So a person with a decently large profile (at least for the arts) says the demand for the arts is dropping and therefore the supply of arts organizations should decrease.
Even if you agree entirely with his point, I think that what Rocco is saying is True But Useless. The arts are a passion business and all the economic arguments in the world aren't going to stop people who feel like they must (for reasons both noble and foolish) create art through an organization.
I'm pretty sure he knows this. Rocco's a smart guy. So let's get past the provocative nature of his statement and let's consider this idea:
Demand can be increased. Sometimes it can even be created out of nothing at all.
I'm typing this blog post at my house. On the table are my fancy BOSE headphones and my Ipod. Across from the table are my HDTV and my Xbox360.
I didn't ask for any of those things. 10 years ago I wasn't looking at my old standard definition TV and looking for a better picture image. I didn't even know that was a possibility until it happened.
You can think of many more products, organizations or causes that people were not necessarily begging for when they started. It's happened before and it could happen with your art.
I have my own theory about life about building an arts organization or a career as an individual artist. It's the presumption of failure theory. It's about embracing, from the very beginning, the strong odds against your success.
If you're going to come out with programming, marketing, fundraising and an organizational structure that looks like your larger competitors, then you can pretty much toss your dreams away.
Nobody is looking for a slightly modified version of what already exists.
But if you can challenge traditional thinking, not just in your art but in the entire scope of your operation, then you can start to attract those people who are looking for what's new, what's fresh and what's next.
That's when you can increase demand.
In a way Rocco is right, generally speaking there isn't enough demand for a lot of art forms. But I could use that same reasoning to persuade you from almost any career path. There isn't enough demand for lawyers, coffee shops, etc.
What you have to do - and this isn't easy - is carve a path separate and distinct from what's already out in the world. You have to engage the world differently and hope that leads to new sources of demand.