Additional fundraising and community support are needed to sustain operations each year.
Budget Totals
Combining all the above factors, total operating budgets for American orchestras in 2019 ranged from:
- Over $100 million for top-tier groups like the New York Philharmonic and Chicago Symphony.
- $50-$75 million for orchestras like Philadelphia, Cleveland, and Los Angeles.
- $25-$50 million for regional orchestras in cities like Detroit, Houston, and San Francisco.
- Under $10 million for community orchestras staffed mainly by part-time musicians.
As an example, here is a summary budget for a hypothetical mid-sized regional orchestra:
Expense | Total |
---|---|
Musician Salaries and Benefits | $5,000,000 |
Staff Salaries | $2,000,000 |
Concert Production | $1,500,000 |
Facilities and Overhead | $1,000,000 |
Fundraising | $500,000 |
Education Programs | $250,000 |
Total Expenses | $10,250,000 |
Revenue | Total |
---|---|
Ticket Sales | $4,500,000 |
Annual Fund and Donations | $3,000,000 |
Endowment Earnings | $1,500,000 |
Government Grants | $750,000 |
Other Earned Revenue | $500,000 |
Total Revenue | $10,250,000 |
This sample budget demonstrates the delicate balance orchestras must achieve between containing costs while maximizing all potential revenue streams to maintain self-sufficiency.
Cost Mitigation Strategies
Given the high fixed costs involved with orchestras, especially musician pay which is subject to collective bargaining, there are limited options to reduce expenses. However, orchestras have employed strategies such as:
- Offering fewer full-time contracts and hiring more per-service musicians
- Shortening seasons and performing fewer concerts
- Hosting concerts in lower cost venues
- Renegotiating musician pay scales and benefits
- Cutting administrative staff
- Curtailing community engagement initiatives
Making deep cuts risks jeopardizing artistic quality and public support. Orchestras must balance prudent financial management with sustaining the ability to attract talent and audiences.
Educational and Community Orchestras
Professional orchestras are not the only ensemble model. Many local orchestras operate on a non-profit or volunteer basis, with much leaner budgets. Community orchestras may perform with as few as 20-40 unpaid musicians donating their time. College and youth orchestras also have very low costs, as student participation is embedded in overall university or program tuition. These groups can offer excellent performance opportunities at a fraction of a pro orchestra’s budget.
Scalability of Costs
The forces required for different repertoire allow orchestras flexibility in budgeting concerts. Chamber orchestra works require around 40 musicians or fewer. Standard Classical and Romantic symphonic works call for 60-90 musicians. Large-scale orchestral pieces like Mahler symphonies can utilize 100+ musicians. By programing larger and smaller scale works across seasons, orchestras can scale performer costs and venue needs.
Overall, while orchestras carry high price tags, they also provide tremendous artistic, social, and community value. Orchestras support vibrant cultural ecosystems that often yield broader economic benefits to local businesses and tourism. Given non-profit funding models, most orchestras function as public goods sustained by patron enthusiasm rather than turning profits. But this requires financial discipline and careful stewardship by management to keep expenses in check and revenue streams healthy.
Conclusion
Orchestras range in cost from tens of millions of dollars for major professional ensembles down to minimal budgets for volunteer groups. The largest expenses are musician salaries, followed by conductor and staff pay, as well as the overhead of concert production and administrative operations. Orchestras draw on diverse sources of earned and contributed revenue, but many still face financial strain. With diligent budget management and public support, orchestras continue to thrive as artistic centers and community assets.