November 1, 2018
Chapter 5 (Promotion and Marketing):
NEWEST PATH TO SUBSIDIARY INCOME:
A new digital platform called “Streaming Musicals,” dedicated to streaming shows that have been captured on a soundstage or theatrical stage without an audience present (and filmed specifically for the screen) debuted on October 3 with Paul Gordon’s musical Emma, filmed this past spring at the Westside Theatre Off-Broadway. The filmed production will be available for purchase for $19.99 and to rent for $7.99 at StreamingMusicals.com. No subscription is necessary.
Chapter 10 (Producing & Investing):
Investors of the failed “Nerds” musical are suing the lead producers claiming they mislead them into believing the musical had the needed funding in place. The 13 investors allege that the show was never “adequately capitalized” and say that the producers falsely cited the loss of a major investor for the closing of the show before it began previews, even though there was no major investor. The plaintiffs are seeking relief for their capital contributions, which amounted to more than $600,000, as well as a minimum of $5 million in punitive damages to be determined at trial. It should be noted that New York State law forbids any Broadway production to begin rehearsals unless it is fully capitalized.
Chapter 13 (Box Office)
More scams every producer should know about: New York’s Attorney General is probing a widespread, but little known tactic used by ticket scalpers to rake in cash even before they buy up Broadway seats. The strategy is called speculative ticket sales or “short selling.” The practice involves posting ads on re-sale websites that promise seats to buyers — before the sellers even have the tickets in hand. Once a buyer pays for the tickets, a short seller tries to track down the seats for a cheaper price –- and pocket the difference.”
Chapter 13 (Box Office)
Run by the not-for-profit Theatre Development Fund, TKTS provides discounted same-day Broadway and off-Broadway tickets. The most popular TKTS booth is in Times Square on 47th/7th Avenue, with satellite booths at Lincoln Center and South Street Seaport. Accounting for 12% of all tickets sold (Broadway League Demographics 2016-2017), this equates to over 1.4 million tickets and $104 million returned to the shows. That’s a lot of tickets.
# # #