ÜB: So you are part of the municipality, but you operate as a business? I ask because we also do a lot of cultural programming, but when we earn money from ticket sales or rentals, it becomes part of the city’s revenue. It’s a different way of operating.

JC: It is basically up to us to generate the revenue we need to run the house, from ticket sales, sponsorship, commercial rentals, food and beverage and so on. Direct public funding accounts for only a few per cent of our budget. Any profits are immediately reinvested in developing the house, in technical equipment or in the artistic programme. That is how we finance our large free programme of concerts, for instance. For us, the commercial side of running Musikhuset is not an end in itself. It is what enables us to create more cultural experiences, reach more people and contribute to the quality of life in Aarhus. That is really what our business model is about.
 
ÜB: What does your marketing look like under this business model?
 
JC: Our primary marketing tool is our customer database, which contains 170,000 customers. We know what they are interested in from their purchasing patterns. When they buy a ticket, we have four or five digital touchpoints with them before and after the show. That’s our commercial engine. How many emails do we send out every year, Jeppe?
 
JU: We send more than 10 million emails every year. Our newsletter is the most effective marketing tool we have. On average, we have an opening rate of around 50 per cent. We’ve got this base of 170,000 people, and we segment them according to their interests. So people who like jazz get one,  newsletter, and people who like classical music get another. We also segment at artist level. If you have been to a concert by a particular artist before, we make sure to send you an email with relevant content when the artist returns, so that you, as a loyal guest and customer, have the chance to get the best seats in our halls for your favourite artists.
 
JC: Typically, you get a newsletter from us featuring four or five different shows. Then you might get another newsletter because you have seen “Così fan tutte” and we think you might also be interested in other operas, so you get a targeted email about that. That’s two. Then , two days before the show, you get a text message on your phone with your ticket and information about dining options, drinks and where you can park your bike or car. Then you attend the show, and the following day you receive a satisfaction questionnaire. And people actually respond to it. That’s how we connect with people and build loyalty. So we work hard to stay in touch with our audience. Last year, 67 per cent of the 400,000 people living in Greater Aarhus visited us. 24 per cent came once, 22 per cent came twice, and 5 per cent came six or more times aduring the year.
 
JU: We introduced the text message service three years ago, when we realised that our visitors received quite a few emails after buying their tickets, but when they arrived for the event, they couldn’t find their tickets in their inbox. To make it easier for them, we started sending a text message, and we added a little promotion for food and drinks. This text message increased food and beverage sales in our restaurant by 10 per cent.

JC: Our main focus over the last four years has been to give our visitors the full experience, on top of the artistic experience: excellent food and drink, cosy and welcoming surroundings, easy parking. Being able to get a drink quickly and without having to queue is part of that experience. This approach is an integral part of our four-year strategy. We want to be more than a traditional cultural institution. We want to be a vibrant cultural destination. We want to reach a point where people know that there is always something happening here, throughout the day and evening, indoors and outdoors, in summer and winter. There are around 20 cultural institutions within a square kilometre of here, and we want to take the lead in turning this area into a cultural destination. Why? First, we want to make culture more accessible to everyone. And second, we want people to think of Musikhuset on a Saturday morning when they are wondering what to do. Quite a few cultural institutions around the world have succeeded in doing that. When I lived in Sydney for three years, I didn’t always know what was happening inside the Sydney Opera House, but I went there every other Sunday with my family just to see the house and the area. That’s what we want, and that’s also what the politicians want. Our ambition is to take the initiative and develop ideas that support the city’s broader cultural ambitions. We want to improve the quality of life for the people of the city and its visitors. When Aarhus is an attractive place to live, companies can attract new employees more easily, and the university can attract more students and talented researchers. We want to be part of this ecosystem rather than just presenting artists on stage.

ÜB: Do you cooperate with educational or social institutions?

JU: Well, Musikhuset is home to the second-largest music conservatory in Denmark, so we have 400 students in the house every day. A lot of primary schools come here to attend concerts by the Aarhus Symphony Orchestra, children’s theatre performances and other events.
 
JC: We’ve also had successful choir sessions with people living with dementia, for example, as well as community sing-along events. We do much of this work together with our partners, such as the Symphony Orchestra, the Opera and the children’s theatre, which are resident in Musikhuset. They have specific funding for outreach activities, and our role is to bring people and institutions together and help create opportunities for more people to experience culture.
 
ÜB: Musikhuset has existed for 40 years. I imagine the financial model was different at the very beginning and has probably changed over time. If so, why did it change?

JC: The general model has been the same all along. It has always been a case of: if you can’t float economically, you’d better learn to swim quickly. The Symphony Orchestra and the Opera have different funding models, reflecting their specific artistic responsibilities. Musikhuset operates within a different financial framework. Musikhuset is one of approximately 20 fairly similar concert halls and cultural centres of this kind in Denmark, and we are by far the largest. In smaller cities, public subsidies tend to be a little higher per guest. But again, the hidden subsidy here at Musikhuset is that we get to keep the revenue from renting out the facilities in the house. That is our business model. We have to generate as much revenue as we can and spend it wisely.

ÜB: You mentioned your four-year strategy. Does anyone expect you to have one?
 
JC: Our strategy is aligned with the current alderman’s vision. But just like in any other business or institution, you need to have a plan. We do it so that our employees, partners and politicians know where we are heading, and all our employees are involved in developing it. So you could say that not much happens without clarity and involvement at every level.

ÜB: Has there ever been any resistance from politicians or from employees to any part of the strategy?
 
JC: I don’t think there has been much resistance, because the employees have been involved in developing it, and it is based on thorough analysis and conversations with partners and politicians. And we strongly believe that “the best argument should win”. So if you don’t think the strategy is the right one, we discuss it, and you are welcome to come up with a better idea. And if you have a better idea, we go with it.