That is the question.
Let me offer some thoughts.
I'm watching a reality show, The Next Iron Chef. The goal is to defeat the other opponents in a series of challenges. The challenges are designed to force participants to show the skills they need to be an Iron Chef.
During the first set of challenges, one of participants, Morou Ouattara was given the same feedback from the judges . . . "We like your food, but we need you to be show some diversity in your plating style. You keep putting the food on the plate in the same way, please change it up."
Chef Morou decided to ignore the judge's advice. He said that he was an artist and the plating was a reflection of his style so he would not compromise his values by changing things for the judges.
Needless to say, during the next challenge Morou was eliminated. Primary reason for his elimination . . . he kept presenting his food in the same plating style.
Some people praised Morou for holding strong to his artistic values.
I think he was an idiot.
When Morou signed up for the show, he was saying, I want to be an Iron Chef. One of the criteria's for being an Iron Chef is the ability to plate in a variety of ways. By refusing to do that, he was holding his own artist values above what his audience (the judges) demanded from him.
And that is why he didn't achieve his goal of being an Iron Chef.
Here's is how I think this story relates to your life as an artist or artistic organization.
It's one thing to say you want to be an artist.
It is another thing entirely that you want to make a living as an artist.
If you want to accomplish the first goal (being an artist) then you don't need to listen to any feedback from your audience. You can produce what you want with no concern what others think.
But if expect the public to put money in your pocket for your work then you MUST consider their desires and (sometimes) adjust your artistic product to more closely match those desires.
Is there a line between adjusting to your audience and pandering to them? Absolutely. But walking that line is part of the challenge of being an artist.