Welsh National Opera worried over long-term funding
Arts companies face cuts of up to 3.5% to the public money they will receive from April, the Arts Council of Wales (ACW) has announced.
Larger companies like Welsh National Opera (WNO) and National Theatre Wales (NTW) will see budgets fall.
Altogether, 67 organisations will share funding of £27.5m.
ACW chairman Prof Dai Smith said it had been a "challenging" process but a third of organisations - mostly smaller arts groups - will not see any cuts.
WNO chairman Geraint Talfan Davies said he was worried about the potential for more cuts in the longer term, after ACW funding for the next year was unveiled.