the business of theatre

The Business of Theatre

Commercial Theatre

For Profit - “It’s a Business”

Commercial Producer

runs the business (like a CEO)sells the idea raises money: Angels (stockholders)

The Producer can be an individual or a consortium of people.

Producer negotiates Union Contracts

11+ Unions on Broadway (from actors to ushers) – for example: AEA – Actor’s Equity Association (1917) - for actors

and stage managers

SDC-Society of Stage Directors & Choreographers

Musicians Unions (3-4) ASCAP, AFM, etc

Other AFL-CIO union affiliates: Ironworkers, painters, makeup artists, hairdressers, wardrobe and costume, carpenters, electricians, ushers/house managers, backstage hands

Phantom of the Opera - 1988

As of January 2011, it is the longest running Broadway musical

June 2013…. Phantom statsThe Producers employ:

10,000 people a year - 1,200 AEA (Eauity)

There are 5 National Tours

Internationally 150 Million people have seen itin 29 countriesin 13 languagesFor a total of: 65,000 performances !

The only B-way show with 28 instruments in the pit

Phantom of the Opera

Money to Open $8mmThe “Nut” $400K/wk

Ticket Sales $540K/wkNut $400KProfit $140K

Compare to Week Ending December 30, 2012 - $1.75 Million Gross for the week !

Phantom (cont.)

40 Weeks to pay off Money to OpenRevenues from:

Ticket Sales National/International Tours CD’s & other merchandise

$900+ Million Gross over 25 years nationally

$4.2 Billion Gross – internationally

But . . .

90% of all ventures lose 100%!

“Spiderman”….Lights Out !

Spiderman closed this fall because the producers lost too much money and couldn’t get it technically ready for international rights

It cost the producers $75 MILLION to open the show in 2010 !

The “nut” for the show in the first year was $1 mill ++

NEW YORK CITY

Several different business types of theatre in NYC: Broadway (Commercial) Off-Broadway (Commercial and Not-for-

Profit) Off-off Broadway (Non-profit) Regional theatres (Non-profit)

Times Square – 1938

BROADWAY-COMMERCIAL

Broadway is a Theatre district in NYC with currently 40 B’dway theatres operating

House Size: 500+ seat spaces work under a

“Production” or “Commercial Broadway” Contract

“National Touring” contracts are like Broadway contracts but include clauses for housing

Commercial appeal: lots of musicals and spectacle

Commercial theatre is produced outside New York in the form of: Dinner Theatres Comedy Improv Theatre Tours Las Vegas-type shows

OFF BROADWAY

House Size: 200-499 seatsHas its own “Off-Broadway” ContractLocated all over NYCAlternative to pricey, commercial

BroadwayMany new plays and works Non-profit “farm-team” for Broadway

Manhattan Theatre Club, NYC

Roundabout Theatre, NYC

OFF-OFF BROADWAY

Greenwich Village, East Village, Uptown – where ever !

Experimental and Avant-garde Always non-profit, rarely ever Commercial Actors, Directors, Designers work for little money or

travel expenses only Good showcase for young professionals

Examples: LaMama in the lower east side T.Schrieber in Chelsea district Symphony Space in Chelsea district

COMMERCIAL vs. NOT-FOR-PROFIT…..

NOT-FOR-PROFIT legal, tax status: 501(c)3 Advantageous for small operations

Regional Theatres, Community Theatres, Educational Theatres are all NON-PROFIT

RESIDENT PROFESSIONAL THEATRES or REGIONAL THEATRES Professional non-profit theatres

League of Resident Theatres, or L.O.R.T. – special contract with unions (5 kinds of LORT contracts – “A” through ”E”, depending on size of theatre

Traditionally perform “in rep” (repertory) with a resident company of actors and designers

Owned by: Board of Directors (Trustees) - own & manage facilities –

governs Run by:

Producing or Managing Director - runs the business, produces Artistic Director - responsible for the artistic values

Financed by

Box OfficeCorporationsIndividualsGovernment (Grants)

Arena Stage -- Washington, DC. (f. 1950)

Alley Theatre – Houston, TX

Denver Center Theatre Company

SHAKESPEARE FESTIVALS

About 80 across the USOperated in same manner as

LORT/Regional TheatresMostly Summer Seasons -- some

have moved to year-round

Colorado Shakespeare Festival

Arkansas Shakespeare Theatre (AST)

OUTDOOR DRAMA

The Great Passion Play Eureka Springs, AR

The Lost Colony Outer Banks, NC

Tecumseh Chilicothe, Ohio

The Great Passion Play

The Lost Colony

Tecumseh

COMMUNITY THEATRE

EDUCATIONAL THEATRE

SUMMER STOCK THEATRE

Other Types of Theatres

Improv Comedy GroupsDinner Theatres (commercial)

SUMMARY - BUSINESS CATEGORIES

Commercial Theatre: Broadway & ToursOff-Broadway (mostly NFP in NYC only)Off-off-Broadway (NFP in NYC only)Regional (LORT)Theatre (NFP)Educational Theatre (NFP)Community Theatre (NFP)Shakespeare Festivals (NFP)Summer Stock (NFP)