Should Subscription Revenue be used to cover current expenses?
December 3, 2008 § Leave a comment
Many organizations rely on subscription sales to carry them through the late spring and summer months however the Virginia Symphony is learning the negative effects of this plan. Over the past few seasons subscription sales have been declining and single ticket sales have done the same. As a result the Symphony is struggling with covering costs. To deal with the lack of revenue Virginia Symphony has started eliminate positions and will be canceling 3 performances this coming spring.
So the question remains, should we use future subscription revenue to cover the costs of the current season? Something to think about.