L.A.’s role as the creative capital of the world is leading to a brighter future. Four local businesses that are following paths to success in a slow economy showed how in a panel presentation at the Beverly Hills Library on May 16.
Santa Monica based Ovation TV reported results that dazzle in the current economic environment. In the past three years, it has been the fastest growing cable television network in the U.S., growing from 5 million households to 32 million today. The broadcaster has taken an innovative approach to grow hand-in-hand with the World Wide Web. Its online community has become a virtual talent contest, providing enough visibility to new talent to generate a steady stream of emerging artists to debut on the network with talent viewers cannot find anywhere else.
Ovation’s sponsors have responded enthusiastically. Over 60 national brands have signed on in the last three years. Ovation TV Senior Vice President Gaynor Strachan Chun also highlighted 75 new cultural partnerships that have made the network a pillar of the arts community.
Beverly Hills art gallery owner Kevin Anderson has taken a two step approach to succeed in the current market. First the gallery scaled back the size of its downtown Beverly Hills showroom to focus attention on the very best works of art available. Then the business shifted more of its budget to go directly to collectors. The focus of this initiative has been a growing presence at leading international art fairs and electronic communication with clients. Anderson Galleries’ online newsletter has brought excellent results as clients from all over the world read about new opportunities in the art market and forward the information to their own clients.
Art & Living Magazine has continued to grow while other publications have been forced to cut back their coverage of art topics as they loose readers to the Internet. Publisher Jeff Marinelli showed how the magazine has sprinted past competitors by going directly to collectors, with a presence at 26 art fairs. The next step, already underway, is to extend the magazine’s brand with over 70,000 high income readers. “Art & Living Unleashed†will feature the leading edge of art and design together with the latest trends that collectors will want to follow.
Marsh Insurance art practice Vice President Daniel Greene gave art collectors more reasons to stay optimistic. He confirmed that art prices have continued to rise and that insurance companies have actually increased the dollar values for replacement coverage of artwork during the last year. At the same time, lower interest rates and more efficient operations have produced a large reduction in the cost of art insurance premiums. On average, rates are just half of their level a decade ago. Current rates are typically just 12 to 15 cents per year for every $100 of insurance coverage.
Panel Moderator Max Donner, a director of the World Art Foundation, concluded the discussion with an historical perspective. This presentation showed how and why the art market fared well during difficult times like the Civil War and Great Depression, when many investors sought safe havens. A summary of recent reports from Art Logistics of Munich, Germany and Australian economist Nicholas Forrest’s Art Market Blog reinforced these optimistic points of view. The reports show select sectors of the art market continue to set new records and build bastions of strength.
The Art Economics Workshop was hosted by the Harvard Business School Alumni Association, represented by its co-President John Combs of Oppenheimer Securities. The discussion will continue Saturday, June 13 at the Cal State Fullerton Art Museum, where a panel of art industry experts will present a market update to the members of the World Art Foundation.
