By Johans Borman‘Safe as houses’ and ‘you canank on it’ are just two phrasesthat come to mind when most of us think about investing in someor other asset class. We have beenconditioned, from the time that wewere able to comprehend the con-cept of investments, to believe that
the value of xed property and the
trustworthiness of our banks areeyond doubt. That was until the‘toxic debt’-inspired credit crunchof 2008 - which seems to havedeepened now, at the start of 2009.With South African collectors pay-ing millions of Rands for worksy our most desirable artists, thereis no doubt that our art has nowecome a recognised asset class. Inmy opinion, ‘investment art’ can bea very misleading concept as it cer-tainly does not apply to all worksof art but only to a select group.The core issue, which offers thekey to understanding the character-istics and nature of this asset class,is the degree of uniqueness. Everyoriginal work of art is a uniquecreation, which will be interpretedy uniquely different individuals,who will all have uniquely differ-ent views about its appeal, successand value.The investment value of any assetis ultimately determined by itsdesirability. How desirable a par-ticular asset is depends on diversefactors like the emotional impactit has on the potential buyer, theintellectual stimulation it provides,its inherent quality and condition,how fashionable it is and to whatdegree the price matches the buy-er’s perception of its current valueand its potential for appreciation.Investment characteristicsIn order to make sense of theseabstract concepts we need to iden-
tify and dene the characteristics
that determine that segment of theart market that can be regarded to be of investment quality – thereby justifying its status as an assetclass:
Desirability
It is a sobering thought that thevalue of any painting is determined by its desirability only, as it hasno intrinsic value such as that of
a xed property or shares in a
company with a net asset value.Investments, like ‘blue chip’shares, are rated by their historical performance and the perception of their expected future performance.These two aspects are largely re-sponsible for the premium paid for
such shares, thus reecting their
desirability. It is for this reasonthat most ‘investment art’ piecesare works by deceased artists whowould normally fall under the ‘oldmasters’ category. Works by theseartists have a proven track recordof the change in its value over time, which offers a sound refer-ence for predicting its future per-formance. With fashionable trendsoften evident in the art market, itobviously helps to know that a par-ticular artist’s work has maintainedits desirability over long periodsof time – unlike some avant-gardecontemporary works that can losetheir relevance or appeal relativelyquickly (Like the ‘Resistance art’of the eighties).
Uniqueness
As mentioned above, we are deal-ing with a unique asset class. Al-though every work by a good artistis an original and unique creation,there needs to be consistency interms of the technical quality, styleand subject matter for the body of work to generate long term inter-est and thus value. Experimentalworks which do not lead to a sty-listic development or a new seriesof works will never be as desir-
able as the works which dene an
artist’s oeuvre. The long term valueof any artist’s body of work alsorequires a great enough number of works that will ensure continuous
trade in it – thereby conrming
and reinforcing the value over time. The value of works by artistswho only produce a few hundredworks in their lifetime often suf-fers because of the irregular tradein such works. It becomes very
difcult to establish a fair current
market value of a particular work when there are no records of recentsales of comparable works. Artistsare often criticised for ‘repeating’themselves when they produceworks based on the same subjectmatter or idea – unfortunatelythis is exactly what is requiredto establish a large enough bodyof work to ensure its long termmarket value. If Hugo Naudé hadonly painted Namaqualand’s spring
owers once, these paintings
would never have become his mostsought after, and therefore valu-able, works.
Collectability
The functionality of any work of art can generally be best describedas a luxury item which providesemotional and intellectual stimula-tion. It is therefore obvious that, aswith other luxury goods, it is onlythe relatively wealthy members of society who can afford it. From aninvestment perspective and purelyas a theoretic model, it wouldtherefore be prudent to invest inworks by those artists which the biggest group of collectors are buying. This would guarantee con-tinuity in the competition for, andtrade in, these works and wouldresult in a stable market - under- pinning a steady increase in values.Internationally, artists’ careers have been made when the right museumcurators and collectors started buying their work – collectors likeCharles Saatchi have managed tocapitalise on this characteristic of the market and made millions of Pounds because of it. The basicrequirement to ensure the longterm value of any body of work is therefore a large enough groupof capable buyers and/or collec-tors. For anybody considering aninvestment in this alternative assetclass, it would be wise to followthose in the know – the experi-enced collectors. Private collectorshave much more at stake than anyindividual dealer or auctioneer, asthey are spending their own moneyand have to consider a far greater investment risk.
Store of value
Given the current turmoil in
-nancial markets globally, it is noweven more important to consider the stability of the value of anyasset one invests in. Historically,the values of top quality worksof art have always withstood the
short term volatility of the nancial
markets. With less cash around andwith many established banks andcorporations going bankrupt, all potential investors have to be extracareful about where they store their wealth. Most experts agree that thefocus is now on the preservation of wealth and that the value of invest-ments should be beyond doubt.The stability of the long term valueof quality works of art can in short be ascribed to the following:- Unlike other assets, there is passion involved and ‘the heartwills the mind’ when collect-ing art - it is not an unemotional,rational decision based purely on
nancial principles. Sentiment and
the emotional involvement with awork of art usually provide endlessenjoyment for the owner, bringing
instant and continuous gratication
that does not exist with most other
nancial investments.
- Art purchases are usually not
nanced – works are bought for
cash by art lovers who can affordthem. This means that it is highlyunlikely that owners would comeunder pressure to sell as there is nodebt to service and we are dealingwith people who know how to gen-erate wealth (which enabled them
to purchase it in the rst instance).
- The stability of the art market canalso be attributed to the fact that itis a relatively small market wherea handful of able buyers/collectorscan ensure that it stays healthyand stable at any given time – instark contrast to stock marketswhere panic selling can result in aninvestment’s value being eroded toa fraction of its cost in a matter of weeks.
Buying your prot
The most important difference between art and other recognisedasset classes is that it does not pro-vide any income. There is no inter-est, dividends or rental income andthe performance of the investmentis measured purely in terms of itscapital appreciation. Investors willtherefore have to be extra carefulwhen deciding what a fair purchase price is as the performance of their investment will be based purely onthe entry cost. Unlike other assetswhere investors can enjoy bothincome and capital appreciation,which offer greater investmentsecurity when combined, the pur-chase price is critical when buyinga work of art. This is why an inti-mate knowledge and understandingof an artist’s oeuvre is so important- the desirability (read value) of awork from a particular period, of a particular subject matter or in a particular style can be multiplesof that of other works by the sameartist. This aspect of the art marketis of course used by unscrupulous
dealers to motivate inated prices
based on the record prices paid for the truly exceptional pieces. Toavoid being caught in this trap, itis important to have an in depthknowledge and understanding of an artist’s oeuvre and to have repu-table and trustworthy advisors.Finding a reputable, independ-
ent art advisor is very difcult
– given the subjective nature of artappreciation and the fact that mostadvisors/dealers/auctioneers arecommission driven. The only prac-tical alternative in the South Afri-can market is reputable gallerieswho are prepared to guarantee theauthenticity, condition and value of the works they offer. Dealers whosell works of art as ‘investments’should be asked to provide the
same set of gures and guarantees
one would typically expect from aninvestment advisor. Would they be prepared to guarantee the purchase price in a trade-in or buy-back situ-ation? And, would they guaranteean annual increase in value at a particular rate?One should not expect independentadvice from agents or auctioneerswho are selling works on consign-ment for a commission – theyusually ring-fence themselves with‘conditions of sale’ to limit their responsibility. ‘Buyer beware’
should ash in everybody’s mind
when attending an auction wherethe auctioneer claims the right (inthe small print of their ‘Conditionsof Sale’) to bid ‘on behalf of theseller’ (bidding against the chande-lier!), and passes the responsibilityof establishing the authenticity of any work to the buyer! Most goodsales people are very good at tell-ing us what we want to hear…When analyzing art as an assetclass, another important aspect of the art market that needs to be tak-en into account is the transactioncharges. As the purpose of mostinvestments is to ultimately turn itinto cash, the cost of liquidating an
asset can have a signicant inu
-
ence on the nal return on the capi
-tal invested. Unfortunately thesecharges are higher than in mostother asset classes. Listed sharescan be sold for a commission of as low as 1%, and an agent’s com-
mission on xed property usually
ranges from 4 to 10% (with buyersalso having to pay transfer duty of about 8 to 10%), but auctioneersand dealers in works of art operateon much higher commissions.South African auction housescharge 10 to 12% (Plus VAT)of the hammer price to both the buyer and the seller (a total of 20to 24% plus VAT), while Londonauctioneers charge a buyer’s com-mission of 20 to 25% and a seller’scommission of about 10% on thehammer price (a total of 30 to35%). When buying overseas, anadditional import VAT at 15,4% of the invoice value (calculated on therate of exchange when it arrivesin SA) is payable to SA Customs.Most galleries charge a 20 to 30%commission to re-sell works, withthe commission percentage onhigher priced works usually morenegotiable. It is therefore obvious,given the commission structures inthe art industry, that any ‘invest-ment’ would have to perform verywell for a period of at least 5 to7 years before the real net returnwould be worthwhile.
Conclusion
In my opinion, the unique char-acteristics of works of art thatfall into the investment categorywarrant a strategy where it couldcomfortably make up 10% of anyinvestment portfolio. The motivat-ing factors are in short:- Instant and continuous pleasureand enjoyment with almost noholding costs (Most serious art buyers are art lovers and not justinvestors).- An excellent and stable storeof value and wealth in uncertaintimes where other asset classes canexperience severe volatility anderosion of value.- The potential for exceptionalgrowth in value if buying the right pieces at the right time – like now,
where nancial pressures will cer
-tainly force sales at prices whichwill offer very good value.- No Capital Gains Tax (or any
other taxes) on prots if works
were bought privately as col-lectables and not for speculative purposes.- An opportunity to leave a legacythat says much more about anindividual than any bank balance
can reect - but with a built-innancial advantage. We have often
sold inherited works where the proceeds literally changed people’slives for the better – paying the de-
posit on their rst home, or paying
for their university education.With South African art now anestablished alternative asset class,it is important to evaluate the ef-
fects of the current nancial crises,
and formulate a strategy to take
advantage of the situation. I rmly
believe that one should now look for opportunities to acquire qualityworks of art while the pessimistsare too pre-occupied with thedoom and gloom to even noticethem.© Johans Borman Fine Art GalleryBy Jim RichardsonFrom The Art Newspaper www.theartnewspaper.com(May 2009)Social networks and blogs are thefastest growing online activities,according to a report published in
March by research rm Nielsen
Online. Almost 10% of all timespent on the internet is spent onthese types of sites, which Nielsendescribes as “member communi-ties”, and they are visited by morethan two-thirds of the world’sonline users.This has not gone unnoticed bymuseums and galleries, with manycreating some kind of presenceon sites such as Facebook, Twitter and Flickr. But because this has primarily been done as a marketingtool, institutions are missing a far greater opportunity. By treadinggently into the second generationof web development and design,known as Web 2.0, museums risk achieving little, and are effectively paying mere lip service to onlinesocial engagement. If they were tomake a proper commitment to theenterprise, they could transformtheir relationship with audiences,change people’s perceptions of them and vastly expand the reachof their collections.The Nielsen research shows thata major factor in the success of social networks is that they al-low people to select and sharecontent. This has become a hobby,even considered by some to be aserious creative outlet, with webusers spending time “curating”their online space. Museums arewell placed to appeal to this newgeneration of “curators” becausethey offer rich and interestingcontent that can be virtually“cut-up” and stuck back together online in numerous different ways
to reect the individual tastes of
each user. If remixing, reinterpret-ing and sharing interesting contentis, as Nielsen suggests, the kindof engaging interaction that draws people to social networks, thenmuseums should embrace the ideathat “everyone is a curator”, both
online and ofine.
Most of the institutions that areadapting their own websites withthose facets of the social networks
that so many people nd attrac
-tive are in the US. The Museumof Modern Art (MoMA) in NewYork relaunched its website inMarch. It now includes links to themuseum’s online users on varioussocial networking sites such asFacebook, Twitter and YouTube.Users can also create personalonline accounts, which allow themto bookmark upcoming events, cre-ate online exhibitions and “collect”works of art via their mobile phoneas they walk around the galleryand view them later on the website.Victor Samra, digital media mar-keting manager at MoMA, says:“It’s not enough just to broadcastinformation now. Sharing and participating in discussions are becoming normal activities on theweb, so I think people are comingto expect it. People want to engagewith content they are really pas-sionate about, and museums havea great opportunity to provide thisfor them. This helps to change the perception of the museum as a building with four closed walls toan organisation with personalityand a human face.”One potential obstacle to museumssharing content online is the issueof copyright and how to protectimages if they are put on theinternet. Legal implications aside,from a practical point of view thisapproach is becoming outdated.For example, the Art Museum of Estonia has gone against conven-tion by actively encouraging visi-tors to photograph its collection;the MoMA website helps users toco-create content and share thesecreations with friends.All museums want to create adialogue with their audiences, andmost museum staff are well awarethat the internet can be a usefultool for doing this. But museumssuch as MoMA that have whole-heartedly embraced the new digitalenvironment are becoming part of the conversation, rather then just pushing content or questions atvisitors and then sitting back.Online activity such as MoMA’srequires investment, both in termsof web development costs and staff time, but if this is where peopleare and how they are communicat-ing, then, one can argue, museumsshould be there too.Curators pride themselves on usingtheir collections to analyse issues,
provoke reactions and ask difcult
questions. But these questionsare no longer just being debatedover a coffee or in the galleriesthemselves; they are also beingdiscussed online, whether it is onsocial network sites such as Face- book, online discussion forums or the many blogs, and the content prompting these responses is nolonger restricted to the four walls itactually inhabits. This means mu-seums and galleries need to expandthe sites where they introduce, nar-rate and edit their programmes.The writer is the managing direc-tor of Newcastle-based Sumo, adesign consultancy specialising inarts and culture. He is a speaker atthe conference, “Communicatingthe Museum”, in Malaga (24-27June). www.communicatingthemu-seum.com
Facebook is more than a fad -and museums need to learn from it
ArtsJournal, for example, currentlyhosts 42 blogs on a variety of arts topics, including the widelyread visual arts blogs Modern Artotes and CultureGrrl. Under such arrangements, bloggers geta cut of the advertising fees alongwith greater visibility (which canlead to other paid gigs), while theumbrella site captures readers andturns more “sticky”. Somethinganalogous is happening with someestablished journalism brands.Innovative newspapers like theGuardian in the UK and VG inorway are putting together akind of layer-cake of content thatattracts a sizable number of onlinereaders. At the top are editoriallysupervised staff journalists. Beloware blogs, written by staff and free-lance writers with latitude to shapetheir content. The third tier is thevast, unsupervised “commento-sphere” of opining readers. Thewhole machinery works in unisonto congregate a wide, lucrativead base. In view of these devel-opments, today’s do-it-yourself logs are destined to be a transienthenomenon. Many talented artsournalists will carve out a satellitefranchise in the orbit of larger media entities.How soon such bloggers can tacklethe full journalistic workloadleft unattended by newspapersis another question. In terms of commentary and plain kibitzing,especially about local arts scenes,we may be there already. When itcomes to fair and balanced report-ing, the record is mixed. On theone hand, bloggers are breakingstories, with arts organisations (or their disgruntled employees) oblig-ing them with excellent scoops.The Getty Center’s leadership cri-sis, in 2006, when internal memostrickled to the press via blogs, wasan early example. Much “insider aseball” that may not get ink in a newspaper is now routinelycovered by blogs. Deaccessioningstories alone have become a minor cottage industry.However, journalism is not justabout scoops. It’s about due dili-gence, evaluating accuracy, givingsubjects an opportunity to respond,and providing non-judgmentalcontext. Such protocols are morelikely to be followed under thegaze of professional editors. Major investigative stories are clearly outof reach for even the most intrepid bloggers.Going non-commercialWhat if audience aggregationwon’t make arts journalism intoa viable business? Until recently,it was anathema to suggest thatnewspapers could become not-for-
prot organisations. Yet hospitalsand museums offer public benets
this way, and so might the press.In fact, a few smaller US papers
are already run as non-prots (with
mixed results). Specialised art peri-odicals, such as Cabinet, have for years survived on donations (withexcellent results). Going not-for-
prot involves some legal and ethi
-cal intricacies for the press. Puristsworry that journalism could endup in the pockets of foundationswith random agendas and shortattention spans. Yet, if publishers
can keep a “rewall” between their
editorial and business operations,they can also do it with donors.There are applicable precedents.The Kaiser Family Foundationsupports coverage of healthcare,for example. “The NewsHour” onPBS, one of the most respectedTV news shows in the US, has22 foundation sponsors and twocorporate underwriters (Intel and
Chevron). Some pay for specic
types of journalism—and no out-
rage, so far, over conicts of inter
-est. Public radio (NPR), with 33million weekly listeners (as againstthe New York Times’ 1 milliondaily circulation), is a haven for quality arts journalism that attractssome of the best reporters in the business. It has also perfected theart of raising money for its cover-age—from foundations and legionsof listeners. Both PBS and NPR receive government support. Onlythe trained eye can distinguish the“image spots” of foundation andcorporate underwriters on publicTV from the sort of advertisingthat populates the commercialairwaves.Some fascinating new web-basedfunding models appear less suitedto rescuing the mainstream media
than to helping smaller for-protor not-for-prot publications. ABay Area outt called spot.us has
a method for “community fundedreporting”, which pools small do-
nations for specic stories. People
interested in a proposed story canmake a tax-deductible contribution(typical budgets are below $1,000).The money is held in escrow untilthe entire sum for the story is col-lected, at which point the writer gets the green light. My currentfavourite payment model is Kach-ingle, which promises to “sprinklechange on the blogs you love”. AKachingle member sets a monthly budget for donations to favourite
media sources—say, $50. Bene
-
ciaries are identied by pressing
a Kachingle button already foundon many sites. Everything happensautomatically. The $50 is distrib-uted in proportion to the amount of time the donor spends on each of the chosen sites. Genius.There is a growing realisation thatwithout some form of non-com-mercial support, certain realmsof quality journalism may notsurvive, especially under cur-rent market conditions. CarnegieCorporation president VartanGregorian has suggested buyingnewspaper subscriptions for col-lege students—a bailout that wouldreplenish future readers. The AndyWarhol Foundation supports artcritics and reporters by means of grants awarded through CreativeCapital. In Europe, where suchsupport falls to the state, JürgenHabermas, the German sociolo-gist, has urged direct governmentsupport for the media. Not to beoutdone, France’s Nicolas Sarkozy
has pledged €600m to aid the press
with advertising, tax breaks andstudent subscriptions.Philanthropy can help to build anew arts journalism infrastruc-ture to offset the collapse of localcoverage. Proposals to harnessfreelance writers in an organ-ised fashion date back to the late1990s, when David Resnicow andFrederick Schroeder, of the promi-nent Resnicow Schroeder arts
marketing and PR rm, launched
an independent company named
MuseNews, a national for-prot
art news syndicate that sold storiesto old and new media outlets for asmall fee. The service, which alsosought foundation underwriting,was subsequently merged intoBloomberg, where it evolved intothe site’s arts and culture section,known to readers of this newspaper as an excellent source of art busi-ness reporting. Current proposalsfor a new kind of art news serviceare inspired by the success of online news sites such as Pro-Publica and GlobalPost, whichhired top-notch journalists (some
recently laid off) to ll blind spots
in public affairs and internationalnews coverage, with foundationsupport. Politico, which waslaunched by private investors and
will soon turn a prot, operates on
a similar model, and it has become
inuential enough to sponsor presi
-dential debates and be called up for a question at President Obama’s
rst major press conference. Initia
-tives are currently underway todevelop specialised newsgatheringoperations for science, healthcareand even religion (the Religion News Network). These organisa-tions are recreating alternativesto professional newsrooms witheditorial guidance and supervision.According to some estimates, $2m
per year—one-fth of 1% of US
foundation arts support—couldramp up a new arts journalismservice. Writers at imperiled publi-cations like the Los Angeles Timesare following these developmentsclosely.
The real hurdle for non-prot arts
journalism, it should be clear, isnot technology, or ethics, or alack of ideas. It is fundraising. Toget behind arts writing, founda-tions and arts patrons would needto steer funds away from their traditional recipients (artists andorganisations) towards journal-ists (who are often considered asadversaries). In other words, a not-
for-prot rethink of arts journalism
hinges on a rethink of cultural philanthropy.Arts groups step upThis brings us to the third, andarguably most controversial, curefor the ills of arts journalism—cul-tural organisations. Until recently,there was an unambiguous divisionof labour between arts institutionsand the press. One side delivered programming, the other providedexposure, evaluation and publicscrutiny. Any suggestion thatthese roles could blend together would elicit howls of condemna-tion. But if the marketplace or cultural patrons cannot sustainarts journalism, those with a stakein its survival must come up withalternatives. And it’s already hap- pening.Arts groups are getting better at telling their own stories anddirectly engaging their constitu-ents. It may not always look like
journalism, but it is lling in some
gaps. In the US, regional online arthubs are springing up from Chi-cago to Kansas City, Miami andLos Angeles, supported by coali-tions of local arts organisationsand philanthropists, to provideinformation and discussion aboutthe arts. Museums, in particular,have taken the lead in creating analternative media infrastructure.MoMA’s recently relaunchedwebsite features online groupsthat allow visitors to explore,create and share information viaFacebook, YouTube, Twitter, Flickr and iTunes. London’s Tate (which publishes its own glossy, TateEtc, billed as “Europe’s largest artmagazine”) and the Walker ArtCenter in Minneapolis are amongthe trailblazers pouring resourcesinto deep, polished, personalisedonline content and public forums.Some museum sites are, in effect,starting to resemble interactiveonline art magazines.Their latest features are strikinglysimilar to the innovations newsorganisations are deploying toturn their customers into active, participating, loyal partners in theenterprise of journalism.The next step is pooling resources.“What’s the point of having 1,000museum websites with separatedatabases of information?” asksMaxwell Anderson, director andchief executive of the IndianapolisMuseum of Art (IMA), where herecently launched two innovationsthat bridge the gulf between the press and the visual arts. One isArtBabble.org, a kind of YouTube
for art, with high denition videos
gathered from a consortium of art institutions (IMA, MoMA,SFMOMA, Lacma, the NewYork Public Library, Art 21 andthe Smithsonian, at present). Incontrast to YouTube, the videos arecarefully selected and screened for quality. The transcripts of manyof them are searchable, locallyor via Google, so that a casual
viewer or a researcher can nd
the exact spot, for example, whereEd Ruscha reminisces about theCirrus gallery in a documentary produced by Lacma. Visitors to thesite can add their own commentsand engage in online discussions, just like at any savvy news site.ArtBabble, and others like it, maywell develop into future platformsfor art criticism and commentary.Mr Anderson’s other innovationat IMA is a digital “Dashboard”,located on the museum’s website, providing up-to-date statistics onthe museum’s administration and performance. An array of digital“widgets” tally up everything fromthe number of museum members tothe total kilowatt-hours of energyconsumed daily. Some of the sta-tistics are not for the faint-heartedmuseum director. One of the IMAwidgets tracks the museum’sendowment in monthly snapshots(down $120m since last October).Another chronicles admissions
with data generated every ve min
-utes. A catalogue of objects slatedfor deaccessioning is next, alongwith their sale price and where the proceeds end up. For Mr Anderson,the Dashboard, with its objectivemeasurements of administrativegoings-on, is an antidote to the“risk of institutional control” that pervades most in-house publica-tions. It is no substitute for hard-nosed reporters, but for transpar-ency, it’s a start.The hybrid futureAmid the doom and gloom aboutarts journalism, such innovationsoffer a glimmer of hope. Thereis no going back to the culturaland advertising dominance thatnewspapers once enjoyed. Weshould be mindful that the emerg-ing landscape offers asymmetricalodds for art criticism (which cansurvive by the labour of individualwriters) and arts reporting (which
requires institutional repower and
protections). Writers will struggle
to reclaim the access and inuence
they achieved with the backingof prestigious journalism brands.Even so, the faint outlines of a newsystem are starting to emerge.It’s worth noting that journal-ism schools are seeing a recordsurge in applications. Many topinstitutions, including Columbia,Syracuse, the Annenberg Schoolat USC, and the City University of New York, have recently launchedgraduate programmes in cultural journalism. Despite the currentmeltdown, these are among themost heavily sought after spe-
cialisations. Certication may be
even more important for freelancewriters than for those in accreditednewsrooms. Do-it-yourself journal-ism is expanding so rapidly that itmay be sparking its own demandfor journalism training.Students may be attracted precisely by the lure of the new and un-known. The most exhilarating as- pect of tomorrow’s arts journalismwill be its unpredictable hybridity,how it feeds on multiple sourcesof innovation and energy. It will be an undertaking where nimbleentrepreneurs sustain criticism andreporting through a mix of adver-tising, licensing, social networks,donations, digital space rental,and barter arrangements—what-ever works. Boundaries betweenwriters and audiences, channels of communication, and professionalconstituencies will blur in waysthat are at once alarming and hope-ful. Our notion of what a “newsorganisation” or an “art magazine”is supposed to do will be upendedas new relationships crystallise between the arts, the media and the public.“Society doesn’t need newspapers.What we need is journalism,” me-dia analyst Clay Shirky observedin his blog recently. “No one ex- periment is going to replace whatwe are now losing with the demiseof news on paper,” he added, “butover time, the collection of newexperiments that do work mightgive us the journalism we need.”
With newspapers in terminal decline, what future for arts journalism? - Continued from Page 1
02 BUSINESS ART | MAY 09
A Unique Asset Class
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