A massive 1,800-square-foot digital billboard overlooking the highway between Miami Beach and downtown Miami displays advertisements for luxury brands like Yves Saint Laurent and Tiffany & Co. What might surprise passersby is that this billboard, generating an estimated $1.2 million annually, is owned by the neighboring Pérez Art Museum Miami (PAMM). This unconventional revenue stream represents a broader transformation taking place across American museums as they face mounting financial pressures.
Facing declining attendance since the pandemic, reduced corporate sponsorship, and an aging donor base, museums nationwide are experimenting with increasingly entrepreneurial approaches to generate income. These initiatives range from art sales and technology innovation to real estate development and consulting services. Stephen Reily, director of Remuseum, a think tank housed by the Crystal Bridges Museum of American Art, notes that traditional museum revenue sources like stores and cafés often lose money due to high operating and staffing costs.
The Museum of Modern Art in New York began commissioning NFTs and digital art in 2022, taking up to a 20 percent cut of every blockchain purchase and up to 5 percent on resales. The Georgia O'Keeffe Museum in Santa Fe has patented a high-tech crate designed to better protect artworks in transit, with plans to license the technology to other businesses and nonprofits. These initiatives reflect museums' efforts to convert existing expertise and assets into sustainable income streams.
Some museum leaders initially expressed discomfort with commercial partnerships but have since embraced profitable collaborations. Jessica Morgan, director of the Dia Art Foundation, overcame her initial unease about partnering with Avant Arte to produce and sell prints for $6,000 each. Since 2024, Dia has generated more than $5 million from editions by artists George Condo and Lee Ufan, with another launch scheduled for January. The foundation also entered a three-year agreement to advise Netflix founder Reed Hastings on a public art park in Utah for an undisclosed fee.
The Barnes Foundation in Philadelphia has significantly increased its earned revenue from $6 million in 2022 (20 percent of its operating budget) to $8.1 million in 2025 (28 percent of its operating budget). Their initiatives include consulting work for organizations like the Museum Store Association, licensing their Visual Experience Platform online learning tool, and providing administrative services for neighboring institutions Calder Gardens and the Pew Center for Arts & Heritage through operating partnerships.
Experts warn about the potential risks of pushing entrepreneurial thinking too far. Natasha Degen, chair of art market studies at the Fashion Institute of Technology in New York, notes that under US law, nonprofits must pay additional taxes on revenue from businesses deemed unrelated to their missions. She cautions that problems can arise when activities fall outside museums' core competencies and divert resources from their primary mission of serving the arts and public education.
PAMM's billboard has sparked significant controversy, resulting in two lawsuits and conflicts with neighboring institutions. In September, the museum agreed to pay a $500,000 annual fee to the city and limit the billboard's operating hours as part of a settlement. The Frost Museum of Science subsequently sued the Florida Department of Transportation, arguing that PAMM's digital sign violates state law, advertises unrelated products, and contributes to light pollution. Frost Science CEO Douglas Roberts declined a similar billboard proposal, considering luxury advertisements inconsistent with educational mission.
Some entrepreneurial schemes don't survive leadership changes. Under former director Hesse McGraw, the Contemporary Art Museum Houston began offering curatorial services nationwide in 2020, working with clients from the Mayo Clinic in Minnesota to a California water recycling facility. Current leadership under Melissa Luján, who became chief operating officer and co-director last year, plans to focus on projects closer to home, citing challenges in sustaining and growing such initiatives long-term.
Historical precedents exist for museum commercialization efforts. In 1979, after its endowment contracted, MoMA sold air rights above its building for $17 million, enabling construction of a luxury residential tower next door. Many New York City institutions subsequently followed this model. MoMA also operated a corporate art advisory service until 1996. However, current circumstances make this moment distinct from past commercialization efforts.
Several factors distinguish today's entrepreneurial push from previous eras. Operating costs for museums have never been higher, affecting everything from shipping and staffing to insurance. A new generation of museum leaders feels more comfortable with blurred lines between nonprofit and commercial spheres, reflecting broader cultural shifts beyond the art world. Public perception of museum philanthropy has also changed amid growing backlash against donors like BP and the Sackler family, plus increased scrutiny of commercial galleries' roles in supporting exhibitions of artists they represent.
Pete Scantland, board chair of the Columbus Museum of Art in Ohio and founder of Orange Barrel Media (which operates PAMM's billboard), poses a provocative question about museum funding models. He asks whether it's more problematic to have programs dictated by galleries and collectors who fund only prominent artists, or to have museums with creative freedom because they've developed independent business models. Orange Barrel Media is developing similar billboard projects for approximately 10 other high-profile American art institutions.
PAMM director Franklin Sirmans, speaking before the Frost Science lawsuit, emphasized the critical importance of new revenue streams as museums confront unprecedented challenges. Beyond hosting advertisements, the billboard promotes museum activities and hosts art commissions, with marketing content occupying around 20 percent of screen time. Sirmans considers this promotional aspect as valuable as the advertising revenue.
The entrepreneurial trend in American museums contrasts sharply with the situation in the United Kingdom, where institutions increasingly rely on private donors rather than commercial ventures. However, experts suggest that British institutions like the Tate and National Portrait Gallery might eventually adopt similar strategies, including giant billboards or consultancy businesses. As Degen observes, the United States often serves as a window into the future for museums worldwide, suggesting these commercial approaches may eventually spread internationally as financial pressures on cultural institutions continue to mount.
