Market fundamentals of organization of work in the field of stage and audio-visual arts and production
Authors: Balaban O.I. , Venher O. M. , Opanasyk O. B. 
Published: March 2020

Background. Survival and further development is an acute problem for any modern Ukrainian repertory theater. According to the Law (which is only a framework, since it does not answer all the questions that arise), repertory theaters are non-profit organizations and exist for budget funds. The latter are steadily declining and depreciating in the conditions of market relations exist in modern Ukraine. The purpose of the article is to consider and propose methodological approaches to the development and implementation of innovations in the organization of cultural institutions in the field of cultural industries, theater, film and television. Presentation of the main material. The modern development of society is extraordinary – it is filled with changes and transformations caused by the influence of such phenomena as globalization, cheap labor, a large number of competitors. The spread of information and nanotechnology, computer networks is causing changes in the structure of organizations and cultural institutions, in particular, a reduction in their size, which, in turn, predetermines innovation as a result of a creative search for original, non-standard solutions to various problems. Globalization today is not only fierce competition. It also affects the human capital of enterprises, in particular, transforms the concept of a permanent place of work. Technogenic civilization and the rapid change of information technology make cultural institutions need to work extraordinary in such relevant areas as technology, personnel and organizational aspects of business. The most important qualities of the modern cultural space, concerning cultural and educational institutions, creative industries, are openness of thoughts and the possibility to avoid stereotypes. As a result of the development of market relations in Ukraine, cultural institutions have economic freedom, respectively, freedom in choosing directions and guidelines for development, as well as of markets for activities, determining directions for using and attracting own funds, creating a competitive policy, etc. In the same time, the following threats were identified that are relevant for any modern Ukrainian repertory theater, namely: 1) the growth of the budget deficit of the country and the region, which can suspend the budget maintenance of theaters; 2) an increase in inflation; 3) economic instability; 4) political instability; 5) the growth of tax rates; 6) a decrease in the solvency of the audience; 7) low demand from the audience for theatrical services; 8) significant variability in the needs of the audience; 9) a high level of competitiveness of other theaters and cultural institutions; 10) changes in public values; 11) low social consciousness of the population. Due to these conditions, the solution of the problem of survival and development requires the search for new strategic approaches to the organization of activities and management of these theaters, which seems quite relevant. The possibilities are contained in the Law itself, which allows theaters to earn money through various types of commercial activities. Strategically, the most promising is production, which is used by almost all foreign non-commercial theaters. The opportunities provided by “The Law on Public-Private Partnership”, 2010, in the fields of tourism, re-creation, culture and sports can be included in support of such activities. The effectiveness and profitability of cultural institutions depends on the quality of management, as well as monitoring the implementation and quality of services. The high potential of cultural institutions with an underestimation of activity and inefficient management leads to insufficient funding for the development of cultural institutions, a lack of working capital, and low material interest of workers. This situation makes it necessary to constantly increase the budget line for the maintenance of institutions. But to increase the budget revenues of cultural institutions, it is possible to use crisis management technologies. The development of crisis management methods by the management company (with an emphasis on theatrical activities) will be aimed at: protecting intellectual property and patenting by type of activity, developing and applying franchising schemes in theatrical activities; constant monitoring of the theater audience in order to identify trends in the development of culture and demand from the audience; collecting and summarizing the practice of successful European theater projects and managerial decisions to create a system of training the managerial staff of cultural institutions; collecting and analyzing information about the interaction of theaters with the external environment, tracking new trends and market contradictions; creating the basis for adjusting the regulatory framework; increasing the profitability of theaters; development of areas related to the core business; attraction and use of various types of financing (budget, grants, commercial, credit, investment funds); reduction of the budget load and the transition from current financing schemes to the financing of theater projects and programs; the creation of new financial instruments for the development of the theater, including depreciation and accumulation of income; the search for opportunities for the management company to implement external financial management and carry out financial planning, control over improving the effectiveness of theater management; creation of systems of motivation and interest of the creative team of theaters; creative audit of theatrical productions and repertoire policy, assessment of the positioning of theaters and theatrical productions. Summing up the above, we can reach the statements: 1) the rapid reduction of budget support for modern Ukrainian repertory theaters may end with a complete rejection of it; 2) under such conditions, it will be appropriate to study the experience of organizing the activities of foreign non-profit theaters that successfully survive in market conditions; 3) this becomes possible through the use of a rather specific activity called “producing”; 4) modern Ukrainian repertory theaters will have to master it; 5) for this purpose, it seems appropriate to create a "production center" in the theater, which can be started as a startup; 6) this creates a new creative and production system that becomes productive.