Brand and intangible assets. A new Eldorado for culture? | Julien Anfruns | TEDxRoma

Summary

The speaker recounts the Louvre's unexpected invitation to establish a museum in Abu Dhabi, highlighting the challenges of valuing cultural institutions. With public funding for culture declining, the Louvre innovated by treating itself as a luxury brand, securing a €1 billion contract. The museum's expertise and brand were monetized, leading to global projects and partnerships. The talk concludes by emphasizing the importance of leveraging a cultural institution's brand and expertise to secure its future.

Takeaways

• 🏛️ The Louvre was approached by Abu Dhabi to help build a museum, highlighting the value of cultural institutions beyond commercial goods.
• 💬 The initial reaction to the proposal was surprise and uncertainty, as cultural institutions are typically funded by public subsidies.
• 📉 Public funding for culture has been on the decline, with significant cuts in France, the UK, Ireland, the Netherlands, and Italy.
• 💸 The financial crisis of 2008 led to a decrease in public funding and philanthropic donations for cultural institutions in the U.S.
• 🌐 The Guggenheim Museum in Bilbao pioneered the concept of a museum as a brand, leading to a renaissance for the city and a new funding model.
• 🤝 The Louvre's contract with Abu Dhabi for 1 billion euros was a significant step in the franchising of museums and a new way to fund cultural institutions.
• 💼 The Louvre had to develop a new methodology, treating its activities like a luxury brand to assess and price its services.
• 👥 The museum's human capital, including curators, architects, and engineers, was compared to top consulting firms, leading to a service contract of 160 million euros.
• 🗣️ There was controversy and debate over financing culture without public funds, with some seeing it as compromising cultural excellence.
• 🌟 To succeed, cultural institutions must have excellence and recognition, which are crucial for securing high-value partnerships and projects.
• 🔄 The script suggests that the experience of the Louvre can be replicated and open new opportunities for cultural institutions worldwide.

Q & A

What was the unexpected request from Abu Dhabi representatives?

The unexpected request was for help in building a Louvre Museum in Abu Dhabi.

How did the initial lack of response to the request reflect the complexity of the question?

The initial lack of response indicated that the question was unusual and complex, as it was difficult to quantify the value of cultural institutions like the Louvre.

What economic challenges have cultural institutions faced in recent years?

Cultural institutions have faced budget cuts and a decrease in public and private funding, with public money for culture decreasing significantly in various European countries.

How did the Guggenheim Museum in Bilbao change the perception of museums as brands?

The Guggenheim Museum in Bilbao projected itself as a brand, sparking a renaissance for the city and introducing the concept of museums as franchises.

What was the financial arrangement between the Louvre and Abu Dhabi?

The Louvre finalized a contract worth 1 billion euros with Abu Dhabi after extensive negotiations, which included a brand licensing contract of 400 million euros.

How did the Louvre approach the valuation of its activities for the Abu Dhabi project?

The Louvre assessed every sector of its activity, pricing it with a markup comparable to the luxury industry, to finalize the contracts.

What was the role of the Louvre's human capital in the Abu Dhabi project?

The Louvre's human capital, with a variety of professions from curators to logisticians, was compared to prominent consulting firms, leading to a service provision contract of 160 million euros.

What was the public reaction to the financing of culture without taxpayer money?

The idea of financing culture without taxpayer money was met with mixed reactions, with some people loving the idea and others having harsh responses, fearing it compromised cultural excellence.

How have other museums adapted to the changing landscape of cultural funding?

Other museums have created branches, formed international brand alliances, and explored new revenue streams, such as the Hermitage Museum in Amsterdam and the Pompidou Center in Malaga.

What potential does the Louvre see in its brand and expertise for future projects?

The Louvre sees its brand and expertise as real assets with enormous potential, especially in markets interested in high-tech research and cultural heritage.

What is the key takeaway for cultural institutions from the Louvre's experience?

The key takeaway is that cultural institutions must cherish and utilize their world-class brand and expertise to push their institutions to new heights.