Commercial theatre, like Broadway productions, operate as for-profit businesses with producers raising capital to mount productions. Producers negotiate union contracts and aim to earn a profit after paying a weekly nut of $400,000 or more. The Phantom of the Opera is a highly successful example, earning over $900 million nationally and $4.2 billion internationally over 25 years. Other categories include not-for-profit Off-Broadway, Off-Off Broadway, and regional theatre which operate on grants and donations instead of solely to earn a profit.

1. The Business of Theatre

2. Commercial Theatre
For Profit - “It’s a Business”

3. 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.

4. 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

5. Phantom of the Opera - 1988
As of January
2011, it is the
longest running
Broadway musical

6. June 2013…. Phantom stats
The Producers employ:
10,000 people a year - 1,200 AEA (Eauity)
There are 5 National Tours
Internationally 150 Million people have seen it
in
29 countries
in
13 languages
For a total of: 65,000 performances !
The only B-way show with 28 instruments in the pit

7. Phantom of the Opera
Money to Open
The “Nut”
$8mm
$400K/wk
Ticket Sales
Nut
Profit
$540K/wk
$400K
$140K
Compare to Week Ending December 30, 2012 - $1.75 Million Gross for the week !

8. Phantom (cont.)
40 Weeks to pay off Money to Open
Revenues from:
Ticket Sales
National/International Tours
CD’s & other merchandise
$900+ Million Gross over 25 years
nationally
$4.2 Billion Gross – internationally

9. But . . .
90% of all ventures lose 100%!

12. “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 ++

13. 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)

14. Times Square – 1938

15. 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

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

18. OFF BROADWAY
House Size: 200-499 seats
Has its own “Off-Broadway” Contract
Located all over NYC
Alternative to pricey, commercial
Broadway
Many new plays and works
Non-profit “farm-team” for Broadway

19. Manhattan Theatre Club, NYC

20. Roundabout
Theatre, NYC

21. 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

22. 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 NONPROFIT

23. 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

24. Financed by
Box Office
Corporations
Individuals
Government (Grants)

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

26. Alley Theatre – Houston, TX

27. Denver Center Theatre
Company

28. SHAKESPEARE FESTIVALS
About 80 across the US
Operated in same manner as
LORT/Regional Theatres
Mostly Summer Seasons -- some have
moved to year-round

29. Colorado Shakespeare
Festival

30. Arkansas Shakespeare
Theatre (AST)

32. OUTDOOR DRAMA
The Great Passion Play
Eureka Springs, AR
The Lost Colony
Outer Banks, NC
Tecumseh
Chilicothe, Ohio

33. The Great Passion Play

34. The Lost Colony

35. Tecumseh

36. COMMUNITY THEATRE
EDUCATIONAL THEATRE
SUMMER STOCK THEATRE

37. Other Types of Theatres
Improv Comedy Groups
Dinner Theatres (commercial)

38. SUMMARY - BUSINESS
CATEGORIES
Commercial Theatre: Broadway & Tours
Off-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)