The Hong Kong Arts Development Council announced plans for a significant overhaul of funding for major performing arts groups, linking funding to performance and artistic merits. Under the new mechanism, a baseline subvention and a performance-based grant will each comprise half of the annual allocation. Art groups aiming for higher performance standards may see improved funding, while those underperforming could lose their status. The reforms will be phased in from 2027-28, with full implementation expected by 2032-33. While the government's annual funding to major performing arts groups has nearly tripled over the past two decades, the number of audience members and attendance rates have declined. Chris Ip, vice-chairman of the Arts Development Council, explained that the reforms will set a clear performance-based goal for the arts groups, fostering their development and enhancing the cultural sector's ecosystem. The council is optimistic that the five-year transitional period will allow arts groups to adapt and develop strategically. Artists like Celina Chin from the Hong Kong Chinese Orchestra noted that the funding changes reflect broader shifts in audience behavior and preferences towards home entertainment and earlier concert times to align with lifestyles. This adaptation will require arts groups to make tough choices and potentially change their direction to maintain their positions.