UPDATES: JULY 2019

CHAPTER 13, 18: Box office, Management

            According to a top Class Action lawsuit, the customers said that Ticketmaster sells tickets in bulk on its website to professional resellers and then the tickets are sold at an inflated price. The duo claim that Ticketmaster receives double commission and believe the practice is “unlawful.””

CHAPTER 26:  APPENDIX – Resources and Technology

            ProductionPro has launched Broadway By The Numbers 2019. The site explores the data behind the new shows opening each year. Topics include gender diversity, Broadway debuts, and more.

            PRG Scenic Technologies Celebrates 100,000 Broadway Shows – Founded in 1984 to develop new scenic fabrication and automation techniques for the live entertainment market, PRG Scenic Technologies is the longest continuously running theatrical automation shop in the USA.

CHAPTER 13, 18: Box office, Management

            Dynamic pricing is the practice of adjusting a price to meet its demand, or market value. Given the difficulty of selling 100% of a performance’s tickets and that any unsold tickets immediately expire once a performance starts, dynamic pricing shows promise of lowering ticket prices while increasing revenue for shows. Included are several statistical simulations of pricing scenarios, along with implementable take-aways.

 

###

BACK TO UPDATES

Comments Off on UPDATES: JULY 2019

Filed under

Updates: June 2019

CHAPTER 10: Producing and Investing

Broadway is in the midst, financially and artistically (with a caveat or two), of a new golden age. Every theater is booked, with up to five backup shows hoping to come in when a venue frees up. It’s possible that some musical houses — such as the Gershwin, where the 16-year-old “Wicked” could outlive its producers — may never be on the market again. And of course, “Phantom of the Opera” has been running for over 30 years with “Chicago” and “Lion King” and “Book of Mormon” still running strong.

NYTIMES: This past season, attendance was up 9.5 percent. And overall grosses rose even faster — up 10.3 percent, leading to the sixth record-breaking year in a row. Those are significant developments for an art form ever-worried about its cultural relevance, and they are especially striking during a season dominated by an unexpected bounty of ambitious plays.
In all, 14,768,254 patrons saw Broadway shows last season, for a total box office gross of $1.8 billion, according to figures released Tuesday by the Broadway League … Both totals — measured between May 28, 2018 and May 26, 2019 — are records for an industry that was thought to be dying in the 1970s but has forcefully rebounded.

 

#

 

BACK TO UPDATES

Comments Off on Updates: June 2019

Filed under

The Business of Broadway: May 2019

 

The competition is stiff as usual. The musicals take center stage, the amount of nominations are high. Will this generate ticket sales? Will it amount high viewership for CBS? If you have not seen the productions nominated, will it even matter to you at all? Can James Corden bring it for another year? This and many other questions circle as we are one month away from the big night! Here’s May 2019’s update. Enjoy!

 

 

Updates: May 2019

Comments

Filed under 2019, Just Learn Something, Mitch Weiss, The Business of Broadway, Updates

Updates: May 2019

UPDATES FOR READERS OF “THE BUSINESS OF BROADWAY”

 

May 3, 2019

 

CHAPTER 6: TONY AWARDS

As we all know, nominations, in particular in the categories of Best Musical, Best Play, Best Revival of a Musical or Best Revival of a Play, can mean a bump at the box office on the day of nominations. There is also a bump in website traffic relative to how recognized a show is on Nominations Day. These website visitors may not result in immediate sales. Their interest will be sparked by the nominations and we are now capable of following up with them via remarketing efforts. Best Musical Noms see a 137% average boost in website traffic compared to the day before Best Musical Revival Noms see a 77% boost. Musical without a Best Musical or Revival Nomination see a 24% boost.

 

# # #

 

BACK TO UPDATES

Comments Off on Updates: May 2019

Filed under

The Business of Broadway – April 2019

Spring has sprung. Ah, if only money grew on trees. Well, most of the updates have to do with money because money is always changing. So, between the crazy list of theatrical productions you have planned to see this spring, get out to Central Park and soak up some sun. After all, it’s free! Well, New Yorkers pay taxes for it. Thank a New Yorker! Here’s the April update. Enjoy!

Updates: April 2019

Comments

Filed under Uncategorized

Updates: April 2019

 

CHAPTER 5: (MARKETING & PROMOTION)

A recent eMarketer report announced that 2019 will be the year where US digital ad spending will surpass traditional for the first time ever. We’ve been on this course for quite some time, and it’s finally happening! For Broadway marketing, this is a major adjustment.

CHAPTER 26: (RESOURCES)

The Institute of Financial Wellness for the Arts (IFWA) is a two-pronged venture. One half is a free online database of videos, presentations, and research on the basics of personal finance, the star of which is an hour-long course deconstructing myths about art and commerce. One half is a personal coaching service, which pairs artists with financial advisors, who can assist with both planning and investment management.

#

Comments Off on Updates: April 2019

Filed under

The Business of Broadway – March 2019

This month’s update is about theatre owners. We often hear about the production side of things but, the very houses these productions exist in are just as integral to the industry. The focus this month is on accessibility and the efforts in play to ensure accessibility in all Broadway houses.

Updates: March 2019

Comments

Filed under Uncategorized

Updates: March 2019

CHAPTER 22: Theatre Owners

Broadway theatres have increased efforts to ensure that the theatre is accessible and open to everyone. One major innovation was the introduction of the GalaPro app that offers closed captioning, audio descriptions, and in many cases language translation.These services are offered on-demand, giving those who need access the ability to enjoy any show, anytime, using their own smartphone or mobile device.
In its first half-year of use, nearly 3500 theatregoers have downloaded and used GalaPro in Shubert houses alone. The vast majority are using GalaPro’s closed captioning technology to better understand the words being spoken or sung on stage, but audio descriptions and translations are getting some play too. There was a spike in translation usage in August 2018, most likely due to higher tourism numbers from Europe.

The light from smart phones can be minimalized during the use of this App.

 

#

BACK TO UPDATES

Comments Off on Updates: March 2019

Filed under

The Business of Broadway – February 2019

Love is in the air and “The Business of Broadway” just loves to bring you updates from “The Great White Way”. If Broadway were your significant other, it would all be about money. Money makes this business. Oh, and the artistry…but, without the money…anyway, here’s February 2019’s update!

Updates: February 2019

Comments

Filed under 2019, Just Learn Something, Mitch Weiss, The Business of Broadway, Updates

Updates: February 2019

CHAPTER 5: Marketing / 9: Selling a Flop

 

The Technology that has come to Broadway ticket sales:

When sports commentators note the wind speed and wind direction associated with Olympic sprinters’ race times, they’re using contextual data. The 47 extracurricular activities tacked on to a college applicant’s GPA and test scores? Contextual data. 
So what and where is this data for Broadway ticket buyers and theatergoers? A great source of contextual data are integrated messaging tools that allow people to tell a site what they’re looking for. People often provide more context within a message inquiry, so instead of just a clicking on a “Get Tickets” button, they’ll message, “I’m looking for two tickets in March for my 10th Anniversary.” 

Now we know the basics—two tickets for a March performance—but we also have a contextual data point. Since an important event is prompting the purchase we can predict a couple things: it’s more likely they will want to purchase far in advance, and they are more likely to want better seats (and a higher price point) compared to the average buyer. 

With that important info, we can provide a highly targeted offer, shorten the purchase search timeframe, and convert the inquiry at a higher rate.

 

CHAPTER 10: Producing and Investing 

There are new warnings for producers and investors about bundling money for Broadway shows. Bundling, in simple terms, is when one investor collects investment money from a group of smaller investors and presents it together for greater impact on the production. The Securities and Exchange Commission is considering slapping individuals and their lead producers with civil penalties for operating as “unregistered broker-dealers.” The SEC requires broker-dealers to be registered as such.  

To get around this rule, individuals/”co-producers” should stop publicly soliciting investors through social media or emails and avoid advising investors as to the investment’s value and financial prospects which may trigger an investigation by the S.E.C. 

Also, lead producers should limit the way co-producers” (“bundlers”) can participate. After finding a potential investor, a co-producer can only introduce that investor to the lead producer. The co-producer should operate as a finder, and not a broker-dealer.

CHAPTER 10: Producing and Investing

January 2019: Forbes Magazine is telling us that musicals are making more money on the road than on Broadway. While box office revenues on Broadway have fallen in recent weeks as tourists left New York and the cold winter weather set in, box office revenues of Broadway shows touring across the nation are still quite high. In fact, some musicals made more money last week on the road than on Broadway. … The highest-grossing musical each week on Broadway, Hamilton, also appears to make more money on the road in larger theaters. The tour made $4,309,027 during the previous week, which is more money than the record-breaking show has ever made during a week on Broadway.

CHAPTER 15: Actors

Actors’ Equity Lab and Workshop Contracts have been replaced by a three-tiered agreement with the Broadway League (producers and theatre owners). This comes after 33-day strike prohibiting actors from participating in developmental labs and workshops of new shows. Some rules from the staged reading contract remain. 

Actors and stage managers who develop a show with a League producer will split 1 percent of a Broadway show’s profits once it reaches 110% recoupment, according to the new contract, in an arrangement that lasts 10 years. It will also include profits from touring productions.

Salaries were also increased. Tier One (2 weeks of development work), which does not allow props or choreography has set a minimum weekly salary of $550. Tier Two (2 weeks of work), which allows choreography only), pays a minimum of $900 per week. There is no profit-sharing in either of these tiered contracts. Staged reading rules apply with strict limits on the number times a work can utilize the contract.

In Tier Three of the new agreement, which covers developmental work that lasts between two to eight weeks and includes props and choreography, the minimum salary is now set at $1,250 plus profit-sharing as stated above. All of the above includes pension and health payments as well.

The fact that only 18,000 out of 50,000-odd members of Actors’ Equity ever worked in a given year, and worked, on average, just 16.4 weeks during that year, is more than just unimpressive. (Equity’s own report) And there had not been a raise given in to actors working in “Labs” in over 11 years.

The union had taken the bold move of warning that all non-union actors and stage managers “will be prohibited from joining the union in the future if they agree to take work that is subject to Equity’s strike.”   

With the fortunes being earned by mega-hits like Hamilton, actors who worked in and contributed to the show in its earliest stages were not happy that there was absolutely no financial reward for their work. Hamilton and Mean Girls responded by previously agreeing to profit-sharing realizing their debt to these performersand Equity saw this as a way forward. Of course, the chance that the vast majority of shows earning a profit to share is extremely small.

 

 

# # #

BACK TO UPDATES

Comments Off on Updates: February 2019

Filed under