Under this model yes, but no one said this was the only possible model. It's an idea, not a fully fleshed out proposal.

First, people can give directed donations if they like.

There would be multiple funds, so presumably the funds would differentiate based on genre. And people would sign up for the funds that have the type of entertainment and art (or even lectures) they prefer.

Everything here is completely voluntary. The funds would act as agents, and advertisers.

A fund would attract a performer based on how good a job the fund does on getting that performer an audience. A performer would attract a fund based on how happy people are with the performer. People would sign up with a fund based on the quality of the performers.

So if a performer is not happy with his cut of the donations they would find a different fund. If a fund is not happy with how many people are donating they would try to find better performers. And if the donors are not happy with the types of shows they would find a different fund.

So the incentives are all aligned properly. (As long as people are actually willing to donate.)

It would probably require some fine tuning to get it right. In particular there is a strong network effect, and positive feedback (the larger you are the larger you get), so this will have to be toned down somehow.

This is sort of like a subscription model, but for live events. This could of course be done while maintaining copyright, but the whole idea is to find an alternative to that.