Fine Arts Schools

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Quarterly Insight, Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 14,700 fine arts schools in the US provide instructional services in the arts, including dance, art, drama, and music. Fine arts schools include a broad range of educational providers, including art schools (except commercial and graphic arts), dance studios, drama and theater schools, and music schools. Degree-granting institutions are not considered fine arts schools. Most firms are small, independent organizations that operate within a local market.

Vulnerability To Economic Conditions

Demand for fine arts education is sensitive to economic conditions and typically drops during periods of financial uncertainty.

More Dancing

Demand for dance instruction has benefited from the popularity of dance-inspired TV shows and interest in dance as an alternative to exercise.

Industry size & Structure

The average fine arts school firm employs between 6-7 workers, and generates $362,000 in annual revenue.

    • The fine arts education industry consists of about 14,700 firms that employ 100,300 workers and generate $5 billion annually.
    • The industry is highly fragmented; the top 50 companies account for 11% of industry revenue.
    • Degree-granting institutions are not considered fine arts schools. Most firms are small, independent organizations that operate within a local market.
    • Franchises are popular in the fine arts industry. Franchises offer pre-made curriculum and lesson plans to franchisees to ease the start-up process. Arthur Murray International and Fred Astaire Dance Studios are large dance studio franchises. The School of Rock music school franchise has over 280 locations.
                                    Industry Forecast
                                    Fine Arts Schools Industry Growth

                                    Coronavirus Update

                                    Nov 3, 2021 - Juilliard Welcomes Fully-Vaccinated Audiences
                                    • At the onset of the COVID-19 pandemic, music, visual art, dance and other fine art schools had to quickly adapt to distance learning technologies to continue operations. Visual arts schools faced unique challenges with moving to online learning environments because students may lack supplies, materials, or equipment.
                                    • Some fine arts schools may have qualified for relief under the stimulus package that passed in December of 2020. The $900 billion stimulus included $22.7 billion for colleges and universities. Higher education has been hit hard as the pandemic reduced enrollment. Meanwhile, schools have had to bear higher costs related to the pandemic including testing, protective equipment, health support, and financial aid for students.
                                    • Fine arts programs – including those in public schools – are exploring ways to continue arts education amid the ongoing pandemic. Music programs that include singing or brass and wind instruments pose unique challenges as singing and forcefully blowing air are highly efficient methods of spreading coronavirus through airborne droplets. However, researchers at the University of Maryland and the University of Colorado Boulder suggest there are a number of strategies that can mitigate the risk of singing and playing wind instruments in groups, according to The Wall Street Journal. Wearing a mask while singing significantly reduces the number of particles. Particles can also be reduced by placing bags or bell covers over wind and brass instruments. Special masks with slits in them also proved effective at reducing airborne particle emission while playing wind instruments. Particle build-up can also be reduced by taking 15-minute breaks every 30 minutes where all participants leave the room. Improving ventilation also reduces risk, including opening windows, HVAC systems that bring in fresh outside air three times per hour, or using portable HEPA air cleaners.
                                    • Some fine art schools have a high percentage of foreign students who left the US when the outbreak began. If foreign students leave, such schools could face revenue shortfalls. Foreign students tend to pay higher tuition than US citizens. After being mostly shut to nonessential foreign travel since the onset of the pandemic, the US began welcoming fully-vaccinated international travelers on November 8. Accepted vaccines for US travel are those approved by the World Health Organization (WHO and/or the US Food and Drug Administration (FDA), including Moderna, Pfizer/BioNTech, Janssen (J&J), AstraZeneca-Oxford, and the two Chinese vaccines Sinopharm and Sinovac.
                                    • Rigorous testing protocols may be a key to allowing fine arts students to rehearse together and resume more regular performances. Rapid antigen tests can return results in about 15 minutes, but have been in short supply in the US. In October, the Biden administration said it would spend $1 billion to increase the availability of rapid tests. The move hopes to quadruple the number of tests available by December 2021. The National Institutes of Health is also working with manufacturers to help them navigate the FDA’s regulatory process and speed the approval of more rapid tests, according to The Washington Post.
                                    • Some schools hope to bring back live performances by limiting audience sizes in auditoriums and concert halls. Performances are also being recorded and made available online or performed live via Zoom. While live performances are seen as an integral part of fine arts education, instructors stress that the most important thing for group performers is being able to rehearse together – even if it’s in smaller groups.
                                    • As of September 27, 2021, more than 700 college and university campuses have announced they will require students to be vaccinated if they plan to return to in-person classes for the fall semester. Most of the colleges that have announced vaccinations requirements are private institutions. However, the public university systems in several states will also require in-person students to be vaccinated. Because much of arts education involves performances and the need for in-person instruction, fine arts schools may institute vaccination requirements. Requiring students to have vaccinations against viral diseases is not new, and most schools have existing portals for uploading vaccination records. However, laws and regulations regarding vaccination requirements vary by state. Requiring students to be vaccinated was complicated by the fact that the COVID-19 vaccines were approved by the FDA under emergency use authorizations (EUA). However, on August 23 the Pfizer-BioNTech vaccine received full FDA approval, which prompted more schools to require vaccination.
                                    • New York City’s Juilliard School returned to on-campus, in-person classes for the fall semester, according to Broadway World. Juilliard has also resumed a full performance schedule for dance, music, and drama. Juilliard’s fall 2021 live performance schedule was initially live streamed for free on Juilliard’s website, and open for live attendance only by the school’s students, faculty, and staff. Juilliard performances reopened to fully-vaccinated public audiences in mid-October. Juilliard also requires all faculty, students, and staff to be fully vaccinated except for those who have been granted a medical or religious exemption.
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