The Flying Dutchman and the Blue Ocean Strategy

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Watching one of the concerts (or shows) of André Rieu on TV, I could not help but think how this vibrant Dutchman, now in his seventies, managed to put to shame the pseudo prophets of the supposedly inevitable demise of classical music. A classically trained pianist myself, I remembered some discussions with orchestra conductors who felt bitter about orchestras in the US going bankrupt, the emergence of classical music showmen and the lack of interest in classical music in the younger generation.

Have you attended a piano concerto? The consequence of steps typically follows this order – the orchestra tunes in to the concertmaster’s 440 Hertz A pitch, the conductor comes in with a smile and determination; at last, the soloist appears under the vigorous applause of the audience. Et voilà! Without anybody uttering a word, the conductor raises his hands, everybody falls dead silent and the orchestra starts playing in synchrony or dissonance. In the end of the evening everybody claps, overwhelmed by the excitement of having experienced another dimension, or out of relief that the birthday present gifted by the kids’ grandparents now has a checkmark next to it.  

The origins of orchestral music are to be found in ancient Greece, where theatre performances at auditoriums were guided by a chorus and instrumentalists, meaning that music was an integral part of theatre back then. From Baroque (1580 - 1750) all the way through the Early Romantic classical music period (1830 - 1860), the tradition of classical musicians composing for and tending to the needs of the royal court and the church was firmly cemented. It was not until the late 19th century, which targeted artistic freedom and virtuosity, that orchestral size and structure, as well as the availability of concerts to the general (middle class to affluent) public, came to life the way we know them today.

In our digital era, classical music has not only become open to everyone regardless of social standing and ties, but can also be accessed remotely, available on-the-go and shared by everyone. Nowadays we have powerful data dissemination tools that were inconceivable in the past. Yet, despite this ubiquity harnessed by new technologies and ecosystems, classical musicians struggle to make a living. Even the few virtuosos who manage to earn enough from tours often source additional income through private tutorship. Why are so many classical musicians still trying to make a breakthrough in this new open and free world?

I will go over some of the reasons here:

1.       The availability of many substitutes. The music industry has evolved to a point of no return. The proliferation of mobile devices, the unlimited storage capacity across cloud infrastructure, and the ability to organize big data and amplify its benefits via machine learning and neural networks present never before known and viable opportunities to promote oneself. A few weeks ago, Beethoven’s 10th unfinished symphony was completed using expert input and AI technologies. Few (lucky) classical music talents attain and sustain fame in this quick paced, tech-savvy world. On top of that, competition is more fierce than ever – it extends well beyond music into other areas where people spend their free time, from pop concerts and magic shows to theatre and cinema, just to name a few. Classical musicians and institutions have maintained quite slow strides, somewhat hidden in the overwhelming volume and traffic of data, most of them becoming part of the ‘long tail’ rather than market leaders.

2.       The culture of silent adoration has shifted to a culture of sharing. Not only do we have more substitutes to spend an enjoyable time with loved ones or by oneself, but consumer preferences are evolving in accordance with the unleashed countless opportunities. People like to participate jointly in activities online and offline, to be proactive rather than passive, and to collect pleasant memories. The lifestyle of sharing that the advent of technology brought about, combined with the stressful office culture away from the family, has further underscored the importance of having fun together with loved ones and friends. A traditional classical music concert ensures a passive presence in each other’s company but does not gratify the demands of this new consumer culture of sharing.

3.       The traditional inflexible values of a classical musician get in the way. I remember having a chat with a well-known conductor and pianist who clearly stated that he did not want to become a ‘’showman of the likes of Lang Lang’’. In the world of classical music, the value of ‘seriousness’ does not align well with the concept of entertainment. And who would not understand that classical musicians need to be 100% concentrated to produce the desired quality of performance, without getting distracted or elevating their pulse unnecessarily by conversing with the audience or playing a role! It is a big stretch to be both a perfect performer and an excellent communicator who speaks the language of the masses.

Classical music still has the allure of an elitist genre that few truly understand and appreciate. Classical musicians are taught that only the quality and perfection of their performance matters, in other words they do not need to be social or expressive beyond their finger work. Many classical musicians underplay the importance of promoting themselves as a result of this (lack of) training. They would rather leave it all to specialists like impresarios and agents and focus on achieving music perfection instead. Unfortunately, the brand is only as good as the driver behind it. Teen stars like Taylor Swift and Justin Bieber built a loyalty empire via social media posts on Twitter and YouTube with a strategic focus on influencing and conversing with fans, while getting help from seasoned agents. In fact, Justin devised a YouTube channel strategy with his manager from his very start and built his fame entirely via this social media channel by paying full attention to the needs of his audience.

A vivid success story is that of Valentina Lisitsa, a Ukranian pianist who shot through world fame with her social media posts. She is one of the first classical musicians who used YouTube extensively as a channel before a lot of famous musicians had any digital channels, and she became world famous without the help of any music label behind her (in fact, music labels shunned her). When Lisitsa posted the video of herself playing Rachmaninoff on YouTube in 2007 and her online interpretation of Chopin’s Etudes, her online DVD sales in Amazon grew multifold. She became the first YouTube star of classical music and used this success to launch her future very successful career on the global stage. The music labels followed with offers in due course.

The passive, one-sided values no longer work in a world where right use of communication tools via the right technology is the bread and butter of success. Just like in the corporate world one cannot rely exclusively on work quality and needs to develop other skills like the ability to understand, relate to and convince colleagues, bosses, partners and customers, so must classical musicians develop their own voices and individuality. The digital world amplifies this necessity multifold, as the voice is not only heard on stage but via an omnichannel network that is as complex and brand-driven as it gets.

4.       Differentiation in a homogenous world with restricted choice. It is difficult to build a brand when you are among the hundreds of thousands playing the same famous pieces of established genius brands like Beethoven, Chopin, Rachmaninoff or Mozart in a relatively small classical music market. In rock and pop music, the singers and instrumentalists (e.g. guitarists) are the brands and stars, regardless of whether they themselves of someone else composed the pieces they sing and play. Therefore, the songs pop and rock musicians sing do not need to be advertised prior to the concert. Imagine going to a Paul McCartney or Aerosmith concert and getting a detailed song by song program at the door… By contrast, in classical music it is the norm that all composers and concrete works are listed on the distribution channel (e.g. venue website), because the composer and pieces are vital pieces of information for the decision making whether to attend. There are some exceptions, of course. Many people would go to a Martha Argerich concert regardless of which pieces she will perform, because she has already created a brand of her own, being among of the greatest known pianists of our times. Concert halls and intermediaries, just like the Hollywood movie makers, compete to attract the stars who are well-known. Therefore, breaking through and earning a high income in the shrinking classical music market is close to impossible.

But let’s go back to André Rieu… Born into the family of musicians in Holland (his father was a famous conductor), Rieu grew up with the sounds of classical music and went on to study violin at the Royal Conservatory in Brussels. His popularity grew so much over the years that he became a household name even for people who did not have much appreciation for music, let alone classical. His CDs hit the Billboard charts and rivalled the positions of classical stars like Pavarotti and some of the largest rock stars, and his Hot Tours totals surpassed those of teen stars like Justin Bieber (keep in mind the popularity of pop vs classical). Even youngsters who never attend classical music concerts know who Rieu is. In 2018, Billboard reported him as the highest grossing classical artist in Billboard’s Boxscore history, with $550 million total gross from shows, and as the classical act with the highest attendance, coming up to a staggering 5.97 million. He has sold over 40 million DVDs and CDs. How could this traditionally trained classical musician beat the odds and make classical music desired by so many?

Classical music traditionally attracts an older, more mature customer base. I attended and played at classical music concerts since my childhood. Most people in the audience were in their 50s and 60s. The New York Times recently reported that in the last season the average age of attendees of the Metropolitan Opera as well as of the New York Philharmonic was 57, with 62% of the Philharmonic’s attendees being 55 and older. Broadway itself had a much younger audience range with the average age ranging between 40 and 45 in the past two decades.

As seen through my eyes, the attire of the audience at symphony concerts was generally formal, with black, white and grey being the dominant colors. Operas tended to be more colorful, with the women wearing formal dresses depending on the location (attendees in Vienna being the most chic, Munich somewhat less and San Francisco opera goers occasionally boasting jeans). The ambience was always solemn and there was a marked feeling of disconnect between the audience and the orchestra conductor, or between the audience and the performers. Nobody stood up or moved during the performances, as it was meant to be a silent enjoyment and a moment of reflection at the threshold of a higher world, a bit like the solitary connection with God at our Christian Orthodox churches.

My eyes glide back to the TV screen. I see Rieu laughing, facing the audience as he continues telling the story of the next performer, and I hear the people singing along a minute later. What is this? A rock concert, a Broadway show or opera? This is what I call the ‘unshackled classical experience’ and here is how he created it.

1.     Using the Johann Strauss orchestra as a foundation. The most beautiful house will collapse without a stable foundation. Rieu builds upon his expertise and training in classical music as the stepping platform to create his own uncontested space. A ‘family’ of orchestra members, which has grown from 12 to 60 people over the years, performs under his baton at all his tours. The very name of the orchestra evokes an image of couples dancing waltz. Rieu translates the clear image into a key element of his brand, which takes after the characteristics of a gracious, expressive, passionate, easy to learn and fun dance.

2.    Creating a new ambience through a culture of sharing. Rieu recognized that while other genres like rock and pop notably made use of the special connection between performers and audience members, classical music lagged behind. He opened the doors to people who wanted to enjoy old music in a new way. The new sharing approach attracted couples and groups of friends who did not necessarily listen to classical music at home but wanted to connect, be part of a fairy tale experience with everyone while laughing, dancing and having a good time. Pushing through the conventional boundaries of classical orchestral music, Rieu adopted elements from rock concerts, such as the use of large venues and the frequent interaction with the audience. At times, he made available long tables and chairs to parts of the audience. In places like Germany and the Netherlands, where the culture of beer gardens dominates, his idea was very well received. Rieu also studied and embraced local traditions and folk songs during his worldwide tours, additionally predisposing his audience.

3.       Light but not in quality. His shows have been referred to as ’light classical’, but Rieu throws in not only waltzes and marches, but also popular music from films, musicals and operettas. Rieu’s CDs with light music soared up the rankings from the beginning, as they impressed with his unique rendition of waltzes, marches and other popular music supported by the eloquence and technique of his classical training. The lightness and fun do not come at the expense of quality, as Rieu’s performances and the performances of all musicians in his program meet the high-quality expectations from a classical musician’s standpoint. I can vouch for it!

4.       Use of emotional appeal and romance to dissolve genre boundaries. My grandmother loved telling stories and she had so many of them; she did not miss an opera performance when she was young and played classical music on her stereo every day. I remember her telling me about an orchestra member who said that the highest quality music is classical music and all other genres do not come close to it. Many years later, as I was sipping a cup of coffee with an orchestra conductor who was an acquaintance of mine, I heard the same words. Classical musicians protect and stand their ground, and are proud of their unique position in a world that few can truly enter and appreciate.

Rieu takes a very different approach by appealing to the senses rather than to the knowledge and understanding. He melts the boundaries between genres and says he does not distinguish between classical and contemporary music: “I know that when I like music, when it touches my heart, that it will touch your heart, too. That, I think, is the secret to my success.”

Rieu attracts families and friends to his shows but also clearly targets the average couple with popular romantic pieces under whose rhythm couples move and dance. With his careful selection of pieces that “touch the heart” he has managed to attract a brand new audience – older couples who are not typical classical music goers, and younger couples who want to share glamorous, memorable moments together with everyone else.

5.       Interjection of humor and fun. Rieu uses humor throughout the program to lighten up the ambience. The performing artists engage in a variety of acts and roles under his leadership while continuing to impress with strong musicianship and talent. Who said that classical musicians can’t be actors? People singing and laughing together define the new paradigm of enjoying classical music, an unabridged social experience that stands in opposition to the solemn, detached style moulded throughout the ages.

6.       Use of bright colors. The orchestra members, choir and invited performers of Rieu’s concerts boast colorful, lively costumes, unlike the typical portentous, dark evening attire of classical music attendees. His audience also often comes dressed with traditional clothes, matching the lively spirit of his entourage.

7.       Mixture of elements from theater, rock and opera and folk music. Rieu adopts the brand and audience interaction of the ‘rock superstar’ and thus eliminates the dependency on programs and pieces that exists in the traditional classical music world. Similarly to the elevated interaction between the rock star and his audience, the people sing along and move. Rieu tells stories and communicates with the audience throughout the performances – everybody who is a guest in his show and every piece has a story or background presented by him. He is like a director of a long theater play who also actively participates, entertains, flatters and orchestrates an end-to-end spectacle. The selected performances combine the grandeur and elegance of opera with the ‘’at home’’ spirit of folk performances.

8.       Crafting a ‘’magic’’ show. Rieu plays several important roles simultaneously – he is a classical conductor, presenter, storyteller, entertainer and a leader who creates perfect harmony. People no longer come for the program and pieces as they do at classical music concerts, but rather for the surprise picks and guests, impeccable organization and magical atmosphere. The show of Rieu is about magic, fairy tales and romance. In 2008, Rieu went as far as to replicate the Schönbrunn Palace in Vienna and make it its home in Maastricht; he then toured the world with it, saving himself from bankruptcy with the enormous publicity that came with the replica.

9.       Leaving out what does not fit the brand.

You will never see a pianist play Rachmaninoff’s 3rd piano concerto during one of Rieu’s shows or the entire performance of Verdi’s Traviata. While these works would be perfectly fitting a quiet evening of focused listening and solemn silence, they would be out of place in the Rieu culture of change, surprise and fun. Rieu leaves in operatic voices and waltzes but removes a whole lot of other works that are typical of classical music concerts. He makes sure that the works performed during his shows fit the Rieu brand.

10.       Guest appearances from other music genres and industries

Andre Rieu invites not only renowned classical music performers but also film actors, child stars, children’s choirs, dance troops and emerging talents to his shows. He also self picks less well-known talents whom he has met throughout his career, tells their stories and gives them a stage to shine. With his fame having soared over the years, he has attracted admirers from all over the world and participants in his shows include stars from industries other than music like Anthony Hopkins (who wrote a waltz in honor of Rieu) or David Hasselhof singing Presley’s Love me Tender. Among his picks have been the Harlem Gospel Choir and numerous international artists, and even Lou Bega with his Mambo No. 5.

11.   Harnessing the power of Digital

Last but not least, Rieu has made extensive use of marketing channels such as TV and the Internet. He has a YouTube channel and a powerful TV presence across a number of channels. For some time, the channel Sky Arts 2 was even named Sky Arts Rieu in his honor, playing back-to-back concerts of his.

12.      Completing the circle composer-conductor-composer. In the past, composers of the likes of Verdi, Berlioz and Mahler took music leadership into their hands by also becoming orchestra conductors; they had control over the interpretation and quality sound of their own works, among others, and had the opportunity to express their own truth outside of the written works. Verdi conducted his famous Requiem, Rachmaninov performed his very difficult piano concerti. In his turn, André Rieu was trained as a performer and conductor, but he turned this around by also becoming the “composer” of his own André Rieu piece consisting of various small parts over whose originality, appeal and quality he exercised control. He shifted from the unifying, well-defined leadership of a conductor to the transformational, disruptive leadership of a conceptualist and creator, much like a strategy leader in business who embarks on a transformation journey that will not only reconstruct his company but challenge the thinking of an entire industry.

André Rieu is a clear example of the Blue Ocean Strategy devised by INSEAD’s professors Chan Kim and Renée Mauborgne. There are other examples of musicians who have built their own Blue Ocean. Helene Fischer, a ‘‘schlager’’ music star from Germany sold more than 15 million folk music records and reached the top place in the German charts. She created a Blue Ocean by becoming the mastermind and center of the popular Helene Fischer Show, where Fischer holds the pieces together in a spectacle that spins over world-famous and self-selected acrobats, singers, dancers, and much more, in the context of special effects and atmosphere. She blends different industries, using international and German hit music as her foundation and her voice as the glue that connects everything. She also takes the lead in dance and acrobatic performances during the show, when the complexity allows for this. Among the stars who have been her guests are Tom Jones, Andrea Bocelli, Louis Fonsi and David Garrett.

The idea of the Blue Ocean strategy is to design a unique strategic positioning that bypasses existing competition, instead of competing with the (business) sharks in the red ocean. The value canvas, which is a strategic tool from the Blue Ocean Strategy, reveals the positioning of Rieu against the traditional classical music industry. Rieu takes on some of the characteristics of rock and pop concerts, as well as opera, to form his own strategic profile and untap a large new market. In the following chart, for purposes of simplicity I have divided the classical music industry into non-operatic (orchestral, chamber, solo - except in the venue size and pricing tiers, the differences are not significant) and operatic, as I treat their value curves differently. The x-axis lists the factors that the industry competes on and what customers get in terms of value and, respectively, investment from the industry. The dotted yellow line indicates the strategic approach of Rieu to these factors on a scale of 1 to 4 - create, raise, reduce and eliminate. One can observe that the orange and red value curves are completely different. Rieu adds brand new factors of value and differentiation, focuses on raising others, and eliminates the long complete works that are characteristic of orchestral performances and opera. Increasing the overall value to consumers via a brand new experience that addresses different needs, he has also been able to raise the price of his offering.

Strategy: 1= create 2=raise 3=reduce 4=eliminate

Rieu disrupts and transforms boundaries between industries, rewrites rules and shifts the way classical music is being perceived. Yet he does not eliminate the traditional classical music: instead, he appeals to an audience with different characteristics and needs. By achieving this, he shapes a powerful brand whereby he is the core and the essence.

So what does this all mean for the traditional classical music? I believe that classical music won’t die and will always have its loyal fans. According to research, some of those who are in their 20s and 30s become fans in their 50s, so the over-50s replicate the fan base. However, one can expect that the genre will lose some of its inflexibility in order to successfully compete – it will mingle with other genres, amuse more than before, explore non-traditional digital and non-digital channels… And those musicians who refuse to change with the changing times will pay the price.